Document:

Exhibit 10.14 

 

HONGLI GROUP INC.

SHARE COMPENSATION PLAN

 

1. Purposes of the Plan.

 

The purposes of this Hongli
Group Inc. Share Compensation Plan (the “Plan”) is to enable Hongli Group Inc., a Cayman Islands exempted company (the
“Company”) to attract and retain the services of employees, directors and consultants considered essential to the success
of the Company and the Group Members (as defined below) (collectively, the “Group”) by providing additional compensations
or incentives to promote the success of the Group as a whole. Options, Restricted Shares, Restricted Share Units, Share Appreciation Rights
and Share Payments (each as defined below) may be granted under the Plan.

 

2. Definitions and Interpretation.

 

(a) Definitions.
In this Plan, unless the context otherwise requires, the following expressions shall have the following meanings:

 

“Administrator”
means the Board or one or more directors or officer(s) of the Company whom the Board has delegated its authority to act as the Administrator
as provided in Section 4(e).

 

“Applicable Law”
means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other
laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national market system, of any jurisdiction
applicable to Awards granted to residents therein.

 

“Award”
means an Option, Restricted Share, Restricted Share Unit, Share Appreciation Right or Share Payment award granted to a Participant pursuant
to the Plan.

 

“Award Agreement”
means any written agreement, contract, or other instrument or document evidencing an Award, including through electronic medium.

 

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

 

“Business”
means any Person that carries on activities for profit, and shall be deemed to include any affiliate of such Person.

 

“Cause” means,
with respect to a Participant in the case of a particular Award, unless the particular Award Agreement states otherwise, (a) the
applicable Group Member having “cause,” “just cause” or term of similar meaning or import, to terminate a Participant’s
employment or service, as defined in any employment, consulting or services agreement between the Participant and such Group Member in
effect at the time of such termination; or (b) in the absence of any such employment, consulting or services agreement (or the absence
of any definition of “cause,” “just cause” or term of similar meaning or import contained therein), the following
events or conditions, as determined by the Administrator in its sole discretion:

 

(i) any
commission of an act of theft, embezzlement, fraud, dishonesty, ethical breach or other similar acts, or commission of a criminal offense;

 

(ii) any
material breach of any agreement or understanding between the Participant and any Group Member including, without limitation, any applicable
intellectual property and/or invention assignment, employment, non-competition, confidentiality or other similar agreement or
the Group Member’s code of conduct, employee handbook, or other workplace rules;

 

(iii) any
material misrepresentation or omission of any material fact in connection with the Participant’s employment with any Group Member
or service as a Service Provider or to satisfy the requirements or working standards of the applicable Group Member during any applicable
probationary employment period;

 

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(iv) any
material failure to perform the customary duties as an Employee, Consultant or Director, to obey the reasonable directions of a supervisor
or to abide by the policies or codes of conduct of the Company or any other Group Member; or

 

(v) any
conduct that is materially adverse to the name, reputation or interests of the Group Members.

 

“Change in Control”
means any of the following transactions:

 

(i) an
amalgamation, arrangement, merger, consolidation or scheme of arrangement in which the Company is not the surviving entity, except for
a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated or which following such
transaction the holders of the Company’s voting shares immediately prior to such transaction own more than fifty percent (50%) of
the voting shares of the surviving entity;

 

(ii) the
sale, transfer or other disposition of all or substantially all of the assets of the Company (other than to a Subsidiary);

 

(iii) the
completion of a voluntary or insolvent liquidation or dissolution of the Company;

 

(iv) any
takeover, reverse takeover, scheme of arrangement, or series of related transactions culminating in a reverse takeover or scheme of arrangement
(including, but not limited to, a tender offer followed by a takeover or reverse takeover) in which the Company survives but (A) the
shares of the Company outstanding immediately prior to such transaction are converted or exchanged by virtue of the transaction into other
property, whether in the form of shares, securities, cash or otherwise, or (B) the shares carrying more than fifty percent (50%)
of the total combined voting power of the Company’s then issued and outstanding shares are transferred to a person or persons different
from those who held such shares immediately prior to such transaction culminating in such takeover, reverse takeover or scheme of arrangement,
or (C) the Company issues new voting shares in connection with any such transaction such that holders of the Company’s voting
shares immediately prior to the transaction no longer hold more than fifty percent (50%) of the voting shares of the Company after the
transaction; or

 

(v) the
acquisition in a single or series of related transactions by any person or related group of persons (other than Employees of one or more
Group Members or entities established for the benefit of the Employees of one or more Group Members) of (A) control of the Board
or the ability to appoint a majority of the members of the Board, or (B) beneficial ownership (within the meaning of Rule 13d-3 under
the U.S. Securities Exchange Act) of shares carrying more than fifty percent (50%) of the total combined voting power of the Company’s
then issued and outstanding shares.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Committee”
means any committee of the Board (or a subcommittee thereof) to which the Board has delegated power to act pursuant to the provisions
of the Plan; provided, that in the absence of any such committee, the term “Committee” shall mean the Administrator.

 

“Company”
has the meaning set forth in Section 1.

 

“Competitor”
means any Business that is engaged in or is about to become engaged in any activity of any nature that competes with a product, process,
technique, procedure, device or service of any Group Member.

 

“Consultant”
means any Person who is engaged by a Group Member to render consulting or advisory services to a Group Member.

 

“Director”
means a member of the board of directors of a Group Member.

 

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“Disability”
means, unless in the case of a particular Award, the particular Award Agreement states otherwise, as to any Participant, (a) “Disability,”
as defined in any employment, consulting or services agreement between the Participant and the applicable Group Member in effect at the
time of such termination; or (b) in the absence of any such employment, consulting or services agreement (or in the absence of any
definition of “Disability” contained therein), a disability, whether temporary or permanent, partial or total, as determined
by the Administrator in its sole discretion; provided, that for purposes of Incentive Stock Options, “Disability” means a
“permanent and total disability” as defined in Section 22(e)(3) of the Code.

 

“Employee”
means any person who has an employment relationship with any Group Member. A Service Provider shall not cease to be an Employee in the
case of (i) any leave of absence approved by the relevant Group Member under Applicable Laws, or (ii) transfers between locations
of Group Members.

 

“Fair Market Value”
means, as of any date, the value of Shares determined as follows:

 

(i) If
the Shares are listed on one or more established stock exchanges or traded on automated quotation systems, the Fair Market Value shall
be the closing sales price for such Shares (or the closing bid, if no sales were reported) as quoted on the principal exchange or system
on which the Shares are listed or traded on the date of determination, as reported in Bloomberg or such other source as the
Administrator deems reliable unless otherwise prescribed by any Applicable Law, or, if the date of determination is not a Trading Date,
the closing price as quoted on the principal exchange or system on which the Shares are listed or traded on the Trading Date immediately
preceding the date of determination;

 

(ii) If
depositary receipts representing the Shares are listed on one or more established stock exchanges or traded on automated quotation systems,
the Fair Market Value shall be the closing sales price for such depositary receipts (or the closing bid, if no sales were reported) as
quoted on the principal exchange or system on the date of determination, as reported in Bloomberg or such other source as
the Administrator deems reliable, divided by the number of Shares that are represented by such depositary receipts, or, if the date of
determination is not a Trading Date, the closing sales price for such depositary receipts as quoted on the principal exchange or system
on which the Shares are listed or traded on the Trading Date immediately preceding the date of determination, divided by the number of
Shares that are represented by such depositary receipts;

 

(iii) If
the Shares or depositary receipts representing the Shares are regularly quoted by a recognized securities dealer but selling prices are
not reported, the Fair Market Value shall be the mean between the high bid and low asked prices for (a) the Shares on the date of
determination; or (b) depositary receipts representing the Shares on the date of determination, divided by the number of Shares that
are represented by such depositary receipts, as applicable; or

 

(iv) In
the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Administrator.

 

“Family Member”
means (i) any person who is a “family member” of the Participant, as such term is used in the instructions to Form S-8
under the U.S. Securities Act (collectively, the “Immediate Family Members”, which includes any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,including
adoptive relationships, and any person sharing the Participant’s household (other than a tenant or employee); (ii) a trust solely
for the benefit of the Participant and/or his or her Immediate Family Members; or (iii) a partnership or limited liability company
whose only partners or shareholders are the Participant and/or his or her Immediate Family Members; or (iv) any other transferee
as may be approved by the Administrator in its sole discretion in an Award Agreement or otherwise.

 

“Group”
has the meaning set forth in Section 1.

 

“Group Member”
means the Company, any Subsidiary or any Related Entity.

 

“Incentive Stock
Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

 

“Nonstatutory Stock
Option” means an Option not intended to qualify as an Incentive Stock Option.

 

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“Option”
means an option to purchase Shares granted pursuant to the Plan. Options granted under the Plan may be “Incentive Stock Options”
or “Nonstatutory Stock Options,” as determined by the Administrator at the time of grant.

 

“Participant”
means the holder of an outstanding Award granted under the Plan.

 

“Person”
means any natural person, firm, company, corporation, body corporate, partnership, association, government, state or agency of a state,
local, municipal or provincial authority or government body, joint venture, trust, individual proprietorship, business trust or other
enterprise, entity or organization (whether or not having separate legal personality).

 

“Plan”
has the meaning set forth in Section 1.

 

“Related Entity”
means any Person in or of which the Company or a Subsidiary holds a substantial economic interest, or possesses the power to direct or
cause the direction of the management policies, directly or indirectly, through the ownership of voting securities, by contract, or other
arrangements as trustee, executor or otherwise, but which, for purposes of the Plan, is not a Subsidiary and which the Administrator designates
as a Related Entity. For purposes of the Plan, any Person in or of which the Company or a Subsidiary owns, directly or indirectly, securities
or interests representing twenty percent (20%) or more of its total combined voting power of all classes of securities or interests shall
be deemed a “Related Entity” unless the Administrator determines otherwise.

 

“Restricted Share”
means a Share subject to restrictions and repurchase rights granted pursuant to the Plan.

 

“Restricted Share
Unit” means the right to receive a Share at a future date granted pursuant to the Plan.

 

“Service Provider”
means any Person who is an Employee, a Consultant or a Director; provided, that Awards shall not be granted to any Consultant
or Director in any jurisdiction in which, pursuant to Applicable Laws, grants to non-employees are not permitted. If any Person
is a Service Provider by reason of being an Employee, Director or Consultant to the Company or any Subsidiary and such Person’s
service is transferred to a Related Entity, then the Administrator, in its sole discretion, may determine that such Person’s service
as a Service Provider has terminated as a result of such transfer for any or all purposes of any Award, Award Agreement and the Plan.

 

“Share”
means ordinary share of the Company, par value US$0.0001 per share, as adjusted in accordance with Section 13(a) below.

 

“Share Appreciation
Right” means a right to receive a payment equal to the excess of the Fair Market Value of a specified number of Shares on the
date the Share Appreciation Right is exercised over the base price as set forth in the applicable Award Agreement, granted pursuant to
the Plan.

 

“Share Payment”
means a payment in the form of Shares, as part of any bonus, deferred compensation or other cash compensation arrangement, made in lieu
of all or any portion of such bonus, deferred compensation or other cash compensation arrangement, granted pursuant to the Plan.

