Document:

Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Securities Purchase Agreement” or “Agreement”) is dated
as of __________________ (the Effective Date”), between QSAM Biosciences Inc., a Delaware corporation, (the “Company”)
and the purchaser(s) set forth below (the “Purchaser”). The Company and the Purchasers may be referred to individually,
as a “Party” and collectively, as the “Parties.”

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506(b) promulgated thereunder, the Company desires to issue and
sell to the Purchasers, and the Purchasers, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement (the “Offering”).

 

WHEREAS,
the Company is seeking to raise $2.0 million (subject to an over-allotment of $0.5 million in the discretion of the Company) and
pursuant to which the Checkmate Capital Group LLC has agreed to act as the lead investor (“Lead Investor”) for the
Offering.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and Purchasers agree as follows:

 

1.
DEFINITIONS

 

	 	(a)	Definitions.
    In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein
    have the meanings given to such terms in the Articles of Incorporation (as defined herein), and (b) the following terms have
    the meanings set forth in this Section 1.1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of Florida are authorized or required by law or other governmental action to
close.

 

“Certificate
of Designation” means the Certificate of Designation to be filed prior to or in connection with the Closing by the Company
with the Secretary of State of Delaware, in the form of Exhibit A attached hereto.

 

“Closing
Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligation to pay the Subscription Amount at such Closing,
and (ii) the Company’s obligations to deliver the Securities to be issued and sold or exchanged at such Closing, in each
case, have been satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

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“Common
Stock” means the common stock of the Company, $0.0001 par value per share, and any other class of securities into which
such securities may hereafter be reclassified or changed, issuable upon conversion of the Series B Convertible Preferred Stock.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries that would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Conversion
Shares” means shares of the Company’s Common Stock issuable upon conversion of the Series B Convertible Preferred
Stock.

 

“EDGAR
Filings” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Effective
Date” means the date first set forth above.

 

“End
Date” means the date upon which no Purchaser is holding any Securities.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock and options to officers, directors, employees, or consultants
of the Company prior to and after the Closing Date in the amounts and on the terms set forth on Schedule 3.1(g), (b) securities
upon the exercise or exchange of or conversion of Securities issued hereunder (subject to adjustment for forward and reverse stock
splits and the like that occur after the date hereof) and/or other securities exercisable or exchangeable for, or convertible
into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities and any term thereof
have not been amended since the date of this Agreement to increase the number of such securities or to decrease the issue price,
exercise price, exchange price or conversion price of such securities and which securities and the principal terms thereof are
set forth on Schedule 3.1(g), or (c) securities issued pursuant to acquisitions approved by the directors of the Company,
provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business and shall be intended to provide to the Company substantial
additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing
securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“GAAP”
shall mean United States generally accepted accounting principles applied on a consistent basis.

 

“Liens”
means a lien, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

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“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition, whether commenced or threatened.

 

“Regulation
D” means Regulation D under the Securities.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Securities”
means the shares of Series B Convertible Preferred Stock, and Underlying Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Series
B Convertible Preferred Stock” means the Series B Convertible Preferred Stock, par value $0.0001 of the Company, subject
to the terms contained in the Certificate of Designation.

 

“Shares”
means the shares of Series B Convertible Preferred Stock issued to the Purchaser pursuant to this Agreement.

 

“Subscription
Amount” means, as to each Purchaser purchasing Shares pursuant to Section 2.1(a), the aggregate cash amount in United
States dollars and in immediately available funds to be paid for the Shares purchased hereunder as specified below the Purchaser’s
name on the signature page of this Agreement and next to the heading “Subscription Amount.”

 

“Subsidiary”
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 50% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or
other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (B) is under the actual control
of the Company. Representations, undertakings and obligations set forth in this Agreement shall be applicable only to Subsidiaries
which exist or have existed at the applicable and relevant time.

 

“Termination
Date” shall mean March 31, 2021, unless extended for up to 30 days by the Company in its reasonable discretion.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges: the NYSE MKT LLC, the Nasdaq Capital Market, the Nasdaq Global
Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any
successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Certificate of Designation, and all exhibits and schedules thereto and hereto,
and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

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“Transfer
Agent” means the transfer agent for the Common Stock, and any successor transfer agent of the Company.

 

“Underlying
Shares” means the Conversion Shares.

 

2.
PURCHASE AND SALE

 

(a)
Closing; Exchange.

 

(a)
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers
agree to purchase the number of Shares as set forth on the Signature Page for an aggregate purchase price also set forth thereon
(“Subscription Amount”). Each Purchaser will receive one (1) share of Series B Preferred Stock for each $1,000
of Purchase Price.

 

(b)
On the Closing Date, the Company shall deliver to each Purchaser a certificate representing the number of Shares of Series B Convertible
Preferred Stock.

 

(c)
The Company and Purchasers shall also deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction
of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Dickinson Wright
LLP or such other location or by remote exchange of electronic documentation as the parties shall mutually agree.

 

(b)
Deliveries.

 

(a)
On the Closing Date, the Company shall deliver or cause to be delivered to the Purchasers the following:

 

(i)
this Agreement duly executed by the Company with the schedules and exhibits thereto;

 

(ii)
a certificate evidencing a number of Shares being purchased by the Purchaser at the Closing, registered in the name of such Purchaser

 

(iii)
Copy of the filed Certificate of Designation; and

 

(iv)
the Schedules.

 

(b)
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered the following:

 

(a)
this Agreement duly executed by the Purchaser, to the Company; and

 

(b)
the Purchaser’s cash Subscription Amount by wire transfer, as directed by the Company.

 

(c)
Closing Conditions.

