Document:

Exhibit 4.5

 

ARTICLES OF AMENDMENT

TO

ARTICLES OF INCORPORATION

OF 

GROM SOCIAL ENTERPRISES, INC.

 

CERTIFICATE OF DESIGNATION OF PREFERENCES,

RIGHTS AND LIMITATIONS

OF 

SERIES B 8%
CONVERTIBLE PREFERRED STOCK

 

Grom Social Enterprises,
Inc., a Florida corporation (the “Corporation”), in accordance with the provisions of Section 607.0602 of the
Florida Business Corporation Act DOES HEREBY CERTIFY:

 

FIRST: These Articles
of Amendment were adopted by the Board of Directors of the Corporation (the “Board”) on June 5, 2020 in the
manner prescribed by Section 607.1002 of the Florida Business Corporation Act. Shareholder action was not required.

 

SECOND: That pursuant
to the authority vested in the Board in accordance with the provisions of the Articles of Incorporation of the Corporation filed
with the Secretary of State of the State of Florida on August 4, 2014, as amended by the amendments filed with the Secretary of
State of the State of Florida on each of August 17, 2017, April 8, 2019 and June 12, 2019 (collectively, the “Articles”),
the Board adopted the following resolutions on June 5, 2020, designating Ten Million (10,000,000) shares of the Corporation’s
authorized preferred stock, par value $0.001 per share (the “Preferred Stock”) as “Series B 8% Convertible
Preferred Stock”:

 

RESOLVED, pursuant
to the authority vested in the Board in accordance with the provisions of the Articles, a series of Series B 8% Convertible Preferred
Stock of the Corporation is hereby created, and that the designation and number of shares thereof, and the voting and other rights,
preferences, restrictions and other matters relating to such series are as follows:

 

********

 

1.             
Designation and Amount.

 

(a)           
The shares of such series of Preferred Stock shall be designated Series B 8% Convertible Preferred Stock (the “Series
B Preferred Stock”). The number of shares constituting the Series B Preferred Stock shall be Ten Million (10,000,000).
No other shares of preferred stock shall be designated as Series B Preferred Stock. The Corporation expressly reserves the right
to designate other classes or series of Preferred Stock from time to time that are junior to the Series B Preferred Stock, without
the consent of the holders of the Series B Preferred Stock (the “Holders”).

 

(b)           
The stated value amount per share of the Series B Preferred Stock shall be $1.00 per share (the “Stated Value”).

 

 

 

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2.            
Ranking. The Series B Preferred Stock shall rank, as to dividends and upon Liquidation (as defined in Section 4(a)
hereof), (a) senior and prior to Junior Securities issued by the Corporation; (b) pari passu and on parity with any other class
or series of Preferred Stock hereafter created specifically ranking, by its terms, on parity with the Series B Preferred Stock;
and (c) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking, by its terms,
senior to the Series B Preferred Stock. All equity securities of the Corporation to which the Series B Preferred Stock ranks prior,
with respect to dividends and upon Liquidation, including, without limitation, the Series A Preferred Stock and the common stock
of the Corporation, par value $0.001 per share (the “Common Stock”), are collectively referred to herein as
“Junior Securities.”

 

3.            
Dividends. Commencing on the date that the Series B Preferred Stock is initially issued to a holder thereof (the
“Original Dividend Accrual Date”), cumulative dividends shall accrue on each share of Series B Preferred Stock,
at the rate of 8% per annum (the “Dividend Rate”) of the Stated Value, and which shall be payable in arrears
quarterly commencing three months after the Original Dividend Accrual Date (each such date, a “Dividend Payment Date”).
Any calculation of the amount of such dividends accrued pursuant to the provisions of this Section 3 shall be made based on a 360-day
year comprised of twelve 30-day months. The dividend shall be payable in shares of Common Stock (a “PIK Dividend”),
provided, however, that any fractional shares of Common Stock payable as a PIK Dividend will be rounded up to the
nearest share. All shares of Common Stock issued pursuant to a PIK Dividend will thereupon be duly authorized, validly issued,
fully paid and non-assessable. Dividends with respect to such additional shares of Common Stock issued as a PIK Dividend shall
(a) be due and payable on each Dividend Payment Date following the payment date on which such PIK Dividend was declared (or accrued,
if not declared and paid on a Dividend Payment Date) and (b) accrue at the rate set forth in this Section commencing on the day
immediately following the Dividend Payment Date on which such PIK Dividends were due and payable (regardless of whether the PIK
Dividend was declared or whether the shares of Common Stock constituting the PIK Dividends were actually issued). The Series B
Dividends shall accrue and accumulate whether or not they have been declared and whether or not there are profits, surplus or other
funds of the Corporation legally available for the payment of dividends.

