Document:

EX-10.15

 Exhibit 10.15 

TRANSITION AGREEMENT AND RELEASE 

This Transition Agreement and Release (“Agreement”) is made by and between David M. Hilbert, Ph.D. (“Employee”) and
Arcellx, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”). 

RECITALS 
 WHEREAS,
Employee was employed by the Company; 
 WHEREAS, Employee signed an offer letter with the Company on November 10, 2017, as amended on
January 26, 2021 (the “Offer Letter”); 
 WHEREAS, Employee signed an At-Will
Employment, Confidential Information, Invention Assignment, and Arbitration Agreement with the Company on March 29, 2015 (the “Confidentiality Agreement”); 

WHEREAS, the Company and Employee have entered into stock option agreements dated June 26, 2017 (as amended on November 10, 2017),
December 8, 2017, September 18, 2018, January 31, 2021, and June 9, 2021, in each case granting Employee the option to purchase shares of the Company’s common stock subject to the terms and conditions of the Company’s
2017 Equity Incentive Plan (the “Plan”) and the applicable stock option agreement (collectively the “Stock Agreements,” and such stock options, the “Options”); 

WHEREAS, Employee’s employment with the Company ended without Cause (as defined in the Offer Letter) effective January 1, 2022 (the
“Separation Date”); and 
 WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges,
actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or
separation from the Company; 
 NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree
as follows: 
 COVENANTS 

1. Consideration. In consideration of Employee’s execution of this Agreement and Employee’s fulfillment of all of its terms
and conditions, and provided that Employee does not revoke the Agreement under Section 6 below, the Company agrees as follows: 
 a.
Payment. The Company agrees to pay Employee (i) a lump sum equal to six (6) months of Employees’ base salary, less applicable withholdings, and (ii) a lump sum of $75,000, which is equal to your additional bonus award
approved by the Board on March 17, 2021, subject to applicable withholdings and deductions. This payment will be made to Employee within ten (10) business days after the Effective Date of this Agreement. In addition, the Company agrees
that Employee will remain eligible to receive a bonus award pursuant to Employee’s Offer Letter, which shall have a target amount of $166,400, which is equal to 40% of Employee’s annual base salary for fiscal year 2021, subject to
applicable withholdings and deductions (the “Bonus Severance”). The amount of the Bonus Severance, which may be $0, will be determined by the Company’s board of directors in its sole discretion based on achievement of the
Company’s corporate performance goals for the Company’s 2021 fiscal year. The Bonus Severance will be paid at the same time as all other executive bonus awards are paid for fiscal year 2021 (if any); provided, however that Employee must be
continuing to provide consulting services pursuant to the Consulting Agreement (as defined below) at the time of payment in order to receive the Bonus Severance. 

b. Consulting Agreement. The Company agrees to retain Employee to perform transition services for the Company as a consultant, in which
role Employee shall provide ad hoc consulting services to the Company as an independent contractor, between January 2, 2022 and June 30, 2022, pursuant to the terms of the consulting agreement attached hereto as Exhibit A
(the “Consulting Agreement”) (such period during which the Consulting Agreement is in effect 

 
and hasn’t been terminated, the “Consulting Period”). The Consulting Period may be extended until December 31, 2022 by a mutual written agreement signed by the Parties.
Nothing in this Agreement or the Consulting Agreement pertaining to Employee’s anticipated role as a consultant shall in any way be construed to constitute Employee as a continuing agent, officer, executive, or representative of the Company
after the Separation Date, but Employee shall perform the services under the Consulting Agreement solely as an independent contractor. 
 c.
COBRA. The Company will provide the Employee a taxable payment in an amount equal to the monthly Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) premium that the Employee would be required to pay to
continue the Employee’s group health coverage in effect on the date of termination of employment (which amount will be based on the premium for the first month of COBRA coverage), which payments will be made regardless of whether the Employee
elects COBRA continuation coverage and will commence in the month following the month of the Separation Date and continue for the period of twelve (12) months. 

d. Supplemental Release Consideration/Extension of Option Post-Service Exercisability Period. If Employee remains employed with the
Company through January 1, 2022, during such period the Company shall not involuntarily terminate Employee’s employment without Cause (as defined in the Offer Letter), continues to provide consulting services through the Consulting Period,
and executes the Supplemental Release Agreement as set forth in Section 1.e., the post-service exercisability period of each of the Options pursuant to the Stock Agreements shall be extended such that each Option, to the extent vested,
outstanding and exercisable as of the end of the Consulting Period, will be exercisable until the earlier of (i) twelve (12) months from the date of the end of the Consulting Period or (ii) the applicable Option’s expiration date, as
set forth in the applicable Stock Agreement, unless otherwise earlier terminated in accordance with the Plan (the “Supplemental Release Consideration”). Employee acknowledges and agrees that this Agreement is a “modification” of
each Option under the Internal Revenue Code of 1986, as amended (the “Code”) and, to the extent any Option or portion thereof is treated as an incentive stock option, entering into this Agreement with respect to such Options will result in
converting the incentive stock options into nonstatutory stock options as of the Effective Date. Employee acknowledges and agrees that Employee remains solely responsible for all tax obligations associated with any exercise of the Options. Except as
amended hereby, each Option will remain subject to the terms and conditions of the applicable Stock Agreement. 
 e. Supplemental Release
Agreement. In exchange for the Supplemental Release Consideration, Employee agrees to execute, within seven (7) days of the termination of the Consulting Period, the Supplemental Release attached hereto as Exhibit B, which agreement
will serve to cover the time period from the Effective Date of this Agreement through the Supplemental Release Effective Date; provided, however, the Parties agree to modify the Supplemental Release to comply with any new laws that become applicable
prior to the termination of the Consulting Period. Employee understands and agrees that Employee will only be entitled to the consideration set forth in Section 1.d. if Employee executes the Supplemental Release within the time allotted in this
Section 1.e. and does not revoke that agreement. If Employee fails to sign this Agreement or revokes his signature, the Company will not extend the exercise period of the Options. 

f. General. Employee acknowledges that without this Agreement, Employee is otherwise not entitled to the consideration listed in this
Section 1. 
 2. Stock. Company and Employee agree that Employee will continue to serve as a Service Provider (as defined in the
Plan) during the term of the Consulting Agreement, and shall continue to vest during such period subject to the terms and conditions of the applicable Stock Agreements and the Plan. The Parties agree that for purposes of determining the number of
shares of the Company’s common stock that have vested under the Options, Employee will be considered to have vested only up to the date Employee ceases to be a Service Provider pursuant to the Consulting Agreement. Except as provided in
Section 1() above, each Option and the shares subject thereto shall continue to be governed by the terms and conditions of the applicable Stock Agreements. 

3. Benefits. Employee’s health insurance benefits shall cease on January 31, 2022, subject to Employee’s right to
continue Employee’s health insurance under COBRA. Employee’s participation in all benefits and incidents of employment, including, but not limited to, the accrual of bonuses, vacation, and paid time off, ceased as of the Separation
Date. 

 4. Payment of Salary and Receipt of All Benefits. Employee acknowledges and
represents that, other than the consideration set forth in this Agreement, the Company and its agents have paid or provided all salary, wages, bonuses, accrued vacation/paid time off, notice periods, premiums, leaves, housing allowances, relocation
costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee. 

5. Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed
to Employee by the Company and its current and former: officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, professional employer organization or co-employer, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”). Employee, on Employee’s own behalf and on behalf
of Employee’s respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge,
duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or
damages that have occurred up until and including the signature date of this Agreement, including, without limitation: 
 a. any and all
claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship; 
 b.
any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of
duty under applicable state corporate law, and securities fraud under any state or federal law; 
 c. any and all claims for wrongful
discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation;
libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits; 

d. any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil
Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act
of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the Uniformed Services Employment and
Reemployment Rights Act; the Maryland Fair Employment Practices Act; the Maryland Human Relations Law; the Maryland Equal Pay For Equal Work Law; the Maryland False Claims Act; and the Maryland Parental Leave Act; 

e. any and all claims for violation of the federal or any state constitution; 

f. any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; 

g. any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the
proceeds received by Employee as a result of this Agreement; and 
 h. any and all claims for attorneys’ fees and costs. 

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters
released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including any Protected Activity (as defined below). This release does not
extend to any right Employee may have to unemployment compensation benefits or workers’ compensation benefits. Employee represents that Employee has made no assignment or transfer of any right, claim, complaint, charge, duty, obligation,
demand, cause of action, or other matter waived or released by this Section. 

 6. Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that Employee
is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Employee agrees that this waiver and release does not apply
to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already
entitled. Employee further acknowledges that Employee has been advised by this writing that: (a) Employee should consult with an attorney prior to executing this Agreement; (b) Employee has
twenty-one (21) days within which to consider this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement; (d) this
Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the
ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. Employee acknowledges and understands
that revocation must be accomplished by a written notification to the undersigned Company representative that is received prior to the Effective Date. The Parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period. 
 7. Unknown Claims. Employee acknowledges that Employee has been advised to consult
with legal counsel and that Employee is familiar with the principle that a general release does not extend to claims that the releaser does not know or suspect to exist in Employee’s favor at the time of executing the release, which, if known
by Employee, must have materially affected Employee’s settlement with the releasee. Employee, being aware of said principle, agrees to expressly waive any rights Employee may have to that effect, as well as under any other statute or common law
principles of similar effect. 
 8. No Pending or Future Lawsuits. Employee represents that Employee has no lawsuits, claims, or
actions pending in Employee’s name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also represents that Employee does not intend to bring any claims on Employee’s own behalf or on
behalf of any other person or entity against the Company or any of the other Releasees. 
 9. Confidentiality. Employee agrees to
maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”). Except as required by
law, Employee may disclose Separation Information only to Employee’s immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s counsel, and Employee’s accountant and any professional tax
advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties. Employee agrees that
Employee will not publicize, directly or indirectly, any Separation Information. 
 10. Trade Secrets and Confidential Information/Company
Property. Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and
proprietary information, non-competition, and nonsolicitation of Company employees. Employee agrees that the above reaffirmation and agreement with the Confidentiality Agreement shall constitute a new and
separately enforceable agreement to abide by the terms of the Confidentiality Agreement, entered and effective as of the Effective Date. Employee specifically acknowledges and agrees that any violation of the restrictive covenants in the
Confidentiality Agreement shall constitute a material breach of this Agreement. Employee’s signature below constitutes Employee’s certification that Employee agrees to return all documents and other items provided to Employee by the
Company, developed or obtained by Employee in connection with Employee’s service relationship with the Company, or otherwise belonging to the Company, including, but not limited to, all passwords to any software or other programs or data that
Employee used in performing services for the Company, no later than Employee’s last day of service with the Company. 
 11. No
Cooperation. Employee agrees that Employee will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third
party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court
order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances,
claims, charges, or complaints against any of the Releasees, Employee shall state no more than that Employee cannot provide counsel or assistance. 

 12. Nondisparagement. Employee agrees to refrain from any disparagement, defamation,
libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees. Employee shall direct any inquiries by potential future employers to the Company’s
human resources department. 
 13. Breach. In addition to the rights provided in the “Attorneys’ Fees” section below,
Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of
any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain damages, except as provided by law, provided,
however, that the Company shall not recover One Hundred Dollars ($100.00) of the consideration already paid pursuant to this Agreement and such amount shall serve as full and complete consideration for the promises and obligations assumed by
Employee under this Agreement and the Confidentiality Agreement. 
 14. No Admission of Liability. Employee understands and
acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee. No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed
or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party. 

15. Costs. The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation
of this Agreement. 
 16. ARBITRATION. THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR
INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN MONTGOMERY COUNTY, MARYLAND BEFORE THE JUDICIAL ARBITRATION AND MEDIATION SERVICE (“JAMS”) UNDER ITS COMPREHENSIVE ARBITRATION RULES (“JAMS
RULES”) AND MARYLAND LAW. THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH MARYLAND LAW, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND
PROCEDURAL MARYLAND LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH
MARYLAND LAW, MARYLAND LAW SHALL TAKE PRECEDENCE. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO
INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE PARTIES TO THE ARBITRATION SHALL EACH PAY HALF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL
FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES AGREE THAT PUNITIVE DAMAGES SHALL BE UNAVAILABLE IN ARBITRATION. THE PARTIES
HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL
REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS
PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN. 

