Document:

COMMON STOCK PURCHASE AGREEMENT

 

This Common Stock
Purchase Agreement (the “Agreement”), dated as of August 2, 2022 (the “Execution Date”), is entered into between
AB International Group Corp., a Nevada corporation (the “Company”), and Alumni Capital LP, a Delaware limited partnership
(the “Investor”).

 

RECITALS:

 

WHEREAS, upon the
terms and subject to the conditions contained herein, the Investor shall purchase One Million Dollars ($1,000,000) of Securities after
a Registration Statement is declared effective by the Securities and Exchange Commission;

 

NOW THEREFORE, in
consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements set
forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and
the Investor hereby agree as follows:

 

SECTION I DEFINITIONS

 

For all purposes
of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall be equally applicable
to the singular and plural forms of such defined terms.

 

“Business Day” shall mean
any day on which the Principal Market for the Common Stock is open for trading from the hours of 9:30 am until 4:00 pm eastern time.

 

“Closing” shall mean a date
that is no later than five (5) Business Days after the Purchase Notice Date.

 

“Commitment Period”
shall mean the period beginning on the Execution Date and ending on the expiration of this Agreement.

 

“Common Stock” means
the Company’s common stock and any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Principal Market”
shall mean the New York Stock Exchange, the NYSE Amex, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market
or the OTC Markets, whichever is the market on which the Common Stock is listed.

 

“Purchase Notice” shall
mean the written notice sent to the Investor by the Company stating the number of Securities that the Company intends to sell to the Investor
pursuant to the terms of this Agreement.

 

“Investment Amount” shall
mean the Securities in a Purchase Notice multiplied by seventy five percent (75%) of the lowest traded price of the Common Stock five
Business Days prior to the Closing.

 

“Registration Statement” means the registration
statement covering the Securities. “Securities” shall mean the Common Stock issued pursuant to the terms of this Agreement.

SECTION II

PURCHASE AND SALE OF SECURITIES

 

2.1 
PURCHASE AND SALE OF SECURITIES. Subject to the terms and conditions set forth herein, the
Company shall sell to the Investor, and the Investor shall purchase from the Company, a number of Securities having an aggregate value
of One Million Dollars ($1,000,000).

 

2.2 
DELIVERY OF PURCHASE NOTICES. Subject to the terms and conditions herein, and from time to
time during the Commitment Period, the Company may, in its sole discretion, deliver a Purchase Notice to the Investor

 

    	 		 

    	 

    

which states the amount of Securities
which the Company intends to sell to the Investor on a Closing. No Purchase Notice shall be sent if the VWAP of Securities is at or below
$0.001 during the five Business Days prior to delivery of a Purchase Notice. The Purchase Notice shall be in the form attached hereto
and incorporated herein by reference. During the Commitment Period, the Company shall not submit a Purchase Notice until three Business
Days have passed since the previous Closing has been completed, during which three day period the Company will not effectuate a reverse
split of its outstanding Common Stock. No Purchase Notice will be made in an amount less than twenty-five thousand dollars ($25,000) or
greater than five hundred thousand dollars ($500,000).

 

		2.3	CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE
                                                                                                     SECURITIES Notwithstanding anything to the contrary in this Agreement, the Company shall
                                                                                                     not be entitled to deliver a Purchase Notice and the Investor shall not be obligated to purchase any Securities at a Closing unless
                                                                                                     each of the following conditions are satisfied:

 

	i.	the Registration Statement shall remain effective and available at all times until the end of the Commitment Period;

                                                                                 

	ii.	at all times during the period
    beginning on the related Purchase Notice and ending on and including the related Closing, the common stock shall have been listed
    or quoted for trading on the Principal Market and shall not have been suspended from trading during the Commitment Period and the
    Company shall not have been notified of any pending or threatened proceeding or other action to suspend the trading of the Company
    common stock;

	iii.	the Company has complied with its obligations and is otherwise not in breach of or in default under, this Agreement or any other agreement executed between the parties, which has not been cured prior to delivery of Purchase Notice;

                                                                                 

	iv.	no injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed or abandoned, prohibiting the purchase or the issuance of the Securities; and

                                                                                

	v.	the issuance of the Securities will not violate any requirements of the Principal Market.