 

(a)
The obligations of the Company hereunder to effect the Closing are subject to the following conditions being met:

 

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(a)
the accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar
qualifiers therein) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of
a specific date therein in which case they shall be accurate as of such date);

 

(b)
all obligations, covenants and agreements of the Purchasers required to be performed at or prior to the Closing Date shall have
been performed; and

 

(c)
the delivery by the Purchasers of the items set forth in Section 2.2(b) of this Agreement.

 

(b)
The obligations of the Purchasers hereunder to effect a Closing, unless waived by the Purchasers, are subject to the following
conditions being met:

 

(i)
the accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar
qualifiers therein) on the Closing Date of the representations and warranties of the Company contained herein (unless as of a
specific date therein in which case they shall be accurate as of such date);

 

(ii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii)
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)
from the date hereof to each respective Closing Date, trading in securities in the United States generally as reported by Bloomberg
L.P. shall not have been suspended or limited, nor shall a banking moratorium have been declared either by the United States or
New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing;

 

(v)
The Company will be current in its filings with the Commission.

 

2.4
Purchasers’ Right to Terminate. Anything in any of the Transaction Documents to the contrary notwithstanding, each
Purchaser has the right to demand and receive back from the Company such Purchaser’s Subscription Amount and any other documents
delivered in connection with the Offering at any time until a Closing takes place. In addition, the Company shall provide one
(1) prior Business Days’ notice that all Closing conditions have been met and it is ready to close the Offering.

 

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3.
REPRESENTATIONS AND WARRANTIES

 

	 	(i)	Representations
    and Warranties of the Company. Except in each case as set forth in the Disclosure Schedules (which Disclosure Schedules
    shall be deemed a part hereof and shall qualify any representation made herein only to which it refers), the Company hereby
    makes the following representations and warranties to each Purchaser as of the date hereof and the Closing Date unless as
    of a specific date therein in which case they shall be accurate as of such date:

 

1.
Subsidiaries. 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 of 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. If the Company
has no Subsidiaries relevant to any component of this Agreement as of a particular date, then such reference shall not be applicable.

 

2.
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the
Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could 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,
prospects 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.

 

3.
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
and creditors in connection herewith or therewith other than in connection with the Required Approvals except those filings required
to be made with the Commission and state agencies after the Closing Date. This Agreement and each other Transaction Document to
which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance
with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

4.
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents,
the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which
it is a party, do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any
Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) conflict with or
result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected.

 

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5.
Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filing of Form D with the Commission, (ii) such filings as are required to be made under applicable state securities
laws, and (iii) such as may be required but which have been obtained prior to the Closing (collectively, the “Required
Approvals”).

 

6.
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and non-assessable, free and clear of all Liens imposed by
the Company. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of
the Underlying Shares at least equal to the Required Minimum on the date hereof.

 

7.
Capitalization. The capitalization of the Company at September 30, 2020 is as set forth in the Company’s filings
with the Commission (the “SEC Reports”). The proforma capitalization of the Company as of December 1, 2020 is set
forth on Schedule 3.1(g). Except as disclosed in the SEC or on Schedule 3.1(g), no Person has any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Except as disclosed in the SEC Reports or on Schedule 3.1(g), there are no outstanding warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of
Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of Common Stock or Common Stock Equivalents. The Company has an Equity Incentive Plan in effect
as of the Closing Date. Except as set forth on Schedule 3.1(g), the issuance and sale of the Securities will not obligate
the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result
in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable,
have been issued in material 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. No further approval or authorization
of any stockholder, the Board of Directors, any other Person is required for the issuance and sale of the Securities. There are
no stockholder’s 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.

 

8.
Financial Statements. The Company’s filings available in the SEC Reports contain audited financial statements of
the Company for the years ended December 31, 2018 and 2019 and unaudited financial statements for the three and nine months ended
September 30, 2019 and 2020 (collectively, “Financial Statements”). The Financial Statements have been prepared
in accordance with GAAP. The Financial Statements fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject to normal adjustments and inclusion of footnotes which would be required pursuant to generally accepted accounting
principles.

 

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9.
Material Changes; Undisclosed Events, Liabilities or Developments. Except as set forth in the SEC Reports since December
31, 2020: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in
a Material Adverse Effect, (ii) the Company has not incurred any material liabilities other than trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice, (iii) the Company has not altered its method of accounting,
and (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock.

 

10.
Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge
of the Company, imminent against or affecting the Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively,
an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the
Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to
result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been
the subject of any pending Action involving a claim of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty.

 

11.
Compliance. Except as set forth in the SEC Reports, neither the Company nor any Subsidiary: (i) is in default under or
in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in
a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is
in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to
which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived),
(ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or
has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation
all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product
quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result
in a Material Adverse Effect.

 

12.
Intellectual Property.

 

(a)
The term “Intellectual Property Rights” includes:

 

1.
the name of the Company and each Subsidiary, all fictional business names, trading names, registered and unregistered trademarks,
service marks, and applications of the Company and each Subsidiary (collectively, “Marks’’);

 

2.
all patents, patent applications, and inventions and discoveries that may be patentable of the Company and each Subsidiary (collectively,
“Patents’’);

 

3.
all copyrights in both unpublished works and published works of the Company and each Subsidiary (collectively, “Copyrights”);

 

4.
all rights in mask works of the Company and each Subsidiary (collectively, “Rights in Mask Works’’);

 

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5.
all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology,
plans, drawings, and blue prints (collectively, “Trade Secrets’’); owned, used, or licensed by the Company
and each Subsidiary as licensee or licensor; and

 

6.
the license or right to directly or indirectly use any of the foregoing, whether perpetually or for a fixed term, whether or not
subject to defeasement, and whether or not reduced to writing or otherwise memorialized.