 

“Subsidiary”
means any Person Controlled by the Company. “Control” means, with respect to any Person, the possession, directly or
indirectly, of the power to direct or cause the direction of the management policies of a Person whether through the ownership of the
voting securities of such Person or by contract or otherwise; provided, that for purposes of Incentive Stock Options, a Subsidiary
shall mean only a corporation of which a majority of the outstanding voting securities or voting power is beneficially owned directly
or indirectly by the Company. For purposes of the Plan, any “variable interest entity” that is consolidated into the consolidated
financial statements of the Company under applicable accounting principles or standards as may apply to the consolidated financial statements
of the Company shall be deemed a Subsidiary; provided, that, solely as applied to Incentive Stock Options, such “variable
interest entity” is also a corporation of which a majority of the outstanding voting securities or voting power is beneficially
owned directly or indirectly by the Company.

 

“Tax”
means any income, employment, social welfare or other tax withholding obligations (including a Participant’s tax obligations) or
any levies, stamp duties, charges or taxes required or permitted to be withheld or otherwise payable under Applicable Laws with respect
to any taxable event concerning a Participant arising as a result of this Plan.

 

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“Terminated for
Cause” or “Termination for Cause” means, in the case of a Participant, (i) the termination of the Participant’s
status as a Service Provider for Cause or (ii) the Participant’s termination without Cause or voluntary resignation as a Service
Provider if the Administrator determines at any time that, before or after the Participant’s termination without Cause or resignation,
a Group Member had Cause to terminate such Participant’s status as a Service Provider.

 

“Trading Date”
means any day on which the Shares or depositary receipts representing the Shares are (i) publicly traded on one or more established
stock exchanges or automated quotation systems under an effective registration statement or similar document under Applicable Law or (ii) quoted
by a recognized securities dealer.

 

“U.S. Securities
Act” means the United States Securities Act of 1933 and the regulations thereunder, as amended from time to time.

 

“U.S. Securities
Exchange Act” means the United States Securities Exchange Act of 1934 and the regulations thereunder, as amended from time to
time.

 

(b) Interpretation.
Unless expressly provided otherwise, or the context otherwise requires:

 

(i) the
headings in this Plan are for convenience only and shall not affect its interpretation;

 

(ii) the
terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa;

 

(iii) references
to “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”;

 

(iv) references
to “dollars” or “US$” shall be deemed references to the lawful money of the United States of America;

 

(v) references
to clauses, sub-clauses, paragraphs, sub-paragraphs and schedules are to clauses, sub-clauses, paragraphs
and sub-paragraphs of, and schedules to, this Plan;

 

(vi) use
of any gender includes the other genders;

 

(vii) a
reference to any statute or statutory provision shall be construed as a reference to the same as it may have been, or may from time to
time be, amended, modified or re-enacted;

 

(viii) a
reference to any other document referred to in this Plan is a reference to that other document as amended, varied, novated or supplemented
at any time; and

 

(ix) sections
8 and 19(3) of the Electronic Transactions Law (2003 Revision) of the Cayman Islands shall not apply.

 

3. Shares Subject to
the Plan.

 

(a) Subject
to the provisions of Section 13 and paragraph (b) of this Section 3, the maximum
aggregate number of Shares which may be subject to Awards under the Plan initially shall be an aggregate of (i) [●] Shares (or up
to [●] Shares if the underwriters fully exercise the over-allotment option in connection with its initial public offering pursuant
to the Company’s registration statement on Form F-1 (File No. 333-[●]), originally filed with the Securities and Exchange
Commission on [●]) and (ii) on each January 1, starting with January 1, 2022 until December 31, 2027, an additional number of Shares
equal to the lesser of (A) 2% of the outstanding number of Shares (on a fully-diluted basis) on the immediately preceding December 31,
and (B) such lower number of Shares as may be determined by the Committee, subject in all cases to adjustment as provided in Section 13
below. In addition, the Board may from time to time reserve additional Shares for issuance pursuant to Awards granted under the Plan.

 

(b) If
an Award (or any portion thereof) terminates, expires or lapses or is cancelled for any reason, any Shares subject to the Award (or such
portion thereof) shall again be available for the grant of an Award pursuant to the Plan (unless the Plan has terminated). If any Award
(in whole or in part) is settled in cash or other property in lieu of Shares, then the number of Shares subject to such Award (or such
part) shall again be available for grant pursuant to the Plan. Shares that have actually been issued under the Plan, pursuant to Awards
under the Plan shall not be returned to the Plan and shall not cause the number of Shares available to be subject to Awards under the
Plan to be increased, except that if:

 

	 	(i)	any Restricted Shares are forfeited (or surrendered) or the Company repurchases unvested Restricted Shares pursuant to the terms of the Award Agreement, or

 

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	 	(ii)	the Company repurchases any Shares granted under any Award (or a portion thereof) in the event of a Participant’s joining a Competitor, Termination for Cause, or any of the other circumstances as set forth in Section 18(a),

 

then such Restricted Shares or Shares shall form
part of the authorized but unissued share capital of the Company and may become available for future grant under the Plan (to the extent
permitted under Applicable Laws).

 

4. Administration of
the Plan.

 

(a) Administrator. The
Plan shall be administered by the Administrator (except as otherwise permitted herein).

 

(b) Duties
and Powers of Administrator. It shall be the duty of the Administrator to conduct the general administration of the Plan in accordance
with its provisions. Subject to the provisions of the Plan, the Administrator shall have the power and authority, in its discretion:

 

(i) to
select the Service Providers to whom Awards may from time to time be granted hereunder;

 

(ii) to
determine the type or types of Awards to be granted to each Service Provider;

 

(iii) to
determine the exercise price of an Option or the base price of a Share Appreciation Right;

 

(iv) to
determine the number of Shares to be covered by each such Award granted hereunder;

 

(v) to
prescribe the forms of Award Agreement for use under the Plan, which need not be identical for each Participant and to amend any Award
Agreement; provided, that: (1) the rights or obligations of the Participant holding the Award that is the subject of
any such Award Agreement are not affected adversely by such amendment; (2) the consent of the affected Participant is obtained; or
(3) such amendment is otherwise permitted under the Plan. Notwithstanding the foregoing, the Administrator shall have the power and
authority, in its discretion, to adjust the number of Shares underlying any Award that has been granted to a Participant or the vesting
schedule of any such Award if such Participant is promoted or demoted or transfers to a different position, or if there is any change
to the performance targets for such Participant. Any such amendment of an Award under the Plan need not be the same with respect to each
Participant;

 

(vi) to
determine the terms and conditions of any Award granted hereunder (such terms and conditions to include, but not be limited to, the exercise
price, the time or times when Awards may be vested, issued or exercised as the case may be (which may be based on performance criteria),
the times at which Shares are issuable under a Restricted Share Unit, whether any Award may be paid in cash or Shares, any rules for tolling
the vesting of awards upon an authorized leave of absence, any vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Awards or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine);

 

(vii) to
determine all matters and questions relating to whether a Participant’s status as a Service Provider has been terminated, including
without limitation if such termination was for Cause or for Disability and, if so, to determine the effective date of such termination
(which it may determine to be the date of notice of resignation or the date of an act or omission by such Participant constituting Cause)
and all questions of whether particular leaves of absence constitute a termination of the Service Provider;

 

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(viii) to
determine whether a Business is a Competitor;

 

(ix) to
prescribe, amend and rescind rules and regulations relating to the Plan and the administration of the Plan and all Award Agreements, including
rules and regulations relating to sub-plans established for the purpose of qualifying for preferred Tax treatment under the
tax laws of any jurisdiction;

 

(x) to
allow the Participants to satisfy Tax withholding obligations by having the Company withhold from the Shares to be issued pursuant to
an Award (or a portion thereof), that number of Shares having a Fair Market Value equal to the amount required to be withheld as set forth
in Section 14(j) below;

 

(xi) to
take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with Applicable Laws or any necessary
local governmental regulatory exemptions or approvals or listing requirements of any securities exchange or automated quotation system;

 

(xii) to
construe, interpret, reconcile any inconsistency in, correct any defect in and/or supply any omission in, the terms of the Plan, any Award
Agreement and any Award granted pursuant to the Plan; and

 

(xiii) make
all other decisions and determinations that may be required pursuant to the Plan or as the Administrator deems necessary or advisable
to administer the Plan.

 

(c) Action
by the Administrator. The Administrator may act at a meeting or in writing signed by all members in lieu of a meeting. The Administrator
is entitled to, in good faith, rely or act upon any report or other information furnished by any officer or other employee of any Group
Member, the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained
by the Company or the Administrator to assist in the administration of the Plan.

 

(d) Effect
of Administrator’s Decision. The Administrator’s interpretation of the Plan, any Awards granted pursuant to the Plan
and any Award Agreement, and all decisions, determinations and interpretations of the Administrator shall be final, binding and conclusive
for all purposes and upon all Participants.

 

(e) Delegation
of Authority. To the extent permitted by Applicable Laws, the Administrator may from time to time delegate to a committee of one or
more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other administrative
actions pursuant to this Section 4. Any delegation hereunder shall be subject to the restrictions and limits that the
Administrator specifies at the time of such delegation, and the Administrator may at any time rescind the authority so delegated or appoint
a new delegate.

 

5. Eligibility.

 

(a) Subject
to the terms of the Plan, all forms of Awards may be granted to any Service Provider. Incentive Stock Options, however, may be granted
only to employees of the Company or any “subsidiary corporation” (as defined in Section 424(f) of the Code) of the Company.
Except for grants of Incentive Stock Options, for purposes of this Section 5(a), “Service Providers” shall
include prospective Service Providers to whom Awards are granted in connection with written offers of a service relationship with a Group
Member.

 

(b) An
Option that is intended to be an Incentive Stock Option shall be so designated in the Award Agreement.

 

(c) Neither
the Plan nor any Award shall confer upon any Participant any right with respect to continuing the Participant’s relationship as
a Service Provider with any Group Member, nor shall it interfere in any way with his or her right or any Group Member’s right to
terminate such relationship at any time, with or without cause.

 

(d) Unless
the Administrator provides otherwise, vesting of Awards granted hereunder shall be tolled during any unpaid leave of absence in accordance
with such rules as the Administrator shall determine.

 

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6. Terms of Awards.

 

(a) Term.
The term of each Award shall be stated in the Award Agreement; provided, that the term shall be no more than ten (10) years
from the date of grant thereof. Subject to the foregoing, the Administrator may extend the term of any outstanding Award, and may extend
the time period during which vested Awards may be exercised, in connection with any termination of Participant’s status as a Service
Provider, and may amend any other term or condition of an Award relating to such termination.

 

(b) Timing
of Granting of Awards. The date of grant of an Award shall, for all purposes, be the date on which the Administrator makes the determination
granting such Award or such other future date as is determined by the Administrator. Notice of the determination shall be given to each
Service Provider to whom an Award is so granted within a reasonable time after the date of such grant.

 

(c) Stand-Alone
and Tandem Awards. Awards granted pursuant to the Plan may, in the sole discretion of the Administrator, be granted either alone,
in addition to, or in tandem with, any other Award granted pursuant to the Plan (or any other award granted pursuant to another compensation
plan). Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from
the grant of such other Awards (or any other award granted pursuant to another compensation plan).

 

(d) Award
Agreement. All Awards shall be evidenced by an Award Agreement setting forth the number of Shares subject to the Award and the terms
and conditions of the Award, which shall not be inconsistent with the Plan.