 

4.             
Liquidation Preference.

 

(a)          
Upon any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary (a “Liquidation”),
the Holders shall be paid, in preference and prior to any payment made to the holders of the Junior Securities and any other stock
ranking in liquidation junior to the Series B Preferred Stock, an amount per share equal to the Stated Value, plus, with
respect to each share, an amount equal to all accrued and unpaid dividends (whether or not declared) thereon, computed to the date
that payment thereof is made available (such amount is referred to herein as the “Liquidation Preference”).
If upon a Liquidation Event, the assets to be distributed among the Holders shall be insufficient to permit payment in full to
the Holders of the Liquidation Preference, then the entire assets of the Corporation shall be distributed ratably among such holders
in proportion to the full respective Liquidation Preference to which they are entitled.

 

(b)          
The Holders of at least sixty six and two thirds percent (66 2/3%) of the then outstanding shares of Series B Preferred
Stock, may elect to deem the merger, reorganization or consolidation of the Corporation into or with another corporation, not affiliated
with said majority, or other similar transaction or series of related transactions in which more than 50% of the voting power of
the Corporation is disposed of in exchange for property, rights or securities distributed to holders thereof by the acquiring person,
firm or other entity, or the sale of all or substantially all the assets of the Corporation, as a Liquidation for purposes of this
Section 4.

 

5.              Voting
Rights.

 

Subject to the other
provisions contained herein, each Holder shall have full voting rights and powers equal to the voting rights and powers of the
holders of Common Stock, and shall be entitled to notice of any stockholders’ meeting in accordance with the bylaws of the
Corporation (as in effect at the time in question) and applicable law, and shall be entitled to vote, together with the holders
of Common Stock, with respect to any question upon which the holders of Common Stock have the right to vote, except as may be otherwise
provided by applicable law. Except as otherwise expressly provided herein or as required by law, the Holders of Series B Preferred
Stock and the holders of Common Stock shall vote together and not as separate classes.

 

 

 

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On all matters put to
a vote to the holders of Common Stock, each share of Series B Preferred Stock shall entitle the Holder thereof to fifty (50) votes
per share of Series B Preferred Stock then held by such Holder at the record date for the determination of the stockholders entitled
to vote or, if no such record date is established, the date such vote is taken or any written consent of stockholders is solicited.

 

6.              Conversion
at the Option of the Holder.

 

(a)            The Holder
shall have the right, at any time or from time to time commencing after the 12-month anniversary date of the issuance of the shares
of Series B Preferred Stock to the Holder, to convert such shares into Common Stock (each, and “Optional Conversion”)
at a conversion ratio equal to the 30-day VWAP of a share of Common Stock for each share of Series B Preferred Stock to be converted
(such conversion ratio in effect from time to time, the “Optional Conversion Ratio”). The Optional Conversion
Ratio shall be determined by the Holder for the 30-day trading period prior to the Holder electing to convert all or any portion
of the Series B Preferred Stock.

 

(b)            The Holder
may exercise the conversion rights set forth herein by delivering to the Corporation or any transfer agent of the Corporation for
the Series B Preferred Stock as may be designated by the Corporation, the certificate or certificates for the shares to be converted,
duly endorsed or assigned in blank to the Corporation (if required by it) (or such holder shall notify the Corporation or any transfer
agent that such certificate(s) have been lost, stolen or destroyed and shall execute an agreement reasonably satisfactory to the
Corporation to indemnify the Corporation from any loss incurred by it in connection therewith), accompanied by written notice stating
that the Holder elects to convert such shares, evidence of the Optional Conversion Ratio and stating the name or names (with address)
in which the certificate or certificates for the shares of Common Stock are to be issued. Each Optional Conversion shall be deemed
to have been effected on the date when the aforesaid delivery is made (each, an “Optional Conversion Date”).

