Document:

ewlu_ex101.htm

EXHIBIT 10.1
  
 DEBT REPAYMENT AGREEMENT 
   
 This Debt Repayment Agreement (this “Agreement”) is dated as of December 11, 2020 (the “Effective Date”) by and among Merion, Inc., a Nevada corporation (the “Company”) and each creditor identified on the signature pages hereto (each, a “Creditor” and collectively the “Creditors”) .
  
 RECITALS
  
 WHEREAS, the Company has debt payable to the Creditors in an aggregate principal amount equivalent to US$5,243,839.33 (the “Debt”);
  
 WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section 5 of the Securities Act contained in Section 4(a)(2) thereof and/or Regulations D thereunder, the Creditors desire to cancel the Debt and the Company desires to issue the certain securities of the Company as payment to the Debt which is more fully described in this Agreement.
  
 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 each Creditor agree as follows:
  
 ARTICLE I. 
 DEFINITIONS
  
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, 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 New York are authorized or required by law or other governmental action to close.
  
 “Commission” means the United States Securities and Exchange Commission.
  
 “Common Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
  
 “Exchange Rules” shall mean the listing rules of The OTCQB Marketplace.
  
 “Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
  
 	 
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 “Per Share Price” equals $1 per share of Common Stock, subject to adjustment for reverse and forward stock splits, stock combinations and other similar transactions of the Common Stock that may occur after the date of this Agreement.
  
 “Person” means an individual, 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.
  
 “Required Approvals” shall have the meaning ascribed to such term in Section 3.1(c).
  
 “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. 
  
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(f).
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Securities Laws” means, collectively, the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”), the Securities Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board, the Exchange Rules and applicable state securities laws and regulations. 
  
 “Shares” means 5,243,839 shares of Common Stock issued or issuable to each Creditor pursuant to this Agreement.
  
 “Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).
  
 “Debt Cancellation Amount” means, as to each Creditor, the amount for the payment of Shares hereunder as specified below such Creditor’s name on the signature page of this Agreement and next to the heading “Debt Cancellation Amount,” in United States dollars and in immediately available funds.
  
 “Subsidiary” means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.
  
 “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 on which the Common Stock is listed or quoted for trading on the date in question: the OTCQB or the OTC Pink Open Market (or any successors to any of the foregoing).
  
 “Transaction Documents” means this Agreement, and any other documents or agreements executed between the Company and the Creditors in connection with the transactions contemplated hereunder.
  
 “Transfer Agent” means Worldwide Stock Transfer, LLC, the current transfer agent of the Company, with a mailing address of One University Plaza, Suite 505.Hackensack, NJ 07601, and any successor transfer agent of the Company.
  
 	 
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 ARTICLE II. 
 CANCELLATION OF DEBT AND ISSUANCE OF SHARES
  
 2.1 Repayment of Debt. Upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Creditors, severally and not jointly, agree to cancel the Debt, up to an aggregate of $5,243,839.33 as the payment for the Shares at a price of $1 per share. Each Creditor’s Debt Cancellation Amount as set forth on the signature page hereto executed by such Creditor shall be settled for “Delivery Versus Payment” with the Company. The Company shall deliver the Shares to the Creditors as the repayment of Debt within 30 days of this Agreement. 
  
 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES
  
 3.1 Representations and Warranties of the Company. Except as indicated in the SEC Reports, the Company hereby represents and warrants to the Creditor as of the date of this Agreement as follows:
  
 (a) Organization and Qualification. The Company and each of the Subsidiaries, if any, is an entity duly incorporated or otherwise organized and validly existing under the laws of each jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. 
  
 (b) 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 in connection herewith or therewith other than in connection with the Required Approvals (as defined below).
  
 (c) 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 governmental authority or 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 or the offer, issue and sale of the Shares, other than: (i) the disclosure filing required for this Agreement, (ii) such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).
  