 

(b)
Agreements. There are no outstanding and, to Company’s knowledge, no threatened disputes or disagreements with respect
to any agreement regarding the Company’s intellectual property.

 

(c)
Know-How Necessary for the Business. The Intellectual Property Rights are all those necessary for the operation of the
Company’s businesses as it is currently conducted or contemplated to be conducted. The Company is the owner or licensee
of all right, title, and interest in and to each of the Intellectual Property Rights, free and clear of all liens, security interests,
charges, encumbrances, equities, and other adverse claims, and has the right to use all of the Intellectual Property Rights. To
the Company’s knowledge, no employee of the Company has entered into any contract that restricts or limits in any way the
scope or type of work in which the employee may be engaged or requires the employee to transfer, assign, or disclose information
concerning his work to anyone other than of the Company.

 

(d)
Patents. The Company is the owner of or licensee of all right, title and interest in and to each of the Patents, free and
clear of all Liens and other adverse claims. All of the issued Patents are currently in compliance with formal legal requirements
(including payment of filing, examination, and maintenance fees and proofs of working or use), are valid and enforceable, and
are not subject to any maintenance fees or taxes or actions falling due within ninety days after the Closing Date. No Patent has
been or is now involved in any interference, reissue, reexamination, or opposition proceeding. To the Company’s knowledge:
(1) there is no potentially interfering patent or patent application of any third party, and (2) no Patent is infringed or has
been challenged or threatened in any way. To the Company’s knowledge, none of the products manufactured and sold, nor any
process or know-how used, by the Company infringes or is alleged to infringe any patent or other proprietary right of any other
Person.

 

(e)
Trademarks. The Company is the owner or licensee of all right, title, and interest in and to each of the Marks, free and
clear of all Liens and other adverse claims. All Marks that have been registered with the United States Patent and Trademark Office
are currently in compliance with all formal legal requirements (including the timely post-registration filing of affidavits of
use and incontestability and renewal applications), are valid and enforceable, and are not subject to any maintenance fees or
taxes or actions falling due within ninety days after the Closing Date. No Mark has been or is now involved in any opposition,
invalidation, or cancellation and, to the Company’s knowledge, no such action is threatened with respect to any of the Marks.
To the Company’s knowledge: (1) there is no potentially interfering trademark or trademark application of any third party,
and (2) no Mark is infringed or has been challenged or threatened in any way. To the Company’s knowledge, none of the Marks
used by the Company infringes or is alleged to infringe any trade name, trademark, or service mark of any third party.

 

(f)
Copyrights. The Company is the owner of all right, title, and interest in and to each of the Copyrights, free and clear
of all Liens and other adverse claims. All the Copyrights have been registered and are currently in compliance with formal requirements,
are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after
the date of the Closing. No Copyright is infringed or, to the Company’s knowledge, has been challenged or threatened in
any way. To the Company’s knowledge, none of the subject matter of any of the Copyrights infringes or is alleged to infringe
any copyright of any third party or is a derivative work based on the work of a third party. All works encompassed by the Copyrights
have been marked with the proper copyright notice.

 

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(g)
Trade Secrets. With respect to each Trade Secret, the documentation relating to such Trade Secret is current, accurate,
and sufficient in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge
or memory of any individual. The Company has taken all reasonable precautions to protect the secrecy, confidentiality, and value
of its Trade Secrets. The Company has good title and an absolute (but not necessarily exclusive) right to use the Trade Secrets.
The Trade Secrets are not part of the public knowledge or literature, and, to the Company’s knowledge, have not been used,
divulged, or appropriated either for the benefit of any Person (other the Company) or to the detriment of the Company. No Trade
Secret is subject to any adverse claim or has been challenged or threatened in any way.

 

13.
Transactions With Affiliates and Employees. Except as set forth in the Company’s SEC Reports, none of the officers
or directors of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (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, providing for the borrowing
of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to
the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is
an officer, director, trustee, stockholder, member or partner, in each case in excess of $150,000 other than for: (i) payment
of salary or consulting fees for services rendered and (ii) reimbursement for expenses incurred on behalf of the Company).

 

14.
Certain Fees. No brokerage, finder’s fees, commissions or due diligence fees are or will be payable by the Company
or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect
to any such fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section
3.1(n) that may be due in connection with the transactions contemplated by the Transaction Documents.

 

15.
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect or as set forth in the SEC Reports, the Company and its Subsidiaries each (i) has made or filed or
preparing to file all United States federal, state and local income and all foreign income and franchise tax returns, reports
and declarations required by any jurisdiction to which it is subject, (ii) 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 and (iii) has
set aside on its books provision reasonably adequate for the payment of all material 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 or of any Subsidiary know of no basis for any such claim.

 

16.
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material
respect any provision of FCPA.

 

    	10

    	 

    

 

17.
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers
as contemplated hereby.

 

18.
No General Solicitation or Integration. Neither the Company nor any person acting on behalf of the Company has offered
or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities
for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule 501 under the
Securities Act.

 

19.
No Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under
the Securities Act, 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, 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 Securities 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 Purchasers a copy of any disclosures provided
thereunder.

 

20.
Other Covered Persons. The Company is not aware of any person that has been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of any Regulation D Securities.

 

21.
Reporting Company. The Company is a publicly-held company subject to reporting obligations pursuant to Section 12(g) of
the Exchange Act and has made all required filings under the Exchange Act since December 31, 2016

 

22.
Survival. The foregoing representations and warranties shall survive the Closing Date for a period of 12 months from such
date.