 

(c)            As
promptly as practicable thereafter, the Corporation shall issue and deliver to or upon the written order of such Holder, to the
place designated by such Holder, a certificate to which such Holder is entitled. The person in whose name the certificate or certificates
for Common Stock are to be issued shall be deemed to have become a holder of the Common Stock of record on the applicable Optional
Conversion Date. The Corporation shall not close its books against the transfer of shares of Series B Preferred Stock in any manner
that would interfere with the timely conversion of any shares of Series B Preferred Stock. Upon conversion of only a portion of
the number of shares covered by a certificate representing shares of Series B Preferred Stock surrendered for conversion, the Corporation
shall issue and deliver to or upon the written order of the holder of the certificate so surrendered for conversion, at the expense
of the Corporation, a new certificate covering the number of shares of the Series B Preferred Stock representing the unconverted
portion of the certificate so surrendered.

 

(d)            No
fractional shares of Common Stock shall be issued upon conversion of shares of Series B Preferred Stock. If more than one share
of Series B Preferred Stock shall be surrendered, or deemed surrendered, pursuant to subsection (c) above, for conversion at any
one time by the same Holder, the number of full shares of Common Stock issuable upon conversion thereof shall be computed on the
basis of the aggregate number of shares of such Series B Preferred Stock so surrendered. Any fractional share which would otherwise
be issuable upon conversion of any shares of Series B Preferred Stock (after aggregating all shares of Series B Preferred Stock
held by each holder) shall be rounded to the nearest whole number (with one-half being rounded upward).

 

(e)            The
Corporation shall reserve, free from preemptive rights, out of its authorized but unissued shares of Common Stock solely for the
purpose of effecting the conversion of the shares of Series B Preferred Stock sufficient shares to provide for the conversion of
all outstanding shares of Series B Preferred Stock. All shares of Common Stock which may be issued in connection with the conversion
provisions set forth herein will, upon issuance by the Corporation, be validly issued, fully paid and nonassessable, with no personal
liability attaching to the ownership thereof, and free from all taxes, liens or charges with respect thereto.

 

(f)             All
shares of Series B Preferred Stock which have been converted (including pursuant to a Mandatory Conversion as provided below in
Section 7), shall no longer be deemed to be outstanding and all rights with respect to such shares including the rights to receive
dividends and to vote, shall immediately cease and terminate on the Optional Conversion Date, except only the right of the Holder
thereof to receive shares of Common Stock in exchange thereof.

 

 

 

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7.              Mandatory
Conversion.

 

(a)            The
Corporation, at its option, may require conversion (each, a “Mandatory Conversion”) of all or any pro rata portion
of the Series B Preferred Stock then outstanding into Common Stock at a fifty percent (50%) discount to the 30-day VWAP of a share
of Common Stock for each share of Series B Preferred Stock to be converted (such conversion ratio in effect from time to time,
the “Mandatory Conversion Ratio”). Should the Corporation elect a Mandatory Conversion, it shall give notice
thereof to all Holders, stating whether all or, if not, what portion of the Series B Preferred Stock will be converted, and selecting
a date (each, a “Mandatory Conversion Date”) and on which date, at the close of business, the conversion shall
occur. Any notice which is mailed by the Corporation as herein provided shall be conclusively presumed to have been duly given
by the Corporation on the date deposited in the mail, whether or not the Holder receives such notice; and failure properly to give
such notice by mail, or any defect in such notice, to the Holders shall not affect the validity of the proceedings for the conversion
of any other shares of Series B Preferred Stock.