 

(e) Vesting.
The period during which an Award, in whole or in part, vests shall be set by the Administrator, and the Administrator may determine that
an Award may not vest in whole or in part for a specified period after it is granted. Such vesting may be based on service with a Group
Member and/or any other criteria selected by the Administrator. At any time after grant of an Award, the Administrator may, in its sole
discretion and subject to whatever terms and conditions it selects, accelerate the period during which an Award vests. No portion of an
Award which is unvested or unexercisable at the termination of Participant’s status of as a Service Provider shall thereafter become
vested or exercisable, except as may be otherwise provided by the Administrator either in the Award Agreement or by action of the Administrator
following the grant of the Award.

 

(f) Issuance
of Shares. Shares issued upon grant, exercise or vesting of an Award (or any portion thereof) shall be issued in the name of the Participant
or, if requested by the Participant and if approved by the Administrator in its sole discretion, in the name of the Participant and/or
in the name of one of more of his or her Family Members, and/or in the name of a trust whose settlors were/are approved by the Administrator.

 

(g) Termination
of Relationship as a Service Provider. If a Participant’s status as a Service Provider terminates, such Participant may
exercise any unexercised Award (to the extent exercisable) within such period of time as is specified in the Award Agreement to the extent
that the Award is vested and exercisable on the date of termination (but in no event later than the expiration of the term of the Award
as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, and except as provided in Sections
6(h), 6(i) and 6(j), Awards shall remain exercisable for six (6) months following the Participant’s
termination (but in no event later than the expiration of the term of the Award as set forth in the Award Agreement). Unless otherwise
specified in the Award Agreement or otherwise determined by the Administrator, if, on the date of termination, the Participant is not
vested as to his or her entire Award, the unvested portion of such Award shall be deemed cancelled and the Shares covered by the unvested
portion of the Award shall revert to the Plan and again be available for grant or award under the Plan. If, after termination, the Participant
does not exercise his or her Award within the time specified by the Administrator, the Award shall terminate, and the Shares covered by
such Award shall revert to the Plan and again be available for grant or award under the Plan.

 

(h) Disability
of Participant. If a Participant’s status as a Service Provider terminates as a result of the Participant’s Disability,
the Participant may exercise any unexercised Award (to the extent exercisable) within such period of time as is specified in the Award
Agreement to the extent the Award is vested and exercisable on the date of termination (but in no event later than the expiration of the
term of such Award as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Award shall remain
exercisable for twelve (12) months following the Participant’s termination (but in no event later than the expiration of the
term of the Award as set forth in the Award Agreement). Unless otherwise specified in the Award Agreement or otherwise determined by the
Administrator, if, on the date of termination, the Participant is not vested as to his or her entire Award, the unvested portion of such
Award shall be deemed cancelled and the Shares covered by the unvested portion of the Award shall revert to the Plan and again be available
for grant or award under the Plan. If, after termination, the Participant does not exercise his or her Award within the time specified
herein, the Award shall terminate, and the Shares covered by such Award shall revert to the Plan and again be available for grant or award
under the Plan.

 

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(i) Death
of Participant. If a Participant dies as a Service Provider, any unexercised Award (to the extent exercisable) may be exercised
within such period of time as is specified in the Award Agreement to the extent that the Award is vested on the date of death of the Participant
(but in no event later than the expiration of the term of such Award as set forth in the Award Agreement) by the Participant’s estate
or by a person who acquires the right to exercise the Award by bequest or inheritance. In the absence of a specified time in the Award
Agreement, the Award shall remain exercisable for twelve (12) months following the Participant’s death (but in no event later
than the expiration of the term of the Award as set forth in the Award Agreement). Unless otherwise specified in the Award Agreement or
otherwise determined by the Administrator, if, at the time of death, the Participant is not vested as to the entire Award, the unvested
portion of such Award shall be deemed cancelled and the Shares covered by the unvested portion of the Award shall immediately revert to
the Plan and again be available for grant or award under the Plan. If the Award is not so exercised within the time specified herein,
the Award shall terminate, and the Shares covered by such Award shall revert to the Plan and again be available for grant or award under
the Plan.

 

(j) Termination
for Cause. Subject to Applicable Law, if a Participant is Terminated for Cause, all unexercised Options or Share Appreciation Rights,
whether vested or unvested, and all other unvested Awards, shall be cancelled as of the date of such termination as determined by the
Administrator in its sole discretion, and all Shares acquired pursuant to an Award by such Participant shall be subject to a right of
repurchase by the Company in accordance with Section 18(b). Any Shares covered by cancelled Awards, and any Shares so
repurchased shall revert to the Plan and again be available for grant or award under the Plan.

 

7. Options.

 

(a) Rights
to Purchase. After the Administrator determines that it will offer Options under the Plan, it shall advise the offeree in writing
or electronically of the terms, conditions and restrictions related to such Options.

 

(b) Exercise
Price. The exercise price per Share subject to an Option shall be determined by the Administrator and set forth in the Award Agreement
which, unless otherwise determined by the Administrator, may be a fixed or variable price determined by reference to the Fair Market Value
of the Shares over which such Award is granted; provided, that (i) the exercise price of an Incentive Stock Option shall
not be less than the Fair Market Value of a Share on the date of grant and, in the case of an Incentive Stock Option granted to an employee
who, at the time of the grant of such Option, owns stock representing more than 10% of the voting power of all classes of stock of any
member of the Company Group, the exercise price per Share shall be no less than 110% of the Fair Market Value per Share on the date of
grant; (ii) an Option may be granted with an exercise price lower than that set forth herein if such Option is granted pursuant to an
assumption or substitution for an option granted by another company, whether in connection with an acquisition of such other company or
otherwise; and (iii) the exercise price per Share shall not in any circumstances be less than the par value of the Share. The exercise
price per Share subject to an Option may be amended or adjusted in the absolute discretion of the Administrator, provided,
that such adjustment does not result in a materially adverse impact to the Participant; provided, further, that
the exercise price per Share may not in any circumstances be reduced to less than the par value of the Share. For the avoidance of doubt,
to the extent not prohibited by Applicable Laws, a downward adjustment of the exercise prices of Options mentioned in the preceding sentence
shall be effective without the approval of the Board or the Company’s shareholders or the approval of the affected Participants.

 

(c) Consideration.
The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined
by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). Such consideration may
consist of:

 

(i) cash;

 

(ii) check;

 

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(iii) promissory
note;

 

(iv) subject
to the consent of the Administrator, Shares (“Repurchased Shares”) (including Shares issuable upon exercise of such
Options) which have a Fair Market Value on the date of repurchase equal to the aggregate exercise price of the Shares as to which such
Option shall be exercised (“Delivered Shares”), provided that: (A) arrangements have been made
for the repurchase by the Company of such Repurchased Shares and the paying up in full of the par value of the Delivered Shares as required
under Applicable Laws; (B) such Repurchased Shares have been held by the Participant for such period as established from time to
time by the Administrator in order to avoid adverse accounting treatment applying generally accepted accounting principles; and (C) any
other reasonable requirements as may be imposed by the Administrator (including by means of attestation of ownership of a sufficient number
of Shares in lieu of actual delivery of such Shares to the Company) have been satisfied;

 

(v) consideration
received by the Company under a broker-assisted or similar cashless exercise program implemented by the Company in connection with the
Plan; provided, that, where relevant, arrangements have been made for the payment in full of the par value of any Shares as
required under Applicable Laws in connection with such program;

 

(vi) by
such other consideration as may be approved by the Administrator from time to time to the extent permitted by Applicable Laws; or

 

(vii) any
combination of the foregoing methods of payment. In making its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected to benefit the Company.

 

(d) Procedure
for Exercise. Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such conditions
as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An
Option shall be exercised when the Company receives written or electronic notice of exercise (in accordance with the Award Agreement)
from the person entitled to exercise the Option and payment of the exercise price and Taxes which are required to be withheld or paid
by the relevant Group Member. Full payment may consist of any consideration and method of payment permitted under Section 7(c) above.

 

(e) Rights
as a Shareholder. Until the Shares are evidenced as issued by entry in the Company’s register of shareholders, no right to vote
or receive dividends or any other rights as a shareholder shall exist with respect to the Shares, notwithstanding the exercise of the
Option. The Company shall cause such Shares to be evidenced as issued by entry in the Company’s register of shareholders promptly
after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date
the Shares are issued, except as provided in Section 13.

 

(f) Substitution
of Share Appreciation Rights. The Administrator may provide in the Award Agreement evidencing the grant of an Option that the Administrator,
in its sole discretion, shall have the right to substitute a Share Appreciation Right for such Option at any time prior to or upon exercise
of such Option; provided, that such Share Appreciation Right shall be exercisable with respect to the same number of Shares
for which such substituted Option would have been exercisable.

 

8. Restricted Shares.

 

(a) Rights
to Purchase. After the Administrator determines that it will offer Restricted Shares under the Plan, it shall advise the offeree in
writing or electronically of the terms, conditions and restrictions related to such Restricted Shares.

 

(b) Restrictions.
All Restricted Shares shall, in the terms of each individual Award Agreement, be subject to such restrictions and vesting requirements
as the Administrator shall provide. Restricted Shares may not be sold or encumbered until all restrictions are terminated or expire in
accordance with the terms of the relevant Award Agreement. All share certificates relating to Restricted Shares shall be held by the Company
in escrow for the Participant until all restrictions on such Restricted Shares have been removed.

 

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(c) Repurchase
or Forfeiture of Restricted Shares. If the price for the Restricted Shares was paid by the Participant in services, then upon termination
as a Service Provider, the Participant shall no longer have any right in the unvested Restricted Shares and such Restricted Shares shall
be forfeited (and for these purposes the Participant shall be deemed to have surrendered such Restricted Shares), and thereupon either
cancelled or surrendered to the Company without consideration. If a purchase price was paid by the Participant for the Restricted Shares
(other than in services), then upon the Participant’s termination as a Service Provider, the Company shall have the right to repurchase
from the Participant the unvested Restricted Shares then subject to restrictions at a cash price per share equal to the price paid by
the Participant for such Restricted Shares or such other amount as may be specified in the Award Agreement.

 

(d) Rights
as a Shareholder. Once the Restricted Shares are issued, subject only to the restrictions on such Restricted Shares as provided
in the Award Agreement, the Participant shall have rights as a shareholder which are equivalent to the rights of other holders of Shares,
and shall be a shareholder when he or she is recorded as the holder of such Restricted Shares upon entry in the Company’s register
of shareholders. No adjustment shall be made for a dividend or other right in respect of any Restricted Share for which the record date
is prior to the date the Participant is entered on the Company’s register of shareholders in respect of such Restricted Shares,
except as provided in Section 13 of the Plan.

 

9. Restricted Share
Units.

 

(a) Rights
to Purchase. After the Administrator determines that it will offer Restricted Shares Units under the Plan, it shall advise the offeree
in writing or electronically of the terms, conditions and restrictions related to such Restricted Shares Units.

 

(b) Rights
as a Shareholder. Until a Share is issued in settlement of a Restricted Share Unit by entry in the Company’s register of shareholders,
no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to such Share. The Company shall cause
such Share to be evidenced as issued by entry in the Company’s register of shareholders promptly after the Restricted Share Unit
vests. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 13.