 

23.
Qualified Small Business Stock. As of and immediately following the date of the Agreement, (i) the Company is an eligible
corporation as defined in Section 1202(e)(4) of the Code; (ii) the Company will not have made any purchases of its own stock during
the one-year period preceding the Closing having an aggregate value exceeding 5% of the aggregate value of all its stock as of
the beginning of such period; (iii) the Company’s aggregate gross assets, as defined by Code Section 1202(d)(2), have never
exceeded and, after taking into account the proceeds from the sale of the financing, will not exceed $50 million, taking into
account the assets of any corporations required to be aggregated with the Company in accordance with Code Section 1202(d)(3);
(iv) the Company will be a qualified small business within the meaning of Section 1202(e)(3) of the Code; and (v) the Company
will be in compliance with the active business requirement of Section 1202(e) of the Code.

 

    	11

    	 

    

 

	 	(b)	Representations
    and Warranties of the Purchasers. Each Purchaser, for itself only hereby represents and warrants as of the date hereof
    and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

1.
Organization; Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.
Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
to the extent the indemnification provisions contained in this Agreement may be limited by applicable law.

 

2.
Understandings or Arrangements. Such Purchaser understands that the Securities are “restricted securities”
and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as
principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation
of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities
in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any
applicable state securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities
pursuant to a registration statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser
is acquiring the Securities hereunder in the ordinary course of its business.

 

3.
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it converts a Share, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in
Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of
the Exchange Act. Such Purchaser has the authority and is duly and legally qualified to purchase and own the Securities. Such
Purchaser is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

 

4.
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

5.
Information on Company. Each Purchaser was afforded (i) the opportunity to ask such questions as such Purchaser deemed
necessary of, and to receive answers from, representatives of the Company concerning the merits and risks of acquiring the Securities;
(ii) the right of access to information about the Company and its financial condition, results of operations, business, properties,
management and prospects sufficient to enable such Purchaser to evaluate the Securities; and (iii) the opportunity to obtain such
additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make
an informed investment decision with respect to acquiring the Securities. In addition, each Purchaser shall have considered all
factors such Purchaser deems material in deciding on the advisability of investing in the Securities.

 

    	12

    	 

    

 

6.
Compliance with Securities Act; Reliance on Exemptions. Such Purchaser understands and agrees that the Securities have
not been registered under the Securities Act or any applicable state securities laws, by reason of their issuance in a transaction
that does not require registration under the Securities Act, and that such Securities must be held indefinitely unless a subsequent
disposition is registered under the Securities Act or any applicable state securities laws or is exempt from such registration.
Such Purchaser understands and agrees that the Securities are being offered and sold to such Purchaser in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and regulations and that the
Company is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such
exemptions and the eligibility of such Purchaser to acquire the Securities.

 

7.
No Governmental Review. Such Purchaser understands that no United States federal or state agency or any other governmental
or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

8.
No Conflicts. The execution, delivery and performance of this Agreement and performance under the other Transaction Documents
and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto or thereto do not
and will not (i) result in a violation of such Purchaser’s charter documents, bylaws or other organizational documents,
if applicable, (ii) conflict with nor constitute a default (or an event which with notice or lapse of time or both would become
a default) under any agreement to which such Purchaser is a party, nor (iii) result in a violation of any law, rule, or regulation,
or any order, judgment or decree of any court or governmental agency applicable to such Purchaser or its properties (except for
such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such
Purchaser). Such Purchaser 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 this Agreement
or perform under the other Transaction Documents nor to purchase the Securities in accordance with the terms hereof, provided
that for purposes of the representation made in this sentence, such Purchaser is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

 

9.
Tax Liability. Such Purchaser has reviewed with its own tax advisors the federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Agreement. Such Purchaser understands that it (and not the Company)
shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated
by this Agreement.

 

(k)
Survival. The foregoing representations and warranties shall survive the Closing Date for 12 months from the Closing date.

 

    	13

    	 

    

 

4.
OTHER AGREEMENTS OF THE PARTIES

 

	 	(a)	Transfer Restrictions.

 

(a)
Securities Laws. The Securities may only be disposed of in compliance with state and federal securities laws. In connection
with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an
Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(c), the Company may require the transferor
thereof to provide to the Company at the Company’s expense, an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of such
transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and
obligations of a Purchaser under this Agreement and the other Transaction Documents.

 

(b)
Legend. The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities
substantially in the following form:

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. TO THE EXTENT PERMITTED BY APPLICABLE SECURITIES LAWS, THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH
A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

 

(c)
Pledge. The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin
agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution
that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by
the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledge or secure
Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no
legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no
notice shall be required of such pledge. At such Purchaser’s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the
Securities including, if the Securities are subject to registration pursuant to a registration rights agreement, the preparation
and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of
the Securities Act to appropriately amend the list of selling stockholders thereunder.

 

	 	(b)	Conversion
    and Exercise Procedures. The form of Notice of Conversion attached to the Certificate of Designation sets forth the totality
    of the procedures required of the Purchasers in order to convert the Shares. No additional legal opinion, other information
    or instructions shall be required of the Purchasers to convert their Shares. The Company shall honor conversions of the Shares
    and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction
    Documents. 

 

    	14

    	 

    

 

	 	(c)	Use
    of Proceeds. The Company will use the net proceeds to the Company from the sale of the Shares hereunder for general corporate
    purposes and working capital. 
	 	 	 
	 	(d)	Reservation
    of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant
    to the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction
    Documents, 
	 	 	 
	 	(e)	Form
    D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
    D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company
    shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the
    Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and
    shall provide evidence of such actions promptly upon request of any Purchaser.