 

(b)            On
or after the Mandatory Conversion Date, each Holder of shares shall surrender the certificate evidencing such shares to the Corporation
at the place designated in the notice of such mandatory conversion for conversion. To the extent that only a portion of the shares
are being mandatorily converted, the Corporation shall issue new Series B Preferred Stock certificates for the unconverted shares.
On or after the Mandatory Conversion Date, notwithstanding that the certificates evidencing any shares to be converted shall not
have been surrendered, to the extent that they have been called for Mandatory Conversion, such shares shall no longer be deemed
outstanding and all rights whatsoever with respect to the shares to be converted (except the right of the Holder thereof to have
such shares converted upon surrender of their certificates, pursuant to this Section 7) shall terminate.

 

8.              Redemption.
The Corporation shall not have the right to call or redeem at any time all or any shares of Series B Preferred Stock other
than as provided in Section 7 above.

 

9.              Protective
Provisions. At any time when shares of Series B Preferred Stock are outstanding, except where the vote or written consent of
the holders of a greater number of shares of the Corporation is required by law or by the Articles of Incorporation, and in addition
to any other vote required by law or the Articles of Incorporation, without the written consent of at least the Holders of sixty
six and two thirds percent (66 2/3%) of the then outstanding shares of Series B Preferred Stock, given in writing or by a vote
at a meeting, consenting or voting (as the case may be) separately as one class, the Corporation will not:

 

(i) amend,
alter or repeal any of the terms of the Series B Preferred Stock in an adverse manner; or

 

(ii) create
or authorize the creation of any additional class or series of Preferred Stock, or otherwise create or authorize the creation of
any additional class or series of stock unless the same ranks junior to the Series B Preferred Stock, or increase the authorized
amount of such series of Series B Preferred Stock, whether any such creation, authorization or increase shall be by means of amendment
to the Articles or by merger, consolidation or otherwise; or

 

(iii) pay
or set apart for payment, any dividend on any Junior Securities or make any payment on account of, or set apart for payment, money
for a sinking or other similar fund for, the purchase, redemption or other retirement of, any Junior Securities or any warrants,
rights, calls or options exercisable or exchangeable for or convertible into any Junior Securities, or make any distribution in
respect thereof, either directly or indirectly, and whether in cash, obligations or shares of the Corporation or other property
(other than distributions or dividends in Junior Securities to the holders of Junior Securities); or

 

(iv) (A)
merge or consolidate the Corporation with another entity; (B) sell all or substantially all of the assets owned directly or indirectly
by the Corporation; (C) acquire, by merger, issuance of securities of the Corporation or otherwise, of the business, stock or assets
of another entity; (D) issue securities of the Corporation in connection with or for the purpose of effecting or facilitating any
of the foregoing transactions; (E) reclassify or recapitalize any capital stock of the Corporation; and/or (F) execute of any agreement
in furtherance of any of the foregoing actions; or

 

(v) effect
any Liquidation or execute any agreement to become so obligated.

 

 

 

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10.            Restriction
on Transferability. The shares of the Series B Preferred Stock shall not, directly or indirectly, be sold, hypothecated, transferred,
assigned or disposed of in any manner without the prior written consent of the Board and applicable securities laws.

 

11.            Other
Preferences and Rights. The shares of the Series B Preferred Stock shall have no other preferences, rights, restrictions or
qualifications, except as otherwise provided by law or the Articles.

 

The remainder of
this page is left blank intentional. Signature page follows.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF,
the undersigned has executed this Certificate of Designation as of this 31st  day of July, 2020.

 

 

 

	 	GROM SOCIAL
ENTERPRISES, INC.
	 	 
	 	 
	 	By: /s/ Melvin Leiner___________________________
	 	Name: Melvin Leiner
	 	Title: Executive Vice
President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6Exhibit 10.33

 

DEBT EXCHANGE AGREEMENT

 

This Debt Exchange
Agreement (this “Agreement”), effective as of __________ __, 2020, is entered into by and between Grom Social
Enterprises, Inc., a Florida corporation (the “Company”), and
the holder of the outstanding note issued by Company as described below (the “Holder”).