 

10. Share Appreciation
Rights.

 

(a) Rights
to Purchase. After the Administrator determines that it will offer Share Appreciation Rights under the Plan, it shall advise the offeree
in writing or electronically of the terms, conditions and restrictions related to such Share Appreciation Rights.

 

(b) Base
Price. The price per Share over which the appreciation of each Share Appreciation Right is to be measured shall be the base price
as determined by the Administrator and set forth in the Award Agreement which may be a fixed or variable price determined by reference
to the Fair Market Value of the Shares. The base price per Share so established for a Share Appreciation Right may be amended or adjusted
in the absolute discretion of the Administrator, provided, that such adjustment does not result in a materially adverse impact
to the Participant. For the avoidance of doubt, to the extent not prohibited by Applicable Laws, a downward adjustment in the base price
mentioned in the preceding sentence shall be effective without the approval of the Board or the Company’s shareholders or the approval
of the affected Participants.

 

(c) Payment.
Payment by the Company for a Share Appreciation Right shall be in cash, in Shares (based on their Fair Market Value as of the date the
Share Appreciation Right is exercised) or a combination of both, as determined by the Administrator in the Award Agreement or, if the
Award Agreement does not specifically so provide, by the Administrator at the time of exercise. To the extent any payment is effected
in Shares, only that number of Shares actually issued in payment of the Share Appreciation Right shall be counted against the maximum
number of Shares which may be issued under Section 3.

 

(d) Procedure
for Exercise. Any Share Appreciation Right granted hereunder shall be exercisable according to the terms hereof at such times
and under such conditions as determined by the Administrator and set forth in the Award Agreement. A Share Appreciation Right shall be
exercised when the Company receives written or electronic notice of exercise (in accordance with the Award Agreement) from the person
entitled to exercise the Share Appreciation Right and payment of Taxes which are required to be withheld by the relevant Group Member.
If Shares are issued upon exercise of a Share Appreciation Right, then such Shares shall be issued in the name of the Participant or,
if requested by the Participant and if approved by the Administrator in its sole discretion, in the name of the Participant and/or in
the name of one or more of his or her Family Members.

 

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(e) Rights
as a Shareholder. Until the Shares are issued by entry in the Company’s register of members, no right to vote or receive dividends
or any other rights as a shareholder shall exist with respect to the Shares, notwithstanding the exercise of the Share Appreciation Right.
The Company shall issue (or cause to be issued) such Shares promptly after the Share Appreciation Right is exercised. No adjustment will
be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13. 

 

11. Share Payments.

 

The Administrator is authorized
to grant Share Payments to any Service Provider in the manner determined from time to time by the Administrator; provided,
that unless otherwise determined by the Administrator such Share Payments shall be made in lieu of base salary, bonus, or other cash compensation
otherwise payable to such Participant, including any such compensation that has been deferred at the election of the Participant; provided, further,
that not less than the par value of any Share shall be received by the Company in connection with its issue pursuant to any such Share
Payment. In accordance with Applicable Law, such par value may be paid through the provision of services. The number of Shares issuable
as a Share Payment shall be determined by the Administrator and may be based upon satisfaction of such specific criteria as determined
appropriate by the Administrator, including specified dates for electing to receive such Share Payment at a later date and the date on
which such Share Payment is to be made.

 

12. Non-Transferability of
Awards.

 

Awards, and any interest
therein, will not be transferable or assignable by the Participant, and may not be made subject to execution, attachment or similar process; provided,
that (i) during a Participant’s lifetime, with the consent of the Administrator (on such terms and conditions as the Administrator
determines appropriate), the Participant may transfer Awards (except Incentive Stock Options and Restricted Share Units) pursuant to domestic
relations order in the settlement of marital property rights, (ii) the Administrator may permit transfer of an Award to Family Members
(except Incentive Stock Options) in its sole discretion under such circumstances as it deems appropriate, (iii) the Participant may
transfer, assign or donate Options to a trust whose settlors were/are approved by the Administrator, and (iv) following a Participant’s
death, Awards, to the extent they are vested upon the Participant’s death, may be transferred by will or by the laws of descent
and distribution.

 

13. Adjustments Upon
Changes in Capitalization, Change in Control.

 

(a) Changes
in Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding
Award, the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an Award, and the number of Shares subject to grant as Incentive
Stock Options, as well as the price per Share covered by each such outstanding Award and any other affected terms of such Awards, shall
be proportionally and equitably adjusted for any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation,
share dividend, amalgamation, spin-off, arrangement or consolidation, combination or reclassification of Shares. Additionally,
in the event of any other increase or decrease in the number of issued Shares effected without consideration by the Company, then the
number of Shares covered by each outstanding Award, the number of Shares which have been authorized for issuance under the Plan but as
to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award and the limitations
on the number of Shares subject to grant as Incentive Stock Options, as well as the price per Share covered by each outstanding Award
may be adjusted for any increase or decrease in the number of issued Shares resulting therefrom. The conversion of any convertible securities
of the Company shall not be deemed to have been “effected without receipt of consideration.” The manner in which such adjustments
under this Section 13(a) are to be accomplished shall be determined by the Board whose determination shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible
into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares
subject to an Award.

 

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(b) Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant
as soon as practicable prior to the effective date of commencement of such proposed dissolution or liquidation. The Administrator in its
discretion may provide for a Participant to have the right to exercise his or her Option, or Share Appreciation Right until fifteen (15) days
prior to the commencement of such dissolution or liquidation as to all of the Shares covered thereby. In addition, the Administrator may
provide that any Company repurchase option or any vesting condition applicable to any Restricted Shares shall lapse as to all such Restricted
Shares and any Shares issuable under any Restricted Share Units, or as Share Payments shall be issued as of such date; provided,
that the proposed dissolution or liquidation commences at the time and in the manner contemplated by the proposed dissolution or liquidation.
To the extent it has not been previously exercised or paid out, all Awards will terminate immediately prior to the commencement of such
proposed dissolution or liquidation.

 

(c) Change
in Control. Except as may otherwise be provided in any Award Agreement or any other written agreement entered into by and between
the Company and a Participant, if a Change in Control occurs, the Company as determined in the sole discretion of the Administrator and
without the consent of the Participant may take any of the following actions:

 

(i) accelerate
or not accelerate the vesting, in whole or in part, of any Award, or some or all Awards, of any Participate, some Participants or all
Participants;

 

(ii) purchase
any Award for an amount of cash or shares equal to the value that could have been attained upon the exercise of such Award or realization
of the Participant’s rights had such Award been currently exercisable or payable or fully vested (and, for the avoidance of doubt,
if as of such date the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award
or realization of the Participant’s rights, then such Award may be terminated by the Company without payment); or

 

(iii) provide
for the assumption, conversion or replacement of any Award by the successor or surviving company or a parent or subsidiary of the successor
or surviving company with other rights (including cash) or property selected by the Administrator in its sole discretion or the assumption
or substitution of such Award by the successor or surviving company, or a parent or subsidiary thereof, with such appropriate adjustments
as to the number and kind of shares and prices as the Administrator deems, in its sole discretion, reasonable, equitable and appropriate.
In the event the successor or surviving company refuses to assume, convert or replace outstanding Awards, the Awards shall fully vest
and the Participant shall have the right to exercise or receive payment as to all of the Shares subject to the Award, including Shares
as to which it would not otherwise be vested, exercisable or otherwise issuable (including at the time of the Change in Control).

 

(d) Prior
to any payment or adjustment contemplated under this Section 13, the Administrator may require a Participant to (i) represent
and warrant as to the unencumbered title to the Participant’s Awards; (ii) bear such Participant’s pro rata share of
any post-closing indemnity obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights,
holdback terms, and similar conditions as the other holders of Shares, subject to any limitations or reductions; and (iii) deliver
customary transfer documentation as reasonably determined by the Administrator.

 

14. Miscellaneous General
Rules

 

(a) Share Certificates;
Book Entry Procedures. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any
certificates evidencing Shares issued pursuant to the exercise of any Award, unless and until the Board has determined, with advice of
counsel, that the issuance and/or delivery of such certificates, as applicable, is in compliance with all Applicable Laws, regulations
of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded. All Share certificates
delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or
advisable to comply with all Applicable Laws, and the rules of any national securities exchange or automated quotation system on which
the Shares are listed, quoted, or traded. The Administrator may place legends on any Share certificate to reference restrictions applicable
to the Share. In addition to the terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants,
agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or
requirements. The Administrator shall have the right to require any Participant to comply with any timing or other restrictions with respect
to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Administrator.
Notwithstanding further any other provision of the Plan, unless otherwise determined by the Administrator or required by any Applicable
Law, the Company shall not deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead such
Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or share plan administrator).

 

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(b) Paperless
Administration. Subject to Applicable Laws, the Administrator may make Awards, provide applicable disclosure and procedures for exercise
of Awards by an internet website, electronic mail or interactive voice response system for the paperless administration of Awards.

 

(c) Applicable
Currency. The Award Agreement shall specify the currency applicable to such Award. The Administrator may determine, in its sole discretion,
that an Award denominated in one currency may be paid in any other currency based on the prevailing exchange rate as the Administrator
deems appropriate. A Participant may be required to provide evidence that any currency used to pay the exercise price or purchase price
of any Award was acquired and taken out of the jurisdiction in which the Participant resides in accordance with Applicable Laws, including
foreign exchange control laws and regulations.

 

(d) Relationship
to other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits pursuant to any pension,
retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the extent
otherwise expressly provided in writing in such other plan or an agreement thereunder.

 

(e) Government
and Other Regulations; Distribution of Shares. The obligation of the Company to make payment of awards in Shares or otherwise shall
be subject to all Applicable Laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company
shall be under no obligation to register any of the Shares paid pursuant to the Plan under any Applicable Laws. If the Shares paid pursuant
to the Plan may in certain circumstances be exempt from registration under Applicable Laws the Company may restrict the transfer of such
shares in such manner as it deems advisable to ensure the availability of any such exemption.

 

(f) Expenses.
The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.

 

(g) Titles
and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict,
the text of the Plan, rather than such titles or headings, shall control.

 

(h) Fractional
Shares. No fractional Share shall be issued and the Administrator shall determine, in its discretion, whether cash shall be given
in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding down.

 

(i) No
Rights to Awards. No Participant, Employee, or other person shall have any claim to be granted any Award pursuant to the Plan, and
neither the Company nor the Administrator is obligated to treat Participants, Employees, Consultants, Directors or any other persons uniformly.

 

(j) Taxes.
No Shares shall be issued, and no payment shall be made under the Plan to any Participant until such Participant has made arrangements
acceptable to the Administrator for the satisfaction of Taxes and any other costs and expenses in connection with the grant, exercise
or vesting of Awards and/or the issuance of the Shares. The Company or the relevant Group Member shall have the authority and the right
to deduct or withhold from any compensation payable to a Participant, or require a Participant to remit to the Company or the relevant
Group Member, an amount sufficient to satisfy all Taxes. The Administrator may in its discretion and in satisfaction of the foregoing
requirement allow or require a Participant to satisfy Taxes by electing to have the Company withhold Shares otherwise issuable under an
Award (or other amounts payable under an Award) having a Fair Market Value equal to the Taxes. Notwithstanding any other provision of
the Plan, the number of Shares otherwise issuable under an Award which may be withheld with respect to the grant, issuance, vesting, exercise
or payment of any Award (or which may be repurchased from the Participant of such Award (or a portion thereof) after such Shares were
acquired by the Participant from the Company) in order to satisfy all Taxes, unless specifically approved by the Administrator, be limited
to the number of Shares otherwise issuable under an Award which have a Fair Market Value on the date of withholding or repurchase equal
to the aggregate amount of such Taxes. The Fair Market Value of the Shares otherwise issuable under an Award to be withheld shall be determined
on the date that the amount of Taxes to be withheld is to be determined. All elections by the Participants to have Shares otherwise issuable
under an Award withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary
or advisable.

