Document:

Exhibit
10.5

 

Evo
Acquisition Corp.

c/o
Evolution Capital Management

11390
W. Olympic Blvd., Suite 100

Los
Angeles, CA 90064

December
10, 2020

 

Evo
Sponsor LLC

c/o
Evolution Capital Management

11390
W. Olympic Blvd., Suite 100

Los
Angeles, CA 90064

  

RE:       Securities
Subscription Agreement

 

Ladies
and Gentlemen:

 

This
agreement (this “Agreement”) is entered into as of December 10, 2020 by and between Evo Sponsor LLC, a Delaware
limited liability company (the “Subscriber”), and Evo Acquisition Corp., a Delaware corporation (the “Company”).
Pursuant to the terms hereof, the Company hereby accepts the offer the Subscriber has made to subscribe for and purchase 2,875,000
shares of Class B common stock, $0.0001 par value per share, of the Company (the “Shares”), up to 375,000
of which are subject to complete or partial forfeiture by the Subscriber if the underwriters of the initial public offering (“IPO”)
of units (“Units”) of the Company do not fully exercise their over-allotment option (the “Over-allotment
Option”). The terms on which the Company is willing to sell the Shares to the Subscriber, and the Company and the Subscriber’s
agreements regarding such Shares, are as follows:

 

	 	1.	Subscription
    and Purchase of Shares. The Subscriber has delivered to Ellenoff Grossman & Schole LLP, external legal counsel to
    the Company, the sum of $25,000 (the “Purchase Price”), as a deposit for legal fees which the Company expects
    to incur in connection with the IPO.  In consideration of the Purchase Price, the Company hereby sells and issues
    the Shares to the Subscriber, and the Subscriber hereby subscribes for and purchases the Shares from the Company, 375,000
    of which are subject to forfeiture by the Subscriber, on the terms and subject to the conditions set forth in this Agreement.
    Concurrently with the Subscriber’s execution of this Agreement, the Company shall, at its option, deliver to the Subscriber
    a certificate registered in the Subscriber’s name representing the Shares (the “Original Certificate”),
    or effect such delivery in book-entry form.

 

	 	2.	Representations,
    Warranties and Agreements.

 

	 	2.1.	Subscriber’s
    Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Subscriber, the Subscriber
    hereby represents and warrants to the Company and agrees with the Company as follows:

 

	 	2.1.1.	No
    Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or made
    any recommendation or endorsement of the offering of the Shares.

 

	 	2.1.2.	No
    Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions
    contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents
    of the Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party or (iii) any law,
    statute, rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which
    the Subscriber is subject.

 

	 	2.1.3.	Organization
    and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good standing under the
    laws of Delaware and possessing all requisite power and authority necessary to carry out the transactions contemplated by
    this Agreement. Upon execution and delivery by the Subscriber, this Agreement will be a legal, valid and binding agreement
    of the Subscriber, enforceable against the Subscriber in accordance with its terms, except as such enforceability may be limited
    by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’
    rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding
    at law or in equity).

 

     

     

    

 

	 	2.1.4.	Experience,
    Financial Capability and Suitability. The Subscriber is: (i) sophisticated in financial matters and is able to evaluate
    the risks and benefits of the investment in the Shares and (ii) able to bear the economic risk of its investment in the
    Shares for an indefinite period of time because the Shares have not been registered under the Securities Act (as defined below)
    and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration
    is available. The Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity
    to protect its own interests. The Subscriber must bear the economic risk of this investment until the Shares are sold pursuant
    to: (i) an effective registration statement under the Securities Act or (ii) an exemption from registration available
    with respect to such sale. The Subscriber is able to bear the economic risks of an investment in the Shares and to afford
    a complete loss of the Subscriber’s investment in the Shares.