 

WHEREAS, the Holder
is currently the holder of one or more of the following notes issued by the Company (in either case, the “Note”):
(i) a 10% Convertible Promissory Note, (ii) a 12% Senior Secured Convertible Promissory Note secured by a first priority security
interest in and collateral assignment of (a) its wholly-owned subsidiary’s right, title and interest in and to all of the
shares of stock of TDH Holdings Limited, a Hong Kong corporation (“TDH”) and (b) TDH’s right, title and
interest in and to all of the shares of its wholly owned subsidiary, Top Draw Animation Hong Kong Limited, a Hong Kong corporation;
and/or (ii) a 12% Senior Secured Convertible Promissory Note secured by a first priority security interest in all the assets of
the Company other than those granted to the holders of the notes described in (ii); and

 

WHEREAS, the Holder
desires to convert all indebtedness due and payable pursuant to the Note, including accrued and unpaid interest thereon, into shares
of Series B 8% Convertible Preferred Stock of the Company (the “Preferred Stock”), the terms, preferences and
rights as described in the Certificate of Designation of the Series B Convertible Preferred Stock which is annexed hereto as Exhibit
A, and the Company agrees to effectuate such conversion, all on the terms and conditions provided for in this Agreement.

 

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.         
The Exchange. 

 

(a)        Issuance
of Shares; Cancellation of Indebtedness. Subject to the terms and conditions of this Agreement, at the Closing (as defined
below), the Company shall issue to the Holder __________ shares of Preferred Stock (the “Shares”) in exchange
for the cancellation of all indebtedness owed by the Company to the Holder pursuant to the terms of the Note, including without
limitation, all accrued interest thereon and the release of any security interests granted by the Company to the Holder (such exchange
hereinafter referred to as the “Exchange”).

 

(b)       Section 3(a)(9)
Transaction. It is the intent of the parties that the Exchange be effectuated pursuant to an exemption from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 3(a)(9) thereunder
and that, therefore, the holding period of the original indebtedness evidenced by the Note will, for securities law purposes, be
tacked to the holding period of the Shares.

 

(c)        Release.
Subject to the terms and conditions of this Agreement, at the Closing, the Holder hereby releases, waives, discharges and relinquishes
any and all rights, claims, demands, contentions and causes of action of every kind, nature, character and description whatsoever,
whether known or unknown, suspected or unsuspected, apparent or concealed, fixed or contingent, arising from the Note on or before
the Closing Date, which it now has or hereafter may be entitled to claim against the Company, its directors, officers, managers,
members, agents and employees (the “Released Parties”), including but without limiting the generality of foregoing,
all claims arising from or in connection with or otherwise resulting from any matter, event, state of facts, claim, contention
or cause whatsoever, occurring or existing in connection with or relating to the debt evidenced by the Note on or before the Closing
Date (collectively, the “Claims”). The Holder agrees that the waiver and release described in this Section 1(c)
applies to all Claims, whether or not the Holder currently knows about them or suspects that they exist. Notwithstanding anything
to the contrary expressed or implied herein, however, none of the foregoing released Claims shall include any claims against a
Released Party arising by reason of such Released Party’s breach of this Agreement. In addition, none of the foregoing releases
extend to any breach of this Agreement, and no remedies for any such breach are being released herein.

 

 

 

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2.         
Closing Deliveries.

 

(a)       
At or promptly after the Closing, the Company shall deliver to the Holder (i) a stock certificate or certificates in the
name of the Holder evidencing the Shares, free and clear of all liens and encumbrances, other than those imposed pursuant to the
Securities Act and (ii) such other documents, certificates or other information as Holder or its counsel may reasonably request.

 

(b)       
At the Closing, the Holder shall deliver to the Company:

 

i.          
a duly executed copy of this Agreement;

 

ii.         
a duly executed irrevocable proxy in the form attached hereto as Exhibit B, granting the person appointed therein
as the Holder’s proxy to vote the Shares; and

 

iii.        
the original Note for cancellation.

 

3.        
The Closing. The closing of the Exchange shall be deemed to have occurred as of the effective date referred to
above (the “Closing Date”) at the offices of the Company (the “Closing”).