 (d) Authorization of the Shares. The Shares to be issued by the Company and debt cancellation are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, and free and clear of all Liens imposed by the Company.
  
 (e) Capitalization. Except as may be described in the SEC Reports, all of the issued share capital of the Company has been duly and validly authorized and issued, and non-assessable. 
  
 (f) SEC Reports. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto, documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”). 
  
 	 
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 (g) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  
 (h) No Broker. The Company has not employed any broker, finder or agent, nor become obligated in any way to pay any broker’s, finder’s or agent’s or similar fee with respect to the issuance of the Shares.
  
 3.2 Representations and Warranties of the Creditors. Each Creditor hereby represents and warrants as of the date hereof to the Company as follows (unless as made of a specific date stated therein, in which case they shall be accurate as of such date):
  
 (a) Organization; Authority. Such Creditor 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 Creditor 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 Creditor. Each Transaction Document to which it is a party has been duly executed by such Creditor, and when delivered by such Creditor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Creditor, enforceable against it in accordance with its terms.
  
 (b) Understandings or Arrangements. Such Creditor is acquiring the Shares for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of the Shares (this representation and warranty not limiting such Creditor’s right to sell the Shares in compliance with applicable federal and state securities laws). Such Creditor is acquiring the Shares as principal, not as nominee or agent, and not with a view to or for distributing or reselling the Shares or any part thereof in violation of the Securities Act or any applicable state securities law.
  
 (c) Experience of Creditor. Such Creditor, 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 Shares, and has so evaluated the merits and risks of such investment. Such Creditor is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.
  
 (d) Access to Information. Such Creditor acknowledges that it has had the opportunity to review the Transaction Documents and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; 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 the investment. 
  
 	 
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 (e) Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Creditor has not, nor has any Person acting on behalf of or pursuant to any understanding with such Creditor, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Creditor first discussed the transaction with the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending on the date when this Agreement is publicly disclosed by the Company. Such Creditor has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).
  
 (f) No Registration. Such Creditor understands that the Shares have not been, and will not be, registered under the Securities Act or applicable securities laws of any state or country and therefore the Shares cannot be sold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and applicable state securities laws or exemptions from such registration requirements are available. The Company shall be under no obligation to register the Shares under the Securities Act and applicable state securities laws, and any such registration shall be in the Company’s sole discretion.
  
 (g) No General Solicitation. Such Creditor is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.
  
 (j) Brokers or Finders. Such Creditor has not engaged any brokers, finders or agents, and the Company has not, nor will, incur, directly or indirectly, as a result of any action taken by such Creditor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement.
  
 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES
  
 4.1 Reservation of Securities. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of 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. 
  
 4.2 Certain Transactions and Confidentiality. Each Creditor covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending on the date when this Agreement is publicly disclosed by the Company.Each Creditor also covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company, such Creditor will maintain the confidentiality of the existence and terms of this transaction. 
  
 	 
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 4.3 Legends. The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares other than pursuant to an effective registration statement or Rule 144, the Company may require the transferor thereof to provide to the Company 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 Shares under the Securities Act. Each Creditor agrees to the imprinting, so long as is required by this Section 4.3, of a legend on all of the certificates evidencing the Shares in the following form:
  
 	  
	 THIS SECURITY HAS NOT 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, 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.
	  

  
 ARTICLE V. 
 MISCELLANEOUS
  
 5.1 Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, 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. 
  
 5.2 Entire Agreement. The Transaction Documents 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.
  
 5.3 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.
  
 5.4 Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Creditors, in the case of a waiver, 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 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 hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.
  
 5.5 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.
  
 	 
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 5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. No party hereto may assign this Agreement or any rights or obligations hereunder. 
  
 5.7 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.
  
 5.8 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 Nevada, 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 Clark County, Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Clark County, Nevada, 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 suit, action 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. 
  
 5.9 Survival. The representations and warranties contained herein shall survive the consummation of the transaction in this Agreement and the delivery of the Shares. 
  