 

	 	2.1.5.	Access
    to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity
    to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well
    as the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to
    verify the accuracy of all information so obtained. In determining whether to make this investment, the Subscriber has relied
    solely on the Subscriber’s own knowledge and understanding of the Company and its business based upon the Subscriber’s
    own due diligence investigation and the information furnished pursuant to this paragraph. The Subscriber understands that
    no person has been authorized to give any information or to make any representations which were not furnished pursuant to
    this Section 2 and the Subscriber has not relied on any other representations or information in making its investment
    decision, whether written or oral, relating to the Company, its operations and/or its prospects.

 

	 	2.1.6.	Regulation
    D Offering. The Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of
    Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and acknowledges the
    sale contemplated hereby is being made in reliance on a private placement exemption to “accredited investors”
    within the meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under federal
    and state law.

 

	 	2.1.7.	Investment
    Purposes. The Subscriber is subscribing for and purchasing the Shares solely for investment purposes, for the Subscriber’s
    own account and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination
    thereof. The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising
    within the meaning of Rule 502 under the Securities Act.

 

	 	2.1.8.	Restrictions
    on Transfer; Shell Company. The Subscriber understands the Shares are being offered in a transaction not involving a public
    offering within the meaning of the Securities Act. The Subscriber understands the Shares will be “restricted securities”
    within the meaning of Rule 144(a)(3) under the Securities Act, and the Subscriber understands that the certificates representing
    the Shares will contain a legend in respect of such restrictions. If in the future the Subscriber decides to offer, resell,
    pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred only pursuant
    to: (i) registration under the Securities Act, or (ii) an available exemption from registration. The Subscriber
    agrees that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any
    such transfer, the Subscriber may be required to deliver to the Company an opinion of counsel satisfactory to the Company.
    Absent registration or an exemption, the Subscriber agrees not to resell the Shares. The Subscriber further acknowledges that
    because the Company is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Shares
    until one year following consummation of the initial business combination of the Company, despite technical compliance with
    the requirements of Rule 144 and the release or waiver of any contractual transfer restrictions.

 

    2

     

    

 

	 	2.1.9.	No
    Governmental Consents. No governmental, administrative or other third party consents or approvals are required, necessary
    or appropriate on the part of the Subscriber in connection with the transactions contemplated by this Agreement.

 

	 	2.2.	Company’s
    Representations, Warranties and Agreements. To induce the Subscriber to subscribe for and purchase the Shares, the Company
    hereby represents and warrants to the Subscriber and agrees with the Subscriber as follows:

 

	 	2.2.1.	Organization
    and Corporate Power. The Company is a Delaware corporation and is qualified to do business in every jurisdiction in which
    the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating
    results or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out
    the transactions contemplated by this Agreement.  Upon execution and delivery by the Company, this Agreement will be
    a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except
    as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting
    the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement
    is sought in a proceeding at law or in equity).

 

	 	2.2.2.	No
    Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
    contemplated hereby do not violate, conflict with or constitute a default under (i) the certificate of incorporation
    (the “Charter”) or bylaws of the Company, (ii) any agreement, indenture or instrument to which the
    Company is a party or (iii) any law, statute, rule or regulation to which the Company is subject, or any agreement,
    order, judgment or decree to which the Company is subject.

 

	 	2.2.3.	Title
    to Shares. Upon issuance in accordance with, and payment pursuant to, the terms hereof, and the Charter, the Shares will
    be duly and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms
    hereof, and the Charter, each Subscriber will have or receive good title to the Shares, free and clear of all liens, claims
    and encumbrances of any kind, other than (a) transfer restrictions hereunder and under the other agreements to which
    the Shares may be subject, (b) transfer restrictions under federal and state securities laws, and (c) liens, claims
    or encumbrances imposed due to the actions of the Subscriber.

 

	 	2.2.4.	No
    Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the
    Company which: (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated
    by this Agreement or (ii) question the validity or legality of any transactions or seeks to recover damages or to obtain
    other relief in connection with any transactions.