 

4.        
Representations and Warranties of the Company. As of the date of this Agreement and as of the Closing, the
Company hereby represents and warrants to the Holder that the following representations and warranties are true and complete as
of each respective date:

 

(a)       
Organization and Standing. The Company is a corporation duly organized, validly existing under, and by virtue of,
the laws of the State of Florida, and is in good standing under such laws. The Company has all requisite corporate power and authority
to own and operate its properties and assets and to carry on its business as presently conducted and as proposed to be conducted.

 

(b)       
Corporate Power. The Company has all requisite legal and corporate power and authority to execute and deliver this
Agreement and the other agreements contemplated hereby, to effectuate the Exchange, to sell and issue the Shares and to carry out
and perform its obligations under the terms of this Agreement.

 

(c)       
Authorization. All corporate action on the part of the Company and its officers, directors and stockholders necessary
for the (i) authorization, execution, delivery and performance of this Agreement, (ii) authorization, sale, issuance and delivery
of the Shares and (iii) performance of all of the Company’s obligations hereunder have been taken or will be taken prior
to the Closing. This Agreement has been duly executed by the Company and constitutes (or will constitute) the valid and legally
binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to the laws of general
application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive
relief or other equitable remedies.

 

(d)      
No Conflicts; Consents. The execution, delivery and performance by the Company of this Agreement and the documents
to be delivered hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict
with the articles of incorporation or bylaws of the Company; (b) violate or conflict with any judgment, order, decree, statute,
law, ordinance, rule or regulation applicable to the Company; (c) conflict with, or result in (with or without notice or lapse
of time or both) any violation of, or default under, or give rise to a right of termination, acceleration or modification of any
obligation or loss of any benefit under any agreement or other instrument to which the Company is a party. No consent, approval,
waiver or authorization is required to be obtained by the Company from any person in connection with the execution, delivery and
performance by the Company of this Agreement or the consummation of the transactions contemplated hereby, other than the filing
of a Current Report on Form 8-K with the Securities and Exchange Commission.

 

 

 

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(e)       
Valid Issuance of Stock. The Shares have been duly authorized and, when issued, sold and delivered in compliance
with the provisions of this Agreement, will be duly and validly issued, fully paid and nonassessable. The shares of common stock
issuable upon due conversion of the Preferred Stock will be duly and validly issued, fully paid and nonassessable. The Shares will
be free and clear of any liens or encumbrances; provided, however, that the Shares shall be subject to restrictions on transfer
under state and/or federal securities laws. None of the Shares will be subject to any preemptive rights or rights of first refusal.

 

(f)        
Exemption. It is the intention of the Company that the Exchange be made pursuant to an exemption from the registration
requirements of the Securities Act pursuant to Section 3(a)(9) thereunder.

 

5.         
Representations and Warranties of the Holder. As of the date of this Agreement and as of the Closing, the
Holder hereby represents and warrants to the Company that the following representations and warranties are true and complete as
of each respective date:

 

(a)       
Organization and Standing. If the Holder is an entity, the Holder is duly organized, validly existing under, and
by virtue of, the laws of the state of its incorporation or formation, as the case may be, and is in good standing under such laws.

 

(b)      
Corporate Power. The Holder has all power and authority to execute and deliver this Agreement, purchase the Shares,
effectuate the Exchange, and carry out and perform its obligations under the terms of this Agreement and the transactions contemplated
hereby.

 

(c)       
Authorization. All action on the part of the Holder necessary for the authorization, execution, delivery and performance
of this Agreement, the purchase of the Shares, and the performance of all of the Holder’s obligations hereunder have been
taken or will be taken prior to the Closing. This Agreement has been duly executed by the Holder and constitutes the valid and
legally binding obligation of the Holder, enforceable against it in accordance with its terms, subject to the laws of general application
relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief
or other equitable remedies.

 

(d)       
For Holder’s Account. The Holder represents and confirms that the Shares to be issued to the Holder in the
Exchange are being and will be acquired for the Holder’s own account, not as nominee or agent, and not with a view to the
resale or distribution of any part thereof.

 

(e)       
Accredited Investor and Investment Experience. The Holder is an accredited investor, as such term is defined in Regulation
D promulgated under the Securities Act. The Holder represents that is and its representatives are experienced in evaluating and
investing in securities of companies similar as the Company and that the Holder can bear the economic risk of an investment in
the Shares and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits
and risks of the investment in the Shares in exchange for the Note.

