Document:

Exhibit 10.8

 

SECURITIES PURCHASE AGREEMENT

 

This  (this “Agreement”) is dated as of December 16, 2022 between Elephant Oil Corp., a Nevada corporation (the
“Company”), and each purchaser identified on the Annex A hereto (each, including its successors
and assigns, an “Investor” or “Holder”) and collectively, the “Investors”).

 

WHEREAS, the
Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors: (i) 20% original issue discount
senior notes in the form of Appendix B hereto (each, a “Note” and collectively, the “Notes”)
in an aggregate principal amount of up to $500,000 (and, accordingly, an aggregate Subscription Amount of $400,000) (the “Maximum
Amount”), and (ii) shares of Common Stock, determined as provided in section 2.02(b)(iii) (collectively, “Incentive
Shares”), all subject to the terms and conditions therein contained;

 

WHEREAS,
Spartan Capital Securities, LLC (“Placement Agent”) is acting as the exclusive placement agent for the offering of
Notes and Incentive Shares contemplated by this Agreement (“Offering”); and

 

WHEREAS,
the Company and Investors are executing and delivering this Agreement in reliance upon an exemption from securities registration requirements
of the Securities Act of 1933, as amended, afforded by the provisions of Section 4(a)(2) and/or Rule 506(b) of Regulation D promulgated
thereunder by the U.S. Securities and Exchange Commission.

 

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

 

ARTICLE I

DEFINITIONS

 

Section 1.01. Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the
meanings given to such terms in the Notes (as defined herein), and (b) the following terms have the meanings set forth in this
Agreement.

 

“$” or “USD”
means United States Dollars.

 

“Action”
shall have the meaning ascribed to such term in Section 3.01(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

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

 

“Business
Day” means any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close. If the last or
appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then
such action may be taken or such right may be exercised on the next succeeding Business Day.

 

“Closing” means the
closing of the purchase and sale of the Securities pursuant to Section 2.01.

 

     

     

    

 

“Closing
Date” means for any Securities, the Business Day when all of the Transaction Documents for such Securities have been executed
and delivered by the applicable parties thereto, and the conditions precedent to: (i) the applicable Investors’ obligations to pay
the Subscription Amount and (ii) the Company’s obligations to deliver such Securities (in each case) have been satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common Stock”
means the common stock, par value $0.0001 per share, of the Company, and any other class of securities into which such securities may
hereafter be reclassified or changed.

 

“Common Stock Equivalent” means
any convertible security or warrant, option or other right to subscribe for or purchase any additional shares of Common Stock (or any
such convertible security, warrant or other right).

 

“Confidential
Investor Questionnaire” means the Confidential Investor Questionnaire attached as Appendix A hereto.

 

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

 

“FINRA” means the
Financial Industry Regulatory Authority.

 

“GAAP” shall
have the meaning ascribed to such term in Section 3.01(h).

 

“Intellectual Property Rights”
shall have the meaning ascribed to such term in Section 3.01(o).

 

“Legend Removal Date”
shall have the meaning ascribed to such term in Section 4.01(c).

 

“Liens”
shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Liquidity Event”
has the meaning provided in the Notes.

 

“Material
Adverse Effect” shall have the meaning ascribed to such term in Section 3.01(b).

 

“Material Permits”
shall have the meaning ascribed to such term in Section 3.01(l).

 

“Notes”
means the 20% original issue discount senior notes issued by the Company to the Investors hereunder, in the form of Appendix B
attached hereto.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Placement
Agent” has the meaning ascribed to such term in the recitals hereof.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.01(e).

 

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“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities”
means the Notes and the Incentive Shares.

 

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

 

“State Securities
Laws” means the securities (“blue sky”) rules, regulations, or other similar laws of a particular state.

 

“Subscription
Amount” means, as to each Investor, the aggregate amount to be paid for Securities purchased hereunder as specified below such
Investor’s name on the signature page of this Agreement and next to the heading “Aggregate Subscription Amount,” in
United States Dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Section 3.01(a) and shall, where applicable, include any direct or indirect subsidiary
of the Company formed or acquired after the date hereof.

 

“Termination Date”
means a date determined by the Company.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global
Select Market (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and the Notes, and all appendices, exhibits and schedules hereto and thereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

ARTICLE II

PURCHASE AND SALE

 

Section 2.01Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery
of this Agreement by the parties hereto, the Company agrees to sell, and the Investors, severally and not jointly, agree to purchase,
the Securities up to the Maximum Amount. At the Closing, the Investors shall deliver, via wire transfer, immediately available funds equal
to the Investors’ aggregate Subscription Amounts to the Company and the Company shall deliver to each Investor its Note and Incentive
Shares. The Company and each Investor shall deliver the other items set forth in Section 2.02 deliverable at the Closing. Upon
satisfaction of the conditions set forth in Section 2.02 and Section 2.03, the Closing shall occur at the offices of the
Placement Agent’s counsel, or such other location as the parties shall mutually agree or may be closed remotely by electronic delivery
of documents. The Company may conduct multiple closings for the sale of the Securities until it has received the Maximum Amount. The Closing
Date for any Securities shall be the date indicated on the applicable Investor signature pages attached hereto and the final Closing Date
shall be no later than the Termination Date.

 

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Section 2.02Closing Deliverables.

 

(a)   By
Each Investor. On or prior to the Closing Date, each Investor shall deliver or cause to be delivered to the Company the following:

 

		(i)	this Agreement, including a fully completed Annex A attached hereto, duly executed by such
Investor;

 

		(ii)	such Investor’s Subscription Amount by wire transfer to Placement Agent’s counsel pursuant
to the wiring instructions set forth in Section 2.03(c); and

 

		(iii)	a duly completed and signed Confidential Investor Questionnaire, a copy of which is attached hereto as
Appendix A.

 

(b)   By
the Company. On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Investor the following:

 

		(i)	this Agreement, duly executed by an authorized officer of behalf of the Company;

 

		(ii)	a Note, the form of which is attached hereto as Appendix B, with an original principal amount
equal to 120% of such Investor’s Subscription Amount, registered in the name of such Investor, or its designee, duly executed by
an authorized officer of behalf of the Company;

 

		(iii)	a Company Common Stock certificate or transfer agent statement, registered in the name of such Investor
equal to approximately 0.4106% of the issued shares of the Company (currently 50,000 shares of the Company’s common stock). Investor
shall receive anti-dilution protection through the closing date of he Company’s initial public offering so that Investor shall have
a total of 0.4106% of the Company’s fully diluted shares outstanding at that time. Any additional issues shares due Investor shall
be issued to the transfer agent within one (1) business day after the close of the Company’s initial public offering; and

 

		(iv)	an officer’s certificate of the Company certifying the Company’s: (A) certified charter (or
similar formation document); (B) good standing certificate in its state of incorporation (or formation); (C) bylaws (or similar governing
document); and (D) resolutions of its Board of Directors (or similar governing body) approving and authorizing the execution, delivery
and performance of the Transaction Documents and the transactions contemplated thereby.