 

4.6
Securities Laws Disclosure; Publicity. The Company shall, by 9:00 a.m. (New York City time) on the fourth (4rd)
Trading Day immediately following the Closing Date, issue a press release disclosing the material terms of the transactions contemplated
hereby, and shall file a Current Report on Form 8-K including the Transaction Documents as exhibits thereto within the time period
required by the Exchange Act.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by a Purchaser, as to such Purchaser’s obligations hereunder only and
without any effect whatsoever on the obligations between the Company and such Purchaser, by written notice to the other parties,
if the Closing has not been consummated on or before the Termination Date.

 

	 	(f)	Fees
    and Expenses. Except as expressly set forth on Schedule 4.7, each party shall pay the fees and expenses of its
    advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
    preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes
    and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. 
	 	 	 
	 	(g)	Entire
    Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
    of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
    oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits
    and schedules.
	 	 	 
	 	(h)	Notices.
    All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
    writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
    certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
    or (iv) transmitted by hand delivery, telegram, or email or facsimile transmission, addressed as set forth below or to such
    other address as such party shall have specified most recently by written notice. Any notice or other communication required
    or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by email at the address or
    number designated below (if delivered on a business day during normal business hours where such notice is to be received),
    or the first business day following such delivery (if delivered other than on a business day during normal business hours
    where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
    fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses
    for such communications shall be: (i) if to the Company, to: QSAM Biosciences, Att: Douglas Baum CEO, at 3616 Far West Blvd.,
    Suite 117-292, Austin, TX 78731 email: dbaum.qsam@gmail.com, with a copy by fax or email only to (which shall not constitute
    notice): Christopher Nelson, email: cnelson@q2earth.com; 420 Royal Palm Way #100, Palm Beach Florida 33480; and (ii) if to
    the Purchasers, to: the addresses and fax numbers indicated on the signature pages hereto 

 

    	15

    	 

    

 

	 	(i)	Amendments;
    Waivers. Any provision of this Agreement and any other Transaction Document may be waived, modified, supplemented or amended
    and consent obtained or approval deemed granted except in a written instrument signed, in the case of an amendment, by the
    Company and the Purchasers holding at least a majority in interest (“Majority in Interest”), including the Lead
    Investor of the component of the affected Securities then outstanding or, in the case of a waiver not affecting all Purchasers,
    by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any
    provision, condition or requirement of this Agreement nor any other Transaction Document shall be deemed to be a continuing
    waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement thereof,
    nor shall any delay or omission of any party to exercise any right thereunder in any manner impair the exercise of any such
    right. Any Purchaser may waive in writing any right or benefit granted to or available to such Purchaser pursuant to the Transaction
    Documents.
	 	 	 
	 	(j)	Headings.
    The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit
    or affect any of the provisions hereof.
	 	 	 
	 	(k)	Successors
    and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
    assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent
    of each Purchaser (other than by merger). 
	 	 	 
	 	(l)	No
    Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
    and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except
    as otherwise set forth in Section 4.10.
	 	 	 
	 	(m)	Governing
    Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
    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 conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
    enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
    against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
    shall be commenced exclusively in the state and federal courts sitting in the City of Austin, Texas. Each party hereby irrevocably
    submits to the exclusive jurisdiction of the state and federal courts sitting in Austin, Texas 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 any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in
    any action, suit or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
    suit, action or proceeding is improper or is an 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 under this Agreement and agrees that such service shall constitute good and sufficient service of
    process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
    other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction
    Documents, then, in addition to the obligations of the Company under Section 4.10, the prevailing party in such action, suit
    or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses
    incurred with the investigation, preparation and prosecution of such action or proceeding.

 

    	16

    	 

    

 

	 	(n)	Survival.
    The representations and warranties contained herein shall survive the Closing and the delivery of the Securities for 12 months.
	 	 	 
	 	(o)	Execution.
    This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the
    same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party,
    it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile
    transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding
    obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such
    facsimile or “.pdf” signature page were an original thereof.
	 	 	 
	 	(p)	Severability.
    If any term, provision, covenant or restriction of any Transaction Document is held by a court of competent jurisdiction to
    be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
    shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall
    use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the
    same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to
    be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions
    without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.
	 	 	 
	 	(q)	Remedies.
    In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each
    of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree
    that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained
    in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such
    obligation the defense that a remedy at law would be inappropriate.

 

    	17

    	 

    

 

	 	(r)	Saturdays,
    Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
    or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
    Business Day.
	 	 	 
	 	(s)	Construction.
    The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
    Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the
    drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. Unless
    otherwise indicated to the contrary herein by the context or use thereof: (i) the words, “herein,” “hereto,”
    “hereof” and words of similar import refer to this Agreement as a whole and not to any particular Section or paragraph
    hereof; (ii) words importing the masculine gender shall also include the feminine and neutral genders, and vice versa; and
    (iii) words importing the singular shall also include the plural, and vice versa. 
	 	 	 
	 	(t)	WAIVER
    OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE
    PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
    IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

5.17
Equitable Adjustment. Trading volume amounts, price/volume amounts and similar figures in the Transaction Documents shall
be equitably adjusted (but without duplication) to offset the effect of stock splits, similar events and as otherwise described
in this Agreement.

 

5.18
Most Favored Nations. In the event that the future Transaction Documents, including the Certificate of Designation, entered
into by other subscribers to this offering provide terms that are more beneficial to the Purchaser, this Agreement and all other
terms in the Transaction Documents will be automatically and immediately amended without any further action on the part of the
Purchaser to provide the Purchaser with such more beneficial terms.

 

(Signature
Pages Follow)

 

    	18

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	QSAM
    BIOSCIENCES, Inc.	 
	 	 
	By:	                	 
	Name: 
    	 	 
	Title:
    	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	19

    	 

    

 

[PURCHASER
SIGNATURE PAGE TO QSAM BIOSCIENCES, Inc.