17. Tax Consequences. The Company makes no representations or warranties with respect to the tax consequences of the payments and any
other consideration provided to Employee or made on Employee’s behalf under the terms of this Agreement. Employee agrees and understands that Employee is responsible for payment, if any, of local, state,

 
and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon. Employee further agrees to indemnify and hold the
Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Employee’s failure
to pay, or Employee’s delayed payment of, federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs. 

18. Section 409A. It is intended that this Agreement comply with, or be exempt from, Code Section 409A and the final regulations
and official guidance thereunder (“Section 409A”) and any ambiguities herein will be interpreted to so comply and/or be exempt from Section 409A. Each payment and benefit to be paid or provided under this Agreement is intended to
constitute a series of separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. The Company and Employee will work together in good faith to consider either
(i) amendments to this Agreement; or (ii) revisions to this Agreement with respect to the payment of any awards, which are necessary or appropriate to avoid imposition of any additional tax or income recognition prior to the actual payment
to Employee under Section 409A. In no event will the Releasees reimburse Employee for any taxes that may be imposed on Employee as a result of Section 409A. 

19. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind
the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to
bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 20. Protected Activity. Employee understands that nothing in this Agreement shall in any way limit or prohibit Employee from
engaging for a lawful purpose in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating with, cooperating with or participating in any
investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health
Administration, and the National Labor Relations Board (“Government Agencies”). Employee understands that in connection with such Protected Activity, Employee is permitted to disclose documents or other information as permitted by law, and
without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company
confidential information under the Confidentiality Agreement to any parties other than the relevant Government Agencies. Employee further understands that “Protected Activity” does not include the disclosure of any Company attorney-client
privileged communications, and that any such disclosure without the Company’s written consent shall constitute a material breach of this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Employee is notified that an
individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly)
or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under
seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court
proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. 

21. No Representations. Employee represents that Employee has had an opportunity to consult with an attorney, and has carefully read and
understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement. 

22. Severability. In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof
becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision. 

 23. Attorneys’ Fees. Except with regard to a legal action
challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to
recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action. 

24. Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning the
subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the
subject matter of this Agreement and Employee’s relationship with the Company, including the Offer Letter, with the exception of the Confidentiality Agreement and the Stock Agreements. 

25. No Oral Modification. This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive
Officer. 
 26. Governing Law. This Agreement shall be governed by the laws of the State of Maryland, without regard for choice-of-law provisions. Employee consents to personal and exclusive jurisdiction and venue in the State of Maryland. 

27. Effective Date. Employee understands that this Agreement shall be null and void if not executed by Employee, and returned to the
Company, within the twenty-one (21) days following the Separation Date. In no event shall Employee sign this Agreement earlier than the Separation Date. Each Party has seven (7) days after that Party
signs this Agreement to revoke it. This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the
“Effective Date”). 
 28. Counterparts. This Agreement may be executed in counterparts and each counterpart shall be deemed
an original and all of which counterparts taken together shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. The counterparts of this Agreement may be
executed and delivered by facsimile, photo, email PDF, Docusign/Echosign or a similarly accredited secure signature service, or other electronic transmission or signature. This Agreement may be executed in one or more counterparts, and counterparts
may be exchanged by electronic transmission (including by email), each of which will be deemed an original, but all of which together constitute one and the same instrument. 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

 29. Voluntary Execution of Agreement. Employee understands and agrees that Employee
executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees.
Employee acknowledges that: 
  

	 	(a)	 Employee has read this Agreement; 

 

	 	(b)	 Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel
of Employee’s own choice or has elected not to retain legal counsel; 

  

	 	(c)	 Employee understands the terms and consequences of this Agreement and of the releases it contains; and

  

	 	(d)	 Employee is fully aware of the legal and binding effect of this Agreement. 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 

 

							
		 		 		 	DAVID M. HILBERT, PH.D., an individual
				
	Dated: 12/31/2021	 		 		 	 /s/ David M. Hilber

		 		 		 	David M. Hilbert, Ph.D.
				
		 		 		 	ARCELLX, INC.
				
	Dated: December 16, 2021	 		 	By	 	 /s/ Rami Elghandour

		 		 		 	Rami Elghandour
		 		 		 	Chief Executive Officer

 EXHIBIT A 

ARCELLX, INC. CONSULTING AGREEMENT 

This Consulting Agreement (this “Agreement”) is by and between Arcellx, Inc. (the “Company”),
and David M. Hilbert, Ph.D. (“Consultant”) (each herein referred to individually as a “Party,” or collectively as the “Parties”) and effective as of January 2, 2022 (the
“Effective Date”). 
 The Company desires to retain Consultant as an independent contractor to perform consulting
services for the Company, and Consultant is willing to perform such services, on the terms described below. In consideration of the mutual promises contained herein, the Parties agree as follows: 

1. Services and Compensation 

Consultant shall perform the services described in Exhibit A-1 (the
“Services”) for the Company (or its designee), and the Company agrees to pay Consultant the compensation described in Exhibit A-1 for Consultant’s
performance of the Services. 
 2. Confidentiality 

A. Definition of Confidential Information. “Confidential Information” means any information
(including any and all combinations of individual items of information) that relates to the actual or anticipated business and/or products, research or development of the Company, its affiliates or subsidiaries, or to the Company’s, its
affiliates’ or subsidiaries’ technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s, its
affiliates’ or subsidiaries’ products or services and markets therefor, customer lists and customers (including, but not limited to, customers of the Company on whom Consultant called or with whom Consultant became acquainted during the
term of this Agreement), software, developments, inventions, discoveries, ideas, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by
the Company, its affiliates or subsidiaries, either directly or indirectly, in writing, orally or by drawings or inspection of premises, parts, equipment, or other property of the Company, its affiliates or subsidiaries. Notwithstanding the
foregoing, Confidential Information shall not include any such information which Consultant can establish (i) was publicly known or made generally available prior to the time of disclosure to Consultant; (ii) becomes publicly known or made
generally available after disclosure to Consultant through no wrongful action or inaction of Consultant; or (iii) is in the rightful possession of Consultant, without confidentiality obligations, at the time of disclosure as shown by
Consultant’s then-contemporaneous written records; provided that any combination of individual items of information shall not be deemed to be within any of the foregoing exceptions merely because one or more of the individual items are within
such exception, unless the combination as a whole is within such exception. 
 B. Nonuse and Nondisclosure. During and
after the term of this Agreement, Consultant will hold in the strictest confidence, and take all reasonable precautions to prevent any unauthorized use or disclosure of Confidential Information, and Consultant will not (i) use the Confidential
Information for any purpose whatsoever other than as necessary for the performance of the Services on behalf of the Company, or (ii) subject to Consultant’s right to engage in Protected Activity (as defined below) disclose the Confidential
Information to any third party without the prior written consent of an authorized representative of the Company, except that Consultant may disclose Confidential Information to the extent compelled by applicable law; provided however, prior
to such disclosure, Consultant shall provide prior written notice to the Company and seek a protective order or such similar confidential protection as may be available under applicable law. Consultant agrees that no ownership of Confidential
Information is conveyed to the Consultant. Without limiting the foregoing, Consultant shall not use or disclose any Company property, intellectual property rights, trade secrets or other proprietary know-how
of the Company to invent, author, make, develop, design, or otherwise enable others to invent, author, make, develop, or design identical or substantially similar designs as those developed under this Agreement for any third party. Consultant agrees
that Consultant’s obligations under this Section 2.B shall continue after the termination of this Agreement. 
 C. Other
Client Confidential Information. Consultant agrees that Consultant will not improperly use, disclose, or induce the Company to use any proprietary information or trade secrets of any former or current employer of Consultant or other
person or entity with which Consultant has an obligation to keep in confidence. Consultant also agrees that Consultant will not bring onto the Company’s premises or transfer onto the Company’s technology systems any unpublished document,
proprietary information, or trade secrets belonging to any third party unless disclosure to, and use by, the Company has been consented to in writing by such third party. 
  

 D. Third Party Confidential Information. Consultant recognizes that the
Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain
limited purposes. Consultant agrees that at all times during the term of this Agreement and thereafter, Consultant owes the Company and such third parties a duty to hold all such confidential or proprietary information in the strictest confidence
and not to use it or to disclose it to any person, firm, corporation, or other third party except as necessary in carrying out the Services for the Company consistent with the Company’s agreement with such third party. 

3. Ownership 
 A.
Assignment of Inventions. Consultant agrees that all right, title, and interest in and to any copyrightable material, notes, records, drawings, designs, inventions, improvements, developments, discoveries, ideas, and trade
secrets conceived, discovered, authored, invented, developed or reduced to practice by Consultant, solely or in collaboration with others, during the term of this Agreement and arising out of, or in connection with, performing the Services under
this Agreement and any copyrights, patents, trade secrets, mask work rights or other intellectual property rights relating to the foregoing (collectively, “Inventions”), are the sole property of the Company. Consultant also
agrees to promptly make full written disclosure to the Company of any Inventions and to deliver and assign (or cause to be assigned) and hereby irrevocably assigns fully to the Company all right, title and interest in and to the Inventions. 

B. Pre-Existing Materials. Subject to Section 3.A, Consultant will provide
the Company with prior written notice if, in the course of performing the Services, Consultant incorporates into any Invention or utilizes in the performance of the Services any invention, discovery, idea, original works of authorship, development,
improvements, trade secret, concept, or other proprietary information or intellectual property right owned by Consultant or in which Consultant has an interest, prior to, or separate from, performing the Services under this Agreement
(“Prior Inventions”), and the Company is hereby granted a nonexclusive, royalty-free, perpetual, irrevocable, transferable, worldwide license (with the right to grant and authorize sublicenses) to make, have made, use,
import, offer for sale, sell, reproduce, distribute, modify, adapt, prepare derivative works of, display, perform, and otherwise exploit such Prior Inventions, without restriction, including, without limitation, as part of or in connection with such
Invention, and to practice any method related thereto. Consultant will not incorporate any invention, discovery, idea, original works of authorship, development, improvements, trade secret, concept, or other proprietary information or intellectual
property right owned by any third party into any Invention without the Company’s prior written permission, including without limitation any free software or open source software. 

C. Moral Rights. Any assignment to the Company of Inventions includes all rights of attribution, paternity, integrity,
modification, disclosure and withdrawal, and any other rights throughout the world that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively,
“Moral Rights”). To the extent that Moral Rights cannot be assigned under applicable law, Consultant hereby waives and agrees not to enforce any and all Moral Rights, including, without limitation, any limitation on
subsequent modification, to the extent permitted under applicable law. 
 D. Maintenance of Records. Consultant agrees
to keep and maintain adequate, current, accurate, and authentic written records of all Inventions made by Consultant (solely or jointly with others) during the term of this Agreement, and for a period of three (3) years thereafter. The records
will be in the form of notes, sketches, drawings, electronic files, reports, or any other format that is customary in the industry and/or otherwise specified by the Company. Such records are and remain the sole property of the Company at all times
and upon the Company’s request, Consultant shall deliver (or cause to be delivered) the same. 
 E. Further
Assurances. Consultant agrees to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in Inventions in any and all countries, including the disclosure to the
Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments that the Company may deem necessary in order to apply for, register, obtain,
maintain, defend, and enforce such rights, and in order to deliver, assign and convey to the Company, its successors, assigns and nominees the sole and exclusive right, title, and interest in and to all Inventions and testifying in a suit or other
proceeding relating to such Inventions. Consultant further agrees that Consultant’s obligations under this Section 3.E shall continue after the termination of this Agreement.  