 

Section 2.03Closing Conditions.

 

(a)   The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

		(i)	the accuracy in all material respects on the Closing Date of each Investor’s representations and
warranties contained herein;

 

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		(ii)	all obligations, covenants and agreements of each Investor required to be performed at or prior to the
Closing Date shall have been performed; and

 

		(iii)	the delivery by each Investor of the items set forth in Section 2.02(a) of this Agreement.

 

(b)   The
respective obligations of the Investors hereunder in connection with the Closing are subject to the following conditions being met (it
being understood that the Investors may waive any of the conditions for any Closing hereafter):

 

		(i)	the accuracy in all material respects (or, to the extent representations or warranties are qualified by
materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the
Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

		(ii)	all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing
Date shall have been performed;

 

		(iii)	the delivery by the Company of the items set forth in Section 2.02(b) of this Agreement; and

 

		(iv)	there shall have been no Material Adverse Effect with respect to the Company since the date hereof.

 

 (c) The wiring instructions for counsel of the Investor are as follows:

 

	 	Bank Name:	Signature Bank
	 	 	565 Fifth Avenue
	 	 	New York, New York 10017
	 	Routing No.:	026013576
	 	Account No.:	1504595478
	 	Account Title:	Carmel, Milazzo & Feil LLP Escrow Account
	 	Swift Code:*	SIGNUS33
	 	(*International only)

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.01Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to each Investor as of the date
hereof:

 

(a)   Subsidiaries.
The Company does not have any Subsidiaries other than: (i) Elephant Oil Limited (UK) and Elephant Oil Benin SA (Benin).

 

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(b)   Organization
and Qualification. The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under
the laws of the State of Nevada, with the requisite power and authority to own and use its properties and assets and to carry on its business
as currently conducted. The Company is not in violation or default of any of the provisions of its articles of incorporation or bylaws,
each, as amended and in effect. A complete and correct copy of the Company’s certificate or articles of incorporation and bylaws,
each as amended and in effect on the date of this Agreement and as they will be in effect on the Closing Date, is attached to the officer’s
certificate referenced in section 2.02(a)(iv). There are no other organizational or charter documents of the Company. Each Subsidiary
is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of its jurisdiction of incorporation
or organization, has the requisite power and authority to own and use its properties and assets and to carry on its business as currently
conducted. The Company and each Subsidiary 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 its Subsidiaries, taken
as a whole, or any of its material assets or lines of business, individually; 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 each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of
each of the 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 therewith other than in connection with the Required Approvals. Each 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 the Transaction Documents to which it is a party, the issuance
and sale of the Securities hereunder and the consummation by the Company of the other transactions contemplated hereby and thereby do
not and will not: (i) conflict with or violate any provision of the Company’s certificate 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 (other than
the Liens granted under the Security Agreement), 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 any Subsidiary is subject (including federal and State Securities Laws and regulations), or by which any property or asset
of the Company or any Subsidiary is bound or affected; except in the case of each of clause (ii), such as could not have or reasonably
be expected to result in a Material Adverse Effect.

 

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(e)   Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to,
or make any filing or registration with, any 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) such consents,
waivers, or authorizations as have been obtained before the Closing; and (ii) the filing of Form D with the Commission and such filings
as are required to be made under applicable State Securities Laws (collectively, the “Required Approvals”).

 

(f)   Issuance
of the Securities. The Securities are duly authorized and, when issued and/or 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 other than restrictions on transfer
provided for in the Transaction Documents.

 

(g)   Capitalization.
The Company has authorized: (A) 490,000,000 shares of Common Stock, par value $0.0001 per share, of which 12,178,411 shares are issued
and outstanding, (B) 10,000,000 of undesignated preferred stock, par value $0.0001 per share, of which zero (0) shares are issued and
outstanding. Other than such Preferred Stock and pursuant to the Company’s equity incentive plan, there are no outstanding options
(other than pursuant to the Company’s equity incentive plan), warrants, script 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 is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable
into shares of Common Stock. 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 for such, if any, as will have been validly waived
before the Closing. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities
to any Person (other than the Investors) 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 issued and outstanding shares of capital stock of the Subsidiaries is
owned by the Company or another Subsidiary, and there are no outstanding options, warrants, script 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 capital stock, or contracts, commitments, understandings or arrangements
by which any Subsidiary is or may become bound to issue additional shares of capital stock, or securities or rights convertible or exchangeable
into shares of capital stock. All of the outstanding shares of capital stock of the Company and Subsidiaries are validly issued, fully
paid and nonassessable, have been issued in compliance with all federal law 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, except for such approvals
as have been obtained prior to Closing. There are no stockholders’ agreements, voting agreements or voting trusts, investor rights
agreements, rights of first refusal, preemptive rights, co-sale agreements, drag-along agreements, transfer restrictions or other similar
agreements with respect to the Company’s or any Subsidiary’s capital stock to which the Company or any Subsidiary is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h)   Financial
Statements. The financial statements of the Company and its consolidated Subsidiaries made available to the Placement Agent and Investors
prior to the date hereof have been prepared in accordance with United States generally accepted accounting principles applied on a consistent
basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the
notes thereto, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as
of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

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(i)   Undisclosed
Liabilities. The Company and its Subsidiaries have no liability, indebtedness, obligation, expense, claim, deficiency or guaranty
of any type, whether accrued, absolute, contingent, matured, unmatured or otherwise, required to be reflected in financial statements
in accordance with GAAP, which individually or in the aggregate: (A) has not been reflected in the latest balance sheet included in the
financial statements referenced hereinabove; or (B) has not arisen: (i) in the ordinary course of business, consistent with past practices,
since the date of the latest balance sheet included in such financial statements in an amount that does not exceed $25,000 in any one
case or $50,000 in the aggregate, (ii) pursuant to or in connection with this Agreement or other Transaction Document, or (c) are executory
performance obligations to be performed after the date hereof in the ordinary course of business pursuant to agreement(s) entered into
in the ordinary course of business, consistent with past practices.

 

(j)   Material
Changes. Since the date of the latest financial statements made available to the Placement Agent and Investors prior to the date hereof:
(A) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect; (B) the Company and its Subsidiaries have not incurred any liabilities (contingent or otherwise) other than (i) trade payables
and accrued expenses incurred in the ordinary course of business consistent with past practice, and (ii) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP; (C) the Company and its Subsidiaries have not altered their method
of accounting; (D) the Company and its Subsidiaries have not declared or made any dividend or distribution of cash or other property to
its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock except, in each case,
in favor of the Company or another Subsidiary; and (E) the Company and its Subsidiaries have not issued any equity securities except (i)
in favor of the Company or another Subsidiary or (ii) by the Company an officer, director or Affiliate pursuant to an existing Company
equity incentive plans.