 

 

If any of the events described in clauses
(i) through (v) above occurs prior to, or at the Closing, then the Investor shall have no obligation to purchase the Securities set forth
in the applicable Purchase Notice.

 

2.4 
MECHANICS OF PURCHASE OF SECURITIES BY INVESTOR. The Closing of a Purchase Notice shall occur
no later than the five (5) Business Days following receipt of Securities by Investor’s custodian or brokerage account (the “Purchase
Notice Date”). The Investor shall deliver the Investment Amount by wire transfer of immediately available funds to an account designated
by the Company no later than one (1) Business Day. In addition, on or prior to such Closing, each of the Company and Investor shall deliver
to each other all documents, instruments and writings required to be delivered or reasonably requested by either of them pursuant to this
Agreement in order to implement and effect the transactions contemplated herein.

 

2.5 
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement,
in no event shall the Investor be entitled to purchase that number of Securities, which when added to the sum of the number of Common
Stock beneficially owned (as such term is defined under Section 13(d) and Rule 13d- 3 of the 1934 Act), by the Investor, would exceed
9.99% of the Common Stock outstanding on the Purchase Notice Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act.

 

SECTION III

INVESTOR’S REPRESENTATIONS, WARRANTIES
AND COVENANTS

 

 

Period.

NO SHORT SALES. No short sales shall be permitted
by the Investor or its affiliates during the Commitment

 

    	 	2	 

    	 

    

 

SECTION IV

REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

 

Except as disclosed on the Company’s SEC Documents,
the Company represents and warrants to the Investor

that:

 

4.1 
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing
in good standing under the laws of the State of Nevada, and has the requisite corporate power and authorization to own its properties
and to carry on its business as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”)
are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature of the
business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing
would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a change, event, circumstance,
effect or state of facts that has had or is reasonably likely to have, a material adverse effect on the business, properties, assets,
operations, results of operations, financial condition or prospects of the Company and its Subsidiaries, if any, taken as a whole, or
on the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the authority
or ability of the Company to perform its obligations under the Agreement.

 

		4.2	AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.

 

	i.	The Company has the requisite corporate power and authority to enter into the Agreement and to issue the Securities in accordance with the terms hereof.
	ii.	
    The execution and delivery of the Agreement by the Company

    and the consummation by it of the transactions contemplated
    hereby and thereby, including without limitation the issuance of the Securities pursuant to this Agreement, have been duly and validly

    authorized by the Company’s Board of Directors
    and no further consent or authorization is required by the Company, its Board of Directors, or its shareholders.

 

	iii.	The Agreement has been duly and validly executed and delivered by the Company.
	iv.	
    The Agreements constitutes the valid and binding obligations
    of the

    Company enforceable against the Company in accordance
    with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
    moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.

 

4.3 
ISSUANCE OF SECURITIES. The Company has reserved the amount of Securities included in the
Company’s registration statement for issuance pursuant to the Agreement, which have been duly authorized and reserved (subject to
adjustment pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to this Agreement. Upon issuance in
accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable and free from all taxes, liens
and charges with respect to the issuance thereof. In the event the Company cannot register a sufficient number of Securities for issuance
pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of Securities required
for the Company to perform its obligations hereunder as soon as reasonably practicable.

 

4.4 
INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent
and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries
has been refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

4.5 
DILUTIVE EFFECT. The Company understands and acknowledges that the number of Securities issuable
upon purchases pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance
wherein the trading price of the common stock declines during the

 

    	 	3	 

    	 

    

Commitment Period. The Company’s
executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Agreement and recognize
that they have a potential dilutive effect on the shareholders of the Company. The Board of Directors of the Company has concluded, in
its good faith business judgment, and with full understanding of the implications, that such issuance is in the best interests of the
Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Agreement, its obligation
to issue Securities upon purchases pursuant to this Agreement is absolute and unconditional regardless of the dilutive effect that such
issuance may have on the ownership interests of other shareholders of the Company.