 5.10 Execution. This Agreement may be executed in multiple 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.
  
 5.11 Severability. If any term, provision, covenant or restriction of this Agreement 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.
  
 5.12 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.
  
 	 
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 5.13 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. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. The English version of this Agreement, regardless of whether a translation in any other language is or will be made, shall be the only authentic version.
  
 5.14 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. 
  
 (Signature Pages Follow)
  
 	 
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 IN WITNESS WHEREOF, the parties hereto have caused this Debt Repayment Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
  
  
 	 COMPANY
	
	  
	  

	 MERION, INC.
	  

	 	 	 
	By:	 /s/ DingHua Wang
	
	 Name: 
	 DING HUA WANG
	 
	Title: 	 Chief Executive Officer
	 
	 	 	 

 Address for Notice:
 100 N.Barranca St Ste1000
 West Covina, CA 91791
 Tel: 626-331-7570
 Fax:626-332-2081
 Email: info@merionus.com
  
  
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
  
 	 
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 [CREDITOR SIGNATURE PAGES TO DEBT REPAYMENT AGREEMENT]
  
 IN WITNESS WHEREOF, the undersigned have caused this Debt Repayment Agreement to be duly executed as of the date first indicated above.
  
 Name of Creditor: DW California Food Distribution LLC
  
 Debt Cancellation Amount: $3,243,839.33
  
 Shares: 3,243,839
  
 Signature of Creditor: /s/ Dinghua Wang
 By: Dinghua Wang
 Title: 
  
  
 Email Address of Creditor: __________________________________
  
 Address for Notice to Creditor: _______________________________ 
  
 Address for Delivery of Shares to Creditor (if not same as address for notice _____________________________
  
  
 [SIGNATURE PAGES CONTINUE]
  
 	 
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 [CREDITOR SIGNATURE PAGES TO DEBT REPAYMENT AGREEMENT]
  
 IN WITNESS WHEREOF, the undersigned have caused this Debt Repayment Agreement to be duly executed as of the date first indicated above.
  
  
 Name of Creditor: Dinghua Wang 
  
 Debt Cancellation Amount: $2,000,000
  
 Shares: 2,000,000 
  
 Signature of Creditor: /s/ Dinghua Wang
  
 Email Address of Creditor: __________________________________
  
 Address for Notice to Creditor: _______________________________
  
 Address for Delivery of Shares to Creditor (if not same as address for notice ________________________
  
 	 
	11Exhibit 4.1

 

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR APPLICABLE
STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE 1933 ACT, OR AN OPINION OF COUNSEL, SATISFACTORY TO THE ISSUER HEREOF, TO
THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT AS SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND APPLICABLE LAWS IS AVAILABLE.

 

	Warrant No.	CS-____	 	Number of Shares: ______________
	Warrant Date:	__________, 2020	 	 

  

[FORM OF]

 

GENERATION HEMP, INC.

WARRANT

FOR THE PURCHASE OF

COMMON STOCK

 

1. Issuance. For
value received, the receipt of which is hereby acknowledged by Generation Hemp, Inc., a Colorado corporation (the “Company”),
_________________, or registered and permitted assigns (the “Holder”), is hereby granted the right
to purchase, at any time or times on or after the six month and one day anniversary of the Warrant Date (the “Initial
Exercisability Date”) until 5:00 P.M., Mountain Standard Time on March 1, 2022 (the “Expiration Date”),
______________________ (___________) fully paid and nonassessable shares of the Company’s Common Stock, no
par value per share (the “Common Stock”), at an exercise price of US$ per share (the “Exercise
Price”). This Warrant is one of several Warrants issued pursuant to the offering of Common Stock and warrants to
purchase Common Stock described in that certain Common Stock and Warrant Subscription Agreement (the “Subscription
Agreement”), dated as of the Warrant Date by and between the Company and the Holder (the “Offering”).
Capitalized terms used herein, but not otherwise defined shall have the meanings given to such terms in the Subscription Agreement.