 

(k)   Litigation.
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 or 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: (A) 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. None of the
Company, any Subsidiary or any director or officer thereof, is or has been the subject of any Action involving a claim of violation of
or liability under any of the following: (x) the Securities Act, the Exchange Act, the FINRA rules or any State Securities Laws; (y) breach
of fiduciary duty; or (z) fraud (statutory or common law), embezzlement, misappropriation or conversion of property or rights, or any
other crime involving deceit.

 

(l)   Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company
or any Subsidiary which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or any Subsidiary’s
employees is a member of a union that relates to such employee’s relationship with the Company or any Subsidiary, and the
Company and its Subsidiaries are not a party to any collective bargaining agreement. The Company believes that its relationships with
its employees are good. No executive officer, to the knowledge of the Company, 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 Subsidiary to any liability with respect to any of the foregoing matters. To the best of the
Company’s knowledge, it 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.

 

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(m)   Compliance.
The Company and each Subsidiary: (i) is not in violation of any order of any court, arbitrator or governmental body; and (ii) is not and
has not been in material violation of any statute, law, rule or regulation of any governmental authority, including without limitation
all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment.

 

(n)   Title
to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable
title in all personal property owned by it that, in each case, is material to the business of the Company and its Subsidiaries, in each
case free and clear of all Liens, except for (i) Liens that do not materially and adversely (x) affect the value of such property or (y)
interfere with the use made and proposed to be made of such property by the Company and its Subsidiaries and (ii) Liens for the payment
of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties in any material respect.
Any real property and facilities held under lease by the Company or a Subsidiary is held by it under valid, subsisting and enforceable
leases with which the Company or such Subsidiary (as applicable) are in compliance.

 

(o)   Patents
and Trademarks. (i) The Company and its Subsidiaries has, or has 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 necessary or material for use in connection with its business and which the failure to so have could reasonably be expected
to have a Material Adverse Effect (collectively, the “Intellectual Property Rights”); (ii) the Company and its Subsidiaries
have not received a notice (written or otherwise) that any of the Intellectual Property Rights violates or infringes upon the intellectual
property rights of any other Person; (iii) all Intellectual Property Rights are enforceable by the Company or a Subsidiary, and there
is no existing infringement by any other Person of any of the Intellectual Property Rights, except where the failure to be so enforceable
or for such infringements as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and
(iv) the Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of its Intellectual Property Rights, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(p)   Transactions
with Officers, Directors and Employees. None of the officers or directors of the Company or its Subsidiaries and, to the knowledge
of the Company, none of the employees of the Company or its Subsidiaries, is presently a party to any transaction with the Company
(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, or otherwise requiring payments to or from,
any such officer, director or employee or, to the knowledge of the Company, any entity in which any such officer, director or employee
has a substantial interest or is an officer, director, trustee, member or partner, in each case in excess other than for: (x) payment
of salary or fees for services rendered; (y) reimbursement for expenses incurred on behalf of the Company or a Subsidiary; and (z) other
employee benefits, including stock option agreements under any stock option plan of the Company.

 

(q)   Certain
Fees. Other than fees, commissions and expense reimbursement payable to the Placement Agent (which include: (i) a cash commission
of eight percent (8%) of the proceeds raised in the Offering from Investor; and (ii) the other matters set forth in the engagement letter
between the Company and the Placement Agent, 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 Offering or any of the transactions contemplated by the Transaction Documents. The Investors 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
3.01(r) that may be due in connection with the Offering or any of the transactions contemplated by the Transaction Documents.

 

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(r)   Private
Placement. Assuming the accuracy of the Investors’ representations and warranties set forth in section 3.02, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Investors as contemplated hereby.

 

(s)   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 be an ‘investment company’ subject to registration under the Investment
Company Act of 1940, as amended.

 

(t)   [Reserved]

 

(u)   Disclosure.
Except with respect to: (i) the material terms and conditions of the transactions contemplated by the Transaction Documents; and (ii)
information given to the Investors, if any, which the Company hereby confirms will not constitute material non-public information, the
Company confirms that neither it nor any other Person acting on its behalf has provided any of the Investors or their agents or counsel
with any information that it believes constitutes or might constitute material, nonpublic information. The Company understands and confirms
that the Investors will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished
by or on behalf of the Company to the Investors regarding the Company, its business and the transactions contemplated hereby, 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.

 

(v)   No
Integrated Offering. Assuming the accuracy of the Investors’ representations and warranties set forth in section 3.02, neither
the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales
of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be
integrated with prior offerings by the Company for purposes of the Securities Act which would require the registration of any such securities
under the Securities Act.

 

(w)   Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company
of the proceeds from the sale of the Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the
amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known
contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business
as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of
the business conducted by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash
flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account
all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required
to be paid. The Company will not, after the Closing Date, incur debts beyond its ability to pay such debts as they mature (taking into
account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date.

 

(x)   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 have filed all federal, state and foreign income and franchise tax returns and have paid
or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened
against the Company or any Subsidiary.

 

    10

     

    

 

(y)   No
General Solicitation. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Investors and
certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(aa)Insurance.
The Company and its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such
amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company and its Subsidiaries
are engaged. Neither the Company nor any of the Subsidiaries has been refused any insurance coverage sought or applied for, and the Company
has no reason to believe that it will not be able to renew all existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers.

 

(bb)Acknowledgment
Regarding Investors’ Purchase of Securities. The Company acknowledges and agrees that each of the Investors 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 no Investor is 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 any Investor or any of their
respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely
incidental to the Investors’ purchase of the Securities. The Company further represents to each 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.

 

(cc)No Disqualification
Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the Securities Act (“Regulation
D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other
officer of the Company participating in the offering hereunder, any beneficial owner of twenty percent (20%) or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the ‘Bad Actor’ disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is
subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e),
and has furnished to the Investors a copy of any disclosures provided thereunder.

 

(dd)Other
Covered Persons. The Company is not aware of any person (other than any Issuer Covered Person or the Placement Agent) that has been
or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Regulation D Securities.

 

(ee)Notice
of Disqualification Events. The Company will notify the Investors in writing, prior to the Closing Date of: (i) any Disqualification
Event relating to any Issuer Covered Person; and (ii) any event that would, with the passage of time, become a Disqualification Event
relating to any Issuer Covered Person.

 

(ff)Foreign
Corrupt Practices. Neither the Company and its Subsidiaries, and to the knowledge of the Company, no 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 the Foreign Corrupt Practices Act.

 

    11

     

    

 

(gg)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”).

 

(hh)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 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, threatened.

 

(ii)   Representations.
The representations and warranties of the Company contained in this Agreement, and the certificate(s) furnished or to be furnished to
the Investors at the Closing, when taken as a whole, do not contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they
were made. The Company acknowledges and agrees that the representations contained in section 3.02 shall not modify, amend or affect such
Investor’s right to rely on the Company’s representations and warranties contained in this section 3.01 or elsewhere in this
Agreement or any representations and warranties contained in any other Transaction Document, or any other document or instrument executed
and/or delivered in connection with this Agreement or the consummation of the transactions contemplated hereby.

 

Section 3.02Representations and
Warranties of the Investors.