 

	 	3.	Forfeiture
    of Shares.

 

	 	3.1.	Partial
    or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the representative(s) of
    the underwriters of the Company’s IPO is not exercised in full, the Subscriber acknowledges and agrees that it (or,
    if applicable, it and any transferees of Shares) shall forfeit any and all rights to such number of Shares (up to 375,000
    Shares) and pro rata based upon the percentage of the Over-allotment Option exercised) such that immediately following such
    forfeiture, the Subscriber (and any such transferees and all other initial stockholders prior to the IPO, if any) will own
    an aggregate number of Shares (not including shares of common stock issuable upon exercise of any warrants or any shares of
    common stock subscribed for and purchased by the Subscriber in the Company’s IPO or in the aftermarket) equal to 20%
    of the issued and outstanding shares of common stock of the Company immediately following the IPO.

 

    3

     

    

 

	 	3.2.	Termination
    of Rights as Stockholder. If any of the Shares are forfeited by the Subscriber in accordance with this Section 3,
    then after such time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such forfeited
    Shares, and the Company shall take such action as is appropriate to cancel such forfeited Shares.

 

	 	3.3.	Share
    Certificates. In the event an adjustment to the Original Certificates, if any, for the Subscriber is required pursuant
    to this Section 3, then the Subscriber shall return such Original Certificates to the Company or its designated agent as soon
    as practicable upon its receipt of notice from the Company advising the Subscriber of such adjustment, following which a new
    certificate (the “New Certificate”), if any, shall be issued in such amount representing the adjusted number
    of Shares held by the Subscriber. The New Certificate, if any, shall be returned to the Subscriber as soon as practicable.
    Any such adjustment for any uncertificated securities held by the Subscriber shall be made in book-entry form.

 

	 	4.	Waiver
    of Liquidation Distributions; Redemption Rights. In connection with the Shares subscribed for and purchased pursuant to
    this Agreement, the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions
    by the Company from the trust account which will be established for the benefit of the Company’s public stockholders
    and into which substantially all of the proceeds of the IPO will be deposited (the “Trust Account”), in
    the event of a liquidation of the Company upon the Company’s failure to timely complete an initial business combination.
    For purposes of clarity, in the event the Subscriber subscribes for and purchases shares of common stock in the IPO or in
    the aftermarket, any additional Shares so subscribed for and purchased shall be eligible to receive any liquidating distributions
    by the Company. However, in no event will the Subscriber have the right to redeem any shares of common stock held by the Subscriber
    into funds held in the Trust Account upon the successful completion of an initial business combination.

 

	 	5.	Restrictions
    on Transfer.

 

	 	5.1.	Securities
    Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as
    an “Insider Letter”) to be dated as of the closing of the IPO by and among the Subscriber and the Company,
    the Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless,
    prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities
    laws with respect to the Shares proposed to be transferred shall then be effective or (b) the Company has received an
    opinion from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction
    is exempt from registration under the Securities Act and the rules promulgated by the Securities and Exchange Commission
    thereunder and with all applicable state securities laws.

 

	 	5.2.	Restrictive
    Legends. Any certificates representing the Shares shall have endorsed thereon legends substantially as follows:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL, IS AVAILABLE.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”

 

    4

     

    

  

	 	5.3.	Additional
    Shares or Substituted Securities. In the event of the declaration of a share dividend, the declaration of an extraordinary
    dividend payable in a form other than shares of common stock, a spin-off, a share split, an adjustment in conversion ratio,
    a recapitalization or a similar transaction affecting the Company’s outstanding shares of common stock without receipt
    of consideration, any new, substituted or additional securities or other property which are by reason of such transaction
    distributed with respect to any Shares subject to this Section 5 or into which such Shares thereby become convertible
    shall immediately be subject to this Section 5 and Section 3. Appropriate adjustments to reflect the distribution
    of such securities or property shall be made to the number and/or class of Shares subject to this Section 5 and Section 3.

 

	 	5.4.	Registration
    Rights. The Subscriber acknowledges that the Shares are being subscribed for and purchased pursuant to an exemption from
    the registration requirements of the Securities Act and will become freely tradable only after certain conditions are met
    or they are registered pursuant to a registration rights agreement to be entered into with the Company prior to the closing
    of the IPO (the “Registration Rights Agreement”).