 

2. Procedure
for Exercise. 

 

a. At
any time after the Initial Exercisability Date, and upon surrender of this Warrant with the annexed Notice of Exercise Form duly
executed, together with payment in cash of the Exercise Price (a “Cash Exercise”) (provided that the
Exercise Price shall be deemed delivered in connection with the delivery of a Notice of Exercise Form in connection with a Cashless
Exercise (as defined below), if applicable) for the shares of Common Stock purchased (the “Warrant Shares”),
the Holder shall be entitled to receive a certificate or certificates for the shares of Common Stock so purchased. This Warrant
may be exercised in whole or in part. On any such partial exercise, provided the Holder has surrendered the original Warrant, the
Company will issue and deliver to the order of the Holder a new Warrant of like tenor, in the name of the Holder, for the whole
number of shares of Common Stock for which such Warrant may still be exercised. No fractional shares of Common Stock are to be
issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the
nearest whole number.

 

     

     

    

 

b. Notwithstanding
anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder hereof to the extent (but
only to the extent) that the Holder or any of its affiliates would beneficially own in excess of 9.99% (the “Maximum
Percentage”) of the Common Stock. To the extent the above limitation applies, the determination of whether this Warrant
shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder or any of
its affiliates) and of which such securities shall be exercisable (as among all such securities owned by the Holder) shall, subject
to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise
or exchange (as the case may be). No prior inability to exercise this Warrant pursuant to this paragraph shall have any effect
on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. For the
purposes of this paragraph, beneficial ownership and all determinations and calculations (including, without limitation, with respect
to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the Exchange Act (as defined in
the Subscription Agreement) and the rules and regulations promulgated thereunder. The provisions of this paragraph shall be implemented
in a manner otherwise than in strict conformity with the terms of this paragraph to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or
to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage limitation. The limitations
contained in this paragraph shall apply to a successor Holder of this Warrant.

 

3. Reservation
and Listing of Shares. The Company hereby agrees that at all times during the term of this Warrant there shall be
reserved for issuance upon exercise of this Warrant such number of shares of Common Stock as shall be required for issuance upon
exercise hereof (the “Warrant Shares”). Any shares issuable upon exercise of this Warrant will be duly
and validly issued, fully paid and free of all liens and charges and not subject to any preemptive rights. The Company, at its
expense, shall cause such securities to be included in or listed on all markets or stock exchanges in or on which the Common Stock
is included or listed not later than the date on which the Common Stock is first included or listed on any such market or exchange
and will thereafter maintain such inclusion or listing of all shares of Common Stock from time to time issuable upon exercise of
this Warrant.

 

4. Mutilation
or Loss of Warrant. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will execute and deliver a new warrant
of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

5. No
Rights as Shareholder. The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder of the
Company, either at law or in equity, and the rights of the Holder are limited to those expressed in this Warrant and are not enforceable
against the Company except to the extent set forth herein.

 

6. Effect
of Certain Transactions

 

6.1 Adjustments
for Stock Splits, Stock Dividends Etc. If the number of outstanding shares of Common Stock of the Company are increased
or decreased by a stock split, reverse stock split, stock dividend, stock combination, recapitalization or the like, the Exercise
Price and the number of shares purchasable pursuant to this Warrant shall be adjusted proportionately so that the ratio of (i)
the aggregate number of shares purchasable by exercise of this Warrant to (ii) the total number of shares outstanding immediately
following such stock split, reverse stock split, stock dividend, stock combination, recapitalization or the like shall remain unchanged,
and the aggregate purchase price of shares issuable pursuant to this Warrant shall remain unchanged.