SECURITIES
PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Name
of Purchaser:

 

_____________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: ______________________________________

 

Name
of Authorized Signatory:

 

Title
of Authorized Signatory: ____________________________________________________

 

SSN/FEIN
Number of Purchaser: __________________________________________________

 

Email
Address of Authorized Signatory:

 

Telephone
Number of Authorized Signatory: __________________________________________

 

Address
for Notice to Purchaser:

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

Subscription
Amount: U.S. $

 

Series
B Convertible Preferred Shares (Subscription amount / $1,000): 

 

    	20Exhibit
10.2

 

THIS
WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY OTHER SECURITIES LAWS, HAVE BEEN TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR TRANSFERRED OR OFFERED FOR SALE
OR TRANSFER UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH
SECURITIES IS THEN IN EFFECT, OR IN THE OPINION OF COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE ISSUER OF THESE SECURITIES),
SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

 

	Date:
    _________	 	Warrant
                                         to Purchase

        ***________***

        Shares

 

QSAM
BIOSCIECNES, INC.

 

WARRANT
FOR THE PURCHASE OF SHARES OF

COMMON
STOCK

 

Warrant
Price: $0.35 per
share, subject to adjustment as provided below.

 

THIS
IS TO CERTIFY that, for value received, ____________________, who has invested in the Company’s Series B Preferred Stock
offering prior to January 25, 2021 (the “Holder”), is entitled to purchase, subject to the terms and conditions hereinafter
set forth, up to _______ shares [equal to 100% of dollar amount invested in the Series B round – shares X Warrant Price]
of the common stock (“Common Stock”), of QSAM Biosciences, Inc. (the “Company”), and to receive certificate(s)
for the Common Stock so purchased.

 

1.
Exercise Period and Vesting. The exercise period is the period beginning on the date of this Warrant (the “Issuance
Date”) and ending at 5:00 p.m., New York time, on July 8, 2021 (the “Exercise Period”). This Warrant
is vested in full as of the Issuance Date and is immediately exercisable by Holder. This Warrant will terminate automatically
and immediately upon the expiration of the Exercise Period.

 

2.
Exercise of Warrant. This Warrant may be exercised, in whole or in part, at any time and from time to time during the Exercise
Period. Such exercise shall be accomplished by tender to the Company of the purchase price set forth above as the warrant price
(the “Warrant Price”), in cash by wire transfer or by certified check or bank cashier’s check, payable to the
order of the Company, together with presentation and surrender to the Company of this Warrant with an executed subscription in
substantially the form attached hereto as Exhibit A (the “Subscription”). Upon receipt of the foregoing, the
Company will deliver to the Holder, as promptly as possible, a certificate or certificates representing the shares of Common Stock
so purchased, registered in the name of the Holder or its transferee (as permitted under Section 3 below). With respect to any
exercise of this Warrant, the Holder will for all purposes be deemed to have become the holder of record of the number of shares
of Common Stock purchased hereunder on the date this Warrant, a properly executed Subscription and payment of the Warrant Price
is received by the Company (the “Exercise Date”), irrespective of the date of delivery of the certificate evidencing
such shares, except that, if the date of such receipt is a date on which the stock transfer books of the Company are closed, such
person will be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the
stock transfer books are open. Fractional shares of Common Stock will not be issued upon the exercise of this Warrant. In lieu
of any fractional shares that would have been issued but for the immediately preceding sentence, the Holder will be entitled to
receive cash equal to the current market price of such fraction of a share of Common Stock on the trading day immediately preceding
the Exercise Date. In the event this Warrant is exercised in part, the Company shall issue a new Warrant to the Holder covering
the aggregate number of shares of Common Stock as to which this Warrant remains exercisable for.

 

    	1

    	 

    

 

3.
Transferability and Exchange.

 

(a)
This Warrant, and the Common Stock issuable upon the exercise hereof, may not be sold, transferred, pledged or hypothecated unless
the Company shall have been provided with an opinion of counsel, or other evidence reasonably satisfactory to it, that such transfer
is not in violation of the Securities Act, and any applicable state securities laws. Subject to the satisfaction of the aforesaid
condition, this Warrant and the underlying shares of Common Stock shall be transferable from time to time by the Holder upon written
notice to the Company. If this Warrant is transferred, in whole or in part, the Company shall, upon surrender of this Warrant
to the Company, deliver to each transferee a Warrant evidencing the rights of such transferee to purchase the number of shares
of Common Stock that such transferee is entitled to purchase pursuant to such transfer. The Company may place a legend similar
to the legend at the top of this Warrant on any replacement Warrant and on each certificate representing shares issuable upon
exercise of this Warrant or any replacement Warrants. Only a registered Holder may enforce the provisions of this Warrant against
the Company. A transferee of the original registered Holder becomes a registered Holder only upon delivery to the Company of the
original Warrant and an original Assignment, substantially in the form set forth in Exhibit B attached hereto.

 

(b)
This Warrant is exchangeable upon its surrender by the Holder to the Company for new Warrants of like tenor and date representing
in the aggregate the right to purchase the number of shares purchasable hereunder, each of such new Warrants to represent the
right to purchase such number of shares as may be designated by the Holder at the time of such surrender.

 

4.
Adjustments to Warrant Price and Number of Shares Subject to Warrant. The Warrant Price and the number of shares of Common
Stock purchasable upon the exercise of this Warrant are subject to adjustment from time to time upon the occurrence of any of
the events specified in this Section 4. For the purpose of this Section 4, “Common Stock” means shares now or hereafter
authorized of any class of common stock of the Company and any other stock of the Company, however designated, that has the right
to participate in any distribution of the assets or earnings of the Company without limit as to per share amount (excluding, and
subject to any prior rights of, any class or series of preferred stock).