 

4.6 
EXCLUSIVITY. The Company shall not pursue a similar equity line transaction with any other
party during the Commitment Period.

 

 

SECTION V

COVENANTS
OF THE COMPANY

 

5.1 
BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy
each of the conditions set forth in this Agreement.

 

5.2 
REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required
to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any
action, which would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section
8 and the Investor has the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933
Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities.

 

5.3 
USE OF PROCEEDS. The Company will use the proceeds from the sale of the Securities for general
corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors,
in good faith deem to be in the best interest of the Company.

 

5.4 
FINANCIAL INFORMATION. During the Commitment Period, the Company agrees to make available
to the Investor via EDGAR or other electronic means the following documents and information on the forms set forth:

(i) within five (5) Business Days
after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports
on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information
made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof to
the shareholders; and (iii) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with, and all correspondence
sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory Association, unless such information
is material nonpublic information.

 

5.5 
RESERVATION OF SECURITIES. The Company shall take all action necessary to at all times have
authorized, and reserved the amount of Securities included in the Company’s registration statement for issuance pursuant to the
Agreement. In the event that the Company determines that it does not have a sufficient number of common stock to reserve and keep available
for issuance as described, the Company shall use all commercially reasonable efforts to increase the number of common stock by seeking
shareholder approval.

 

5.6 
LISTING. The Company shall maintain the listing of the common stock on the Principal Market
and each other national securities exchange and automated quotation system, if any, upon which common stock are then listed (subject to
official notice of issuance) and shall maintain, such listing of all common stock from time to time issuable under the terms of the Agreement.
Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or
suspension of the common stock on the Principal Market (excluding suspensions of not more than one (1) Business Day resulting from business
announcements by the Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal
Market regarding the continued eligibility of the common stock for listing on such automated quotation system or securities exchange.
The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5.6.

 

    	 	4	 

    	 

    

5.7 
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve
and continue the corporate existence of the Company.

 

		5.8	NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO

SUBMIT A PURCHASE NOTICE.
The Company shall promptly notify the Investor upon the occurrence of any of the following events in respect of a Registration Statement
or related prospectus in respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or
any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements
to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority
of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; (iii)
receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Securities
for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening of any event that makes
any statement made in such Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein
by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related prospectus
or documents so that, in the case of a Registration Statement, it will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case
of the related prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
and (v) the Company’s reasonable determination that a post-effective amendment or supplement to the Registration Statement would
be appropriate, and the Company shall promptly make available to Investor any such supplement or amendment to the related prospectus.

 

5.9 
TRANSFER AGENT. The Company shall deliver instructions to its transfer agent to issue Securities
to the Investor that are issued to the Investor pursuant to the Transaction Documents.

 

5.10 
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that:
(i) it is voluntarily entering into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress,
(iii) the terms of this Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its
own choosing review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this
Agreement.

 

SECTION VI

EXPIRATION

 

This Agreement shall expire either upon:

 

6.1   
when the Investor has purchased One Million Dollars ($1,000,000) of Securities pursuant to this Agreement;
or

 

		6.2	December 31, 2022

 

Any and all Securities, or penalties,
if any, due under this Agreement shall be immediately payable and due upon expiration of this Agreement.