 

6.2 Expiration
Upon Certain Transactions. If at any time the Company plans to sell all or substantially all of its assets or engage
in a merger or consolidation of the Company in which the Company will not survive and in which holders of the Common Stock will
receive consideration at or above the Exercise Price, as adjusted (other than a merger or consolidation with or into a wholly-
or partially-owned subsidiary of the Company), the Company will give the Holder of this Warrant advance written notice. Upon the
occurrence of any such event, this Warrant shall automatically be deemed to be exercised in full without any action required on
the part of the Holder.

 

    2

     

    

 

6.3 Adjustments
for Reorganization, Mergers, Consolidations or Sales of Assets. If at any time there is a capital reorganization
of the Common Stock (other than a recapitalization, combination, or the like provided for elsewhere in this Section 6) or merger
or consolidation of the Company with another corporation (other than one covered by Section 6.2), or the sale of all or substantially
all of the Company’s properties and assets to any other person, then, as a part of such reorganization, merger, consolidation
or sale, provision shall be made so that the Holder shall thereafter be entitled to receive upon exercise of this Warrant (and
only to the extent this Warrant is exercised), the number of shares of stock or other securities or property of the Company, or
of the successor corporation resulting from such merger or consolidation or sale, to which a holder of Common Stock, or other securities,
deliverable upon the exercise of this Warrant would otherwise have been entitled on such capital reorganization, merger, consolidation
or sale. In any such case, appropriate adjustments shall be made in the application of the provisions of this Section 6 (including
adjustment of the Exercise Price then in effect and number of Warrant Shares purchasable upon exercise of this Warrant) which shall
be applicable after such events.

 

6.4 Adjustment
Upon Issuance of Shares of Common Stock.

 

(a) If
and whenever on or after the Warrant Date, the Company issues or sells any shares of Common Stock (including the issuance or sale
of shares of Common Stock owned or held by or for the account of the Company, but excluding shares of Common Stock deemed to have
been issued by the Company in connection with any Excluded Securities (as defined below)) (the “Additional Shares”)
for a consideration per share (the “New Issuance Price”) less than a price (the “Applicable
Price”) equal to the Exercise Price in effect immediately prior to such issuance or sale or deemed issuance or sale
(the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Exercise Price
then in effect shall be reduced to a price determined as follows:

 

 
  Adjusted Exercise Price = C  x  (A + B) 

 (A + D)

 

Where:

 

“A”
equals (1) the number of shares of Common Stock outstanding immediately preceding the Dilutive Issuance; together with (2) the
number of shares of Common Stock of the Company issuable upon exercise of outstanding options, warrants, preferred stock, convertible
notes and other convertible securities (i.e., the fully-diluted Common Stock outstanding of the Company);

 

“B”
equals the Aggregate Consideration received by the Company in connection with the Dilutive Issuance divided by the Applicable Price
in effect immediately prior to such Dilutive Issuance;

 

“C”
equals the Applicable Price in effect immediately preceding such Dilutive Issuance; and

 

“D”
equals the number of Additional Shares issued or deemed issued hereunder as a result of the Dilutive Issuance.

 

    3

     

    

 

“Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances,
directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire,
any shares of Common Stock.

 