 F.
Attorney-in-Fact. Consultant agrees that, if the Company is unable because of Consultant’s unavailability, dissolution, mental or physical
incapacity, or for any other reason, to secure Consultant’s signature with respect to any Inventions, including, without limitation, for the purpose of applying for or pursuing any application for any United States or foreign patents or mask
work or copyright registrations covering the Inventions assigned to the Company in Section 3.A, then Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Consultant’s agent and attorney-in-fact, to act for and on Consultant’s behalf to execute and file any papers and oaths and to do all other lawfully permitted acts with respect to such
Inventions to further the prosecution and issuance of patents, copyright and mask work registrations with the same legal force and effect as if executed by Consultant. This power of attorney shall be deemed coupled with an interest, and shall be
irrevocable. 
 4. Conflicting Obligations 

A. Consultant represents and warrants that Consultant has no agreements, relationships, or commitments to any other person or entity that
conflict with the provisions of this Agreement, Consultant’s obligations to the Company under this Agreement, and/or Consultant’s ability to perform the Services. Consultant will not enter into any such conflicting agreement during the
term of this Agreement. Consultant acknowledges and agrees that regardless of this Agreement, Consultant is required to and will observe and abide by the continuing obligations set forth in the At-Will
Employment, Confidential Information, Invention Assignment, and Arbitration Agreement entered into with the Company on March 29, 2015 (the “Confidentiality Agreement”). 

B. Consultant shall require all Consultant’s employees, contractors, or other third-parties performing Services under this Agreement to
execute a nondisclosure and intellectual property assignment agreement in the form provided by the Company, and promptly provide a copy of each such executed agreement to the Company. Consultant’s violation of this Section 4 will be
considered a material breach under Section 6.B. 
 5. Return of Company Materials 

Upon the termination of this Agreement, or upon the Company’s earlier request, Consultant will immediately deliver to the Company, and
will not keep in Consultant’s possession, recreate, or deliver to anyone else, any and all Company property, including, but not limited to, Confidential Information, tangible embodiments of the Inventions, all devices and equipment belonging to
the Company, all electronically-stored information and passwords to access such property, those records maintained pursuant to Section 3.D and any reproductions of any of the foregoing items that Consultant may have in Consultant’s
possession or control. 
 6. Term and Termination 

A. Term. The term of this Agreement will begin on the Effective Date of this Agreement and will continue until the earlier
of (i) June 30, 2022 (unless the Consulting Period has been extended to December 31, 2022 by a mutual written agreement signed by the Parties, in which case such date shall be December 31, 2022), or (ii) termination as provided
in Section 6.B. 
 B. Termination. The Company may terminate this Agreement immediately for any reason or no reason
upon giving Consultant written notice of such termination pursuant to Section 11.G of this Agreement.. 
 C.
Survival. Upon any termination, all rights and duties of the Company and Consultant toward each other shall cease except: 

(1) The Company will pay, within thirty (30) days after the effective date of termination, all amounts owing to Consultant for Services
completed and accepted by the Company prior to the termination date and related reimbursable expenses, if any, submitted in accordance with the Company’s policies; and 

(2) Section 2 (Confidentiality), Section 3 (Ownership), Section 4.B (Conflicting Obligations), Section 5 (Return of
Company Materials), Section 6 (Term and Termination), Section 7 (Independent Contractor; Benefits), Section 8 (Indemnification), Section 9 (Limitation of Liability), Section 10 (Arbitration and Equitable Relief), and
Section 11 (Miscellaneous) will survive termination or expiration of this Agreement in accordance with their terms. 

 7. Independent Contractor; Benefits 

A. Independent Contractor. It is the express intention of the Company and Consultant that Consultant perform the Services
as an independent contractor to the Company. Nothing in this Agreement shall in any way be construed to constitute Consultant as an agent, employee or representative of the Company. Without limiting the generality of the foregoing, Consultant is not
authorized to bind the Company to any liability or obligation or to represent that Consultant has any such authority. Consultant agrees to furnish (or reimburse the Company for) all tools and materials necessary to accomplish this Agreement and
shall incur all expenses associated with performance. Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Agreement. Consultant agrees to and acknowledges the
obligation to pay all self-employment and other taxes on such income. 
 B. Benefits. The Company and Consultant agree
that Consultant will receive no Company-sponsored benefits from the Company where benefits include, but are not limited to, paid vacation, sick leave, medical insurance and 401k participation. If Consultant is reclassified by a state or federal
agency or court as the Company’s employee, Consultant will become a reclassified employee and will receive no benefits from the Company, except those mandated by state or federal law, even if by the terms of the Company’s benefit plans or
programs of the Company in effect at the time of such reclassification, Consultant would otherwise be eligible for such benefits. 
 8.
Indemnification 
 Consultant agrees to indemnify and hold harmless the Company and its affiliates and their directors, officers and
employees from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly from or in connection with (i) any negligent, reckless or
intentionally wrongful act of Consultant or Consultant’s assistants, employees, contractors or agents, (ii) a determination by a court or agency that the Consultant is not an independent contractor, (iii) any breach by the Consultant
or Consultant’s assistants, employees, contractors or agents of any of the covenants contained in this Agreement and any corresponding nondisclosure and intellectual property assignment agreement, (iv) any failure of Consultant to perform
the Services in accordance with all applicable laws, rules and regulations, or (v) any violation or claimed violation of a third party’s rights resulting in whole or in part from the Company’s use of the Inventions or other
deliverables of Consultant under this Agreement. 
 9. Limitation of Liability 

IN NO EVENT SHALL THE COMPANY BE LIABLE TO CONSULTANT OR TO ANY OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, OR
DAMAGES FOR LOST PROFITS OR LOSS OF BUSINESS, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER THE COMPANY WAS ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. IN NO EVENT SHALL THE COMPANY’S LIABILITY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT EXCEED THE AMOUNTS PAID BY THE COMPANY TO CONSULTANT UNDER
THIS AGREEMENT FOR THE SERVICES, DELIVERABLES OR INVENTION GIVING RISE TO SUCH LIABILITY. 
 10. Arbitration and Equitable Relief

 A. Arbitration. IN CONSIDERATION OF CONSULTANT’S CONSULTING RELATIONSHIP WITH THE COMPANY, ITS
PROMISE TO ARBITRATE ALL DISPUTES RELATED TO CONSULTANT’S CONSULTING RELATIONSHIP WITH THE COMPANY AND CONSULTANT’S RECEIPT OF THE COMPENSATION AND OTHER BENEFITS PAID TO CONSULTANT BY THE COMPANY, AT PRESENT AND IN THE FUTURE, CONSULTANT
AGREES THAT ANY AND ALL CONTROVERSIES, CLAIMS, OR DISPUTES WITH ANYONE (INCLUDING THE COMPANY AND ANY EMPLOYEE, OFFICER, DIRECTOR, SHAREHOLDER OR BENEFIT PLAN OF THE COMPANY IN THEIR CAPACITY AS SUCH OR OTHERWISE) ARISING OUT OF, RELATING TO, OR
RESULTING FROM CONSULTANT’S CONSULTING OR OTHER RELATIONSHIP WITH THE COMPANY OR THE TERMINATION OF CONSULTANT’S CONSULTING OR OTHER RELATIONSHIP WITH THE COMPANY, INCLUDING ANY BREACH OF THIS AGREEMENT, SHALL BE SUBJECT TO BINDING
ARBITRATION UNDER 

 
THE FEDERAL ARBITRATION ACT (THE “FAA”) AND THAT THE FAA SHALL GOVERN AND APPLY TO THIS ARBITRATION AGREEMENT WITH FULL FORCE AND EFFECT. CONSULTANT FURTHER AGREES THAT,
TO THE FULLEST EXTENT PERMITTED BY LAW, CONSULTANT MAY BRING ANY ARBITRATION PROCEEDING ONLY IN CONSULTANT’S INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF, REPRESENTATIVE, OR CLASS MEMBER IN ANY PURPORTED CLASS, COLLECTIVE, OR REPRESENTATIVE
LAWSUIT OR PROCEEDING. CONSULTANT AGREES TO ARBITRATE ANY AND ALL COMMON LAW AND/OR STATUTORY CLAIMS UNDER LOCAL, STATE, OR FEDERAL LAW, INCLUDING, BUT NOT LIMITED TO, CLAIMS UNDER MARYLAND STATE LAW, CLAIMS RELATING TO EMPLOYMENT OR INDEPENDENT
CONTRACTOR STATUS, CLASSIFICATION, AND RELATIONSHIP WITH THE COMPANY, AND CLAIMS OF BREACH OF CONTRACT, EXCEPT AS PROHIBITED BY LAW. CONSULTANT ALSO AGREES TO ARBITRATE ANY AND ALL DISPUTES ARISING OUT OF OR RELATING TO THE INTERPRETATION OR
APPLICATION OF THIS AGREEMENT TO ARBITRATE, BUT NOT TO DISPUTES ABOUT THE ENFORCEABILITY, REVOCABILITY OR VALIDITY OF THIS AGREEMENT TO ARBITRATE OR ANY PORTION HEREOF OR THE CLASS, COLLECTIVE AND REPRESENTATIVE PROCEEDING WAIVER HEREIN. WITH
RESPECT TO ALL SUCH CLAIMS AND DISPUTES THAT CONSULTANT AGREES TO ARBITRATE, CONSULTANT HEREBY EXPRESSLY AGREES TO WAIVE, AND DOES WAIVE, ANY RIGHT TO A TRIAL BY JURY. CONSULTANT FURTHER UNDERSTANDS THAT THIS AGREEMENT TO ARBITRATE ALSO APPLIES
TO ANY DISPUTES THAT THE COMPANY MAY HAVE WITH CONSULTANT. 
 B. Procedure. CONSULTANT AGREES THAT ANY ARBITRATION WILL
BE ADMINISTERED BY JAMS PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (THE “JAMS RULES”), WHICH ARE AVAILABLE AT HTTP://WWW.JAMSADR.COM/RULES-EMPLOYMENT-ARBITRATION/. CONSULTANT AGREES THAT THE USE OF THE
JAMS RULES DOES NOT CHANGE CONSULTANT’S CLASSIFICATION TO THAT OF AN EMPLOYEE. TO THE CONTRARY, CONSULTANT REAFFIRMS THAT CONSULTANT IS AN INDEPENDENT CONTRACTOR. THE ARBITRATION SHALL BE BEFORE A SINGLE ARBITRATOR WHO SHALL BE A FORMER FEDERAL
OR STATE COURT JUDGE. THE ARBITRATION SHALL APPLY THE FEDERAL RULES OF CIVIL PROCEDURE, EXCEPT TO THE EXTENT SUCH RULES CONFLICT WITH THE JAMS RULES. CONSULTANT UNDERSTANDS THAT THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE
COSTS AND EXPENSES OF SUCH ARBITRATION (“ARBITRATION COSTS”), EXCEPT AS PROHIBITED BY LAW, AND UNDERSTANDS THAT EACH PARTY SHALL SEPARATELY PAY ITS RESPECTIVE ATTORNEYS’ FEES AND COSTS. IN THE EVENT THAT JAMS FAILS,
REFUSES, OR OTHERWISE DOES NOT ENFORCE THE AFOREMENTIONED ARBITRATION COSTS SHARING PROVISION, EITHER PARTY MAY COMMENCE AN ACTION TO RECOVER SUCH AMOUNTS AGAINST THE NON-PAYING PARTY IN COURT AND THE NON-PAYING PARTY SHALL REIMBURSE THE MOVING PARTY FOR THE ATTORNEYS’ FEES AND COSTS INCURRED IN CONNECTION WITH SUCH ACTION. CONSULTANT AGREES THAT THE ARBITRATOR SHALL CONSIDER AND SHALL HAVE THE POWER TO
DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION, AND MOTIONS TO DISMISS, PRIOR TO ANY ARBITRATION HEARING. CONSULTANT AGREES THAT THE ARBITRATOR SHALL ISSUE A WRITTEN DECISION ON
THE MERITS. CONSULTANT ALSO AGREES THAT THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE LAW. CONSULTANT AGREES THAT THE DECREE OR AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED AS A FINAL AND BINDING JUDGMENT IN
ANY COURT HAVING JURISDICTION THEREOF. CONSULTANT AGREES THAT THE ARBITRATOR SHALL APPLY SUBSTANTIVE MARYLAND LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO RULES OF CONFLICT OF LAW. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH SUBSTANTIVE
MARYLAND LAW, MARYLAND LAW SHALL TAKE PRECEDENCE. CONSULTANT AGREES THAT ARBITRATION UNDER THIS AGREEMENT SHALL BE CONDUCTED IN MONTGOMERY COUNTY, MARYLAND. 