 

Each Investor,
for itself and for no other Investor, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as
follows (unless as of a specific date therein, in which case they shall be accurate as of such date):

 

(a)   Authority;
Organization. Such Investor has full power and authority (and, if such Investor is an individual, the capacity) to enter into this
Agreement and to perform all obligations required to be performed by it hereunder. If an entity, Such Investor is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership
power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry
out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Investor
of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate or similar action on
the part of such Investor. Each Transaction Document to which it is a party has been duly executed by such Investor, and when delivered
by such Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Investor, enforceable
against it 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.

 

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(b)   Own
Account. Such Investor understands that the Securities are restricted securities’ and have not been registered under the Securities
Act or any applicable State Securities Law and is acquiring the Securities as principal for its own account and not with a view to or
for distributing or reselling such Securities 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 Securities 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 the
same (this representation and warranty not limiting such Investor’s right to sell the Securities in compliance with applicable federal
and State Securities Laws) in violation of the Securities Act or any applicable State Securities Law. Such Investor is acquiring the Securities
in the ordinary course of its business.

 

(c)   Non-Transferrable.
Such Investor agrees: (i) that the Investor will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities or any
interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Securities under the
Securities Act and all applicable State Securities Laws, or in a transaction which is exempt from the registration provisions of the Securities
Act and all applicable State Securities Laws; (ii) that the certificates representing the Securities will bear a legend making reference
to the foregoing restrictions; and (iii) that the Company and its Affiliates shall not be required to give effect to any purported transfer
of such Securities except upon compliance with the foregoing restrictions.

 

(d)   Investor
Status. Such Investor is an “accredited investor” as defined in Rule 501(a) under Regulation D of the Securities Act.
The undersigned agrees to furnish any additional information requested by the Company or any of its Affiliates to assure compliance with
applicable U.S. federal and state securities laws in connection with the purchase and sale of the Securities. The undersigned has completed
the Confidential Investor Questionnaire contained in Appendix A and the information contained therein is complete and accurate
as of the date thereof and is hereby affirmed as of the Closing Date. Any information that has been furnished or that will be furnished
by the undersigned to evidence its status as an accredited investor is accurate and complete, and does not contain any misrepresentation
or material omission.

 

(e)   Experience
of Such Investor. Such Investor, either alone or together with its representatives, has such knowledge, sophistication, and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities
and has so evaluated the merits and risks of such investment. Such Investor is able to bear the economic risk of an investment in the
Securities and, at the present time, is able to afford a complete loss of such investment.

 

(f)   No
Trading Market. Such Investor acknowledges that there is currently no Trading Market for the Notes and that none is expected to develop.

 

(g)   General
Solicitation. Such Investor undersigned acknowledges that neither the Company nor any other person offered to sell the Securities
to it by means of any form of general solicitation or advertising, including, but not limited to: (i) any advertisement, article, notice,
or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or (ii) any seminar
or meeting whose attendees were invited by any general solicitation or general advertising.

 

(h)   Confidentiality.
Other than to other Persons party to this Agreement and its advisors who have agreed to keep information confidential or have a fiduciary
obligation to keep such information confidential, such Investor has maintained the confidentiality of all disclosures made to it in connection
with the transaction (including the existence and terms of this transaction).

 

    13

     

    

 

(i)   Foreign
Investor. If such Investor is not a United States person, such Investor represents that it has satisfied itself as to the full observance
of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including:
(i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable
to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. The Investor further represents
that its payment for, and its continued beneficial ownership of the Securities, will not violate any applicable securities or other laws
of its jurisdiction or organization or domicile.

 

(j)   Information
from Company. Such Investor and its investment managers, if any, have been afforded the opportunity to obtain any information necessary
to verify the accuracy of any representations or information presented by the Company in this Agreement and have had all inquiries to
the Company answered, and have been furnished all requested materials, relating to the Company and the Offering and sale of the Securities
and anything set forth in the Transaction Documents. Neither the Investor nor the Investor’s investment managers, if any, have been
furnished any offering literature by the Company or any of its Affiliates, associates, or agents other than the Transaction Documents,
and the agreements referenced therein.

 

(k)   Speculative
Nature of Investment; Risk Factors. SUCH INVESTOR UNDERSTANDS THAT AN INVESTMENT IN THE SECURITIES INVOLVES A HIGH DEGREE OF RISK.
Such Investor acknowledges that: (i) any projections, forecasts or estimates as may have been provided to the Investor are purely speculative
and cannot be relied upon to indicate actual results that may be obtained through this investment; any such projections, forecasts and
estimates are based upon assumptions which are subject to change and which are beyond the control of the Company or its management, (ii)
the tax effects which may be expected by this investment are not susceptible to absolute prediction, and new developments and rules of
the Internal Revenue Service, audit adjustment, court decisions or legislative changes may have an adverse effect on one or more of the
tax consequences of this investment, and (iii) the Investor has been advised to consult with his own advisor regarding legal matters and
tax consequences involving this investment. The Investor represents that the Investor’s investment objective is speculative in that
the Investor seeks the maximum total return through an investment in a broad spectrum of securities, which involves a higher degree of
risk than other investment styles and therefore the Investor’s risk exposure is also speculative. The Securities offered hereby
are highly speculative and involve a high degree of risk and Investor should only purchase these securities if Investor can afford to
lose their entire investment.

 

(l)   Money
Laundering. If an entity, the operations of such Investor 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 or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company with
respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

The Company acknowledges and
agrees that the representations contained in Section 3.02 shall not modify, amend or affect such Investor’s right to rely
on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any
other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation
of the transaction contemplated hereby.

 

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ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

Section 4.01Transfer Restrictions.

 

(a)   The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, the Company may require the transferor thereof to provide to the
Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities
under the Securities Act. The Securities may not be sold or transferred by the Investors without the written consent of the Company, which
shall not be unreasonably withheld. As a condition of such sale or transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement and shall have the rights of an Investor under this Agreement.

 

(b)   The
Investors agree to the imprinting, so long as is required by this Section 4.01, of a legend on any of the Securities in the following
form:

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

(c)   Upon
the Investor’s request in connection with a proposed sale of Incentive Shares pursuant to Rule 144 and if the Company reasonably
determines it is so required, upon receipt of customary documentation from Investor’s broker (if the Incentive Shares are sold in
brokers transactions), the Company shall, at its own cost and effort, retain legal counsel to provide an opinion letter to the Company’s
transfer agent opining that the Incentive Shares may be resold without registration under the Securities Act, pursuant to Rule 144, promulgated
thereunder, so long as the requirements of Rule 144 are met for any Incentive Shares to be resold thereunder. The Company shall arrange
for any such opinion letter to be provided not later than two (2) Business Days after the date of delivery to and receipt by the Company
of a written request by any Investor together with (if required in order to render the opinion) any broker’s representation letter
of other customary documentation reasonably requested by the Company evidencing compliance with Rule 144 (the “Legend Removal
Date”), and such opinion letter may be a “blanket” opinion letter covering Incentive Shares held by more than one
Investor (if applicable to more than one Investor).