“Excluded
Securities” means (A) Common Stock or Options issued to directors, officers, employees or consultants of the Company
in connection with their service as directors of the Company, their employment by the Company or their retention as consultants
for bona fide services; (B) shares of Common Stock issued upon the conversion or exercise of Convertible Securities (other than
Options that are covered by clause (A) above) issued prior to the date hereof, provided that the conversion price of any such Convertible
Securities (other than Options that are covered by clause (A) above) is not lowered, except pursuant to the terms of such Convertible
Securities), none of such Convertible Securities (other than options that are covered by clause (A) above) are amended to increase
the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than Options
covered by clause (A) above) are otherwise materially changed in any manner that adversely affects the Holder (except pursuant
to the terms of such Convertible Securities in effect as of the Warrant Date); (C) the Securities; (D) shares of Common Stock or
Convertible Securities issued or issuable in connection with strategic alliances, acquisitions, mergers, joint ventures, and strategic
partnerships, provided, that (1) the primary purpose of such issuance is not to raise capital, (2) the purchasers or acquirers
of the securities in such issuance does not include any affiliate of the Company or any of its subsidiaries, other than the stockholders
of Energy Hunter Resources, Inc., not including the Company, and solely consists of either (x) the actual participants in such
strategic alliance or strategic partnership, (y) the actual owners of such assets or securities acquired in such acquisition or
merger or (z) the stockholders, partners or members of the foregoing persons, and (3) the number or amount of securities issued
to such person by the Company shall not be disproportionate to such person’s actual participation in such strategic alliance
or strategic partnership or ownership of such assets or securities to be acquired by the Company, as applicable; (E) shares of
Common Stock issued or issuable by reason of a dividend, stock split or other distribution on shares of Common Stock (but only
to the extent that such a dividend, split or distribution results in an adjustment in the Exercise Price pursuant to the other
provisions of this Warrant); and (F) Common Stock and Options issued to any placement agent placing securities in connection with
any offering of the Company’s securities.

 

“Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

 “Trading
Day” means any day on which the Common Stock is traded on the Principal Market or if not traded on the Principal
Market, quoted on the Quotation Market, provided that “Trading Day” shall not include any day on which
the Common Stock is scheduled to trade on the Principal Market or to be quoted on the Quotation Market for less than 4.5 hours.

 

(b) Calculation
of Consideration Received. If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to
have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company
therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash,
the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration
consists of publicly traded securities, in which case the amount of consideration received by the Company for such securities will
be the average volume weighted average closing prices of such security for the five (5) Trading Day period immediately preceding
the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving
entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be
deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such
shares of Common Stock, Options or Convertible Securities (as the case may be). The fair value of any consideration other than
cash or publicly-traded securities will be determined by the reasonable determination of the Board of Directors of the Company.

 

    4

     

    

 

6.5 Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to Sections 6.1 through 6.4, the
Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to
each Holder of this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based. The Company shall promptly furnish or cause to be furnished to such Holder a like certificate
setting forth: (i) such adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property
which at the time would be received upon the exercise of the Warrant. 

 

6.6 Voluntary
Adjustment By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to
any amount and for any period of time deemed appropriate by the Board of Directors of the Company (a “Voluntary Adjustment”).

 

7. Transfer
to Comply with the Securities Act. This Warrant has not been registered under the Securities Act of 1933, as amended,
(the “Securities Act”) and has been issued to the Holder for investment and not with a view to the distribution
of either this Warrant or the Warrant Shares. Neither this Warrant nor any of the Warrant Shares or any other security issued or
upon exercise of this Warrant may be sold, transferred, pledged or hypothecated in the absence of an effective registration statement
under the Act relating to such security or an opinion of counsel satisfactory to the Company that registration is not required
under the Act and that such transfer further complies with applicable securities laws and transfer restrictions. Each certificate
for this Warrant, the Warrant Shares and any other security issued or issuable upon exercise of this Warrant shall contain a legend
in form and substance satisfactory to counsel for the Company, setting forth the restrictions on transfer contained in this Section.

 

8. No
Stock Rights and Legend.

 

No holder of this Warrant,
as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that may at any time be issuable
on the exercise hereof, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, the
rights of a stockholder of the Company or the right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or give or withhold consent to any corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or subscription rights or otherwise (except as provide herein).

 

Each certificate for Warrant Shares initially
issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued to any subsequent transferee of any such
certificate, shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.”

 

    5

     

    

 

9. Notices. Any
notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent by
certified, registered or express mail, postage pre-paid. Any such notice shall be deemed given (1) when delivered, in person or
by courier or other delivery service, (2) when sent, if sent by facsimile to the party’s fax number below and mechanically
confirmed, or (3) three days after deposit in the United States mail, postage prepaid, certified, return receipt requested, as
follows:

 

If to the Company, to:

 

Generation Hemp, Inc.