 

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(k) Buy-Out.
In the sole discretion of the Administrator, any Award (in whole or in part) under the Plan may be settled in cash or other property in
lieu of Shares; provided, that payment in cash or other property in lieu of Shares shall not be made earlier than the time
such Shares are issuable pursuant to the terms of the Award.

 

(l) Valuation.
For purposes of Section 13(c) where an Award is converted into or any underlying Share is substituted with cash
or other property or securities (a “Substitute Property”), the valuation of such Award and its Substitute Property,
or the exchange ratio between the two, shall be determined in good faith by the Administrator and supported by the valuation achieved
in the relevant transaction, or in the absence of any such transaction, by an independent valuation expert selected by the Administrator.

 

(m) Effect
of Plan upon Other Compensation Plans. Except determined by the Board or otherwise expressly stated herein, the adoption of the Plan
shall not affect any other compensation or incentive plans in effect or to be effect for the Company or any Subsidiary or Related Entity.
Nothing in the Plan shall be construed to limit the right of the Company, any Subsidiary or any Related Entity (a) to establish any
other forms of incentives or compensation for Service Providers, or (b) to grant or assume options or other rights or awards otherwise
than under the Plan in connection with any proper corporate purpose including without limitation, the grant or assumption of options in
connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, securities or assets of any corporation,
partnership, limited liability company, firm or association.

 

(n) Indemnification.
To the extent allowable pursuant to Applicable Laws, the Administrator (or any individual member of the Committee or the Board acting
as the Administrator) shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by it or such member in connection with or resulting from any claim, action, suit, or proceeding to which
it, he or she may be a party or in which it, he or she may be involved by reason of any action or failure to act pursuant to the Plan
and against and from any and all amounts paid by it, him or her in satisfaction of judgment in such action, suit, or proceeding against
it, him or her; provided, that it, he or she gives the Company an opportunity, at its own expense, to handle and defend
the same before it, he or she undertakes to handle and defend it on its, his or her own behalf. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s memorandum
and articles of association as amended from time to time, as a matter of law, or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

 

(o) Plan
Language. The official language of the Plan shall be English. To the extent that the Plan or any Award Agreements are translated from
English into another language, the English version of the Plan and Award Agreements will always govern, in the event that there are inconsistencies
or ambiguities which may arise due to such translation. Notwithstanding the foregoing, the Administrator, as deemed necessary and appropriate,
may decide that the language of any Award Agreements prepared only in Chinese version.

 

(p) Other
Provisions. The Award Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Administrator in its sole discretion.

 

15. Amendment and Termination
of the Plan.

 

(a) Effective
Date; Term of Plan. This Plan shall become effective as determined by the Board; provided, that no Options or Share Appreciation
Rights granted under this Plan shall be exercised, the Company’s right to repurchase Restricted Shares shall not lapse, no Shares
shall be issued under a Restricted Share Unit or in the form of a Share Payment unless and until this Plan has been approved by the shareholders
of the Company; provided, further, that to the extent any Awards granted under the Plan are Incentive Stock Options,
the Plan has been or will be approved by the shareholders of the Company within twelve (12) months before or after the date this
Plan is adopted by the Board. This Plan shall continue in effect for a term of ten (10) years unless sooner terminated under this Section 15.

 

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(b) Amendment
and Termination. The Board in its sole discretion may terminate this Plan at any time. The Board may amend this Plan at any time in
such respects as the Board may deem advisable; provided, that, if required to comply with Applicable Laws or stock
exchange rules or the rules of any automated quotation systems (other than any requirement which may be disapplied by the Company following
any available home country exemption), the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such
a degree as required.

 

(c) Effect
of Termination. Except as otherwise provided in Section 13, any amendment or termination of this Plan shall not affect
Awards previously granted or issued, as the case may be, and such Awards shall remain in full force and effect as if this Plan had not
been amended or terminated, unless mutually agreed otherwise between the affected Participant and the Company, which agreement must be
in writing and signed by the Participant and the Company.

 

17. Certain Securities
Law Matters.

 

(a)  The
obligation of the Company to settle Awards in Shares or other consideration shall be subject to all Applicable Laws, rules, and regulations,
and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary,
the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any Shares
pursuant to an Award unless such shares have been properly registered for sale pursuant to Applicable Laws or unless the Company has received
an opinion of counsel, satisfactory to the Company, that such Shares may be offered or sold without such registration pursuant to an available
exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation
to register for sale under any Applicable Laws any of the Shares to be offered or sold under the Plan.

 

(b)  The
Administrator may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions
and/or blockage and/or other market considerations would make the Company’s acquisition of Shares from the public markets, the Company’s
issuance of the Shares to the Participant, the Participant’s acquisition of the Shares from the Company and/or the Participant’s
sale of Shares to the public markets, illegal, impracticable or inadvisable. If the Administrator determines to cancel all or any portion
of an Award in accordance with the foregoing, the Company shall pay to the Participant an amount equal to the excess of (i) the aggregate
Fair Market Value of the Shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the
date that the Shares would have been vested or issued, as applicable), over (ii) the aggregate exercise price or base amount or any
amount payable as a condition of issuance of Shares (in the case of any other Award). Such amount shall be delivered to the Participant
as soon as practicable following the cancellation of such Award or portion thereof.

 

(c)  Notwithstanding
any provision of the Plan to the contrary, in no event shall a Participant be permitted to exercise an Option in a manner that the Administrator
determines would violate the United States Sarbanes-Oxley Act of 2002, or any other Applicable Law or the applicable rules and regulations
of the U.S. Securities Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation
system on which the securities of the Company are listed or traded

 

18. Joining a Competitor;
Termination for Cause.

 

(a)  All
Awards (whether vested or unvested) shall be cancelled as of the date of termination of the Participant as a Service Provider;

 

(b)  All
Shares issued pursuant to any Award (or a portion thereof) shall be subject to repurchase by the Company at (i) the lesser of the
(A) original purchase price of such Shares (or in the event no payment was made or the price was paid in services, then the Shares
will be forfeited and surrendered to the Company without payment), or (B) Fair Market Value or such other value of Shares as determined
by the Administrator or as set forth in the applicable Award Agreement, or (ii) the par value of such Shares, if such Shares have
been issued in exchange for services which shall be considered the original purchase price, or (iii) the par value of such Shares,
if such Shares have been issued under Restricted Share Units or as Share Payments; and

 

    16

     

    

 

(c)  All
proceeds, gains or other economic benefit actually or constructively received by the Participant upon any receipt or exercise of any Awards
(or a portion thereof) or upon the receipt or resale of any Shares underlying any Award (or a portion thereof), must be paid to the Company
if:

 

(i)  within
twenty four (24) months of termination as a Service Provider or such longer period determined by the Administrator and as set forth
in the applicable Award Agreement, the Participant (A) directly or indirectly, establishes, incorporates, forms, enters into, or
participates in the Business as an owner, partner, principal or shareholder or other proprietor (other than through a purchase on the
open market, solely as a passive investment, of not more than five percent (5%) of the interest) of any Competitor, or (B) has become,
is or becomes an officer, director, employee, consultant, adviser of, or otherwise, directly or indirectly, enter the employ of, continue
any employment with or render any services to or for, any Competitor, or (C) knowingly performs or has performed any act that may
confer a competitive benefit or advantage upon any Competitor (in each case as determined by the Administrator); or

 

(ii)  the
Participant is Terminated for Cause.

 

19. Certain Transfer
Restrictions, Repurchase Rights and Similar Matters.

 

(a) In
connection with the grant, vesting, and/or exercise of any Award, the Administrator may require a Participant to execute and become a
party to the Shareholders’ Agreement (as amended from time to time, the “Shareholders’ Agreement”), among
the Company and other parties thereto as a condition of such grant, vesting, and/or exercise of any Award by executing and delivering
to the Company the Shareholders’ Agreement. To the extent that there is any conflict between the terms of the Plan and the Shareholders’
Agreement, the Shareholders’ Agreement shall govern and control.

 

(b) Any
Shares issued upon the exercise of or in settlement of an Award shall be subject to such special forfeiture conditions, rights of repurchase
or redemption, rights of first refusal, and other transfer restrictions as set forth in the Shareholders’ Agreement or, if there
is no Shareholders’ Agreement or such provisions do not exist in the Shareholders’ Agreement, as the Administrator may determine
as set forth in an Award Agreement (which restrictions shall apply in addition to any restrictions that may apply to holders of Shares
generally).

 

20. Governing Law.

 

This Plan shall be governed
by the laws of the Cayman Islands.

 

* * * * *

 

I hereby certify that the
foregoing Plan was duly adopted by the Board on August 1st, 2021 which shall take effect upon the effectiveness of a registration statement
on Form F-1 (File No. 333-    ) in connection with initial public offering of the Company .

 

Executed
on this 1st day of August, 2021. 

 

 

17Exhibit
10.1

 

PURCHASE
AGREEMENT

 

PURCHASE
AGREEMENT (the “Agreement”), dated as of December 26, 2021, by and between Artificial Intelligence Technology
Solutions Inc., a Nevada corporation (the “Company”), and GHS INVESTMENTS, LLC, a Nevada limited liability
company (the “Investor”).

 

WHEREAS:

 

Subject
to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from
the Company, up to Four Hundred Million shares of the Company’s registered common stock, $0.00001 par value per share (the “Common
Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares”
or “Securities.”

 

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

 

1.
CERTAIN DEFINITIONS.

 

For
purposes of this Agreement, the following terms shall have the following meanings:

 

(a)
“Available Amount” means, up to Four Hundred Million (400,000,000) shares of Common Stock in the aggregate, which
amount shall be reduced by the number of shares of Common Stock purchased each time the Investor purchases shares of Common Stock pursuant
to Section 2 hereof.

 

(b)
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(c)
“Base Prospectus” means the Company’s final base prospectus, dated September 10, 2021, a preliminary form of
which is included in the Registration Statement, including the documents incorporated by reference therein.

 

(d)
“Business Day” means any day on which the Principal Market is open for trading, including any day on which the Principal
Market is open for trading for a period of time less than the customary time.

 

(e)
“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(f)
“DTC” means The Depository Trust Company, or any successor performing substantially the same function for the Company.

 

(g)
“DWAC Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable
and without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified
Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar program
hereafter adopted by DTC performing substantially the same function.

 

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

 

(i)
“Initial Prospectus Supplement” means the prospectus supplement of the Company relating to the Purchase Shares, including
the accompanying Base Prospectus, to be prepared and filed by the Company with the SEC pursuant to Rule 424(b)(5) under the Securities
Act and in accordance with Section 5(a) hereof, together with all documents and information incorporated therein by reference.