 

 

	 	6.	Other
    Agreements.

 

	 	6.1.	Further
    Assurances. The Subscriber agrees to execute such further instruments and to take such further action as may reasonably
    be necessary to carry out the intent of this Agreement.

 

	 	6.2.	Notices.
    All notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing
    and delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic
    transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party
    or such other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the
    electronic mail address most recently provided to such party or such other electronic mail address as may be designated in
    writing by such party. Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery,
    if delivered personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic
    transmission, one (1) business day after delivery to an overnight courier service or five (5) days after mailing
    if sent by mail.

 

	 	6.3.	Entire
    Agreement. This Agreement, together with that certain Insider Letter and the Registration Rights Agreement, each to be
    entered into among the Subscriber and the Company and each substantially in the form to be filed as an exhibit to the Registration
    Statement on Form S-1 associated with the Company’s IPO, embodies the entire agreement and understanding among
    the Subscribers and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements
    and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of
    any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express
    terms and provisions of this Agreement.

 

	 	6.4.	Modifications
    and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed
    by all parties hereto.

 

	 	6.5.	Waivers
    and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted,
    only by a written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent
    shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement,
    whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for
    which it was given, and shall not constitute a continuing waiver or consent.

 

	 	6.6.	Assignment.
    Except with respect to transfers of the Shares to a controlled affiliate of either Subscriber, the rights and obligations
    under this Agreement may not be assigned by either party hereto without the prior written consent of the other party.

 

    5

     

    

  

	 	6.7.	Benefit.
    All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto
    and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement
    shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded
    as a third-party beneficiary of this Agreement.

 

	 	6.8.	Governing
    Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and
    governed by the laws of Delaware applicable to contracts wholly performed within the borders of such state, without giving
    effect to the conflict of law principles thereof.

 

	 	6.9.	Severability.
    In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained
    in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the
    extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the
    event that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of
    this Agreement shall nevertheless remain in full force and effect.

 

	 	6.10.	No
    Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy
    under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power
    or remedy of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
    nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from
    any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy
    by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to
    or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to
    any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party
    giving such notice or demand to any other or further action in any circumstances without such notice or demand.

 

	 	6.11.	Survival
    of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or
    in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery
    hereof and any investigations made by or on behalf of the parties.

 

	 	6.12.	No
    Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial
    consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way
    as to create any liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from any
    claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming
    to have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any
    such claim.

 

	 	6.13.	Headings
    and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference
    only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

	 	6.14.	Counterparts.
    This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the
    same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
    it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
    facsimile transmission or any other form of electronic delivery, 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 signature
    page were an original thereof.

 

    6

     

    

  

	 	6.15.	Construction.
    The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question
    of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption
    or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this
    Agreement. The words “include,” “includes,” and “including” will
    be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will
    be construed to include any other gender, and words in the singular form will be construed to include the plural and vice
    versa, unless the context otherwise requires. The words “this Agreement,” “herein,”
    “hereof,” “hereby,” “hereunder,” and words of similar import refer
    to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend
    that each representation, warranty, and covenant contained herein will have independent significance. If any party hereto
    has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another
    representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity)
    which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of
    the first representation, warranty, or covenant.

 

	 	6.16.	Mutual
    Drafting. This Agreement is the joint product of the Subscribers and the Company and each provision hereof has been subject
    to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party
    hereto.

 

	 	7.	Voting
    and Tender of Shares. The Subscriber agrees with the Company to vote the Shares in favor of an initial business combination
    that the Company negotiates and submits for approval to the Company’s stockholders and shall not seek redemption with
    respect to such Shares. Additionally, each Subscriber agrees not to tender any Shares in connection with a tender offer presented
    to the Company’s stockholders in connection with an initial business combination negotiated by the Company.

 

    7

     

    

 

If
the foregoing accurately sets forth our understanding and agreement, please sign the enclosed copy of this Agreement and return
it to us.