 

(f)        
Ownership of the Debt. The Holder is the exclusive beneficial and record owner of the Note. The Holder has good,
valid and marketable title to said Note, free and clear of all liens, mortgages, charges or other encumbrances and any preemptive
or subscription rights, and has not assigned or otherwise transferred or granted any interest in the Note to any person.

 

(g)       
No Consents. The Holder is not required to obtain any order, consent, approval or authorization of any person or
entity in connection with the execution and delivery of this Agreement or the Exchange.

 

(h)       
Information on Company. The Holder has been furnished with all information it has requested from the Company and
considered all factors the Holder deems material in deciding on the advisability of converting its Note, which is secured, to the
Shares. The Holder has been afforded the opportunity to ask questions of and receive answers from duly authorized officers and/or
other representatives of the Company and any additional information which the Holder had requested. The Holder has also reviewed
all information including the terms hereof and of the Preferred Stock, with their counsel and professional tax or economic advisers
and understands the risks relating hereto.

 

The Holder understands
that the auditors of the Company have expressed their concern as to the viability of the Company and issued a going concern opinion
with respect to the Company.

 

 

 

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(i)        
Compliance with Securities Act. The Holder understands and agrees that the Shares have not been registered under
the Securities Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require
registration under the Securities Act (based in part on the accuracy of the representations and warranties of Holder contained
herein), and that such Shares must be held indefinitely unless a subsequent disposition is registered under the Securities Act
or any applicable state securities laws or is exempt from such registration.

 

(j)         No
other representations. The Holder is not relying on the Company, or its affiliates or agents with respect to economic considerations
involved in this investment. The Holder has relied solely on its own advisors. No representations or warranties have been made
to the Holder by the Company, or any officer, employee, agent, affiliate or subsidiary of the Company, other than the representations
of the Company contained herein, and in effectuating the Exchange the Holder is not relying upon any representations other than
those contained herein.

 

(k)        Shares
Legend. The Shares shall bear the following or similar legend:

 

"THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO [THE COMPANY] THAT SUCH REGISTRATION IS NOT REQUIRED."

 

(l)         Communication
of Offer. The offer for the Exchange was directly communicated to the Holder by the Company. At no time was the Holder presented
with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general
advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated
offer.

 

(m)       Restricted
Securities. The Holder understands that the Shares have not been registered under the Securities Act and such Holder will not
sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any of the Shares unless pursuant to an effective registration
statement under the Securities Act, or unless an exemption from registration is available. Notwithstanding anything to the contrary
contained in this Agreement, such Holder may transfer (with an opinion of counsel satisfactory to the Company and its counsel)
the Shares to its Affiliates (as defined below), provided that each such Affiliate is an “accredited investor” under
Regulation D and such Affiliate agrees to be bound by the terms and conditions of this Agreement. For the purposes of this Agreement,
an “Affiliate” of any person or entity means any other person or entity directly or indirectly controlling,
controlled by or under direct or indirect common control with such person or entity. Affiliate includes each subsidiary of the
Company. For purposes of this definition, “control” means the power to direct the management and policies of
such person or firm, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.

 

(n)        No
Governmental Review. The Holder understands that no United States federal or state agency or any other governmental or state
agency has passed on or made recommendations or endorsement of the Exchange or the Shares or the suitability of the Exchange nor
have such authorities passed upon or endorsed the merits of the Exchange.

 

(o)        Correctness
of Representations. Each Holder represents that the foregoing representations and warranties are true and accurate as of the
date hereof and shall survive the issuance and delivery of the Shares. If, in any respect, those representations and warranties
shall not be true and accurate prior to the Closing Date, the undersigned shall immediately give written notice to the Company
specifying which representations and warranties are not true and accurate and the reason therefor. It is specifically understood
and agreed by the Holder that neither the Company nor its officers or directors has made, nor by this Agreement shall be construed
to make, directly or indirectly, explicitly or by implication, any representation, warranty, projection, assumption, promise, covenant,
opinion, recommendation or other statement of any kind or nature with respect to the anticipated operations, investment returns,
cash flows, profits or losses of the Company.