 

(d)   Each
Investor, severally and not jointly with the other Investors, agrees that such Investor will sell any Securities only pursuant to either
the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom,
and that if Securities are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set
forth therein, and acknowledges that the removal of the restrictive legend from certificates representing Securities as set forth in this
Section 4.01 is predicated upon the Company’s reliance upon this understanding.

 

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Section 4.02[Reserved]

 

Section 4.03[Reserved]

 

Section 4.04Integration.
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 to the Investors in a manner that would
require the registration under the Securities Act of the sale of the Securities to the Investors.

 

Section 4.05Publicity.
The Company and each Investor shall consult with each other in issuing any other press releases with respect to the transactions contemplated
hereby, and neither the Company nor any Investor shall issue any such press release nor otherwise make any such public statement without
the prior consent of the Company with respect to any press release of any Investor, or without the prior consent of each Investor with
respect to any press release of the Company mentioning such Investor, which consent shall not unreasonably be withheld or delayed, except
if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of
such public statement or communication.

 

Section 4.06Indemnification
of Investors. The Company shall indemnify, reimburse and hold harmless the Investors and their respective partners, members, shareholders,
officers, directors, employees and agents (and any other persons with other titles that have similar functions) (collectively, “Indemnitees”)
from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including
fees relating to the cost of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee
in any way related to or arising from or alleged to arise from: (i) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents and (ii) any action instituted against such Indemnitee
in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Indemnitee,
with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Indemnitee’s
representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Indemnitee may have
with any such stockholder or any violations by such Indemnitee of state or federal securities laws or any conduct by such Indemnitee which
results from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision of a court
of competent jurisdiction).

 

Section 4.07Equal
Treatment of Investors. No consideration (including any modification of any Transaction Document) shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration
is also offered to all of the parties to the Transaction Documents. Further, the Company shall not make any payment of principal or interest
on the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable time.
For clarification purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated separately
by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as the Investors
acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

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Section 4.08Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and
to provide a copy thereof, promptly upon request of any Investor. The Company shall take such action as the Company shall reasonably determine
is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Investors at the Closing under applicable
securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon
request of any Investor.

 

Section 4.09Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder to: (a) cover the expenses related to
the Offering and Liquidity Event and (b) for general working capital purposes and shall not use such proceeds: (i) for the satisfaction
of any portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business
and prior practices); (ii) for the redemption of any Common Stock or Common Stock Equivalents; (iii) for the settlement of any outstanding
litigation; (iv) in violation of FCPA or OFAC regulations; or (v) to lend, give credit or make advances to any officers, directors, employees
or Affiliates of the Company.

 

ARTICLE V

MISCELLANEOUS

 

Section 5.01Termination.
This Agreement may be terminated by any Investor, as to such Investor’s obligations hereunder only and without any effect whatsoever
on the obligations between the Company and the other Investors, by written notice to the other parties, if the Closing has not been consummated
on or before the Termination Date; provided, however, that such termination will not affect the right of any party to sue for any breach
by the other party (or parties).

 

Section 5.02Fees
and Expenses. The Company shall reimburse each Investor for any and all expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of the Transaction Documents, including, without limitation, reasonable attorneys’
and consultants’ fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications
of the Transaction Documents or any consents or waivers of provisions in the Transaction Documents, fees for the preparation of opinions
of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company must pay
these fees directly, including, but not limited to, any and all wire fees, otherwise the Company must make immediate payment for reimbursement
to an Investor for all fees and expenses immediately upon written notice by an Investor or the submission of an invoice by an Investor.
At Closing, the Company’s initial obligation with respect to this transaction is to reimburse the Lead Investor’s due diligence,
legal and other expenses are not to exceed $15,000.

 

Section 5.03Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

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Section 5.04Notices.
Any notice, request, instruction or other document to be given hereunder by any party to the others shall be in writing and delivered
personally or sent by registered or certified mail, postage prepaid, or by facsimile or email:

 

if to Investor:

 

To the address
set forth on such Investor’s signature page hereto;

 

if to the Company:

 

Elephant Oil Corp.

Pennzoil Place

700 Milam, Suite
1300

Houston, TX 77002

Attention: Matthew
Lofgran, CEO

 

or to such other persons or addresses
as may be designated in writing by the party to receive such notice as provided above. Any such notice or communication so given or made
shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of e-mailing or
sending by other means of recorded electronic communication, provided that such day in either event is a Business Day and the communication
is so delivered, e-mailed or sent before 5:00 p.m. Eastern on such day. Otherwise, such communication shall be deemed to have been given
and made and to have been received on the next following Business Day.

 

Section 5.05Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented, or amended except in a written instrument signed, in
the case of an amendment, by the Company and the Investors holding at least a majority in principal amount of the Notes then outstanding
or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any
party to exercise any right hereunder in any manner impair the exercise of any such right.

 

Section 5.06Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Investor (other
than by merger). Any Investor may assign any or all of its rights under this Agreement to any Person to whom such Investor assigns or
transfers any Securities, provided that such transfer complies with all applicable federal and State Securities Laws and that such transferee
agrees in writing with the Company to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents
that apply to the “Investors.”

 

Section 5.07No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

Section 5.08Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers,
shareholders, employees or agents) shall be commenced exclusively in the courts sitting in the City of New York, New York (the “New
York City Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York City Courts for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York City Courts, or such New York City
Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to the Transaction Documents or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any
provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party
for its attorney’s fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or
proceeding.

 

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Section 5.09Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

Section 5.10Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that
both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page was an original
thereof.

 

Section 5.11Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

Section 5.12Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of
the other Transaction Documents, whenever any Investor exercises a right, election, demand or option under a Transaction Document and
the Company does not timely perform its related obligations within the periods therein provided, then such Investor may rescind or withdraw,
in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part
without prejudice to its future actions and rights; provided, however, that in the case of a rescission of a conversion of a Note, the
Investor shall be required to return any shares of Common Stock subject to any such rescinded conversion or exercise notice.

 

Section 5.13Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of
and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of
such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

    19

     

    

 

Section 5.14Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Investors
and the Company will be entitled to seek specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and
hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law
would be adequate.

 

Section 5.15Payment
Set Aside. To the extent that the Company makes a payment or payments to any Investor pursuant to any Transaction Document or an Investor
enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required
to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

 

Section 5.16Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance or non-performance
of the obligations of any other Investor under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a
joint venture, or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction
Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose.
Each Investor has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. The
Company has elected to provide all Investors with the same terms and Transaction Documents for the convenience of the Company and not
because it was required or requested to do so by the Investors.

 

Section 5.17Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and every reference to
share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

Section 5.18Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof.

 

Section 5.19WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY,
UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[SIGNATURE PAGES FOLLOW]

 

    20

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this  to be duly executed by their respective authorized signatories as of
the date below.

 

	 	Elephant Oil Corp.
	 	 