 

    	2

    	 

    

 

(a)
In case the Company shall (i) pay a dividend or make a distribution in shares of Common Stock or other securities, (ii) subdivide
its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into
a smaller number of shares, or (iv) issue by reclassification of its shares of Common Stock other securities of the Company, then
the Warrant Price in effect at the time of the record date for such dividend or on the effective date of such subdivision, combination
or reclassification, and/or the number and kind of securities issuable on such date, shall be proportionately adjusted so that
the Holder of any Warrant thereafter exercised shall be entitled to receive the aggregate number and kind of shares of Common
Stock (or such other securities other than Common Stock) of the Company, at the same aggregate Warrant Price, that, if such Warrant
had been exercised immediately prior to such date, the Holder would have owned upon such exercise and been entitled to receive
by virtue of such dividend, distribution, subdivision, combination or reclassification. Such adjustment shall be made successively
whenever any event listed above shall occur.

 

(b)
In case the Company shall fix a record date for the making of a distribution to all holders of Common Stock (including any such
distribution made in connection with a consolidation or merger in which the Company is the surviving corporation) of cash, evidences
of indebtedness or assets, or subscription rights or warrants, the Warrant Price to be in effect after such record date shall
be determined by multiplying the Warrant Price in effect immediately prior to such record date by a fraction, the numerator of
which shall be the current market price per share of Common Stock on such record date, less the amount of cash so to be distributed
(or the fair market value (as determined in good faith by, and reflected in a formal resolution of, the Board of Directors of
the Company) of the portion of the assets or evidences of indebtedness so to be distributed, or of such subscription rights or
warrants, applicable to one share of Common Stock, and the denominator of which shall be such current market price per share of
Common Stock. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such distribution
is not so made, the Warrant Price shall again be adjusted to be the Warrant Price which would then be in effect if such record
date had not been fixed.

 

(c)
For the purpose of any computation under any subsection of this Section 4, the “current market price” per share of
Common Stock on any date shall be the per share price of the Common Stock on the trading day immediately prior to the event requiring
an adjustment hereunder and shall be: (i) if the principal trading market for such securities is a national or regional securities
exchange, the closing price on such exchange on such day; or (ii) if sales prices for shares of Common Stock are reported by the
Nasdaq National Market System or Small Cap Market System (or a similar system then in use), the last reported sales price so reported
on such day; or (iii) if neither (i) nor (ii) above are applicable, and if bid and ask prices for shares of Common Stock are reported
in the over-the-counter market by Nasdaq (or, if not so reported, by the National Quotation Bureau), the average of the high bid
and low ask prices so reported on such day. Notwithstanding the foregoing, if there is no reported closing price, last reported
sales price, or bid and ask prices, as the case may be, for the day in question, then the current market price shall be determined
as of the latest date prior to such day for which such closing price, last reported sales price, or bid and ask prices, as the
case may be, are available, unless such securities have not been traded on an exchange or in the over-the-counter market for 30
or more days immediately prior to the day in question, in which case the current market price shall be determined in good faith
by, and reflected in a formal resolution of, the Board of Directors of the Company.

 

    	3

    	 

    

 

(d)
Notwithstanding any provision herein to the contrary, no adjustment in the Warrant Price shall be required unless such adjustment
would require an increase or decrease of at least 1% in the Warrant Price; provided, however, that any adjustments which by reason
of this subsection (d) are not required to be made shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Section 4 shall be made to the nearest cent or the nearest one-hundredth of a share, as the case may
be.

 

(e)
In the event that at any time, as a result of an adjustment made pursuant to subsection (a) above, the Holder of any Warrant thereafter
exercised shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, thereafter
the number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in
a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares of Common Stock contained
in this Section 4, and the other provisions of this Warrant shall apply on like terms to any such other shares.

 

(f)
If the Company merges or consolidates into or with another corporation or entity, or if another corporation or entity merges into
or with the Company (excluding such a merger in which the Company is the surviving or continuing corporation and which does not
result in any reclassification, conversion, exchange, or cancellation of the outstanding shares of Common Stock), or if all or
substantially all of the assets or business of the Company are sold or transferred to another corporation, entity, or person,
then, as a condition to such consolidation, merger, or sale (a “Transaction”), lawful and adequate provision shall
be made whereby the Holder shall have the right from and after the Transaction to receive, upon exercise of this Warrant and upon
the terms and conditions specified herein and in lieu of the shares of the Common Stock that would have been issuable if this
Warrant had been exercised immediately before the Transaction, such shares of stock, securities, or assets as the Holder would
have owned immediately after the Transaction if the Holder had exercised this Warrant immediately before the effective date of
the Transaction.

 

5.
Reservation of Shares. The Company agrees at all times to reserve and hold available out of its authorized but unissued
shares of Common Stock the number of shares of Common Stock issuable upon the full exercise of this Warrant. The Company further
covenants and agrees that all shares of Common Stock that may be delivered upon the exercise of this Warrant will, upon delivery,
be fully paid and nonassessable and free from all taxes, liens and charges with respect to the purchase thereof hereunder.

 

6.
Notices to Holder. Upon any adjustment of the Warrant Price (or number of shares of Common Stock purchasable upon the exercise
of this Warrant) pursuant to Section 4, the Company shall promptly thereafter cause to be given to the Holder written notice of
such adjustment. Such notice shall include the Warrant Price (and/or the number of shares of Common Stock purchasable upon the
exercise of this Warrant) after such adjustment, and shall set forth in reasonable detail the Company’s method of calculation
and the facts upon which such calculations were based. Where appropriate, such notice shall be given in advance and included as
a part of any notice required to be given under the other provisions of this Section 7.