 

    	 

     

    

 

(j)
“Material Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document,
(ii) the results of operations, assets, business or financial condition of the Company, other than any material adverse effect that resulted
exclusively from (A) any change in the United States or foreign economies or securities or financial markets in general that does not
have a disproportionate effect on the Company taken as a whole, (B) any change that generally affects the industry in which the Company
operates that does not have a disproportionate effect on the Company, (C) any change arising in connection with earthquakes, hostilities,
acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war,
sabotage or terrorism or military actions existing as of the date hereof, (D) any action taken by the Investor, its affiliates or its
or their successors and assigns with respect to the transactions contemplated by this Agreement, (E) the effect of any change in applicable
laws or accounting rules that does not have a disproportionate effect on the Company, or (F) any change resulting from compliance with
terms of this Agreement or the consummation of the transactions contemplated by this Agreement, or (iii) the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document to be performed as of the date of
determination.

 

(k)
“Maturity Date” means the six month anniversary of the date of this Agreement, or June 26, 2022.

 

(l)
“Person” means an individual or entity including but not limited to any limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

(m)
“Principal Market” means the OTC Pink (or any nationally recognized successor thereto); provided, however, that in
the event the Company’s Common Stock is ever listed or traded on The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq
Global Select Market, the New York Stock Exchange, the NYSE American, or the OTCQX or OTCQB operated by the OTC Markets Group, Inc. (or
any nationally recognized successor to any of the foregoing), then the “Principal Market” shall mean such other market or
exchange on which the Company’s Common Stock is then listed or traded

 

(n)
“Prospectus” means the Base Prospectus, as supplemented from time to time by any Prospectus Supplement (including
the Initial Prospectus Supplement), including the documents and information incorporated by reference therein.

 

(o)
“Prospectus Supplement” means any prospectus supplement to the Base Prospectus (including the Initial Prospectus Supplement)
filed with the SEC pursuant to Rule 424(b) under the Securities Act in connection with the transactions contemplated by this Agreement,
including the documents and information incorporated by reference therein.

 

(p)
“Purchase Amount” means, with respect to any Purchase, the portion of the Available Amount to be purchased by the
Investor pursuant to Section 2 hereof.

 

(q)
“Purchase Date” means, with respect to a Purchase made pursuant to Section 2(a) hereof, the Business Day on
which the Investor receives a valid Purchase Notice in accordance with this Agreement.

 

(r)
“Purchase Notice” means, with respect to a Purchase pursuant to Section 2(a) hereof, an irrevocable written notice
from the Company to the Investor, substantially in the form of Exhibit A hereto, directing the Investor to buy a specified amount of
Purchase Shares (subject to the Purchase Share limitations contained in Section 2(a) hereof) at the applicable Purchase Price for such
Purchase in accordance with this Agreement. Purchase Notices shall be delivered between 4PM through 11:59PM (Eastern Time). If the Investor
deems that the Purchase Notice is not compliant according to the terms of this Agreement, then the Investor shall notify the Company
with details of the non-compliance before 9:30AM (Eastern Time) on the next Business Day, and the Purchase Notice shall be null and void.
Otherwise, the Purchase Notice shall be deemed valid by 9:31AM (Eastern Time).

 

(s)
“Purchase Price” means, with respect to a Purchase made pursuant to Section 2(a) hereof, 85% of the lowest
VWAP during the Valuation Period.

 

(t)
“Registration Statement” means the Company’s registration statement registering the resale by the Investor of
the shares of Common Stock issuable upon a Purchase, including the documents incorporated by reference therein.

 

    	 

     

    

 

(u)
“SEC” means the U.S. Securities and Exchange Commission.

 

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

 

(w)
“Settlement Date” means the date on which the Purchase Shares are confirmed as being received by the Investor’s
Broker, against the payment of the Purchase Price by the Investor, which date will be one Business Day following the Valuation Period.
If the Company fails to deliver the Purchase Shares on the Settlement Date, then the Purchase Notice is automatically null and void.

 

(x)
“Transaction Documents” means, collectively, this Agreement and the schedules and exhibits hereto, and each of the
other agreements, documents, certificates and instruments entered into or furnished by the parties hereto in connection with the transactions
contemplated hereby and thereby.

 

(y)
“Transfer Agent” means Transhare Corporation, or such other Person who is then serving as the transfer agent for the
Company in respect of the Common Stock.

 

(z)
“Valuation Period” means the ten (10) consecutive Business Days immediately preceding, but not including, the date
a Purchase Notice is delivered.

 

(aa)
“VWAP” means the volume weighted average price of the Common Stock on the Principal Market, as reported on the Principal
Market.

 

2.
PURCHASE OF COMMON STOCK.

 

Subject
to the terms and conditions set forth in this Agreement, the Company has the right to sell to the Investor, and the Investor has the
obligation to purchase from the Company, Purchase Shares as follows:

 

(a)
Sales of Common Stock. Subject to the satisfaction of all of the conditions set forth in Sections 6 and 7 hereof (the “Commencement”
and the date of satisfaction of such conditions the “Commencement Date”), at any time commencing on the Commencement
Date and thereafter, the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor
of a Purchase Notice from time to time, to purchase a minimum of ten thousand dollars ($10,000) and up to a maximum of: (1) One Hundred
Million (100,000,000) shares of Common Stock if the average VWAP during the relevant Valuation Period is below $0.03 (subject to adjustments
for stock splits, dividends, and similar occurrences), (2) One Hundred and Fifty Million (150,000,000) shares of Common Stock if the
average VWAP during the relevant Valuation Period is between $0.03 and $0.035 (subject to adjustments for stock splits, dividends, and
similar occurrences), and (3) Two Hundred Million (200,000,000) shares of Common Stock if the average VWAP during the relevant Valuation
Period is above $0.035 (subject to adjustments for stock splits, dividends, and similar occurrences), all subject to the Available Amount.
Each Purchase Notice will set forth the Purchase Price and number of Purchase Shares in accordance with the terms of this Agreement.
If the Company delivers any Purchase Notice for a Purchase Amount in excess of the limitations contained herein, such Purchase Notice
shall be void ab initio to the extent of the amount by which the amount of Purchase Shares set forth in such Purchase Notice exceeds
the amount of Purchase Shares which the Company is permitted to include in such Purchase Notice in accordance herewith, and the Investor
shall have no obligation to purchase such excess Purchase Shares in respect of such Purchase Notice; provided, however,
that the Investor shall remain obligated to purchase the amount of Purchase Shares which the Company is permitted to include in such
Purchase Notice. Notwithstanding the foregoing dollar limitations, the Company and the Investor may, from time to time, mutually agree
(in writing) to waive the aforementioned limitations for a relevant Purchase Notice, which waiver, for the avoidance of doubt, shall
not exceed the Beneficial Ownership Limitation contained herein. The Company may not deliver more than one Purchase Notice to the Investor
every ten (10) Business Days unless, from time to time, the Company and the Investor mutually agree to different timing of the delivery
Purchase Notices.

 

    	 

     

    

 

(b)
Settlement for Purchase Shares. On each Settlement Date, for each Purchase hereunder, the Company shall deliver a number of Purchase
Shares equal to 100% of the aggregate Purchase Amount for such Purchase divided by the Purchase Price per share for such Purchase, against
payment by the Investor to the Company of the Purchase Amount with respect to such Purchase (less documented deposit and clearing fees,
if any), as full payment for such Purchase Shares via wire transfer of immediately available funds. The Company shall not issue any fraction
of a share of Common Stock upon the any Purchase. If any issuance hereunder would result in the issuance of a fraction of a share of
Common Stock, the Company shall round such fraction of a share of Common Stock up or down to the nearest whole share. All Purchase Shares
issued hereunder will be DWAC Shares. All payments made under this Agreement shall be made in lawful money of the United States of America
by wire transfer of immediately available funds to such account as the Company may from time to time designate by written notice in accordance
with the provisions of this Agreement. Whenever any amount expressed to be due by the terms of this Agreement is due on any day that
is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day.

 

(c)
Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not issue
or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when aggregated with
all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant to Section 13(d)
of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor and its affiliates
of more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”).
Upon the written or oral request of the Investor, the Company shall promptly (but not later than one Business Day) confirm orally or
in writing to the Investor the number of shares of Common Stock then outstanding. The Investor and the Company shall each cooperate in
good faith in the determinations required hereby and the application hereof. The Investor’s written certification to the Company
of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof hereunder at any time, shall be conclusive
with respect to the applicability thereof and such result absent manifest error.

 

3.
INVESTOR’S REPRESENTATIONS AND WARRANTIES.

 

The
Investor represents and warrants to the Company as of the date hereof and as of the Commencement Date that:

 

(a)
Organization, Authority. Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization, with the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement
and otherwise to carry out its obligations hereunder and thereunder.

 

(b)
Investment Purpose. The Investor is acquiring the Purchase Shares as principal for its own account for investment only and not
with a view to or for distributing or reselling such Purchase Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, has no present intention of distributing any of such Purchase Shares in violation of the Securities Act or any
applicable state securities law and has no direct or indirect arrangement or understandings with any other Persons to distribute or regarding
the distribution of such Purchase Shares in violation of the Securities Act or any applicable state securities law (this representation
and warranty not limiting the Investor’s right to sell the Purchase Shares at any time pursuant to the Registration Statement described
herein or otherwise in compliance with applicable federal and state securities laws). The Investor is acquiring the Purchase Shares hereunder
in the ordinary course of its business.

 

(c)
Accredited Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3) of
Regulation D promulgated under the Securities Act.

 

(d)
Information. The Investor understands that its investment in the Company and the Purchase Shares involves a high degree of risk
including without limitation the risks set forth in the Registration Statement. The Investor (i) is able to bear the economic risk of
an investment in the Purchase Shares including a total loss thereof, (ii) has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of the proposed investment in the Purchase Shares, (iii) has had an opportunity
to ask questions of and receive answers from the officers of the Company concerning the financial condition and business of the Company
and others matters related to an investment in the Purchase Shares, and (iv) has had the opportunity to review the Registration Statement.
Neither such inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall modify, amend
or affect the Investor’s right to rely on the Company’s representations and warranties contained in Section 4 below.
The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
with respect to its acquisition of the Purchase Shares. The Investor acknowledges and agrees that the Company neither makes nor has made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section
4 hereof.

 

    	 

     

    

 

(e)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and
is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability
to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(f)
No Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement has
any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) “short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii)
hedging transaction, which establishes a net short position with respect to the Common Stock.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Investor as of the date hereof and as of the Commencement Date, that:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights
to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them
in the Transaction Documents shall be disregarded.

 

(b)
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any
Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could
not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction
Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in
any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or qualification.

 

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

 

    	 

     

    

 

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

 

(e)
Filings, Consents and Approvals. Except as disclosed on Schedule 4.1(e), the Company has timely filed all quarterly and
annual reports required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act (all of the foregoing
filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other
than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”).
The Company has delivered to Investor true and complete copies of the SEC Documents, except for such exhibits and incorporated documents,
and except as such Documents are available EDGAR filings on the SEC’s sec.gov website. As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. None of the statements made in any such SEC Documents is, or
has been, required to be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent
filings prior the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect
thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently
applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial
statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business subsequent to February 28, 2021, and (ii) obligations under contracts and commitments incurred
in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial
statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the Company.
The Company is subject to the reporting requirements of the Exchange Act. For the avoidance of doubt, filing of the documents required
in this Section 3(e) via the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) shall
satisfy all delivery requirements of this Section 3(e).