  

	 	Very
    truly yours,
	 	 
	 	EVO
    ACQUISITION CORP.
	 	 
	 	By:	/s/
    Richard Chisholm
	 	 	Name:
    Richard Chisholm 
	 	 	Title:
    Chief Executive Officer

 

Accepted
and agreed as of the date first written above.

 

Evo
Sponsor LLC

 

	By:	/s/
    Michael Lerch	 
	 	Name:
    Michael Lerch	 
	 	Title:
    Managing MemberExhibit 10.1

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal Amount: $53,500.00	Issue Date: January 14, 2021

Purchase Price:
$53,500.00

 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED,
BIOSOLAR, INC., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order
of POWER UP LENDING GROUP LTD., a Virginia corporation, or registered assigns (the “Holder”) the sum of $53,500.00
together with any interest as set forth herein, on January 14, 2022 (the “Maturity Date”), and to pay interest on the
unpaid principal balance hereof at the rate of ten percent (10%)(the “Interest Rate”) per annum from the date hereof
(the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment
or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal
or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from
the due date thereof until the same is paid (“Default Interest”). Interest shall be computed on the basis of a 365
day year and the actual number of days elapsed. Interest shall commence accruing on the Issue Date and shall be payable upon the
earlier of prepayment, acceleration, each conversion and the Maturity Date. All payments due hereunder (to the extent not converted
into common stock, $0.0001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made
in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give
to the Borrower by written notice made in accordance with the provisions of this Note. Each capitalized term used herein, and not
otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof,
pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

     

    

    

 

The following terms
shall apply to this Note:

 

Article
I. CONVERSION RIGHTS

 

1.1 
Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning on the
date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and
(ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount
of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares
of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower
into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”)
determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder
be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1)
the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which
may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted
portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which
the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more
than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership
limitations on conversion as set forth in the section may NOT be waived by the Holder. The number of shares of Common Stock
to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the
applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit
A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided
that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”);
however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business
day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal
amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest,
if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.2 Conversion
Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined herein)
(subject to equitable adjustments by the Borrower relating to the Borrower’s securities or the securities of any subsidiary
of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable
Conversion Price” shall mean 61% multiplied by the Market Price (as defined herein) (representing a discount rate of 39%).
“Market Price” means the average of the lowest two (2) Trading Prices (as defined below) for the Common Stock during
the fifteen (15) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price”
means, for any security as of any date, the closing bid price on the OTCQB, OTCQX, Pink Sheets electronic quotation system or applicable
trading market (the “OTC”) as reported by a reliable reporting service (“Reporting Service”) designated
by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security, the closing bid price of such
security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price
of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such
security that are listed in the “pink sheets”. If the Trading Price cannot be calculated for such security on such
date in the manner provided above, the Trading Price shall be the fair market value as reasonably determined by the Borrower. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange
or other securities market on which the Common Stock is then being traded.

 

    2

    

    

 

1.3 Authorized
Shares. The Borrower covenants that during the period the Note is outstanding, the Borrower will reserve from its authorized
and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock
upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have
authorized and reserved six times the number of shares that would be issuable upon full conversion of the Note (assuming that the
4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion Price of the Note (as defined in
Section 1.2) in effect from time to time, initially 13,238,478 shares)(the
“Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from
time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make
any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible
at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall
be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority
to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note.

 

If, at any time the Borrower
does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

 

1.4 Method
of Conversion.

 

(a) Mechanics
of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period beginning on the date
which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii)
the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to
time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section
1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder).

 

(b) Surrender
of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount
so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower,
so as not to require physical surrender of this Note upon each such conversion.

 

    3

    

    

 

(c) Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other
reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section
1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for
the Common Stock issuable upon such conversion within two (2) business days after such receipt (the “Deadline”) (and,
solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms
hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the
holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued
and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations
hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to
receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall
have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for
Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same,
any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce
the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower,
and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection
with such conversion.

 

(d) Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable
upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the
Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion
to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit
and Withdrawal at Custodian (“DWAC”) system.