 

SECTION VII

INDEMNIFICATION

 

In consideration of the mutual obligations
set forth in the Agreement, the Company (the “Indemnitor”) shall defend, protect, indemnify and hold harmless the Investor
and all of the investor’s shareholders, officers, directors, employees, counsel, and direct or indirect investors and any of the
foregoing person’s agents or other representatives (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and reasonable expenses in connection therewith (irrespective
of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’
fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating

 

    	 	5	 

    	 

    

to (I) any misrepresentation or
breach of any representation or warranty made by the Indemnitor or any other certificate, instrument or document contemplated hereby or
thereby; (II) any breach of any covenant, agreement or obligation of the Indemnitor contained in the Agreement or any other certificate,
instrument or document contemplated hereby or thereby; or (III) any cause of action, suit or claim brought or made against such Indemnitee
by a third party and arising out of or resulting from the execution, delivery, performance or enforcement of the Agreement or any other
certificate, instrument or document contemplated hereby or thereby, except insofar as any such misrepresentation, breach or any untrue
statement, alleged untrue statement, omission or alleged omission is made in reliance upon and in conformity with information furnished
to Indemnitor which is specifically intended for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus
or amendments to the prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the
Indemnitor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights Indemnitor
may have, and any liabilities the Indemnitor or the Indemnitees may be subject to.

 

SECTION VIII

GOVERNING LAW; DISPUTES SUBMITTED
TO ARBITRATION

 

8.1 
LAW GOVERNING THIS AGREEMENT. This Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Agreement shall be brought only in the state or federal courts located in New York,
New York. The parties to this Agreement 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. The parties executing this
Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the
in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement
delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be
deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.
Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other
provision of any agreement. 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 Agreement 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.

 

8.2 
LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Agreement, including,
but not limited to, the Administrative Fee, each party shall pay the fees and expenses of its advisers, counsel, the 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. Any attorneys’ fees and expenses incurred by either the Company or the Investor in connection with the preparation,
negotiation, execution and delivery of any amendments to this Agreement or relating to the enforcement of the rights of any party, after
the occurrence of any breach of the terms of this Agreement by another party or any default by another party in respect of the transactions
contemplated hereunder, shall be paid on demand by the party which breached this Agreement and/or defaulted, as the case may be. The Company
shall pay all stamp and other taxes and duties levied in connection with the issuance of any Securities.

 

8.3 
SURVIVAL. The representations and warranties of the Company and the Investor contained in
this Agreement shall survive the Closing and the expiration of this Agreement.

 

8.4 
PRICING OF SECURITIES. For purposes of this Agreement, the Investment
Amount shall be as reported as indicated by Bloomberg Finance.

 

    	 	6	 

    	 

    

 

SECTION IX

NON-DISCLOSURE
OF NON-PUBLIC INFORMATION

The Company shall not disclose non-public information
to the Investor.

 

 

Your signature on
this Signature Page evidences your agreement to be bound by the terms and conditions of this Agreement as of the date first written above.
The undersigned signatory hereby certifies that he has read and understands this Agreement, and the representations made by the undersigned
in this Agreement are true and accurate, and agrees to be bound by its terms.

 

Company:

	
     

    AB International Group Corp.

     

    By: /s/ Chiyuan Deng

    Name: Chiyuan Deng

    Title: Chief Executive Officer

     

    Investor:

	
    Alumni Capital LP

     

    By: /s/ Ashkan Mapar

    Name: Ashkan Mapar

    Title: General Partner & Portfolio Manager

     

    	 	7	 

    	 

    

 

PURCHASE NOTICE

 

Date 

 

Alumni Capital LP,

 

This is to inform you that as of today
the Company hereby elects to exercise its right pursuant to this Agreement to sell you Securities.

 

Regards,

 

AB International Group Corp.

 

    	 	8ex_405452.htm

Exhibit 4.1

 

 

	
			Principal Amount of US$58,823.00

				
			Issue Date: July 27, 2022

			
	
			Purchase Price of US$50,000.00

				 
	
			St. Louis Park, Minnesota

				 

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, the undersigned, MITESCO, INC., a corporation incorporated under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to the order of JAMES H CAPLAN (the “Lender” and collectively with the Borrower, the “Parties”) on the Termination Date (as defined below), the principal amount fifty-eight thousand eight hundred and twenty-three dollars and zero/100 United States Dollars (US$58,823.00) (the “Principal Amount”) plus an amount equal to ten percent of such Principal Amount. The purchase price for this promissory note (this “Note”) shall be fifty thousand United States Dollars (US$50,000.00) (the “Purchase Price”) and shall be payable by the Lender to the Borrower on the Issue Date.