C. Remedy. EXCEPT AS PROHIBITED BY LAW OR PROVIDED BY THIS AGREEMENT, ARBITRATION SHALL BE THE SOLE, EXCLUSIVE AND FINAL
REMEDY FOR ANY DISPUTE BETWEEN CONSULTANT AND THE COMPANY. ACCORDINGLY, EXCEPT AS PROVIDED BY LAW OR THIS AGREEMENT, NEITHER CONSULTANT NOR THE COMPANY WILL BE PERMITTED TO PURSUE COURT ACTION REGARDING CLAIMS THAT ARE SUBJECT TO ARBITRATION.
NOTWITHSTANDING, THE ARBITRATOR WILL NOT HAVE THE AUTHORITY TO DISREGARD OR REFUSE TO ENFORCE ANY LAWFUL COMPANY POLICY, AND THE ARBITRATOR SHALL NOT ORDER OR REQUIRE THE COMPANY TO ADOPT A POLICY NOT OTHERWISE REQUIRED BY LAW WHICH THE COMPANY HAS
NOT ADOPTED. 

 D. Availability of Injunctive Relief. EITHER PARTY MAY ALSO PETITION
THE COURT FOR INJUNCTIVE RELIEF WHERE EITHER PARTY ALLEGES OR CLAIMS A VIOLATION OF ANY AGREEMENT REGARDING TRADE SECRETS, OR CONFIDENTIAL INFORMATION, OR A BREACH OF ANY RESTRICTIVE COVENANT. IN THE EVENT EITHER PARTY SEEKS INJUNCTIVE RELIEF, THE
PREVAILING PARTY SHALL BE ENTITLED TO RECOVER REASONABLE COSTS AND ATTORNEYS’ FEES. 
 E. Administrative Relief.
CONSULTANT UNDERSTANDS THAT THIS AGREEMENT DOES NOT PROHIBIT CONSULTANT FROM PURSUING AN ADMINISTRATIVE CLAIM WITH A LOCAL, STATE OR FEDERAL ADMINISTRATIVE BODY SUCH AS THE MARYLAND COMMISSION ON CIVIL RIGHTS, THE EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION, THE NATIONAL LABOR RELATIONS BOARD, OR THE WORKERS’ COMPENSATION BOARD. THIS AGREEMENT DOES, HOWEVER, PRECLUDE CONSULTANT FROM PURSUING COURT ACTION REGARDING ANY SUCH CLAIM, EXCEPT AS PERMITTED BY LAW. 

F. Voluntary Nature of Agreement. CONSULTANT ACKNOWLEDGES AND AGREES THAT CONSULTANT IS EXECUTING THIS AGREEMENT
VOLUNTARILY AND WITHOUT ANY DURESS OR UNDUE INFLUENCE BY THE COMPANY OR ANYONE ELSE. CONSULTANT FURTHER ACKNOWLEDGES AND AGREES THAT CONSULTANT HAS CAREFULLY READ THIS AGREEMENT AND THAT CONSULTANT HAS ASKED ANY QUESTIONS NEEDED FOR CONSULTANT TO
UNDERSTAND THE TERMS, CONSEQUENCES AND BINDING EFFECT OF THIS AGREEMENT AND FULLY UNDERSTAND IT, INCLUDING THAT CONSULTANT IS WAIVING CONSULTANT’S RIGHT TO A JURY TRIAL. FINALLY, CONSULTANT AGREES THAT CONSULTANT HAS BEEN PROVIDED AN
OPPORTUNITY TO SEEK THE ADVICE OF AN ATTORNEY OF CONSULTANT’S CHOICE BEFORE SIGNING THIS AGREEMENT. 
 11. Miscellaneous 

A. Governing Law; Consent to Personal Jurisdiction. With the exception of the arbitration requirements set forth herein,
this Agreement shall be governed by the laws of the State of Maryland, without regard to the conflicts of law provisions of any jurisdiction. To the extent that any lawsuit is permitted under this Agreement, the Parties hereby expressly consent to
the personal and exclusive jurisdiction and venue of the state and federal courts located in Maryland. 
 B.
Assignability. This Agreement will be binding upon Consultant’s heirs, executors, assigns, administrators, and other legal representatives, and will be for the benefit of the Company, its successors, and its assigns. There
are no intended third-party beneficiaries to this Agreement, except as expressly stated. Except as may otherwise be provided in this Agreement, Consultant may not sell, assign or delegate any rights or obligations under this Agreement.
Notwithstanding anything to the contrary herein, the Company may assign this Agreement and its rights and obligations under this Agreement to any successor to all or substantially all of the Company’s relevant assets, whether by merger,
consolidation, reorganization, reincorporation, sale of assets or stock, change of control or otherwise. 
 C. Entire
Agreement. This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter herein and supersedes all prior written and oral agreements, discussions, or representations between
the Parties. For the avoidance of doubt, the Confidentiality Agreement between the Parties remains in effect. Consultant represents and warrants that Consultant is not relying on any statement or representation not contained in this Agreement. To
the extent any terms set forth in any exhibit or schedule conflict with the terms set forth in this Agreement, the terms of this Agreement shall control unless otherwise expressly agreed by the Parties in such exhibit or schedule. 

D. Headings. Headings are used in this Agreement for reference only and shall not be considered when interpreting this
Agreement. 
 E. Severability. If a court or other body of competent jurisdiction finds, or the Parties mutually
believe, any provision of this Agreement, or portion thereof, to be invalid or unenforceable, such provision will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will
continue in full force and effect. 

 F. Modification, Waiver. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, will be effective unless in a writing signed by the Parties. Waiver by the Company of a breach of any provision of this Agreement will not operate as a waiver of any other or subsequent
breach. 
 G. Notices. Any notice or other communication required or permitted by this Agreement to be given to a Party
shall be in writing and shall be deemed given (i) if delivered personally or by commercial messenger or courier service, (ii) when sent by email (so long as such email is not returned as undelivered), or (iii) if mailed by U.S.
registered or certified mail (return receipt requested), to the Party at the Party’s address written below or at such other address as the Party may have previously specified by like notice. If by mail, delivery shall be deemed effective three
business days after mailing in accordance with this Section 11.G. If by email, delivery shall be deemed effective as of the date it is sent. 
  

	 	(1)	 If to the Company, to: 

25 W Watkins Mill Road 

Gaithersburg, MD 20878 

Attention: Chief Executive Officer 

(2) If to Consultant, to the address for notice on the signature page to this Agreement or, if no such address is provided, to the last
address of Consultant provided by Consultant to the Company. 
 H. Attorneys’ Fees. In any court action at law or
equity that is brought by one of the Parties to this Agreement to enforce or interpret the provisions of this Agreement, the prevailing Party will be entitled to reasonable attorneys’ fees, in addition to any other relief to which that Party
may be entitled. 
 I. Signatures. This Agreement may be signed in two counterparts, each of which shall be deemed an
original, with the same force and effectiveness as though executed in a single document. 
 J. Protected Activity Not
Prohibited. Consultant understands that nothing in this Agreement shall in any way limit or prohibit Consultant from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean
filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities
and Exchange Commission (“Government Agencies”). Consultant understands that in connection with such Protected Activity, Consultant is permitted to disclose documents or other information as permitted by law, and without
giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Consultant agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company
confidential information to any parties other than the Government Agencies. Consultant further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications.
Pursuant to the Defend Trade Secrets Act of 2016, Consultant is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in
confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document
filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the
individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. 

 IN WITNESS WHEREOF, the Parties hereto have executed this Consulting Agreement as of the Effective Date.

  

									
	CONSULTANT	 		 	ARCELLX, INC.
					
	By:	 	 /s/ David M. Hilbert
	 		 	By:	 	 /s/ Rami Elghandour

	Name:	 	David M. Hilbert, Ph.D.	 		 	Name:	 	Rami Elghandour
		 		 		 	Title:	 	Chief Executive Officer

 EXHIBIT A-1 

SERVICES AND COMPENSATION 
  

	 	1.	 Contact. Consultant’s principal Company contact: 

Name: Rami Elghandour 
 Title:
Chief Executive Officer 
 Email: rami@arcellx.com 
  

	 	2.	 Services. The Services will include, but will not be limited to, the following:

  

	 	•	 	 Consultant will provide the following services to the Company as an independent contractor on an ad hoc
basis for no greater than fifteen hours per week (unless otherwise mutually agreed): 

  

	 	•	 	 assist with transition-related duties are requested by the Company’s Chief Executive Officer or its newly
hired Chief Technical Officer; 

  

	 	•	 	 “ambassadorship” roles as needed on behalf of the Company; 

 

	 	•	 	 assist with intellectual property related matters; and 

 

	 	•	 	 certain special projects, such as current Process Version 2.0 

 

	 	3.	 Compensation.  

A. During the Term of this Agreement, Consultant will continue to serve as a Company Service Provider and shall continue to vest in any
outstanding stock options to purchase shares of the Company’s common stock held by the Consultant, subject to the terms and conditions of any applicable stock option and related agreements between Consultant and the Company and the
Company’s 2017 Equity Incentive Plan. 
 This Exhibit A-1 is dated as of 12/31/2021.

  

											
	CONSULTANT	 		 		 	ARCELLX, INC.
						
	By:	 	 /s/ David M. Hilbert
	 		 		 	By:	 	 /s/ Rami Elghandour

	Name:	 	David M. Hilbert, Ph.D.	 		 		 	Name:	 	Rami Elghandour
		 		 		 		 	Title:	 	Chief Executive Officer

 EXHIBIT B 

SUPPLEMENTAL RELEASE AGREEMENT 

This Supplemental Release Agreement (“Supplemental Release”) is made by and between David M. Hilbert, Ph.D. (“Employee”)
and Arcellx, Inc. (the “Company”) (jointly referred to as the “Parties” and individually referred to as a “Party”). 

1. Consideration. In consideration for the Supplemental Release Consideration (as applicable) in Section 1.d. of the Transition
Agreement and Release signed by Employee in or around January 2022 (the “Transition Agreement”), Employee hereby extends Employee’s release and waiver of claims to any claims that may have arisen between the Effective Date (as such
term is defined in the Transition Agreement) and the Supplemental Release Effective Date (as defined below), all such claims shall be released insofar as they arise from any omissions, acts, facts, or damages that have occurred up until and
including the Supplemental Release Effective Date. 
 2. Incorporation of Terms of Release Agreement. The undersigned Parties further
acknowledge that the terms of the Transition Agreement, including, but not limited to, the Sections entitled Payment of Salary and Receipt of All Benefits, Release of Claims, Acknowledgement of Waiver of Claims Under ADEA, Trade Secrets and
Confidential Information/Company Property, Nondisparagement, Breach, No Admission of Liability, Arbitration, and Protected Activity Not Prohibited shall apply to this Supplemental Release and are incorporated herein to the extent that they are not
inconsistent with the express terms of this Supplemental Release. 
 4. Supplemental Release Effective Date. Employee understands that
this Supplemental Release shall be null and void if not executed by Employee, and returned to the Company, within seven (7) days after the termination of the Consulting Period (as defined in the Transition Agreement). This Supplemental Release
will become effective on the eighth (8th) day after Employee signs this Supplemental Release, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Supplemental Release Effective
Date”). 
 5. Voluntary Execution of Agreement. Employee understands and agrees that Employee executed this Supplemental Release
voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees. Employee acknowledges
that: 
  

	 	(a)	 Employee has read this Supplemental Release; 

 

	 	(b)	 Employee’s signature below constitutes Employee’s certification under penalty of perjury that
Employee has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with Employee’s employment or consultancy with the Company, or otherwise belonging to the Company,
including, but not limited to, all passwords to any software or other programs or data that Employee used in performing services for the Company. 