 

(e) Failure
to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including
actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this
Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $2,000
per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver
Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e.,
transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect
delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which
it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month
in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in
accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance
with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting
from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly,
the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.

 

1.5 
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless:
(i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (iii) such shares are
transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the
shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).

 

    4

    

    

 

Any restrictive legend
on certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed and the Borrower shall
issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer agent shall have received
an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without registration under the
Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in the case of the Common
Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration
statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In the event that the Company
does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to
an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Note.

 

1.6 Effect
of Certain Events.

 

(a) Effect
of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all
of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more
than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the
Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be
an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the
consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person”
shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(b) Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all
of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event,
as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another
class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially
all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder
of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities
or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately
prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate
provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof
(including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion
of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter
deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a)
it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written
notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation
of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during
which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower)
assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations,
mergers, sales, transfers or share exchanges.

 

    5

    

    

 

(c) Adjustment
Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets)
to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or
distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this
Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets
which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder
been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

 

1.7 Prepayment.
Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth on the table immediately
following this paragraph (the “Prepayment Periods”) or as otherwise agreed to between the Borrower and the Holder,
the Borrower shall have the right, exercisable on not more than three (3) Trading Days prior written notice to the Holder of the
Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.7. Any notice
of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered
addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which
shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment
(the “Optional Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined below)
to Holder, or upon the direction of the Holder as specified by the Holder in a writing to the Borrower (which shall direction to
be sent to Borrower by the Holder at least one (1) business day prior to the Optional Prepayment Date). If the Borrower exercises
its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash equal to the percentage (“Prepayment
Percentage”) as set forth in the table immediately following this paragraph opposite the applicable Prepayment Period, multiplied
by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred
to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4 hereof (the “Optional Prepayment
Amount”).

 

	Prepayment Period	 	Prepayment
 Percentage	 
	1. The period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date.	 	 	120	%
	2. The period beginning on the date which is thirty-one (31) days following the Issue Date and ending on the date which is sixty (60) days following the Issue Date.	 	 	125	%
	3. The period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date.	 	 	130	%
	4. The period beginning on the date that is ninety-one (91) days from the Issue Date and ending one hundred twenty (120) days following the Issue Date.	 	 	135	%
	5. The period beginning on the date that is one hundred twenty-one (121) days from the Issue Date and ending one hundred fifty (150) days following the Issue Date.	 	 	140	%
	6. The period beginning on the date that is one hundred fifty-one (151) days from the Issue Date and ending one hundred eighty (180) days following the Issue Date.	 	 	145	%

 

    6

    

    

 

After the expiration
of the Prepayment Periods set forth above, the Borrower may submit an Optional Prepayment Notice to the Holder. Upon receipt by
the Holder of the Optional Prepayment Notice post Prepayment Periods, the prepayment shall be subject to the Holder’s and
the Borrower’s agreement with respect to the applicable Prepayment Percentage.

 

Notwithstanding anything
contained herein to the contrary, the Holder’s conversion rights herein shall not be affected in any way until the Note is
fully paid (funds received by the Holder) pursuant to an Optional Prepayment Notice.

 

Article
II.  CERTAIN COVENANTS

 

2.1 Sale
of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s
written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business.
Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

Article
III.  EVENTS OF DEFAULT

 

If any of the following
events of default (each, an “Event of Default”) shall occur:

 

3.1 Failure
to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether
at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.

 

3.2 Conversion
and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that
it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with
the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form)
any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when
required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer
agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued
to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs
its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or
to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the
Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement,
statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue
uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for two
(2) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current
in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed,
hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder
advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by
the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

    7

    

    

 

3.3 Breach
of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any
collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20)
days after written notice thereof to the Borrower from the Holder.

 

3.4 Breach
of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement
or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement),
shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have)
a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5 Receiver
or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply
for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such
a receiver or trustee shall otherwise be appointed.

 

3.6 Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under
any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the
Borrower.