 

Section 1. Certain Terms Defined. The following terms for all purposes of this Promissory Note shall have the respective meanings specified below.

 

“Business Day” means any day except a Saturday, Sunday, or other day on which commercial banks in New York, New York are authorized by law to close.

 

“Default” means any event which, with the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default.

 

“Event of Default” has the meaning given to it in Section 11.

 

“GAAP” means generally accepted accounting principles in the United States, in effect from time to time, consistently applied.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, prospects, condition (financial or otherwise) or property of the Borrower, (b) the validity or enforceability of any provision of any Transaction Document, (c) the ability of any party to any Transaction Document to timely perform its obligations thereunder, or (d) the rights and remedies of the Lender under any Transaction Document.

 

“Termination Date” means the maturity date as defined in Section 2.

 

“Transaction Documents” means this Promissory Note and the Warrants

 

“Warrants” shall mean those common stock purchase warrants of the Borrower issuable to the Lender pursuant to Section 5 hereof.

 

 

 

 

Section 2. Purchase Price.  The Lender shall pay the Purchase Price to the Borrower on the Issue Date.

 

Section 3. Maturity of this Promissory Note. The Principal Amount shall be due and payable (together with accrued but unpaid interest thereon) plus an amount equal to ten percent (10%) of the Principal Amount (“Payoff Amount”), on the earliest of (i) January 21, 2023, or (ii) if the Borrower successfully lists its shares of common stock on any of The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market (“Up-List”), five business days after the date of such listing (the “Maturity Date”).

 

Section 4. Optional Conversion. At the election of Borrower, in its sole discretion, on the Maturity Date, Borrower must either:

 

	 	
			a)

				
			Pay the Payoff Amount by a cash payment via ACH or Wire transfer; or

			

 

	 	
			b)

				
			Convert the Payoff Amount into restricted common stock of the Borrower as follows:

			

 

	 	
			i.

				
			The Conversion Amount shall equal the Payoff Amount multiplied by 1.2;

			

 

	 	
			ii.

				
			The Conversion Amount shall be converted into restricted common stock of the Borrower at a price per share equal to: (i) in the case of a conversion in conjunction with an Up-List, the offering price of the common stock of the Borrower in the offering conducted in conjunction with the Up-List, or (ii) in the case of a conversion where the Borrower is not simultaneously completing the Up-List, the 5-day VWAP of the common stock of the Borrower immediately preceding the applicable conversion date.

			

 

	 	
			iii.

				
			If the Borrower elects to convert this Note in accordance with the Section 4, Lender shall receive such other benefits as may be afforded to purchasers in the offering conducted in conjunction in the Up-List, including but not limited to, warrant coverage. Borrower shall also register the shares in conjunction with the Up-List.

			

 

Section 5. Interest Payments. The unpaid Principal Amount shall bear interest at ten percent (10%) per annum (the “Interest Rate”), which interest shall be accrued on a monthly basis.

 

Notwithstanding the foregoing, following an Event of Default, the Principal Amount shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the lesser of (i) the maximum interest rate permitted by applicable law and (ii) eighteen percent (18%) (the “Default Rate”).

 

Interest shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day).

 

2

 

 

Section 6     Commitment Shares. As further consideration for the Purchase Price payable hereunder, promptly following the Issue Date, the Borrower shall issue to the Lender 24,117 of the Borrower’s restricted common stock, priced at USD0.25.

 

Section 7     Warrants. As further consideration for the Purchase Price payable hereunder, promptly following the Issue Date, the Borrower shall issue to the Lender a common stock purchase warrants, entitling the Lender to purchase 24,117 shares of the Borrower’s common stock on substantially the same terms as the Series A warrant issued in connection with the Borrower’s Series D Convertible Preferred Stock.