	 	By:	 
	 	Name:  	Matthew Lofgran
	 	Title: 	Chief Executive Officer

 

	 	INVESTORS:
	 	 
	 	The Investors executing the Signature Page in the form attached hereto as Annex A and delivering the same to the Company or its agents shall be deemed to have executed this Agreement and agreed to the terms hereof.

 

     

     

    

 

Annex A

 

Securities
Purchase Agreement Investor Counterpart Signature Page

 

The undersigned, desiring to:
(i) enter into this  dated as of December 16, 2022 (the “Agreement”), with the undersigned,
Elephant Oil Corp., a Nevada corporation (the “Company”), in or substantially in the form furnished to the undersigned
and (ii) purchase the Securities as set forth below, hereby agrees to purchase such Securities from the Company as of the Closing and
further agrees to join the Agreement as a party thereto, with all the rights and privileges appertaining thereto, and to be bound in
all respects by the terms and conditions thereof. The undersigned specifically acknowledges having read the representations in this Agreement’s
section entitled “Representations Warranties of the Investors”, and hereby represents that the statements contained therein
are complete and accurate with respect to the undersigned as an Investor.

 

	PURCHASER (if an individual):	PURCHASER (if an entity):
	 	 
	By   ______________________	________________________________________________
	Name:	(Legal Name of Entity)
	Date:	By  __________________
	 	Name:
	 	Title:
	 	Date:

 

	PUCHASER (if investing jointly)	 
	 	 
	By _______________________	 
	Name:	 
	Date:	 

 

Aggregate Subscription Amount: $ 500,000

[Original principal amount of Note = Subscription
Amount times 120%]

 

State/Country of Domicile or Formation: ______________________________

 

SSN/EIN/ITIN:  _________________________________________________

 

Address: _____________________________________________________

 

     

     

    

 

APPENDIX A

 

[CONFIDENTIAL INVESTOR QUESTIONNAIRE]

 

     

     

    

 

APPENDIX
B

 

FORM
OF 20% ORIGINAL ISSUE DISCOUNT SENIOR NOTE

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

	Original
    Issue Date: December ___, 2022	 	Subscription
    Amount:	$	400,000	 
	Final
    Maturity Date: April ___, 2023	 	Original
    Issue Discount:	$	100,000	 
	Original
    Interest Discount: 20%	 	Original
    Principal Amount:	$	500,000	 

 

ELEPHANT
OIL CORP.

20%
ORIGINAL ISSUE DISCOUNT SENIOR NOTE

 

THIS
20% ORIGINAL ISSUE DISCOUNT SENIOR NOTE is one of a series of duly authorized and validly issued Notes of Elephant Oil Corp., a Nevada
corporation (the “Company”), designated as its 20% Original Issue Discount Senior Notes (this note, the “Note”
and, collectively with the other notes of such series, the “Notes”). 

 

FOR
VALUE RECEIVED, the Company promises to pay to 622 Capital LLC or its registered assigns (the “Holder”), or shall
have paid pursuant to the terms hereunder, the principal sum of $500,000 on the earlier to occur of (i) of April _____, 2023 (the “Final
Maturity Date”) and (ii) a Liquidity Event (as the case may be, the “Maturity Date”), or such earlier date
as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate outstanding
principal amount of this Note in accordance with the provisions hereof. This Note is subject to the following additional provisions:

 

Section
1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note: (a) capitalized terms not
otherwise defined herein shall have the meanings set forth in the Purchase Agreement, and (b) the following terms shall have the following
meanings:

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary thereof commences a case or other proceeding
under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction relating to the Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or
any Significant Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company
or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case
or proceeding is entered, (d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like
for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the
Company or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant
Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts,
(g) the Company or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts as they become due,
(h) the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of
or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

 

     

     

    

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required
by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any
other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so
long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally
are open for use by customers on such day.

 

“Event
of Default” shall have the meaning set forth in Section 5.

 

“Indebtedness”
means any liabilities of the Company for borrowed money and all guaranties made by the Company of borrowed money by others.

 

“Interest
Rate” 15% per annum; provided that if (x) the Liquidity Event shall occur on or prior to the Final Maturity Date and
(y) the Company shall have paid the Payment Amount (for the avoidance of doubt, other than any amounts in respect of accrued and unpaid
interest on the principal amount of this Note) to the Holder on such Maturity Date, then such interest shall be waived (i.e.,
shall be 0%) retroactive to the Original Issue Date.

 

“Interest
Payment Date” means, if any of the Notes remain outstanding after the Maturity Date or an Event of Default: (i) the earlier
to occur of the first (1st) or fifteenth (15th) day of the calendar month following such Maturity Date or Event
of Default (as the case may be), and (ii) each one-month anniversary of such date, until payment in full of the Payment Amount has been
made.

 

“Liquidity
Event” means a public offering of Common Stock (or units consisting of Common Stock and warrants to purchase Common Stock),
resulting in the listing for trading of the Common Stock on the New York Stock Exchange, the NYSE American, the Nasdaq Capital Market,
the Nasdaq Global Market or the Nasdaq Global Select Market (or any successors to any of the foregoing).

 

“New
York City Courts” shall have the meaning set forth in Section 6(d).

 

“Note
Register” shall have the meaning set forth in Section 2(a).

 

“Original
Issue Date” means the date of the first issuance of the Notes, regardless of any transfers of any Note and regardless of the
number of instruments which may be issued to evidence such Notes.

 

“Payment
Amount” means the product of: (a) the sum of (i) the outstanding principal amount of this Note, plus (ii) accrued and unpaid
interest hereon, if any, plus (iii) all other amounts, costs and expenses due in respect of this Note if the Company prepays this Note
prior to the Maturity Date.

 

    B-2

     

    

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of October __ 2022, by and among the Company and the original
Holders, as amended, modified, or supplemented from time to time in accordance with its terms.

 

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

 

“Significant
Subsidiary” shall have the meaning set forth in Rule 1-02(w) of Regulation S-X.

 

Section
2. Interest; Prepayment.

 

a)   Interest
Calculations Interest at the Interest Rate shall be payable on each Interest Payment Date. Such interest shall accrue and be calculated
on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and shall accrue daily commencing on the Original Issue
Date until payment in full of the outstanding principal, together with all accrued and unpaid interest and other amounts which may become
due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this Note is registered on the records of the
Company regarding registration and transfers of this Note (the “Note Register”).

 

b)   Prepayment.
The Company shall have the option to prepay this Note at any time after the Original Issue Date prior to the Maturity Date at an amount
equal to the Payment Amount without any premium or penalty.

 

Section
3. Registration of Transfers and Exchanges.

 

a)   Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

b)   Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder set forth in the
Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state
securities laws and regulations.

 

c)   Reliance
on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company may
treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment
as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such agent shall
be affected by notice to the contrary.

 

Section
4. Negative Covenants.