  

	 	(c)	 Employee cannot sign the Supplemental Release before the termination of the Consulting Period, but that
Employee must sign the Supplemental Release no later than 7 days following the termination of the Consulting Period; 

  

	 	(d)	 Employee has been represented in the preparation, negotiation, and execution of this Supplemental Release by
legal counsel of Employee’s own choice or has elected not to retain legal counsel; 

  

	 	(e)	 Employee understands the terms and consequences of this Supplemental Release and of the releases it contains;
and 

  

	 	(f)	 Employee is fully aware of the legal and binding effect of this Supplemental Release. 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 

 

							
		 		 		 	DAVID M. HILBERT, PH.D., an individual
				
	Dated: ________________	 		 		 	  

		 		 		 	David M. Hilbert, Ph.D.
				
		 		 		 	ARCELLX, INC.
				
	Dated: ________________	 		 	By	 	  

		 		 		 	Rami Elghandour
		 		 		 	Chief Executive OfficerSECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of January 5, 2022 between FORZA INNOVATIONS INC.,
a Wyoming corporation (the “Company”), and Coventry Enterprises, LLC, a Delaware limited liability company
(“Investor”).

WITNESSETH

 

WHEREAS,
the Company and the Investor are executing and delivering this Agreement in reliance upon an exemption from securities registration pursuant
to Section 4(2) and/or Rule 506 of Regulation D (“Regulation D”) as promulgated by the U.S. Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities Act”);

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Investor,
as provided herein, and the Investor shall purchase a $180,000 (the “Promissory Note Purchase Price”) Promissory Note
substantially in the form attached hereto as “Exhibit A” (referred to as the “Promissory Note”),
which shall be convertible into shares of the Company’s common stock, par value of $0.01 per share (the “Common Stock”)
(the “Conversion Shares”) of which a Promissory Note (the “Promissory Note”) in the face amount
of $180,000 for a purchase price of $150,000 (the “Purchase Price”) shall be issued within 1 business day following
the date hereof, subject to notification of satisfaction of the conditions to the Closing set forth herein and in Sections 7(a) and 8(a)
herein (the “Closing” or “Closing Date”);

WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering Irrevocable Transfer
Agent Instructions (the “Irrevocable Transfer Agent Instructions”); and

WHEREAS,
the Promissory Note and the Conversion Shares are collectively are referred to herein as the “Securities”).

NOW,
THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Investor
hereby agree as follows:

1. 
CERTAIN DEFINITIONS.

(k) 
“Anti-Bribery Laws” shall mean of any provision of any applicable law or regulation implementing the OECD Convention
on Combating Bribery of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S.8 Foreign
Corrupt Practices Act of 1977, as amended (the “FCPA”), the U.K. Bribery Act 2010, or any other similar law of any
other jurisdiction in which the Company operates its business, including, in each case, the rules and regulations thereunder.

(l) 
“Anti-Money Laundering Laws” shall mean applicable financial recordkeeping and reporting requirements and all other
applicable U.S. and non-U.S. anti-money laundering laws, rules and regulations, including, but not limited to, those of the Currency
and Foreign Transactions Reporting Act of 1970, as amended, the United States Bank Secrecy Act, as amended by the USA PATRIOT Act of
2001, and the United States Money Laundering Control Act of 1986 (18 U.S.C. §§1956 and 1957), as amended, as well as the implementing
rules and regulations promulgated thereunder, and the applicable money laundering statutes of all applicable jurisdictions, the rules
and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental
agency or self-regulatory.

(m) 
“Applicable Laws” shall mean applicable laws, statutes, rules, regulations, orders, executive orders, directives,
policies, guidelines, ordinance or regulation of any governmental entity and codes having the force of law, whether local, national,
or international, as amended from time to time, including without limitation (i) all applicable laws that relate to Anti-Money Laundering
Laws and all applicable laws that relate to money laundering, terrorist financing, financial record keeping and reporting, (ii) Anti-Bribery
Laws and applicable laws that relate to anti-bribery, anti-corruption, books and records and internal controls, (iii) OFAC and any Sanctions
Laws or Sanctions Programs, and (iv) CAATSA and any CAATSA Sanctions Programs, Anti-Money Laundering Laws.

(n) 
“BHCA” shall mean the Bank Holding Company Act of 1956, as amended.

(o) 
“CAATSA” shall mean Public Law No. 115-44 The Countering America’s Adversaries Through Sanctions Act.

(p) 
“CAATSA Sanctions Programs” shall mean a country or territory that is, or whose government is, the subject of sanctions
imposed by CAATSA.

(q) 
“Dollar Value Traded” means, for any security as of any date, the daily dollar traded value for such security as reported
by Bloomberg, LP through its “Historical Price Table Screen (HP)” with Market: Dollar Value Traded function selected, or,
if no dollar value traded is reported for such security by Bloomberg, the dollar traded value of any of the market makers for such security
as reported in the OTC Markets Group Inc. (the “OTC Markets”).

(r) 
“Reserved”.

(s) 
“OFAC” shall mean the U.S. Department of Treasury’s Office of Foreign Asset Control.

(t) 
“Sanctioned Country” shall mean a country or territory that is the subject or target of a comprehensive embargo or
Sanctions Laws prohibiting trade with the country or territory, including, without limitation, Crimea, Cuba, Iran, North Korea, Sudan,
and Syria.

(u) 
“Sanctions Laws” shall mean any sanctions administered or enforced by OFAC or the U.S. Departments of State or Commerce
and including, without limitation, the designation as a “Specially Designated National” or on the “Sectoral Sanctions
Identifications List”, collectively “Blocked Persons”), the United Nations Security Council (“UNSC”),
the European Union, Her Majesty’s Treasury (“HMT”) or any other relevant sanctions authority.

(v) 
“Sanctions Programs” shall mean any OFAC, HMT or UNSC economic sanction program including, without limitation, programs
related to a Sanctioned Country.

(w) 
“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended.

2. 
PURCHASE AND SALE OF THE PROMISSORY NOTE.

(k) 
Purchase of the Promissory Note. Subject to the satisfaction (or waiver) of the terms and conditions of this Agreement, the Investor
agrees to purchase at the Closing and the Company agrees to sell and issue to Investor at the Closing the Promissory Note.

(l) 
Closing Date. The Closing of the purchase and sale of the Promissory Note shall take place at 10:00 a.m. Eastern Standard Time
on the 1st business day following the date hereof, subject to notification of satisfaction of the conditions to the Closing set forth
herein and in Sections 7 and 8 below (or such later date as is mutually agreed to by the Company and the Investor (the “Closing
Date”)).

(m) 
Form of Payment. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing Date, (i) the Investor
shall deliver to the Company such aggregate proceeds for the Promissory Note to be issued and sold to the Investor at the Closing, minus
the original issue discount applicable to such Closing as set forth in the Promissory Note, and (ii) the Company shall deliver to
the Investor a Promissory Note which the Investor is purchasing at the Closing duly executed on behalf of the Company.

3. 
INVESTOR’S REPRESENTATIONS AND WARRANTIES.

The
Investor represents and warrants, that:

(k) 
Investment Purpose. The Investor is acquiring the Securities for its own account for investment only and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the
Securities Act; provided, however, that, by making the representations herein, the Investor reserves the right to dispose
of the Securities at any time in accordance with or pursuant to an effective registration statement covering such Securities or an available
exemption under the Securities Act. The Investor does not presently have any agreement or understanding, directly or indirectly, with
any corporation, association, partnership, organization, business, individual, government or political subdivision thereof or governmental
agency (“Person”) to distribute any of the Securities.

(l) 
Accredited Investor Status. The Investor is an “Accredited Investor” as that term is defined in Rule 501(a)(3)
of Regulation D.

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

(n) 
Information. The Investor and its advisors (and his or, its counsel), if any, have been furnished with all materials relating
to the business, finances and operations of the Company and information he deemed material to making an informed investment decision
regarding his purchase of the Securities, which have been requested by the Investor. The Investor and its advisors, if any, have been
afforded the opportunity to ask questions of the Company and its management. Neither such inquiries nor any other due diligence investigations
conducted by the Investor or its advisors, if any, or its representatives shall modify, amend, or affect the Investor’s right to
rely on the Company’s representations and warranties contained in Section 4 below. The Investor understands that its investment
in the Securities involves a high degree of risk. The Investor is in a position regarding the Company, which, based upon employment,
family relationship or economic bargaining power, enabled and enables the Investor to obtain information from the Company in order to
evaluate the merits and risks of this investment. The Investor has sought such accounting, legal and tax advice, as it has considered
necessary to make an informed investment decision with respect to its acquisition of the Securities.

(o) 
No Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities, or the fairness or suitability of the investment in
the Securities, nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

(p) 
Transfer or Resale. The Investor understands that: (i) the Securities have not been and are not being registered under the Securities
Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder,
(B) the Investor shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Securities
to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements,
or (C) the Investor provides the Company with reasonable assurances (in the form of seller and broker representation letters) that such
Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act, as amended (or
a successor rule thereto) (collectively, “Rule 144”), in each case following the applicable holding period set forth
therein; (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further,
if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some
other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the
terms and conditions of any exemption thereunder.

(q) 
Legends. The Investor agrees to the imprinting, so long as is required by this Section 3(g), of a restrictive legend in substantially
the following form:

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

Certificates
evidencing the Conversion Shares and the Warrant Shares, shall not contain any legend (including the legend set forth above), (i) while
a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such
Conversion Shares and/or Warrant Shares pursuant to Rule 144, (iii) if such Conversion Shares and/or Warrant Shares are eligible for
sale under Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the SEC). The Investor shall cause its counsel to issue a legal opinion to the Company’s
transfer agent promptly after the effective date (the “Effective Date”) of a registration statement if required by
the Company’s transfer agent to effect the removal of the legend hereunder. If all or any portion of a Promissory Note is converted
and/or the Warrant is exercised by the Investor who is then not an Affiliate of the Company (a “Non-Affiliated Investor”)
at a time when there is an effective registration statement to cover the resale of the Conversion Shares and/or Warrant Shares, such
Conversion Shares and/or Warrant Shares shall be issued free of all legends. The Company agrees that, following the Effective Date or
at such time as such legend is no longer required under this Section 3(g), it will, no later than 3 Trading Days following the delivery
by a Non-Affiliated Investor to the Company or the Company’s transfer agent of a certificate representing Conversion Shares and/or
Warrant Shares, issued with a restrictive legend (such 3rd Trading Day, the “Legend Removal Date”), deliver
or cause to be delivered to such Non-Affiliated Investor a certificate representing such shares that is free from all restrictive and
other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge
the restrictions on transfer set forth in this Section. The Investor acknowledges that the Company’s agreement hereunder to remove
all legends from Conversion Shares and/or Warrant Shares is not an affirmative statement or representation that such Conversion Shares
and/or Warrant Shares are freely tradable. The Investor, agrees that the removal of the restrictive legend from certificates representing
Securities as set forth in this Section 3(g) is predicated upon the Company’s reliance that the Investor will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or
an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance with the
plan of distribution set forth therein.

(r) 
Authorization, Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor
and is a valid and binding agreement of the Investor enforceable in accordance with its terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

(s) 
Receipt of Documents. The Investor and its counsel has received and read in their entirety: (i) this Agreement and each representation,
warranty and covenant set forth herein and the Transaction Documents (as defined herein); (ii) all due diligence and other information
necessary to verify the accuracy and completeness of such representations, warranties and covenants; (iii) the Company’s annual
report for the year ending June 30, 2021 filed with the SEC, and (v) answers to all questions the Investor submitted to the Company regarding
an investment in the Company; and the Investor has relied on the information contained therein and has not been furnished any other documents,
literature, memorandum or prospectus.