 

Section 8    Optional Prepayments. The Borrower may prepay the amounts owing under this Promissory Note in whole or in part at any time prior to the Maturity Date without penalty by paying the Principal Amount and an amount equal to ten percent of the Principal Amount, together with interest accrued thereon and any other amount which may be outstanding to the date of prepayment.

 

Section 9. General Provisions As To Payments. All payments owing under this Promissory Note by the Borrower hereunder shall be made not later than 12:00 Noon (New York City time) on the date when due by cashier’s check or by wire transfer of immediately available funds to the Lender’s account at a bank specified by the Lender in writing to the Borrower without reduction by reason of any set-off or counterclaim. In the event that any required payment date is not a Business Day, then said payment date shall be the next succeeding Business Day.

 

Section 10. Representations and Warranties of the Borrower. The Borrower represents and warrants to the Lender that:

 

	 	
			a.

				
			it is duly organized, validly existing and in good standing under the laws of the state of its incorporation;

			

 

	 	
			b.

				
			it is duly authorized to do business in all jurisdictions material to the conduct of its business;

			

 

	 	
			c.

				
			it has full power and authority and holds all requisite governmental licenses, permits and other approvals to enter into and perform its obligations under this Promissory Note and to conduct its business substantially as currently conducted by it;

			

 

	 	
			d.

				
			the execution, delivery and performance of this Promissory Note are within the Borrower’s corporate powers and have been duly authorized by all necessary corporate action;

			

 

3

 

 

	 	
			e.

				
			this Promissory Note has been duly executed by an authorized officer of the Borrower and constitutes a legal, valid and binding obligation enforceable against the Borrower;

			

 

	 	
			f.

				
			this Promissory Note does not violate any of the Borrower’s organizational documents, any law, court order or material agreement by which the Borrower is bound; and

			

 

	 	
			g.

				
			the Borrower’s performance under this Promissory Note is not threatened by any pending or threatened litigation.

			

 

Section 11    . Affirmative Covenants. Unless the Lender shall otherwise agree, the Borrower shall:

 

	 	
			a.

				
			(i) maintain its corporate existence and qualify and remain qualified to conduct business as currently conducted; (ii) maintain all approvals necessary for this Promissory Note and the Transaction Documents; and (iii) operate its business with due diligence, efficiency and in conformity with sound business practices;

			

 

	 	
			b.

				
			keep its properties and business insured with financially sound and reputable insurers against loss or damage in such manner and to the same extent as shall be no less than that generally accepted as customary in regard to property and business of like character;

			

 

	 	
			c.

				
			comply in all material respects with all applicable laws, rules, regulations and orders of any government authority;

			

 

	 	
			d.

				
			maintain records, books, management information systems and financial control procedures which together are adequate to: (i) support the accounting practices and tax elections of the Borrower; and (ii) accurately, adequately and fairly reflect the financial condition of the Borrower and the results of its operations in conformity with GAAP;

			

 

	 	
			e.

				
			pay and discharge all taxes, assessments and governmental charges upon it, its income and its properties prior to the date on which penalties are attached thereto, unless and only to the extent that (i) such taxes, assessments and governmental charges shall be contested in good faith and by appropriate proceedings by the Borrower, (ii) reserves which are adequate under GAAP are maintained by the Borrower with respect thereto, and (iii) any failure to pay and discharge such taxes, assessments and governmental charges would not have and could not reasonably be expected to have a Material Adverse Effect;

			

 

4

 

 

	 	
			f.

				
			promptly inform the Lender, in writing, of any proposed material change in the nature or scope of the business or operations of the Borrower, or any event or condition which has or could reasonably be expected to have a Material Adverse Effect;

			

 

	 	
			g.