 

As
long as any portion of this Note remains outstanding, unless the holders of at least 50.1% in principal amount of the then outstanding
Notes shall have otherwise given prior written consent, the Company shall not, directly or indirectly:

 

a)   amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and
adversely affects any rights of the Holder unless consented to by the Holder;

 

    B-3

     

    

 

b)   repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or Common Stock
Equivalents other than as to (i) repurchases of Common Stock or Common Stock Equivalents of departing officers and directors of the Company,
provided that such repurchases shall not exceed an aggregate of $25,000 for all officers and directors during the term of this Note,
or (ii) shares of Common Stock and Common Stock Equivalents which do not vest or are otherwise forfeited, provided (in case of forfeiture)
that such Common Stock and Common Stock Equivalents are not acquired for cash;

 

c)   repay,
repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than (i) the Notes if on a pro-rata basis, other
than regularly scheduled principal and interest payments as such terms are in effect as of the Original Issue Date, provided that such
payments shall not be permitted if, at such time, or after giving effect to such payment, any Event of Default exists or occurs, and
(ii) both the May 26, 2022 convertible promissory note entered into with Dragon Dynamic Funds and the July 30, 2022 convertible promissory
note entered into with John Bolitho;

 

d)   pay
cash dividends or distributions on any equity securities of the Company;

 

e)   enter
into any material transaction with any Affiliate of the Company, unless such transaction is made on an arm’s-length basis and expressly
approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required for board approval);
or

 

f)   enter
into any agreement with respect to any of the foregoing.

 

Section
5. Events of Default. In this Note, “Event of Default” means, wherever used herein, any of the following
events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or
pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

 

		a)	the
                                            Liquidity Event has not occurred on or prior to the Final Maturity Date;

 

		b)	any
                                            default in the payment of: (i) the principal amount of any Note, or (B) interest and other
                                            amounts owing to a Holder on any Note, as and when the same shall become due and payable
                                            (whether on the Maturity Date or by acceleration or otherwise) which default, solely in the
                                            case of an interest payment or other default under clause (ii) above, is not cured within
                                            five (5) Business Days;

 

		c)	the
                                            Company shall fail to observe or perform any other covenant or agreement contained in the
                                            Notes or in any Transaction Document, which failure is not cured, if possible to cure, within
                                            the earlier to occur of (i) five (5) Business Days after notice of such failure sent by the
                                            Holder or by any other Holder to the Company and (ii) seven (7) Business Days after the Company
                                            has become or should have become aware of such failure;

 

    B-4

     

    

 

		d)	a
                                            default or event of default (subject to any grace or cure period provided in the applicable
                                            agreement, document or instrument) shall occur under (i) any of the Transaction Documents
                                            or (ii) any other agreement, lease, document or instrument to which the Company is obligated
                                            (and not covered by clause (g) below) if such default or event of default (in the case of
                                            clause (ii) only) will have a Material Adverse Effect;

 

		e)	any
                                            material representation or warranty made in this Note, any other Transaction Documents, any
                                            written statement pursuant hereto or thereto or any other report, financial statement or
                                            certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect
                                            in any material respect as of the date when made;

 

		f)	the
                                            Company or any Significant Subsidiary shall be subject to a Bankruptcy Event;

 

		g)	except
                                            with respect to the May 26, 2022 convertible promissory note the Company entered into with
                                            Dragon Dynamic Funds or the July 30, 2022 convertible promissory note that the Company entered
                                            into with John Bolitho, for which a default has already occurred, the Company shall default
                                            on any of its obligations under any mortgage, credit agreement or other facility, indenture
                                            agreement, factoring agreement or other instrument under which there may be issued, or by
                                            which there may be secured or evidenced, any Indebtedness for borrowed money or money due
                                            under any long term leasing or factoring arrangement that (i) involves an obligation greater
                                            than $100,000, whether such Indebtedness now exists or shall hereafter be created, and (ii)
                                            results in such Indebtedness becoming or being declared due and payable prior to the date
                                            on which it would otherwise become due and payable; and

 

		h)	a
                                            final non-appealable judgment by any competent court in the United States for the payment
                                            of money in an amount of at least $100,000 is rendered against the Company, and the same
                                            remains undischarged and unpaid for a period of 60 days during which execution of such judgment
                                            is not effectively stayed.

 

If
any Event of Default occurs, the interest rate on this Note shall immediately and automatically be increased to 25% per annum until the
Event of Default shall have been cured. Upon the payment in full of the Payment Amount in accordance with the terms of this Note, the
Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described herein, the
Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder
may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies
available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder
and the Holder shall have all rights as a holder of the Note until such time, if any, as the Holder receives full payment of this Note.
No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

    B-5

     

    

 

Section
6. Miscellaneous.

 

a)   Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in writing and delivered personally,
by email attachment, or sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth
in the Purchase Agreement, or such other, email address, or address as the Company may specify for such purposes by notice to the Holder
delivered in accordance with this Section 6(a). Any and all notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight
courier service addressed to each Holder at the facsimile number, email address or address of the Holder appearing on the books of the
Company, or if no such facsimile number or email attachment or address appears on the books of the Company, at the address of such Holder,
as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed given and effective
on the earliest of: (i) the date of transmission, if such notice or communication is delivered via facsimile or email attachment prior
to 5:30 p.m. (Pacific time) on any Business Day, (ii) the next Business Day after the date of transmission, if such notice or communication
is delivered via facsimile or email attachment on a day that is not a Business Day or later than 5:30 p.m. (Pacific time) on any Business
Day, (iii) the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or
(iv) upon actual receipt by the party to whom such notice is required to be given.

 

b)   Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, and accrued interest on, as applicable, this Note at the time, place, and rate,
and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company. This Note ranks pari-passu
with all other Notes now or hereafter issued under the terms set forth herein.

 

c)   Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note,
a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss,
theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

 

d)   Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict of laws thereof.
Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated
by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, New York (the “New
York City Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York City Courts
for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York City Courts, or such
New York City Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any
provisions of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney’s
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

    B-6

     

    

 

e)   Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver
of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or the Holder
to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party
of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any waiver
by the Company or the Holder must be in writing.

 

f)   Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision
is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it
shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable
rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company
from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Note, and the Company (to the extent it may lawfully
do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such
as though no such law has been enacted.

 

g)   Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and
in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including
a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual
and consequential damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that
there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided
for herein with respect to payments and the like (and the computation thereof) shall be the amounts to be received by the Holder and
shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company
acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for
any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach,
without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information
and documentation to the Holder that is reasonably requested by the Holder to enable the Holder to confirm the Company’s compliance
with the terms and conditions of this Note.

 

    B-7

     

    

 

h)   Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

i)   Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect
any of the provisions hereof.

 

Section
7. Amendments; Waivers.

 

Any
modifications, amendments or waivers of the provisions hereof shall be subject to Section 5.05 of the Purchase Agreement.

 

Section
8. Equal Treatment of Holders.

