Document:

Document

Exhibit 10.21

SNOWFLAKE INC.
COMMON STOCK PURCHASE AGREEMENT
September 7, 2020

TABLE OF CONTENTS
Page
												
	1.	Purchase and Sale of Stock		1
		1.1	Sale and Issuance of Common Stock	1
		1.2	Closing	1
				
	2.	Registration Rights.		1
				
	3.	Representations and Warranties of the Company		1
		3.1	Organization, Good Standing and Qualification	1
		3.2	Authorization	2
		3.3	Valid Issuance of Common Stock	2
		3.4	Compliance with Other Instruments	2
		3.5	Description of Capital Stock	2
		3.6	Registration Statement	3
		3.7	Brokers or Finders	3
		3.8	Private Placement	3
				
	4.	Representations, Warranties and Covenants of the Investor		3
		4.1	Organization, Good Standing and Qualification	3
		4.2	Authorization	3
		4.3	Purchase Entirely for Own Account	4
		4.4	Disclosure of Information	4
		4.5	Investment Experience	4
		4.6	Accredited Investor	4
		4.7	Brokers or Finders	4
		4.8	Restricted Securities	4
		4.9	Legends	4
		4.10	Market Stand-Off Agreement; Lock-Up Agreement	5
				
	5.	Conditions of the Investor’s Obligations at Closing		6
		5.1	Representations and Warranties	6
		5.2	Public Offering Shares	6
		5.3	Rights Agreement Amendment	6
		5.4	Absence of Injunctions, Decrees, Etc	6
				
	6.	Conditions of the Company’s Obligations at Closing		6
		6.1	Representations, Warranties and Covenants	6
		6.2	Public Offering Shares	6
		6.3	Absence of Injunctions, Decrees, Etc	6
				
	7.	Termination		6
				
	8.	Miscellaneous		7
		8.1	Publicity	7

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		8.2	Survival of Warranties	7
		8.3	Successors and Assigns	7
		8.4	Governing Law	7
		8.5	Counterparts	7
		8.6	Notices	7
		8.7	Brokers or Finders	8
		8.8	Amendments and Waivers	8
		8.9	Severability	8
		8.10	Corporate Securities Law	8
		8.11	Entire Agreement	9
		8.12	Specific Performance	9

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SNOWFLAKE INC.
COMMON STOCK PURCHASE AGREEMENT
THIS COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of September 7, 2020, by and between Snowflake Inc., a Delaware corporation (the “Company”), and Berkshire Hathaway Inc., a Delaware corporation (the “Investor”).
THE PARTIES HEREBY AGREE AS FOLLOWS:
1.Purchase and Sale of Stock.
1.1Sale and Issuance of Common Stock.  Subject to the terms and conditions of this Agreement, the Investor agrees to purchase from the Company, and the Company agrees to sell and issue to Columbia Insurance Company, a Nebraska corporation and wholly owned subsidiary of the Investor, as designee of the Investor (the “Designee”), the Shares (as defined below) at a price per share equal to the per share initial public offering price (before underwriting discounts and expenses) in the Qualified IPO (as defined below) (the “IPO Price”). “Shares” shall mean the number of shares of Class A Common Stock of the Company (the “Common Stock”), equal to $250,000,000.00 divided by the IPO Price, rounded down to the nearest whole share (with the total purchase price correspondingly reduced for such fractional share amount).  “Qualified IPO” shall mean the issuance and sale of shares of the Common Stock by the Company, pursuant to an Underwriting Agreement to be entered into by and among the Company and certain underwriters (the “Underwriters”), in connection with the Company’s initial public offering pursuant to the Company’s Registration Statement on Form S-1 (File No. 333-248280) (the “Registration Statement”) and/or any related registration statements (the “Underwriting Agreement”).
1.2Closing.  The purchase and sale of the Shares shall take place at the location and at the time immediately subsequent to the closing of the Qualified IPO (which time and place are designated as the “Closing”).  At the Closing, the Investor shall make payment of the purchase price of the Shares by wire transfer in immediately available funds to the account specified by the Company against delivery to the Designee of the Shares registered in the name of the Designee, which Shares shall be uncertificated shares.
2.Registration Rights. At the Closing, in connection with the purchase of the Shares, the Company’s Amended and Restated Investors Rights Agreement, dated February 7, 2020, by and among the Company and the stockholders of the Company listed thereto (the “Existing Rights Agreement”), shall, pursuant to Section 5.5 of the Existing Rights Agreement, be amended, in substantially the form attached hereto as Exhibit A  (the “Rights Agreement Amendment” and, together with the Existing Rights Agreement, the “Rights Agreement”).
3.Representations and Warranties of the Company.  The Company hereby represents and warrants to the Investor that as of the date hereof and as of the date of the Closing:
3.1Organization, Good Standing and Qualification.  
(a)The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted.