				
			comply with the requirements of all applicable laws, rules, regulations, and orders of any government authority, a breach of which would or would reasonably be expected to result in a Material Adverse Effect;

			

 

	 	
			h.

				
			obtain, make and keep in full force and effect all licenses, contracts, consents, approvals and authorizations from and registrations with government authorities that may be required to conduct its business, to maintain compliance with all applicable laws and regulations, and remit monies payable pursuant to this Promissory Note;

			

 

	 	
			i.

				
			promptly notify the Lender of the occurrence of (i) any Default or Event of Default; (ii) any event, development or circumstance whereby the Borrower’s financial statements fail in any material respect to present fairly and accurately, in accordance with GAAP, the financial condition and operating results of the Borrower as of the date of such financial statements; (iii) any material litigation or proceedings that are instituted or, to the knowledge of the Borrower, threatened against the Borrower or any of their respective assets; (iv) each and every event which, at the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an event of default (however described) under either of the Transaction Documents; and (v) any other development in the business or affairs of the Borrower if the effect thereof might have a Material Adverse Effect;

			

 

	 	
			j.

				
			comply with the Transaction Documents or any other document executed in connection with the transactions contemplated hereby;

			

 

	 	
			k.

				
			inform the Lender, as soon as they are made, of any judicial or non-judicial claims against the Borrower of more than $25,000 or the equivalent thereof in any other currency for each claim; and

			

 

5

 

 

	 	
			l.

				
			execute such other and further documents and instruments as the Lender may reasonably request to implement the provisions of this Promissory Note.

			

 

Section 12. Negative Covenants. Unless the Lender shall otherwise agree, the Borrower shall not:

 

	 	
			a.

				
			make any change to the scope or nature of its respective business activities as carried on at the date hereof or undertake any operations not permitted by the Transaction Documents;

			

 

	 	
			b.

				
			(i) violate any laws, ordinances, government rules or regulations to which it is subject or (ii) fail to obtain or maintain any patents, trademarks, service marks, trade names, copyrights, design patents, licenses, permits, franchises, or other governmental authorizations necessary to ownership of its property or the conduct of its respective business, in either case where such failure would have or could reasonably be expected to have a Material Adverse Effect; and

			

 

	 	
			c.

				
			assign or otherwise transfer, terminate, waive, or amend either of the Transaction Documents without the prior consent of the Lender, except for amendment in the ordinary course of business.

			

 

Section 13. Events Of Default. Each of the following events shall constitute an “Event of Default”:

 

	 	
			a.

				
			the amounts owing under this Promissory Note shall not be paid within five (5) Business Days of the date that such amount was due;

			

 

	 	
			b.

				
			any warranty, representation or statement by the Borrower is or becomes false, misleading or incorrect in a material respect when made or regarded as made by the Borrower under this Promissory Note or the Transaction Documents;

			

 

	 	
			c.

				
			the Borrower fails to perform or observe any material undertaking, obligation or agreement expressed or implied in this Promissory Note or the Transaction Documents and such default is not cured within thirty (30) days, or such longer period as is determined by the Lender, after receipt by the Borrower of a notice from the Lender specifying the failure;

			

 

	 	
			d.

				
			a receiver, receiver and manager, official manager, trustee, administrator or similar official is appointed, or steps are taken for such appointment, over any of the assets or undertaking of the Borrower;

			

 

6

 

 

	 	
			e.

				
			the Borrower is, or becomes, unable to pay its debts when they are due or is, or becomes, unable to pay its debts within the meaning of the US Bankruptcy Code or is presumed to be insolvent under the US Bankruptcy Code;

			

 

	 	
			f.

				
			an application or order is made for the winding up or dissolution of the Borrower, which application or order is not dismissed or withdrawn within twenty on (21) days, or a resolution is passed or any steps are taken to pass a resolution for the winding up or dissolution of the Borrower otherwise than for the purpose of an amalgamation or reconstruction which has the prior written consent of the Lender; or

			

 

	 	
			g.

				
			the Borrower suspends payment of its debts generally.