 

 

 

    	 	4	 

     

    

 

(p)        Survival.
The foregoing representations and warranties shall survive the Closing Date for a period of three years.

 

6.         
Miscellaneous.

 

(a)      
Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(b)       
Governing Law. This Agreement is to be construed in accordance with and governed by the internal laws of the State
of Florida without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the State of Florida.

 

(c)       
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but both
of which together shall constitute one and the same instrument. Signatures received by pdf or email shall be deemed to be original
signatures.

 

(d)      
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

(e)       
Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made
pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) if delivered personally,
when received, (b) if transmitted by facsimile or email, on the date of transmission with receipt of a transmittal confirmation
or (c) if by courier service, on the second (2nd) business day following the date of deposit with such courier service, or such
earlier delivery date as may be confirmed in writing to the sender by such courier service. A party may change or supplement the
addresses given in the signature pages hereto, or designate additional addresses, for purposes of this Section by giving the other
party written notice of the new address in the manner set forth above.

 

(f)        
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such
provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were
so excluded and shall be enforceable in accordance with its terms.

 

(g)       
Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement among the parties
with respect to the subject matter hereof and no party shall be liable or bound to any other party in any manner by any warranties,
representations or covenants except as specifically set forth herein or therein.

 

 

[Remainder of Page Intentionally Omitted;
Signature Page Follows]

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the undersigned, being the duly authorized representatives of the parties, have executed this Agreement as of the date set forth
above.

 

 

		GROM SOCIAL
ENTERPRISES, INC.
	 	 
	 	 
	 	By:___________________________________
	 	Name:
	 	Title:
	 	 

 

	 	HOLDER
	 	 
	 	 
	 	By:___________________________________
	 	Name:
	 	Title:
	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

EXHIBIT A

 

Certificate of
Designation of the Series B 8% Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

EXHIBIT B

 

IRREVOCABLE PROXY

 

The undersigned, being
the legal and beneficial holder of shares of __________ shares of Series B 8% Convertible Preferred Stock of Grom Social Enterprises,
Inc., a Florida corporation (the “Company”), hereby irrevocably (to the fullest extent permitted by law) appoints and
constitutes ___________, the attorney and proxy of the undersigned with full power of substitution, to the fullest extent of the
undersigned’s rights with respect to all the shares of the Company owned of record and beneficially by the undersigned, and
any and all other interests or securities issued or issuable in respect thereof on or after the date hereof or which the undersigned
may acquire after the date hereof (collectively, the “Shares”). Upon the execution hereof, the undersigned agrees
that no subsequent proxies will be given with respect to any of the Shares.

 

This proxy is irrevocable
and coupled with an interest. This proxy shall remain in full force and effect for 7 years after the date hereof.

 

The attorney and proxy
named above shall be empowered at any time to exercise all voting and other rights (including, without limitation, the power to
execute and deliver written consents with respect to the Shares) of the undersigned in his own discretion at every annual or special
meeting of the shareholders of the Company and at every continuation or adjournment thereof, and on every action or approval by
written consent of the shareholders of the Company in lieu of any such meeting.

 

This proxy shall be
binding upon the heirs, estates, executors, personal representatives, successors and assigns of the undersigned. If any provision
of this proxy or any part of any such provision is held under any circumstance to be invalid or unenforceable in any jurisdiction,
then (a) such provision or part thereof shall, with respect to such circumstances and jurisdiction, be deemed amended to conform
to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of
such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability
of such provision or part thereof under any other circumstances or in any other jurisdiction and (c) the invalidity or unenforceability
of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity
or enforceability of any other provision of this proxy. Upon any such determination, the undersigned agrees with the attorney and
proxy named above to negotiate in good faith to modify this proxy so as to effect the original intent of the parties.

 

Each provision of this
proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every
other part of such provision.

 

IN WITNESS WHEREOF,
the undersigned has executed this irrevocable proxy as of the __th day of __________, 2020.

 

 

___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	8

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