(t) 
Due Formation of Corporate and Other Investors. If the Investor is a corporation, trust, partnership, or other entity that is
not an individual person, it has been formed and validly exists and has not been organized for the specific purpose of purchasing the
Securities and is not prohibited from doing so.

(u) 
No Legal Advice From the Company. The Investor acknowledges, that it had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with his or its own legal counsel and investment and tax advisors. The Investor is relying solely on such
counsel and advisors and not on any statements or representations of the Company or any of its representatives or agents for legal, tax
or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.

4. 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

Except
as set forth under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and
to qualify any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations
and warranties set forth below to the Investor:

(k) 
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 4(a). The Company owns,
directly or indirectly, all of the capital stock or other equity interests of each subsidiary free and clear of any liens, and all the
issued and outstanding shares of capital stock of each subsidiary are validly issued and are fully paid, non-assessable and free of preemptive
and similar rights to subscribe for or purchase securities.

(l) 
Security Interests Granted. There are no security interests granted, issued, or allowed to exist in any assets of the Company
or subsidiary.

(m) 
Organization and Qualification. The Company and its subsidiaries are corporations duly organized and validly existing in good
standing under the laws of the jurisdiction in which they are incorporated, and have the requisite corporate power to own their properties
and to carry on their business as now being conducted. Each of the Company and its subsidiaries is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in which the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would not have or reasonably be expected to
result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse
effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the subsidiaries, taken
as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its
obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no proceeding
has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
or qualification.

(n) 
Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement, the Promissory Note, and the Irrevocable Transfer Agent Instructions,
and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement
(collectively, the “Transaction Documents”) and to issue the Securities in accordance with the terms hereof and thereof,
(ii) the execution and delivery of the Transaction Documents by the Company and the consummation by it of the transactions contemplated
hereby and thereby, including, without limitation, the issuance of the Securities, the reservation for issuance and the issuance of the
Conversion Shares, and the Warrant Shares have been duly authorized by the Company’s Board of Directors and no further consent
or authorization is required by the Company, its Board of Directors or its stockholders, (iii) the Transaction Documents have been duly
executed and delivered by the Company, (iv) the Transaction Documents constitute the valid and binding obligations of the Company enforceable
against the Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors’ rights and remedies. The authorized officer of the Company executing the Transaction Documents knows of no reason
why the Company cannot perform any of the Company’s obligations under the Transaction Documents.

(o) 
Capitalization. The authorized capital stock of the Company consists of 700,000,000shares of Common Stock, par value $0.001 and
25,000,000shares of Class B Preferred Stock, par value $0.001 (the “Preferred Stock”) of which 291,644,231 shares
of Common Stock and 10,000,000 shares of Class B Preferred Stock are issued and outstanding. All of the outstanding shares of capital
stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase
securities. Except as disclosed in Schedule 4(e): (i) none of the Company’s capital stock is subject to preemptive rights
or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, or exercisable or exchangeable for, any capital stock of the Company or any of its subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its subsidiaries is or may become bound to issue additional capital stock of the Company
or any of its subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its subsidiaries;
(iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments
evidencing indebtedness of the Company or any of its subsidiaries or by which the Company or any of its subsidiaries is or may become
bound; (iv) there are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed
in connection with the Company or any of its subsidiaries; (v) there are no outstanding securities or instruments of the Company or any
of its subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements
by which the Company or any of its subsidiaries is or may become bound to redeem a security of the Company or any of its subsidiaries;
(vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of
the Securities; (vii) the Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any
similar plan or agreement; and (viii) the Company and its subsidiaries have no liabilities or obligations required to be disclosed in
the OTC Markets/SEC Documents but not so disclosed in the OTC Markets Documents, other than those incurred in the ordinary course of
the Company’s or its subsidiaries' respective businesses and which, individually or in the aggregate, do not or would not have
a Material Adverse Effect. The Company has furnished to the Investor true, correct, and complete copies of the Company’s Certificate
of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s
Bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible
into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto. No
further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and
sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

(p) 
Issuance of Securities. The issuance of the Promissory Note was duly authorized and free from all taxes, liens, and charges with
respect to the issue thereof. Upon conversion in accordance with the terms of the Promissory Note and the Conversion Shares, when issued
in accordance with its terms will be validly issued, fully paid and nonassessable, free from all taxes, liens, and charges with respect
to the issue thereof. The Company has reserved from its duly authorized capital stock the appropriate number of shares of Common Stock
as set forth in this Agreement.

(q) 
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Promissory Note, and
reservation for issuance and issuance of the Conversion Shares) will not (i) result in a violation of any certificate of incorporation,
certificate of formation, any certificate of designations or other constituent documents of the Company or any of its subsidiaries, any
capital stock of the Company or any of its subsidiaries or bylaws of the Company or any of its subsidiaries or (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company
or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
foreign, federal and state securities laws and regulations and the rules and regulations of the OTC Markets’ Pink Market (the “Primary
Market”) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its
subsidiaries is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect. The business of the Company and its subsidiaries is not being
conducted, and shall not be conducted in violation of any material law, ordinance, or regulation of any governmental entity. Except as
specifically contemplated by this Agreement and as required under the Securities Act and any applicable state securities laws, the Company
is not required to obtain any consent, authorization, or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement of the Transaction
Documents in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings, and registrations which the
Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company
and its subsidiaries are unaware of any facts or circumstance, which might give rise to any of the foregoing.

(r) 
OTC Markets Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the OTC Markets (from and after January 1, 2020) and the SEC (from and after June 29, 2020) and all exhibits
included therein and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred
to as the “OTC Markets/SEC Documents”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Document prior to the expiration of any such extension (including pursuant to SEC from 12b-25). The Company
has delivered to the Investor or its representatives, or made available through the SEC’s website at http://www.sec.gov, true and
complete copies of the OTC Markets Documents. As of their respective dates, the OTC Markets/SEC Documents complied in all material respects
with the requirements of the OTC Markets Alternative Reporting Standards and the rules and regulations of the OTC Markets promulgated
thereunder applicable to the OTC Markets Documents, and none of the OTC Markets Documents, at the time they were filed with the OTC Markets
or the SEC, as applicable, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
As of their respective dates, the financial statements of the Company and its subsidiaries included in the OTC Markets/SEC Documents
complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the OTC
Markets and the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements
or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations
and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other
information provided by or on behalf of the Company to the Investor which is not included in the OTC Markets/SEC Documents contains any
untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light
of the circumstance under which they are or were made, not misleading.

(s) 
10(b)-5. The OTC Markets/SEC Documents do not include any untrue statements of material fact, nor do they omit to state any material
fact required to be stated therein necessary to make the statements made, in light of the circumstances under which they were made, not
misleading.

(t) 
Absence of Litigation. There is no action, suit, proceeding, inquiry, or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending against or affecting the Company, the Common Stock or any of the Company’s
subsidiaries, wherein an unfavorable decision, ruling or finding would have a Material Adverse Effect.

(u) 
CAATSA. Neither the Company or its subsidiaries, nor, to Company’s knowledge, any director, officer, agent, employee or
affiliate of the Company or subsidiaries, is a Person that is, or is owned or controlled by a Person that has a place of business in,
or is operating, organized, resident or doing business in a country or territory that is, or whose government is, the subject of the
CAATSA Sanctions Programs.

(v) 
Reserved.

(w) 
Sarbanes-Oxley Act. The Company and its subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act, that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that
are applicable to the Company and its subsidiaries and effective as of the date hereof.

Assisting
in the distribution of marijuana to m

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

(y) 
No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company
and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

(z) 
Compliance with Applicable Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in
compliance Applicable Laws and no action, suit or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its Subsidiaries with respect to Applicable Laws is pending or, to the knowledge of the Company,
threatened.

(aa) 
No Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries, nor any director, officer, employee, agent,
affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates is, or is directly
or indirectly owned or controlled by, a Person that is currently the subject or the target of any Sanctions Laws or is a Blocked Person;
neither the Company, any of its subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or
acting on behalf of the Company or any of its subsidiaries or affiliates, is located, organized or resident in a country or territory
that is the subject or target of a comprehensive embargo, Sanctions Laws or Sanctions Programs prohibiting trade with a Sanctioned Country;
the Company maintains in effect and enforces policies and procedures designed to ensure compliance by the Company and its Subsidiaries
with applicable Sanctions Laws and Sanctions Programs; neither the Company, any of its subsidiaries, nor any director, officer, employee,
agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates, acting
in any capacity in connection with the operations of the Company, conducts any business with or for the benefit of any Blocked Person
or engages in making or receiving any contribution of funds, goods or services to, from or for the benefit of any Blocked Person, or
deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked or subject to blocking pursuant
to any applicable Sanctions Laws or Sanctions Programs; no action of the Company or any of its subsidiaries in connection with (i) the
execution, delivery and performance of this Agreement and the other Transaction Documents, (ii) the issuance and sale of the Securities,
or (iii) the direct or indirect use of proceeds from the Securities or the consummation of any other transaction contemplated hereby
or by the other Transaction Documents or the fulfillment of the terms hereof or thereof, will result in the proceeds of the transactions
contemplated hereby and by the other Transaction Documents being used, or loaned, contributed or otherwise made available, directly or
indirectly, to any subsidiary, joint venture partner or other person or entity, for the purpose of (i) unlawfully funding or facilitating
any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions
Laws or Sanctions Programs, (ii) unlawfully funding or facilitating any activities of or business in any Sanctioned Country or (iii)
in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as
underwriter, advisor, investor or otherwise) of Sanctions Laws or Sanctions Programs. For the past 5 years, the Company and its subsidiaries
have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the
dealing or transaction is or was the subject or the target of Sanctions Laws, Sanctions Programs or with any Sanctioned Country.

(bb) 
No Conflicts with Anti-Bribery Laws. Neither the Company nor any of the subsidiaries has made any contribution or other payment
to any official of, or candidate for, any federal, state, or foreign office in violation of any law. Neither the Company, nor any of
its subsidiaries or affiliates, nor any director, officer, agent, employee or other person associated with or acting on behalf of the
Company, or any of its subsidiaries or affiliates, has (i) used any funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee, to any employee or agent of a private entity with which the Company does or seeks to do business (a “Private
Sector Counterparty”) or to foreign or domestic political parties or campaigns, (iii) violated or is in violation of any provision
of any Anti-Bribery Laws, (iv) taken, is currently taking or will take any action in furtherance of an offer, payment, gift or anything
else of value, directly or indirectly, to any person while knowing that all or some portion of the money or value will be offered, given
or promised to anyone to improperly influence official action, to obtain or retain business or otherwise to secure any improper advantage
or (v) otherwise made any offer, bribe, rebate, payoff, influence payment, unlawful kickback or other unlawful payment; the Company and
each of its respective subsidiaries has instituted and has maintained, and will continue to maintain, policies and procedures reasonably
designed to promote and achieve compliance with the laws referred to in (iii) above and with this representation and warranty; none of
the Company, nor any of its subsidiaries or affiliates will directly or indirectly use the proceeds of the Securities or lend, contribute
or otherwise make available such proceeds to any subsidiary, affiliate, joint venture partner or other person or entity for the purpose
of financing or facilitating any activity that would violate the laws and regulations referred to in (iii) above; to the knowledge of
the Company, there are, and have been, no allegations, investigations or inquiries with regard to a potential violation of any Anti-Bribery
Laws by the Company, its subsidiaries or affiliates, or any of their respective current or former directors, officers, employees, stockholders,
representatives or agents, or other persons acting or purporting to act on their behalf.

(cc) 
No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933
Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director,
executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405
under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described
in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”), except for a Disqualification Event
covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject
to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and
has furnished to the Investor a copy of any disclosures provided thereunder.

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

(ee) 
No General Solicitation. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection
with the offer or sale of the Securities.