 

Except
as otherwise provided, herein, the Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person
in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required
pursuant to Section 4.4 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading Market for the issuance and
sale of the Securities, and (iii) such filings as are required to be made under applicable state and federal securities laws (collectively,
the “Required Approvals”).

 

    	 

     

    

 

(f)
Issuance of the Purchase Shares. The Purchase Shares are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens imposed
by the Company other than restrictions on transfer provided for in the Transaction Documents.

 

(g)
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall
also include the number of shares of Common Stock owned beneficially, and of record, by affiliates of the Company as of the date hereof.
Except as set forth on Schedule 3.1(g), the Company has not issued any capital stock since its most recently filed periodic report
under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the
issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion
and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange
Act (“SEC Reports”). No Person has any right of first refusal, preemptive right, right of participation, or any similar
right to participate in the transactions contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(g) and
except as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock
or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or
other securities to any Person and will not result in a right of any holder of Company securities to adjust the exercise, conversion,
exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of
such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No
further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.
There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock
to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h)
Litigation. Except as disclosed in Schedule 3.1(h), there is no action, suit, inquiry, notice of violation, proceeding
or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state,
county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity
or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or
reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation
by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any
stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the
Exchange Act or the Securities Act.

 

(i)
Labor Relations. Except as disclosed in Schedule 3.1(i), no labor dispute exists or, to the knowledge of the Company, is
imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect.
None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship
with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement,
and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company,
no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject
the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries
are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 

     

    

 

(j)
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that
has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor
has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound
(whether or not such default or violation has been waived) except as disclosed in Schedule 3.1(j), (ii) is in violation of any
judgment, decree or order of any court, arbitrator or other governmental authority, except as set forth on Schedule 3.1(j) or
(iii) to the knowledge of the Company, is or has been in violation of any statute, rule, ordinance or regulation of any governmental
authority, including without limitation all foreign, federal, state and local laws relating to taxes, other than tax payments related
to payroll that are late, environmental protection, occupational health and safety, product quality and safety and employment and labor
matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(k)
Regulatory Permits. To the knowledge of the Company, the Company and the Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses
as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

 

(l)
Title to Assets. Except as disclosed in Schedule 3.1(l), the Company and the Subsidiaries have good and marketable title in fee
simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect
the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company
and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor
in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held
under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company
and the Subsidiaries are in compliance.

 

(m)
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective businesses and
which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
Except as disclosed on Schedule 3.1(m), none of, and neither the Company nor any Subsidiary has received a notice (written or
otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the
date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected
to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there
is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where
failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(n)
Insurance. Except as set forth on Schedule 3.1(n), the Company and the Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the
Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to
the aggregate Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew
its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business without a significant increase in cost.

 

    	 

     

    

 

(o)
Transactions with Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to
any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to
or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director
or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for: (i)
payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii)
other employee benefits, including stock option agreements under any stock option plan of the Company. Except as set forth on Schedule
3.1(o), all employee salaries and contractor fees have been paid to date and no such amounts are outstanding or past due.

 

(p)
Sarbanes-Oxley; Internal Accounting Controls. Except as may be disclosed in the SEC Reports and on Schedule 4.1(p), the
Company and the Subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective
as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as
of the date hereof and as of each Settlement Date. Except as disclosed in the SEC Reports, the Company and the Subsidiaries maintain
a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets
at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and
designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it
files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of
the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act
(such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations
as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as
such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely
to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(q)
Certain Fees. The Company has engaged JH Darbie & Co., Inc. in conjunction with the transaction contemplated herein. No brokerage
or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents,
other than as set forth on Schedule 3.1(q). The Investor shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the
transactions contemplated by the Transaction Documents.

 

(r)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(s)
Registration Rights. Other than as set forth on Schedule 3.1(s), no Person has any right to cause the Company to effect
the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

(t)
Listing and Maintenance Requirements. The Company has not in the twelve (12) months preceding the date hereof, received notice
from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is and has no reason to believe that it will not in
the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

    	 

     

    

 

(u)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or its agents or counsel with
any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms
that the Investor will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure
furnished by or on behalf of the Company to the Investor regarding the Company and its Subsidiaries, their respective businesses and
the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve
months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under
which they were made and when made, not misleading. The Company acknowledges and agrees that the Investor does not make and has not made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section
3.2 hereof.

 

(v)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income
and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii)
has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material
taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no
basis for any such claim. Immediately after closing of this transaction, the Company covenants to pay to the Past Due Taxes.

 

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

 

(x)
Accountants. The Company’s accounting firm is set forth on Schedule 3.1(x) of the Disclosure Schedules. To the knowledge
and belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii)
shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal
year ending December 31, 2021.

 

(y)
Acknowledgment Regarding Investor’s Purchase of Securities. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by the Investor
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely
incidental to the Investor’s purchase of the Securities. The Company further represents to the Investor that the Company’s
decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the
transactions contemplated hereby by the Company and its representatives.

 

    	 

     

    

 

(z)
Acknowledgment Regarding Investor’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding,
it is understood and acknowledged by the Company that: (i) the Investor has not been asked by the Company to agree, nor has the Investor
agreed, to desist from purchasing or selling, securities of the Company, or “derivative” securities based on securities issued
by the Company or to hold the Securities for any specified term, (ii) past or future open market or other transactions by the Investor,
specifically including, without limitation, “derivative” transactions, before or after a closing of this or future private
placement transactions, may negatively impact the market price of the Company’s publicly-traded securities (iii) Omit and (iv)
the Investor shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) the Investor may engage in hedging activities at various times
during the period that the Securities are outstanding, and (z) such hedging activities (if any) could reduce the value of the existing
stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. The Company
acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

(aa)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any
of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection
with the placement of the Securities.

 

(bb)
Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance
with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the
Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the
Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company
policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the
release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or
prospects.

 

(cc)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(dd)
U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within
the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Investor’s request.

 

(ee)
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly,
five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity
of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries
or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and
to regulation by the Federal Reserve.

 

(ff)
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

    	 

     

    

 

5.
COVENANTS.

 

(a)
Filing of Current Report and Initial Prospectus Supplement. The Company agrees that it shall, within the time required under the
Exchange Act, file with the SEC a Current Report on Form 8-K relating to the transactions contemplated by, and describing the material
terms and conditions of, the Transaction Documents (the “Current Report”). The Company further agrees that it shall,
within the time required under Rule 424(b) under the Securities Act, file with the SEC the Initial Prospectus Supplement pursuant to
Rule 424(b) under the Securities Act specifically relating to the transactions contemplated by, and describing the material terms and
conditions of, the Transaction Documents, containing information previously omitted at the time of effectiveness of the Registration
Statement in reliance on Rule 430B under the Securities Act, and disclosing all information relating to the transactions contemplated
hereby required to be disclosed in the Registration Statement and the Prospectus as of the date of the Initial Prospectus Supplement,
including, without limitation, information required to be disclosed in the section captioned “Plan of Distribution” in the
Prospectus. The Investor shall furnish to the Company such information regarding itself, the Purchase Shares held by it and the intended
method of distribution thereof, including any arrangement between the Investor and any other Person relating to the sale or distribution
of the Purchase Shares, as shall be reasonably requested by the Company in connection with the preparation and filing of the Current
Report and the Initial Prospectus Supplement, and shall otherwise cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of the Current Report and the Initial Prospectus Supplement with the SEC.

 

(b)
Listing/DTC. The Company shall use commercially reasonable efforts to maintain the listing of the Common Stock on the Principal
Market and to comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules and regulations
of the Principal Market. The Company shall not take any action that would reasonably be expected to result in the delisting or suspension
of the Common Stock on the Principal Market. The Company shall promptly, and in no event later than the following Business Day, provide
to the Investor copies of any notices it receives from any Person regarding the continued eligibility of the Common Stock for listing
on the Principal Market; provided, however, that the Company shall not be required to provide the Investor copies of any such notice
that the Company reasonably believes constitutes material non-public information and the Company would not be required to publicly disclose
such notice in any report or statement filed with the SEC and under the Exchange Act or the Securities Act. The Company shall pay all
fees and expenses in connection with satisfying its obligations under this Section 5(c). The Company shall take all action necessary
to ensure that its Common Stock can be transferred electronically as DWAC Shares.

 

(c)
Prohibition of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and ending
on the date of termination of this Agreement as provided in Section 9, the Investor and its agents, representatives and affiliates shall
not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position
with respect to the Common Stock.

 

(d)
Purchase Records. The Investor and the Company shall each maintain records showing the remaining Available Amount at any given
time.

 

(e)
Use of Proceeds. The Company will use the net proceeds from the offering for any corporate purpose at the sole discretion of the
Company.

 

(f)
Most Favored Nations. From the date hereof until the date when the Investor no longer holds any Securities, upon any issuance
by the Company or any of its subsidiaries of Common Stock, Common Stock Equivalents for cash consideration, indebtedness or a combination
of units hereof (a “Subsequent Financing”), Investor may elect, in its sole discretion, to exchange (in lieu of conversion),
if applicable, all or some of the Securities then held for any securities or units issued in a Subsequent Financing on a $1.00 for $1.00
basis. The Company shall provide the Investor with notice of any such Subsequent Financing in the manner set forth below. Additionally,
if in such Subsequent Financing there are any contractual provisions or side letters that provide terms more favorable to the investors
than the terms provided for hereunder, then the Company shall specifically notify the Investor of such additional or more favorable terms
and such terms, at Investor’s option, shall become a part of the transaction documents with the Investor. The types of terms contained
in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing stock
sale price, price per share, and warrant coverage. For purposes of illustration, if a Subsequent Financing were to occur whereby the
Company sells and issues a convertible note with a conversion price that includes a discount to the market price of its Common Stock,
the Investor will be entitled to receive the same convertible note on the exact same terms on a dollar for dollar basis via the exchange
of the Securities the Holder holds on the date of the sale and issuance of the convertible note.

 

    	 

     

    

 

(g)
Subsequent Financing From the date hereof until the date that is the 12 month anniversary of the initial Settlement Date, upon
a Subsequent Financing, Investor shall have the right to participate up to an amount of the Subsequent Financing equal to 100% of the
Subsequent Financing (the “Participation Maximum”) on the same terms, conditions and price provided for in the Subsequent
Financing. At least five (5) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to Investor a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Investor
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”). Upon
the request of Investor, and only upon a request by Investor, for a Subsequent Financing Notice, the Company shall promptly, but no later
than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to Investor. The Subsequent Financing Notice shall
describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder
and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet or
similar document relating thereto as an attachment.

 

6.
CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK.

 

The
right of the Company hereunder to commence sales of Purchase Shares is subject to the satisfaction of each of the following conditions:

 

(a)
The Investor shall have executed each of the Transaction Documents and delivered the same to the Company; and

 

(b)
The Registration Statement shall have been declared effective by the SEC, and no stop order with respect to the Registration Statement
shall be pending or threatened by the SEC.