 

3.7 Delisting
of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically
includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

3.8 Failure
to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or
the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.9 Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.10 Cessation
of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts
as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.11 Financial
Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC at any time after
180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement
would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder
with respect to this Note or the Purchase Agreement.

 

    8

    

    

 

3.12 
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form
as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares
of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.13 Cross-Default. 
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default
by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable
notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements,
in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the
terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements”
means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the
Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other
Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted
with each other loan transaction and with all other existing and future debt of Borrower to the Holder.

 

Upon the occurrence and during the continuation
of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in
full satisfaction of its obligations hereunder, an amount equal to the Default Amount (as defined herein).  UPON THE OCCURRENCE
AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE
AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT
AMOUNT (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default
specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note
or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice
to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the
remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified
in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date
of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in
clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4(e) hereof (the then outstanding principal
amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be
known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all
without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at
law or in equity. 

 

If the Borrower fails
to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder
shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient
authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number
of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.

 

    9

    

    

 

Article
IV. MISCELLANEOUS

 

4.1 Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

4.2 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

If to the
Borrower, to:

 

BIOSOLAR, INC.

27936 Lost Canyon Road, Suite
202

Santa Clarita, CA 91387

Attn: David
Lee, Chief Executive Officer

Fax:

Email: david@biosolar.com

 

If to the
Holder:

 

POWER UP
LENDING GROUP LTD.

111 Great
Neck Road, Suite 214

Great Neck,
NY 11021

Attn: Curt
Kramer, Chief Executive Officer

e-mail:
info@poweruplending.com

 

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

 

Naidich Wurman
LLP

111 Great
Neck Road, Suite 216

Great Neck,
NY 11021

Attn: Allison
Naidich

facsimile:
516-466-3555

e-mail:
allison@nwlaw.com

 

    10

    

    

 

4.3 Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term
“Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes
issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4 Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and
its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a)
of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other lending arrangement; and may be assigned by the Holder
without the consent of the Borrower.

 

4.5 Cost
of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6 Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Virginia without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note
shall be brought only in the state courts of New York or in the federal courts located in the Eastern District of New York. The
parties to this Note 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 Borrower and Holder
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 Note 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 Note, any agreement or any other document delivered in connection with this Note 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 Note 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.

 

4.7 Purchase
Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

 

4.8 Remedies.
The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for
a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the
Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law
or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing
any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic
loss and without any bond or other security being required.

 

    11

     

    

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be signed in its name by its duly authorized officer this on January 14, 2021

 

	BIOSOLAR, INC.	 
	 	 	 
	By: 	/s/ David Lee	 
	 	David Lee	 
	 	Chief Executive Officer	 

    12

    

    

 

EXHIBIT A — NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert $_________________ principal amount of the Note (defined below) into that number
of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth
below, of BIOSOLAR, INC., a Nevada corporation (the “Borrower”) according to the conditions of the convertible note
of the Borrower dated as of January 14, 2021 (the “Note”), as of the date written below. No fee will be charged to
the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable
instructions:

 

		☐	The Borrower shall electronically transmit the Common
Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit
Withdrawal Agent Commission system (“DWAC Transfer”).

 

Name of DTC Prime Broker:

Account Number:

 

		☐	The undersigned hereby requests that the Borrower issue
a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s
calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment
hereto:

 

POWER UP LENDING GROUP LTD.

111 Great Neck Road, Suite 214

Great Neck, NY 11021

Attention: Certificate Delivery

e-mail: info@poweruplendinggroup.com

 

	Date of conversion: 	 	_____________
	Applicable Conversion Price:	 	$____________
	Number of shares of common stock to be issued pursuant to conversion of the Notes: 	 	______________
	Amount of Principal Balance due remaining under the Note after this conversion:	 	______________

 

	POWER UP LENDING GROUP LTD.	 
	 	 	 
	By:	 	 
	Name: 	Curt Kramer	 
	Title:	Chief Executive Officer	 
	 	Date: __________________	 

 

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}]]