(ff) 
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require
registration of the Securities under the Securities Act or cause this offering of the Securities to be integrated with prior offerings
by the Company for purposes of the Securities Act.

(gg) 
Employee Relations. Neither the Company nor any of its subsidiaries is involved in any labor dispute or, to the knowledge of the
Company or any of its subsidiaries, is any such dispute threatened. None of the Company’s or its subsidiaries’ employees
is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

(hh) 
Intellectual Property Rights. The Company and its subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. The Company
and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other
similar rights of others, and, to the knowledge of the Company there is no claim, action or proceeding being made or brought against,
or to the Company’s knowledge, being threatened against, the Company or its subsidiaries regarding trademark, trade name, patents,
patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement;
and the Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

(ii) 
Environmental Laws. The Company and its subsidiaries are (i) in compliance with any and all applicable foreign, federal, state
and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances
or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms
and conditions of any such permit, license or approval.

(jj) 
Title. All real property and facilities held under lease by the Company and its subsidiaries are held by them under valid, subsisting,
and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company and its subsidiaries.

(kk) 
Regulatory Permits. The Company and its subsidiaries possess all material certificates, authorizations and permits issued by the
appropriate federal, state, or foreign regulatory authorities necessary to conduct their respective businesses, and neither the Company
nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization,
or permit.

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

(mm) 
No Material Adverse Breaches, etc. Neither the Company nor any of its subsidiaries is subject to any charter, corporate or other
legal restriction, or any judgment, decree, order, rule, or regulation which in the judgment of the Company’s officers has or is
expected in the future to have a Material Adverse Effect on the business, properties, operations, financial condition, results of operations
or prospects of the Company or its subsidiaries. Neither the Company nor any of its subsidiaries is in breach of any contract or agreement
which breach, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect on the business,
properties, operations, financial condition, results of operations or prospects of the Company or its subsidiaries.

(nn) 
Tax Status. The Company and each of its subsidiaries has made and filed all federal and state income and all other tax returns,
reports and declarations required by any jurisdiction to which it is subject and (unless and only to the extent that the Company and
each of its subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes)
has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate
for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know
of no basis for any such claim.

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

(pp) 
Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, all of which shall be publicly
disclosed by the Company as soon as possible after the date hereof, the Company covenants and agrees that neither the Company, nor any
other person acting on its behalf, will provide the Investor or its agents or counsel with any information that the Company believes
constitutes material non-public information, unless prior thereto the Investor shall have entered into a written agreement with the Company
regarding the confidentiality and use of such information. The Company understands and confirms that the Investor shall be relying on
the foregoing covenant in effecting transactions in securities of the Company.Investment Company. The Company is not, and is not
an affiliate of, and immediately after receipt of payment for the Securities, will not be or be an affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner
so that it will not become subject to the Investment Company Act.

(qq) 
Registration Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities
of the Company. There are no outstanding registration statements not yet declared effective and there are no outstanding comment letters
from the SEC or any other regulatory agency.

(rr) 
Private Placement. Assuming the accuracy of the Investor’s representations and warranties set forth in Section 3, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Investor as contemplated hereby.
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Primary Market.

(ss) 
Listing and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from the
Primary Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the
listing or maintenance requirements of such Primary Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements.

(tt) 
Reporting Status. With a view to making available to the Investor the benefits of Rule 144 or any similar rule or regulation of
the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration, and as a material
inducement to the Investor’s purchase of the Securities, the Company represents and warrants to the following: (i) the Company
is, and has been for a period of at least 24 months immediately preceding the date hereof, subject to the reporting requirements of the
OTC Markets (ii) the Company has filed all required reports of the OTC Markets, as applicable, during the 24 months preceding the date
hereof (or for such shorter period that the Company was required to file such reports), (iii) the Company is not an issuer defined as
a “Shell Company,” and (iv) the Company is not an issuer that has been at any time previously an issuer defined as a “Shell
Company.” For the purposes hereof, the term “Shell Company” shall mean an issuer that meets the description defined
in paragraph (i)(1)(i) of Rule 144.

(uu) 
Disclosure.  The Company has made available to the Investor and its counsel all the information reasonably available to the
Company that the Investor or its counsel have requested for deciding whether to acquire the Securities.  No representation or warranty
of the Company contained in this Agreement (as qualified by the Disclosure Schedule) or any of the other Transaction Documents, and no
certificate furnished or to be furnished to the Investor at the Closing, or any due diligence evaluation materials furnished by the Company
or on behalf of the Company, including without limitation, due diligence questionnaires, or any other documents, presentations, correspondence,
or information contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances under which they were made.

(vv) 
Manipulation of Price.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases
of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent
in connection with the placement of the Securities.

(ww) 
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares issuable upon conversion of the
Promissory Note, will increase in certain circumstances. The Company further acknowledges that its obligation to issue Conversion Shares
upon conversion of the Promissory Note in accordance with this Agreement and the Promissory Note is absolute and unconditional regardless
of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

(xx) 
Subsidiary Security Interest and Global Guaranty. Each of the Company’s subsidiaries acknowledges and consents to securing
the Company’s obligations pursuant to the Transaction Documents as provided for in the Security Agreement and Global Guaranty.

(yy) 
Relationship of the Parties. Neither the Company, nor any of its subsidiaries, affiliates, nor any person acting on its or their
behalf is a client or customer of the Investor or any of its affiliates and neither the Investor nor any of its affiliates has provided,
or will provide, any services to the Company or any of its affiliates, its subsidiaries, or any person acting on its or their behalf.
The Investor’s relationship to Company is solely as an investor as provided for in the Transaction Documents. 

5. 
COVENANTS.

(a) 
Best Efforts. Each party shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided
in Sections 7 and 8 of this Agreement.

(b) 
Compliance with Applicable Laws. While the Investor owns any Securities the Company shall comply with all Applicable Laws and
will not take any action which will cause the Investor to be in violation of any such Applicable Laws.

(c) 
Conduct of Business. While the Investor owns any Securities, the business of the Company shall not be conducted in violation of
Applicable Laws and will not take any action which will cause the Investor to be in violation of any such Applicable Laws.

(d) 
While the Investor owns any Securities, neither the Company, nor any of its Subsidiaries or affiliates, directors, officers, employees,
representatives, or agents shall:

(i) 
conduct any business or engage in any transaction or dealing with or for the benefit of any Blocked Person, including the making or receiving
of any contribution of funds, goods, or services to, from or for the benefit of any Blocked Person;

(ii) 
deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked or subject to blocking pursuant
to the applicable Sanctions Laws, Sanctions Programs, located in a Sanctioned Country, or CAATSA or CAATSA Sanctions Programs;

(iii) 
use any of the proceeds of the transactions contemplated by this Agreement to finance, promote or otherwise support in any manner any
illegal activity, including, without limitation, in contravention of any Anti-Money Laundering Laws, Sanctions Laws, Sanctioned Program,
Anti-Bribery Laws or in any Sanctioned Country.

(iv) 
violate, attempt to violate, or engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, any of the Anti-Money Laundering Laws, Sanctions Laws, Sanctions Program, Anti-Bribery Laws, CAATSA or CAATSA Sanctions
Programs;

(v) 
While the Investor owns any Securities, the Company shall maintain in effect and enforce policies and procedures designed to ensure compliance
by the Company and its Subsidiaries and their directors, officers, employees, agents representatives and affiliates with Applicable Laws;

(vi) 
While any Investor owns any Securities, the Company will promptly notify the Investor in writing if any of the Company, or any of its
Subsidiaries or affiliates, directors, officers, employees, representatives, or agents, shall become a Blocked Person, or become directly
or indirectly owned or controlled by a Blocked Person;

(vii) 
The Company shall provide such information and documentation it may have as the Investor or any of their affiliates may reasonably request
to satisfy compliance with Applicable Laws;

(viii) 
The covenants set forth above shall be ongoing while the Investor owns any Securities. The Company shall promptly notify the Investor
in writing should it become aware during such period (a) of any changes to these covenants, or (b) if it cannot comply with the covenants
set forth herein. The Company shall also promptly notify the Investor in writing during such period should it become aware of an investigation,
litigation or regulatory action relating to an alleged or potential violation of Applicable Laws.

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

(f) 
Reporting Status. With a view to making available to the Investor the benefits of Rule 144 or any similar rule or regulation of
the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration, and as a material
inducement to the Investor’s purchase of the Securities, the Company represents, warrants, and covenants to the following:

(i) 
From the date hereof until all the Securities either have been sold by the Investor, or may permanently be sold by the Investor without
any restrictions pursuant to Rule 144 (the “Registration Period”), the Company shall file with the SEC in a timely
manner all required reports under section 13 or 15(d) of the Exchange Act (the “SEC Documents”) and such reports shall
conform to the requirement of the Exchange Act and the SEC for filing thereunder;

(f) 
The Company shall furnish to the Investor so long as the Investor owns Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent OTC Markets/SEC Documents
or SEC Documents, as applicable, of the Company and such other reports and documents so filed by the Company with the OTC Markets or
the SEC, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule
144 without registration; and

(g) 
During the Registration Period the Company shall not terminate its status as an issuer required to file reports under the Exchange Act
even if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination.

Use
of Proceeds. The Company shall use the proceeds from the issuance of the Promissory Note hereunder for the use of proceeds disclosed
on Schedule 4(g)(i) to fund, either directly or indirectly, any activities or business of or with any Blocked Person, in any Sanctioned
Country, (ii) or in any manner or in a country or territory, that, at the time of such funding, is, or whose government is, the subject
of CAATSA Sanctions Programs or (iii) in any other manner that will result in a violation of Anti-Money Laundering Laws, Sanctions Laws,
Sanctioned Program, Anti-Bribery Laws or CAATSA Sanctions Programs.

(h) 
Reservation of Shares. On the date hereof, the Company shall reserve for issuance to the Investor 11,041,404 shares for issuance
upon conversions of the Promissory Note (the “Share Reserve”). The Company represents that it has sufficient authorized
and unissued shares of Common Stock available to create the Share Reserve after considering all other commitments that may require the
issuance of Common Stock. The Company shall take all action reasonably necessary to at all times have authorized, and reserved for the
purpose of issuance, such number of shares of Common Stock as shall be necessary to effect the full conversion of the Promissory Note.
If at any time the Share Reserve is insufficient to effect the full conversion of the Promissory Note, the Company shall increase the
Share Reserve accordingly. If the Company does not have sufficient authorized and unissued shares of Common Stock available to increase
the Share Reserve, the Company shall call within 15 calendar days and hold a special meeting of the stockholders within 45 calendar days
of such occurrence, for the sole purpose of increasing the number of shares authorized. The Company’s management shall recommend
to the stockholders to vote in favor of increasing the number of shares of Common Stock authorized. Management shall also vote all of
its shares in favor of increasing the number of authorized shares of Common Stock.

(i) 
Listings or Quotation. The Company’s Common Stock shall be listed or quoted for trading on the Primary Market.

(j) 
Issuance of commitment shares. The Company shall issue three million shares of common stock in book form to the Investor.

(k) 
Corporate Existence. So long as any of the Promissory Note remains outstanding, the Company shall not directly or indirectly consummate
any merger, reorganization, restructuring, reverse stock split consolidation, sale of all or substantially all of the Company’s
assets or any similar transaction or related transactions (each such transaction, an “Organizational Change”) unless,
prior to the consummation of an Organizational Change, the Company obtains the written consent of the Investor, which shall not be unreasonably
withheld, delayed, denied or conditioned. In any such case, the Company will make appropriate provision with respect to such holders’
rights and interests to insure that the provisions of this Section 5(l) will thereafter be applicable to the Promissory Note.