 

In
the event of (a) any fixing by the Company of a record date with respect to the holders of any class of securities of the Company
for the purpose of determining which of such holders are entitled to dividends or other distributions, or any rights to subscribe
for, purchase or otherwise acquire any shares of capital stock of any class or any other securities or property, or to receive
any other right, (b) any capital reorganization of the Company, or reclassification or recapitalization of the capital stock of
the Company or any transfer of all or substantially all of the assets or business of the Company to, or consolidation or merger
of the Company with or into, any other entity or person, or (c) any voluntary or involuntary dissolution or winding up of the
Company, then and in each such event the Company will give the Holder a written notice specifying, as the case may be (i) the
record date for the purpose of such dividend, distribution, or right, and stating the amount and character of such dividend, distribution,
or right; or (ii) the date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger,
conveyance, dissolution, liquidation, or winding up is to take place and the time, if any is to be fixed, as of which the holders
of record of Common Stock (or such capital stock or securities receivable upon the exercise of this Warrant) shall be entitled
to exchange their shares of Common Stock (or such other stock securities) for securities or other property deliverable upon such
event. Any such notice shall be given at least 10 days prior to the earliest date therein specified.

 

    	4

    	 

    

 

7.
No Rights as a Stockholder. This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder
of the Company, nor to any other rights whatsoever except the rights herein set forth.

 

8.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company, the Holder and their
respective successors and permitted assigns.

 

9.
Notices. The Company agrees to maintain a ledger of the ownership of this Warrant (the “Ledger”). Any notice
hereunder shall be given by registered or certified mail if to the Company, at its principal executive office and, if to the Holder,
to its address shown in the Ledger of the Company; provided, however, that the Holder may at any time on three (3) days written
notice to the Company designate or substitute another address where notice is to be given. Notice shall be deemed given and received
after a certified or registered letter, properly addressed with postage prepaid, is deposited in the U.S. mail.

 

10.
Severability. Every provision of this Warrant is intended to be severable. If any term or provision hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not affect the remainder of this Warrant.

 

11.
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of Florida without
giving effect to the principles of choice of laws thereof.

 

12.
Attorneys’ Fees. In any action or proceeding brought to enforce any provision of this Warrant, the prevailing party
shall be entitled to recover reasonable attorneys’ fees in addition to its costs and expenses and any other available remedy.

 

13.
Entire Agreement. This Warrant (including the Exhibits attached hereto) constitutes the entire understanding between the
Company and the Holder with respect to the subject matter hereof, and supersedes all prior negotiations, discussions, agreements
and understandings relating to such subject matter.

 

    	5

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first set forth
above.

 

	 	QSAM
    BIOSCIENCES, INC.
	 	 
	 	By:	                  
	 	Title:	 

 

    	6

    	 

    

 

Exhibit
A

SUBSCRIPTION
FORM

 

(To
be Executed by the Holder to Exercise the Rights To Purchase Common Stock Evidenced by the Within Warrant)

 

The
undersigned hereby irrevocably subscribes for _______ shares (the “Stock”) of the Common Stock of ___________________________(the
“Company”) pursuant to and in accordance with the terms and conditions of the attached Warrant (the “Warrant”),
and hereby makes payment of $_______ therefor by tendering cash, wire transferring or delivering a certified check or bank cashier’s
check, payable to the order of the Company. The undersigned requests that a certificate for the Stock be issued in the name of
the undersigned and be delivered to the undersigned at the address stated below. If the Stock is not all of the shares purchasable
pursuant to the Warrant, the undersigned requests that a new Warrant of like tenor for the balance of the remaining shares purchasable
thereunder be delivered to the undersigned at the address stated below.

 

In
connection with the issuance of the Stock, I hereby represent to the Company that I am acquiring the Stock for my own account
for investment and not with a view to, or for resale in connection with, a distribution of the shares within the meaning of the
Securities Act of 1933, as amended (the “Securities Act”).

 

I
understand that because the Stock has not been registered under the Securities Act, I must hold such Stock indefinitely unless
the Stock is subsequently registered and qualified under the Securities Act or is exempt from such registration and qualification.
I shall make no transfer or disposition of the Stock unless (a) such transfer or disposition can be made without registration
under the Securities Act by reason of a specific exemption from such registration and such qualification, or (b) a registration
statement has been filed pursuant to the Securities Act and has been declared effective with respect to such disposition. I agree
that each certificate representing the Stock delivered to me shall bear substantially the same as set forth on the front page
of the Warrant.

 

I
agree that each certificate representing the Stock delivered to me shall bear substantially the same legend as set forth on the
front page of the Warrant.

 

I
further agree that the Company may place stop orders on the certificates evidencing the Stock with the transfer agent, if any,
to the same effect as the above legend. The legend and stop transfer notice referred to above shall be removed only upon my furnishing
to the Company of an opinion of counsel (reasonably satisfactory to the Company) to the effect that such legend may be removed.

 

	 	Date:
    ______________________	 	Signed:
    __________________________________ 
	 	 	 	 
	 	 	 	Address:
    _________________________________
	 	 	 	 ________________________________________

 

    	 

    	 

    

 

Exhibit
B

 

ASSIGNMENT

 

(To
be Executed by the Holder to Effect Transfer of the Attached Warrant)

 

For
Value Received __________________________ hereby sells, assigns and transfers to _________________________ the Warrant attached
hereto and the rights represented thereby to purchase _________ shares of Common Stock in accordance with the terms and conditions
hereof, and does hereby irrevocably constitute and appoint _________________________ as attorney to transfer such Warrant on the
books of the Company with full power of substitution.

 

	Dated: 	 	 	Signed: 	 

 

	Please
print or typewrite name and address of assignee:
	 	Please
insert Social Security or other Tax Identification Number of Assignee:

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