P.O. Box 540308

Dallas, Texas 75354

Attention: Chairman and CEO

 

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

 

Duane Morris LLP

1540 Broadway

New York, NY 10036

Attention: Dean Colucci.

 

If to the Holder, to his, her or its address appearing
on the Company’ records.

 

Any party may designate another address
or person for receipt of notices hereunder by notice given to the other parties in accordance with this Section.

 

10. Supplements
and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in writing signed
by the Company and the Holder hereof. This Warrant contains the full understanding of the parties hereto with respect to the subject
matter hereof, and there are no representations, warranties, agreements or understandings other than expressly contained herein.

 

11. Governing
Law. This Warrant shall be deemed to be a contract made under the laws of the State of New York and for all purposes
shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely
within such State. Any action brought by either party against the other concerning the transactions contemplated by this Warrant
shall be brought only in the state courts of New York or in the federal courts located in New York County, New York. The parties
to this Warrant hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Each party hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Warrant 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 Warrant 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.

 

    6

     

    

 

12. Severability.
If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

13. Counterparts. This
Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute but one and the same instrument.

 

14. Descriptive
Headings. Descriptive headings of the several Sections of this Warrant are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof.

 

15. Benefits
of this Warrant. Nothing in this Warrant shall be construed to confer upon any person other than the Company and Holder any
legal or equitable right, remedy or claim under this Warrant and this Warrant shall be for the sole and exclusive benefit of the
Company and Holder.

 

16. Loss
of Warrant. Upon receipt by the Company of evidence of the loss, theft, destruction or mutilation of this Warrant, and (in
the case of loss, theft or destruction) of indemnity or security reasonably satisfactory to the Company, and upon surrender and
cancellation of this Warrant, if mutilated, the Company shall execute and deliver a new Warrant of like tenor and date.

 

17. Assignability. This
Warrant or any part hereof may only be hereafter assigned by the Holder to an affiliate thereof executing documents reasonably
required by the Company as described in Section 7 hereof. Any such assignment shall be binding on the Company and shall inure to
the benefit of any such assignee.

 

[Signature Pages Follow]

 

    7

     

    

 

 

IN WITNESS WHEREOF, the parties hereto have
executed this Warrant as of the Warrant Date set forth above.

 

	 	GENERATION HEMP, INC.
	 	 
	 	By:	 
	 	Name:	Gary C. Evans
	 	Title:	Chairman and CEO
	 	 
	 	HOLDER:
	 	 
	 	 
	 	 
	 	By: 	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title: 	 

 

    8

     

    

 

NOTICE OF EXERCISE OF WARRANT

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

Generation Hemp, Inc.

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
[_____________], a Colorado corporation (the “Company”), evidenced by Warrant No. _______ (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1. Payment
of Exercise Price. The Holder shall pay the aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

2. Maximum
Percentage Representation.  Notwithstanding anything to the contrary contained herein, this Notice of Exercise shall constitute
a representation by the Holder of the Warrant submitting this Notice of Exercise that, after giving effect to the exercise provided
for in this Notice of Exercise, such Holder (together with its affiliates) will not have beneficial ownership (together with the
beneficial ownership of such person’s affiliates) of a number of shares of Common Stock which exceeds the Maximum Percentage
(as defined in the Warrant) of the total outstanding shares of Common Stock of the Company as determined pursuant to the provisions
of Section 2(b) of the Warrant.

 

3. Delivery
of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ Warrant Shares
in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

☐ Check
here if requesting delivery as a certificate to the following name and to the following address:

 

	
        Issue to:
	 
	 	 
	 	 
	 	 
	 	 

 

		☐	Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account Number:	 

 

		 
	Name of Registered Holder

                                                 
	 
	By:		 
		Name:		 
		Title:	 	 
	Date:	 
    ________________,__
    ___________

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