(l) 
Transactions With Affiliates. Except as may be provided in Section 4(h) above, so long as the Promissory Note is outstanding,
the Company shall not, and shall cause each of its subsidiaries not to, enter into, amend, modify or supplement, or permit any subsidiary
to enter into, amend, modify or supplement any agreement, transaction, commitment, or arrangement with any of its or any subsidiary’s
officers, directors, person who were officers or directors at any time during the previous 2 years, stockholders who beneficially own
5% or more of the Common Stock, or Affiliates (as defined below) or with any individual related by blood, marriage, or adoption to any
such individual or with any entity in which any such entity or individual owns a 5% or more beneficial interest (each a “Related
Party”), except for (a) customary employment arrangements and benefit programs on reasonable terms, (b) any investment in an
Affiliate of the Company, (c) any agreement, transaction, commitment, or arrangement on an arms-length basis on terms no less favorable
than terms which would have been obtainable from a person other than such Related Party, (d) any agreement, transaction, commitment,
or arrangement which is approved by a majority of the disinterested directors of the Company. “Affiliate” for purposes
hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has a 10% or more equity
interest in that person or entity, (ii) has 10% or more common ownership with that person or entity, (iii) controls that person or entity,
or (iv) shares common control with that person or entity. “Control” or “controls” for purposes
hereof means that a person or entity has the power, direct or indirect, to conduct or govern the policies of another person or entity.

(m) 
Transfer Agent. The Company covenants and agrees that, in the event that the Company’s agency relationship with the transfer
agent should be terminated for any reason prior to a date which is 2 years after the Closing Date, the Company shall immediately appoint
a new transfer agent and shall require that the new transfer agent execute and agree to be bound by the terms of the Irrevocable Transfer
Agent Instructions (as defined herein).

(n) 
No Short Positions.Neither the Investor nor any of its affiliates has an open short position in the Common Stock of the Company,
and the Investor agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions
with respect to the Common Stock as long as the Promissory Note remains outstanding.

(o) 
Reserved.

(p) 
Reserved.

(q) 
Review of Public Disclosures. All SEC filings (including, without limitation, all filings required under the Exchange Act, which
include Forms 10-Q, 10-K, 8-K, etc.) and other public disclosures made by the Company, including, without limitation, all press releases,
investor relations materials, and scripts of analysts meetings and calls, shall be reviewed and approved for release by the Company’s
attorneys and, if containing financial information, the Company’s independent certified public accountants.

6. 
TRANSFER AGENT INSTRUCTIONS.

The
Company shall issue the Irrevocable Transfer Agent Instructions to its transfer agent in a form acceptable to the Investor.

7. 
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

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

(a) 
The Investor shall have executed the Transaction Documents and delivered them to the Company.

(b) 
The Investor shall have delivered to the Company the Promissory Note Purchase Price, minus any fees to be paid directly from the proceeds
of the Closing as set forth herein, by wire transfer of immediately available U.S. funds pursuant to the wire instructions provided by
the Company.

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

8. 
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE.

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

(a) 
The Company, and the Company’s Transfer Agent as applicable, shall have executed the Transaction Documents and delivered the same
to the Investor.

(b) 
The Common Stock shall be authorized for quotation or trading on the Primary Market, and trading in the Common Stock shall not have been
suspended for any reason.

(c) 
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any of
such representations and warranties is already qualified as to materiality in Section 5 above, in which case, such representations and
warranties shall be true and correct without further qualification) as of the date when made and as of the Closing Date as though made
at that time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to the Closing Date.

(d) 
The Company shall have executed and delivered to the Investor the Promissory Note.

(e) 
The Company shall have created the Share Reserve and issued the ten million commitment shares.

(f) 
The Common Stock shall be authorized for quotation or trading on the Primary Market and trading in the Common Stock shall not have been
suspended for any reason.

(g) 
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any of
such representations and warranties is already qualified as to materiality in Section 5 above, in which case, such representations and
warranties shall be true and correct without further qualification) as of the date when made as though made at that time (except for
representations and warranties that speak as of a specific date).

9. 
INDEMNIFICATION.

(a) 
In consideration of the Investor’s execution and delivery of this Agreement and acquiring the Promissory Note and the Conversion
Shares upon conversion of the Promissory Note and in addition to all of the Company’s other obligations under this Agreement, the
Company shall defend, protect, indemnify and hold harmless the Investor, and all of their officers, directors, employees and agents (including,
without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Investor
Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities
and damages, and expenses in connection therewith (irrespective of whether any such Investor Indemnitee is a party to the action for
which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by the Investor Indemnitees or any of them as a result of, or arising out of, or relating to (a) any
misrepresentation or breach of any representation or warranty made by the Company in this Agreement, the Promissory Note or the other
Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in this Agreement, or the other Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Investor Indemnitee
and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement or any other instrument, document
or agreement executed pursuant hereto by any of the parties hereto, any transaction financed or to be financed in whole or in part, directly
or indirectly, with the proceeds of the issuance of the Promissory Note or the status of the Investor or holder of the Promissory Note
or the Conversion Shares, as an Investor of Promissory Note in the Company. To the extent that the foregoing undertaking by the Company
may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities, which is permissible under applicable law.

(b) 
In consideration of the Company’s execution and delivery of this Agreement, and in addition to all of the Investor’s other
obligations under this Agreement, the Investor shall defend, protect, indemnify and hold harmless the Company and all of its officers,
directors, employees and agents (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Company Indemnitees”) from and against any and all Indemnified Liabilities incurred
by the Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Investor(s) in this Agreement, instrument or document contemplated hereby or thereby executed by the Investor,
(b) any breach of any covenant, agreement or obligation of the Investor(s) contained in this Agreement, the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby executed by the Investor, or (c) any cause of action, suit
or claim brought or made against such Company Indemnitee based on material misrepresentations or due to a material breach and arising
out of or resulting from the execution, delivery, performance or enforcement of this Agreement, the Transaction Documents or any other
instrument, document or agreement executed pursuant hereto by any of the parties hereto. To the extent that the foregoing undertaking
by the Investor may be unenforceable for any reason, the Investor shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities, which is permissible under applicable law.

10. 
COMPANY LIABILITY.

(a) 
The Company shall be liable for all debt, principal, interest, and other amounts owed to the Investor by Company pursuant to this Agreement,
the Transaction Documents, or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising
(the “Obligations”) and the Investor may proceed against the Company to enforce the Obligations without waiving its
right to proceed against any other party. This Agreement and the Promissory Note are a primary and original obligation of the Company
and shall remain in effect notwithstanding future changes in conditions, including any change of law or any invalidity or irregularity
in the creation or acquisition of any Obligations or in the execution or delivery of any agreement between the Investor and the Company.
The Company shall be liable for existing and future Obligations as fully as if all of the funds advanced by the Investor hereunder were
advanced to the Company.

(b) 
Notwithstanding any other provision of this Agreement or any other Transaction Documents the Company irrevocably waives, until all obligations
are paid in full, all rights that it may have at law or in equity (including, without limitation, any law subrogating the Company to
the rights of Investor under the Transaction Documents) to seek contribution, indemnification, or any other form of reimbursement from
the Company, or any other person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by
the Company with respect to the Obligations in connection with the Transaction Documents or otherwise and all rights that it might have
to benefit from, or to participate in, any security for the Obligations as a result of any payment made by the Company with respect to
the Obligations in connection with the Transaction Documents or otherwise. Any agreement providing for indemnification, reimbursement
or any other arrangement prohibited under this Section shall be null and void. If any payment is made to the Company in contravention
of this Section, the Company shall hold such payment in trust for the Investor and such payment shall be promptly delivered to the Investor
for application to the Obligations, whether matured or unmatured.

 

11. 
GOVERNING LAW: MISCELLANEOUS.

(a) 
Governing Law; Mandatory Jurisdiction. All questions concerning the construction, validity, enforcement, and interpretation of
this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without
regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement,
and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates,
directors, officers, stockholders, employees, or agents) shall be commenced in the state and federal courts sitting in the City of Wilmington
(the “Delaware Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware
Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Delaware Courts, or such Delaware
Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it hereunder and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement
or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Agreement,
then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other
costs and expenses incurred in the investigation, preparation, and prosecution of such action or proceeding.

(b) 
Counterparts. This Agreement may be executed in 2 or more identical counterparts, all of which shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and physically or electronically delivered
to the other party.

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

(d) 
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

(e) 
Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

(f) 
Entire Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Investor, the Company,
their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except
as specifically set forth herein or therein, neither the Company nor any Investor makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by
the party to be charged with enforcement.

12. 
Notices. Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been
delivered upon: (i) receipt, when delivered personally, (ii) 1 Business Day after deposit with an
overnight courier service with next day delivery specified, in each case, properly addressed
to the party to receive the same, or (iii) receipt,
when sent by electronic mail (provided that the electronic mail transmission is not returned in error or the sender is not otherwise
notified of any error in transmission. The addresses and email addresses for such communications shall be:

	If to the Company, to:	Forza
                           Innovations Inc.

    30
    Forzani Way NW

    Calgary,
    Alberta T3Z 1L5

    Johnny
    Forzani, CEO

    Email:
    info@forzainnovates.com

	 	 
	 	 
	 	 
	If to the Investor:	Coventry Enterprises, LLC.
	 	18977 West 10 Mile Road, Suite 200
	 	Southfield, Michigan 48075
	 	Attention: Jack Bodenstein
	 	Telephone:
        248-569-9174

    Email:
    Jackbodenstein@gmail.com

	 	 

or
at such other address and/or electronic email address and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party 3 Business Days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the
sender’s computer containing the time, date, recipient’s electronic mail address and the text of such electronic mail or
(iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by electronic
mail or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

(k) 
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. Neither the Company nor any Investor shall assign this Agreement or any rights or obligations hereunder without the prior
written consent of the other party hereto.

(l) 
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

(m) 
Survival. Unless this Agreement is terminated under Section 11(f), all agreements, representations, and warranties contained in
this Agreement or made in writing by or on behalf of any party in connection with the transactions contemplated by this Agreement shall
survive the execution and delivery of this Agreement and the Closing.

(n) 
Publicity. The Company and the Investor shall have the right to approve, before issuance any press release or any other public
statement with respect to the transactions contemplated hereby made by any party; provided, however, that the Company shall be entitled,
without the prior approval of the Investor, to issue any press release or other public disclosure with respect to such transactions required
under applicable securities or other laws or regulations (the Company shall use its best efforts to consult the Investor in connection
with any such press release or other public disclosure prior to its release and Investor shall be provided with a copy thereof upon release
thereof).

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

(p) 
Termination. In the event that the Closing shall not have occurred on or before 5th business days from the date hereof
due to the Company’s or the Investor’s failure to satisfy the conditions set forth in Sections 7 and 8 above (and the non-breaching
party’s failure to waive such unsatisfied condition(s)), the non-breaching party shall have the option to terminate this Agreement
with respect to such breaching party at the close of business on such date without liability of any party to any other party.

(q) 
Brokerage. The Company represents that no broker, agent, finder, or other party has been retained by it in connection with the
transactions contemplated hereby and that no other fee or commission has been agreed by the Company to be paid for or on account of the
transactions contemplated hereby.

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

 

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

 

    	1 

    	 

    

 

IN
WITNESS WHEREOF, each of the Investor and the Company has affixed their respective signatures to this Securities Purchase
Agreement as of the date first written above.

COMPANY:

FORZA
INNOVATIONS INC.

 

 

By:/s/
Johnny Forzani

Name:
Johnny Forzani

Title:
Chief Executive Officer

 

 

INVESTOR:

COVENTRY
ENTERPRISES, LLC

 

 

By:/s/
Jack Bodenstein

Name: Jack Bodenstein

Title:
Managing Member

 

 

    	2 

    	 

    

LIST
OF EXHIBITS:

 

Disclosure
Schedule

 

Exhibit
A – Form of Promissory Note

 

 

 

    	3 

    	 

    

 

DISCLOSURE
SCHEDULE

 

Schedule
4(b) – Security Interests Granted – None

Schedule
4(e)– Capitalization – See Section 4(e)

Schedule
4(g) – Use of Proceeds – ___________________

 

    	4 

    	 

    

EXHIBIT
A

 

Form
of Promissory Note

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