 

No
consideration (including any modification of this Note) shall be offered or paid to any Person (as such term is defined in the Purchase
Agreement) to amend or consent to a waiver or modification of any provision hereof unless the same consideration is also offered to all
of the parties to the Purchase Agreement. Further, the Company shall not make any payment of principal or interest on the Notes in amounts
which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable time. For clarification purposes,
this provision constitutes a separate right granted to each Holder by the Company and negotiated separately by each Holder and is intended
for the Company to treat the Holders as a class and shall not in any way be construed as the Holders acting in concert or as a group
with respect to the purchase or disposition of the Notes or otherwise.

 

Section
9. Usury.

 

To
the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim and will resist
any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in
force, in connection with any Action or Proceeding that may be brought by any Holder in order to enforce any right or remedy under any
Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and
provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed
the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing,
in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest
that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract
rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental
action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to
the Transaction Documents from the effective date thereof forward, unless such application is precluded by applicable law. If under any
circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Holder with respect to indebtedness evidenced
by the Transaction Documents, such excess shall be applied by such Holder to the unpaid principal amount of any such indebtedness or
be refunded to the Company, the manner of handling such excess to be at such Holder’s election.

 

(Signature
Page Follows)

 

    B-8

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

 

	 	ELEPHANT
    OIL CORP.
	 	 	 
	 	 	 
	 	By:	 
	 	Name: 	Matthew
    Lofgran
	 	Title:
    	Chief
    Executive OfficerExhibit 10.1

 

THIS PROMISSORY NOTE (“NOTE”) HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT
ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR
AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

PROMISSORY NOTE

 

	 	Dated as of December 16, 2022
	Principal Amount: Up to $468,821.28	New York, New York

 

MedTech
Acquisition Corporation, a special purpose acquisition company incorporated as a Delaware corporation (the “Maker”),
promises to pay to the order of MedTech Acquisition Sponsor LLC, or its registered assigns
or successors in interest (the “Payee”), or order, the principal sum of up to $468,821.28 in lawful money of
the United States of America, on the terms and conditions described below. All payments on this Note shall be made by check or wire transfer
of immediately available funds to such account as the Payee may from time to time designate by written notice in accordance with the provisions
of this Note.

 

1.            Principal.
The principal balance of this Note shall be due and payable by the Maker (such date, the “Maturity Date”),
subject to Section 12 below, (a) upon the consummation of the Maker’s proposed initial business combination and (b) the
date of the liquidation of the Maker.

 

2.            Interest.
No interest shall accrue on the unpaid principal balance of this Note.

 

3.            Drawdown
Requests. The Payee will fund up to $468,821.28 into the trust account of the Maker established in connection with its initial
public offering and currently maintained by Continental Stock Transfer & Trust Company, a New York corporation (the “Trust
Account”), such amounts to be for the benefit of the holders of the Maker’s unredeemed shares of Class A common stock
upon redemption or liquidation of the Maker in accordance with the Maker’s amended and restated certificate of incorporation, as
amended. The principal of this Note may be drawn down in six equal amounts of $78,136.88 per withdraw, between the 22nd
and 29th of each month (or portion thereof) from December 2022 through June 2023
(provided that the first withdrawal hereunder may be made concurrently with the execution hereof), up until the date on which the Maker
consummates its initial business combination, upon written request from the Maker to the Payee (each, a “Drawdown Request”).
Each Drawdown Request must be made before the 7th of each applicable monthly period (provided that, with respect to the first
Drawdown Request hereunder, such Drawdown Request may be made concurrently with the execution hereof), and state the amount to be drawn
down. The Payee, in its sole discretion, shall fund each Drawdown Request via a wire transfer directly to the Trust Account no later than
the 29th of each appliable monthly period; provided, however, that the maximum
amount of drawdowns collectively under this Note shall not exceed $468,821.28. Once an amount is drawn down under this Note, it shall
not be available for future Drawdown Requests. Except as set forth herein, no fees, payments or other amounts shall be due to the Payee
in connection with, or as a result of, any Drawdown Request by the Maker.

 

4.            Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due
under this Note, including, without limitation, reasonable attorneys’ fees, and then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

5.            Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)            Failure
to Make Required Payments. Failure by the Maker to pay the principal amount due pursuant to this Note within five (5) business
days of the Maturity Date.

 

(b)            Voluntary
Bankruptcy, Etc. The commencement by the Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation
or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of the Maker or for any substantial part of its property, or the making by it of any assignment
for the benefit of creditors, or the failure of the Maker generally to pay its debts as such debts become due, or the taking of corporate
action by the Maker in furtherance of any of the foregoing.

 

     

     

    

 

(c)            Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of the Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of the Maker or for any substantial part of its property, or ordering the winding-up
or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive
days.

 

6.            Remedies.

 

(a)            Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, the Payee may, by written notice to the Maker, declare
this Note to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)            Upon
the occurrence of an Event of Default specified in Sections 5(b) and 5(c), the unpaid principal balance of this Note, and all other
sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on
the part of the Payee.

 

7.            Waivers.
The Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to this Note, all errors, defects and imperfections in any proceedings instituted by the Payee
under the terms of this Note, and all benefits that might accrue to the Maker by virtue of any present or future laws exempting any property,
real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution,
or providing for any stay of execution, exemption from civil process, or extension of time for payment, and the Maker agrees that any
real estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued hereon, may be sold
upon any such writ in whole or in part in any order desired by the Payee.

 

8.            Unconditional
Liability. The Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party,
and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to
by the Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by the Payee with
respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become
parties hereto without notice to the Maker or affecting the Maker’s liability hereunder.

 

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

 

10.          Construction.
THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF DELAWARE, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

11.          Severability.
Any provision contained in this Note, which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

     

     

    

 

12.          Trust
Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim
of any kind (“Claim”) in or to any distribution of or from the Trust Account in which the proceeds of the initial public
offering (“the “IPO”) conducted by the Maker (including the deferred underwriters’ discounts and commissions)
and the proceeds of the sale of the units issued in a private placement that occurred prior to the closing of the IPO were deposited,
as described in greater detail in the Maker’s Registration Statement on Form S-1 (File No. 333-251037) filed with the
Securities and Exchange Commission in connection with the IPO, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction
for any Claim against the Trust Account for any reason whatsoever.

 

13.          Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the Maker and
the Payee.

 

14.          Assignment.
Maker may not assign or transfer this Note or any of its rights or obligations hereunder (by operation of law or otherwise) without the
prior written consent of Payee and any attempted assignment without the required consent shall be void.

 

[Remainder of page intentionally left blank.
Signature page follows.]

 

     

     

    

 

IN
WITNESS WHEREOF, the Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned
as of the day and year first above written.

 

	 	MedTech Acquisition Corporation
	 	 	 
	 	By:	 /s/ Christopher C. Dewey 
	 	 	Name: 	Christopher C. Dewey  
	 	 	Title:	Chief Executive Officer

 

	 	MedTech Acquisition Sponsor LLC
	 	 	 
	 	By:	/s/ David J. Matlin
	 	 	Name: 	 David J. Matlin
	 	 	Title:	Managing Member

 

[Signature Page – Promissory Note]

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