 

7.
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

 

The
obligation of the Investor to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions
on or prior to the Commencement Date and, once such conditions have been initially satisfied, there shall not be any ongoing obligation
to satisfy such conditions after the Commencement has occurred:

 

(a)
The Company shall have executed each of the Transaction Documents and delivered the same to the Investor;

 

(b)
The Common Stock shall be listed on the Principal Market, trading in the Common Stock shall not have been within the last 365 days suspended
by the SEC or the Principal Market and such suspension has not subsequently been cured;

 

(c)
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any of
such representations and warranties is already qualified as to materiality in Section 4 above, in which case, such representations
and warranties shall be true and correct without further qualification) as of the date hereof and as of the Commencement Date as though
made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of
such date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date. The Investor shall
have received a certificate, executed by the chief executive officer of the Company, dated as of the Commencement Date, to the foregoing
effect in the form attached hereto as Exhibit B;

 

(d)
The Registration Statement shall be effective and no stop order with respect to the Registration Statement shall be pending or threatened
by the SEC. The Company shall have a maximum dollar amount certain of Common Stock registered under the Registration Statement which
is sufficient to issue to the Investor not less than the full Available Amount worth of Purchase Shares. The Current Report and the Initial
Prospectus Supplement each shall have been filed with the SEC, as required pursuant to Section 5(a). The Prospectus shall be current
and available for issuances and sales of all of the Purchase Shares by the Company to the Investor. Any other Prospectus Supplements
required to have been filed by the Company with the SEC under the Securities Act at or prior to the Commencement Date shall have been
filed with the SEC within the applicable time periods prescribed for such filings under the Securities Act;

 

    	 

     

    

 

(e)
The Company will have delivered to the Transfer Agent irrevocable instructions, in a form reasonably acceptable to the Investor, to issue
Purchase Shares in accordance with this Agreement; and

 

(f)
No Event of Default has occurred and is continuing.

 

8.
EVENTS OF DEFAULT.

 

An
“Event of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)
the effectiveness of the Registration Statement lapses for any reason (including, without limitation, the issuance of a stop order or
similar order) or such Registration Statement (or the prospectus forming a part thereof) is unavailable to the Investor for resale of
any or all of the Purchase Shares to be issued to the Investor under the Transaction Documents;

 

(b)
the suspension of the Common Stock from trading on the Principal Market for a period of two (2) Business Days, provided that the Company
may not direct the Investor to purchase any shares of Common Stock during any such suspension;

 

(c)
the delisting of the Common Stock from the OTC Pink provided, however, that the Common Stock is not immediately thereafter trading on
The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE American,
or the OTCQB or the OTCQX operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing);

 

(d)
the failure for any reason by the Transfer Agent to issue Purchase Shares to the Investor within three (3) Business Days after the applicable
date on which the Investor is entitled to receive such Purchase Shares;

 

(e)
the Company breaches any representation, warranty, covenant or other term or condition under any Transaction Document if such breach
could have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only if such breach
continues for a period of at least five (5) Business Days;

 

(f)
if any Person or entity commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(g)
if the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the entry of
an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially
all of its property, or (iv) makes a general assignment for the benefit of its creditors or is generally unable to pay its debts as the
same become due;

 

(h)
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation
of the Company; or

 

(i)
if at any time the Company is not eligible to transfer its Common Stock electronically as DWAC Shares.

 

So
long as an Event of Default has occurred and is continuing, the Company shall not deliver to the Investor any Purchase Notice.

 

    	 

     

    

 

9.
TERMINATION

 

This
Agreement may be terminated only as follows:

 

(a)
If pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding
against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a
general assignment for the benefit of its creditors (any of which would be an Event of Default as described in Sections 9(f),
9(g) and 9(h) hereof), this Agreement shall automatically terminate without any liability or payment to the Company (except
as set forth below) without further action or notice by any Person.

 

(b)
At any time after the Commencement Date, the Company and the Investor shall have the option to terminate this Agreement for any reason
or for no reason by delivering 90 calendar days written notice (a “Company Termination Notice”) to the other Party
electing to terminate this Agreement without any liability whatsoever of any party to any other party under this Agreement (except as
set forth below).

 

(c)
This Agreement shall automatically terminate on the date that the Company sells and the Investor purchases the full Available Amount
as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to any other
party under this Agreement (except as set forth below).

 

(d)
If, for any reason or for no reason, the full Available Amount has not been purchased in accordance with Section 2 of this Agreement
by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice on the part of
any party and without any liability whatsoever of any party to any other party under this Agreement (except as set forth below).

 

Except
as set forth in Sections 9(a) (in respect of an Event of Default under Sections 8(f), 8(g) and 8(h)), 9(c)
and 9(d), any termination of this Agreement pursuant to this Section 9 shall be effected by written notice from the Company
to the Investor, or the Investor to the Company, as the case may be, setting forth the basis for the termination hereof. The representations
and warranties and covenants of the Company and the Investor contained in Sections 3, 4, and 5, hereof, and the
agreements and covenants set forth in Sections 8, 9 and 10 shall survive the execution and delivery of this Agreement
and any termination of this Agreement. No termination of this Agreement shall (i) affect the Company’s or the Investor’s
rights or obligations under (A) this Agreement with respect to any pending Purchases, and the Company and the Investor shall complete
their respective obligations with respect to any pending Purchases under this Agreement or (ii) be deemed to release the Company or the
Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction Documents.

 

10.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. The corporate laws of the State of Nevada shall govern all issues concerning the relative
rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation
of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in the State of New York, County of New York, for the adjudication of
any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith, or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for
such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

(b)
Fees and Expenses. The Company has agreed to reimburse the Investor $8,000 for its legal fees in connection with the transaction
contemplated by this Agreement, which such amount may be withheld from the Investor’s purchase amount deliverable at the initial
Settlement Date. Except as expressly set forth in this Agreement to the contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation,
any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other taxes and duties
levied in connection with the delivery of any securities to the Investor.

 

    	 

     

    

 

(c)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which 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; provided
that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file shall be considered due execution
and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

(d)
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

(e)
Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(f)
Entire Agreement. The Transaction Documents supersede all other prior oral or written agreements between the Investor, the Company,
their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement, the other Transaction
Documents and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation, warranty,
covenant or undertaking with respect to such matters.

 

(g)
Notices. Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or
(iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses for such communications shall be:

 

If
to the Company:

 

Artificial
Intelligence Technology Solutions Inc.

10800
Galaxie Avenue

Ferndale,
Michigan 48220

Telephone:
877-787-6268  

E-mail:

Attention:

 

With
a copy to (which shall not constitute notice or service of process):

 

Weintraub
Law Group PC

10085
Carroll Canyon Road, Suite 230

San
Diego, CA 92131

Telephone:
858-556-7010

E-mail:
rick@weintraublawgroup.com

Attention:
Richard A. Weintraub, Esq.

 

If
to the Investor:

 

GHS
Investments, LLC

420
Jericho Turnpike, Suite 102

Jericho,
NY 11753

 

With
a copy to (which shall not constitute notice or service of process):

 

Pryor
Cashman LLP

7
Times Square

New
York, NY 10036

Telephone:
212-421-4100 

E-mail:
ali.panjwani@pryorcashman.com

Attention:
M. Ali Panjwani, Esq. 

 

    	 

     

    

 

or
at such other address, email address and/or facsimile number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party one (1) Business Day prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by
the sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or email address, as
applicable, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service,
receipt by facsimile or email or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii)
or (iii) above, respectively.

 

(h)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Investor, including by merger or consolidation. The Investor may not assign its rights or obligations under this Agreement.

 

(i)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(j)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to consummate and make effective, as soon as reasonably possible, the Commencement, and to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(l)
Enforcement Costs. In the event of a dispute arising out of or relating to this Agreement, if a court of competent jurisdiction
determines in a final, non-appealable order that a party has breached this Agreement, then, in addition to any other available remedies,
the non-breaching party shall be entitled to, and the breaching party shall be liable for, the reasonable legal fees and expenses incurred
by the non-breaching party in connection with the dispute, including any appeals in connection therewith.

 

(m)
Amendment and Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement (i) may be amended other than by a written
instrument signed by both parties hereto and (ii) may be waived other than in a written instrument signed by the party against whom enforcement
of such waiver is sought. No failure or delay 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 privilege.

 

(n)
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide the Investor or
its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto
the Investor shall have entered into a written agreement with the Company regarding the confidentiality and use of such information.
The Company understands and confirms that the Investor shall be relying on the foregoing covenant in effecting transactions in securities
of the Company.

 

(o)
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would
require the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of
the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior
to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

(p)
Placement Agent The Company has or shall engage a suitable placement Agent at the Company’s cost.

 

[Remainder
of page intentionally blank – signature page follows]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused this Purchase Agreement to be duly executed as of the date first written
above.

 

	 	THE
    COMPANY:
	 	 	 
	 	ARTIFICIAL
    INTELLIGENCE TECHNOLOGY SOLUTIONS INC.
	 	 	 

    

	 	By:	/s/
    Steve Reinharz
	 	Name:	Steve
    Reinharz
	 	Title:	CEO

	 	 	 
	 	INVESTOR:
	 	 	 
	 	GHS
    INVESTMENTS, LLC
	 	 	 
	 	By:	/s/
    Mark Grober
	 	Name:	Mark
    Grober
	 	Title:
	Member

 

    	 

     

    

 

EXHIBIT
A

 

FORM
OF PURCHASE NOTICE

 

________,
202__

 

To:
GHS Investments, LLC

 

In
accordance with Section 2 of the purchase agreement, dated December 26, 2021 (the “Purchase Agreement”), between Artificial
Intelligence Technology Solutions Inc. (the “Company”) and GHS Investments, LLC (the “Investor”), the Company
hereby provides notice to the Investor of a sale by the Company to the Investor of Purchase Shares in the amount set forth in this Purchase
Notice. Capitalized terms used herein have the meanings set forth in the Purchase Agreement.

 

Purchase
Amount: $___________

 

Purchase
Price per share: $____________

 

Number
of Purchase Shares: __________

 

	Very truly
    yours,	 
	 	 
	Artificial
    Intelligence Technology Solutions Inc.	 
	 	         	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 

     

    

 

EXHIBIT
B

 

FORM
OF OFFICER’S CERTIFICATE

 

This
Officer’s Certificate (“Certificate”) is being delivered pursuant to Section 7(c) of that certain Purchase
Agreement dated as of December 26, 2021, (“Purchase Agreement”), by and between Artificial Intelligence Technology
Solutions Inc., a Nevada corporation (the “Company”), and GHS INVESTMENTS, LLC (the “Investor”). Terms used herein
and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement.

 

The
undersigned, __________, Chief Executive Officer of the Company, hereby certifies, on behalf of the Company and not in his individual
capacity, as follows:

 

1.
I am the Chief Executive Officer of the Company;

 

2.
The representations and warranties of the Company are true and correct in all material respects (except to the extent that any of such
representations and warranties is already qualified as to materiality in Section 4 of the Purchase Agreement, in which case, such representations
and warranties are true and correct without further qualification) as of the date of the Purchase Agreement and as of the Commencement
Date as though made at that time (except for representations and warranties that speak as of a specific date, in which case such representations
and warranties are true and correct as of such date);

 

3.
The Company has performed, satisfied and complied in all material respects with covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date.

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this [  ] day of December, 2021.

 

	 	 
	Name:	 	 
	Title:	Chief
    Executive Officer

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