			

 

If an Event of Default described above shall occur, the amounts owing under this Promissory Note shall become due and payable within thirty (30) days of the Lender’s issuance of a formal demand notice to the Borrower. Immediately upon the occurrence of any Event of Default described above, or upon failure to pay this Promissory Note on the Termination Date, the Lender, without any notice to the Borrower, which notice is expressly waived by the Borrower, may proceed to protect, enforce, exercise and pursue any and all rights and remedies available to the Lender under this Promissory Note and any other agreement or instrument, and any and all rights and remedies available to the Lender at law or in equity.

 

All sums paid or advanced by the Lender in connection with the foregoing and all out-of-pocket costs and reasonable expenses (including, with limitation, reasonable attorneys’ fees, and expenses) incurred in connection therewith, together with interest thereon at the Default Rate from the date of payment until repaid in full, shall be paid by the Borrower to the Lender on demand and shall constitute and become a part of the obligations of the Borrower secured hereby.

 

Section 14. Further Assurances. The Borrower hereby agrees that, from time to time upon the written request of the Lender, the Borrower will execute and deliver such further documents and do such other acts and things as the Lender may reasonably request in order to fully effect the purposes of this Promissory Note and to protect and preserve the priority and validity of the security interests granted hereunder.

 

Section 15. Powers And Remedies Cumulative; Delay Or Omission Not Waiver Of Event Of Default. No right or remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

No delay or omission of the Lender to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any Event of Default or an acquiescence therein; and every

 

7

 

 

power and remedy given by this Promissory Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Lender.

 

Section 16. Transfers. The Parties may not transfer or assign this Promissory Note nor any right or obligation hereunder to any person or entity without the prior written consent of the other Party.

 

Section 17. Modification. This Promissory Note may be modified only with the written consent of both the Borrower and the Lender.

 

Section 18   Notices. Each notice authorized or required to be given to a party shall be in writing and may be delivered personally or sent by properly addressed prepaid mail in each case addressed to the party at its address set out in below:

 

In the case of the Lender:

 

 

 

In the case of the Borrower:

 

Mitesco, Inc.

1660 Highway 100 South

Suite 432

St. Louis Park, MN 55416

Attention: Jenny Lindstrom, Chief Legal Officer

 

Section 19    Most Favored Nations. So long as this Promissory Note is outstanding, upon any issuance by the Company or any of its subsidiaries of any new security, with any term that the Lender, reasonably believe is more favorable to the holder of such security or with a term in favor of the holder of such security which Lender reasonably believes was not similarly provided to the Lender in the Warrants, (i) the Company shall notify the Lender of such additional or more favorable term within one (1) business day of the issuance or amendment (as applicable) of the respective security, and (ii) such term, at the option of the Lender, shall become a part of the Transaction Documents (regardless of whether the Company complied with the notification provision of this Section).

 

Section 20    Miscellaneous. This Promissory Note shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said state. The parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, and enforcement of or any default under this Promissory Note, except as specifically provided herein, and assent to extensions of the time of payment, or forbearance or other indulgence without notice. The Section headings herein are for convenience only and shall not affect the construction hereof. Any provision of this Promissory Note which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or impairing the

 

8

 

 

remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. This Promissory Note shall bind the Borrower and his or her heirs, administrators, executors, personal representatives and permitted assigns. The rights under and benefits of this Promissory Note shall inure to the Lender and its permitted successors and assigns. This Promissory Note may be executed in any number of counterparts, each of which when executed and delivered to the other parties shall constitute an original, but all counterparts together shall constitute one and the same Promissory Note.

 

[Signature Page Follows]

 

 

 

 

 

 

9

 

 

 

IN WITNESS WHEREOF, the Borrower has caused this instrument to be duly executed on the date indicated below.

 

Date: July 27, 2022

 

MITESCO, INC.

By:                                                            

Name: Lawrence Diamond

Title: Chief Executive Officer

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