(b)The Company is duly qualified to transact business and is in good standing in each jurisdiction in which it is required to be so qualified or in good standing, except where the failure to so qualify or be in good standing would not be material and adverse to the Company.  
3.2Authorization.  All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement and, subject to obtaining the requisite stockholder approval for the Rights Agreement Amendment, the Rights Agreement Amendment, the performance of all obligations of the Company under this Agreement and the Rights Agreement Amendment, and the authorization, issuance, sale and delivery of the Shares being sold hereunder has been taken, and this Agreement constitutes and as of the Closing the Rights Agreement Amendment and the Rights Agreement shall constitute, valid and legally binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by 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) to the extent the indemnification provisions contained in the Rights Agreement may be limited by applicable federal or state securities laws.
3.3Valid Issuance of Common Stock.  The Shares being purchased by the Investor hereunder, when issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable and will be free of restrictions on transfer other than restrictions on transfer under applicable state and federal securities laws or as contemplated hereby or by the Rights Agreement.  
3.4Compliance with Other Instruments.
(a)The Company is not in violation or default of any provision of its Amended and Restated Certificate of Incorporation, or Amended and Restated Bylaws.
(b)Except as would not be material to the Company, the Company is not in violation or default in any material respect of any instrument, judgment, order, writ, decree or contract to which it is a party or by which it is bound, or, to its knowledge, of any provision of any federal or state statute, rule or regulation applicable to the Company.  The execution, delivery and performance of this Agreement and the Rights Agreement Amendment, and the consummation of the transactions contemplated by this Agreement and the Rights Agreement Amendment will not result in any material violation or default or be in conflict with or constitute, with or without the passage of time and giving of notice, either a material default under any such provision, instrument, judgment, order, writ, decree or contract or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization, or approval applicable to the Company, its business or operations or any of its assets or properties. 
3.5Description of Capital Stock.  As of the date of the Closing, the statements set forth in the Pricing Prospectus (as defined in the Underwriting Agreement) and Prospectus (as defined in the Underwriting Agreement) under the caption “Description of Capital Stock,” insofar as they purport to constitute a summary of the terms of the Company’s capital stock, are accurate, complete and fair in all material respects.  
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3.6Registration Statement.  To the Company’s knowledge, the Registration Statement as presently filed with United States Securities and Exchange Commission (the “SEC”), and any amendment thereto, including any information deemed to be included therein pursuant to the rules and regulations of the SEC promulgated under the Securities Act of 1933, as amended (the “Securities Act”), complied (or, in the case of amendments filed after the date of this Agreement, will comply) as of its filing date in all material respects with the requirements of the Securities Act and the rules and regulations of the SEC promulgated thereunder, and did not (or, in the case of amendments filed after the date hereof, will not) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  As of the date it is declared effective by the SEC, the Registration Statement, as so amended, and any related registration statements, will comply in all material respects with the requirements of the Securities Act and the rules and regulations of the SEC promulgated thereunder, and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Any preliminary prospectus included in the Registration Statement or any amendment thereto, any free writing prospectus related to the Registration Statement and any final prospectus related to the Registration Statement filed pursuant to Rule 424 promulgated under the Securities Act, in each case as of its date, will comply in all material respects with the requirements of the Securities Act and the rules and regulations promulgated thereunder, and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
3.7Brokers or Finders.  The Company has not engaged any brokers, finders or agents such that the Investor will incur, directly or indirectly, as a result of any action taken by the Company, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the sale of the Shares contemplated by this Agreement.
3.8Private Placement. Assuming the accuracy of the representations, warranties and covenants of the Investor set forth in Section 4 of this Agreement, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Investor under this Agreement.
4.Representations, Warranties and Covenants of the Investor.  The Investor hereby represents and warrants that as of the date hereof and as of the date of the Closing with respect to the Investor and, with respect to Sections 4.1 through 4.8 and Section 4.10, the Designee (as if the Designee were the Investor):
4.1Organization, Good Standing and Qualification.  The Investor is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. The Designee is a wholly owned subsidiary of the Investor.  
4.2Authorization.  The Investor has full power and authority to enter into this Agreement, the Rights Agreement, and the Rights Agreement Amendment, as applicable, and each such agreement constitutes a valid and legally binding obligation of the Investor, enforceable in accordance with its terms except (i) as limited by 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) to the extent the indemnification provisions contained in the Rights Agreement may be limited by applicable federal or state securities laws. 
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4.3Purchase Entirely for Own Account.  By the Investor’s execution of this Agreement, the Investor hereby confirms, that the Shares to be received by the Investor will be acquired for investment for the Investor’s own account, not as a nominee or agent, and not with a view to the distribution of any part thereof, and that the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same, except as permitted by applicable federal or state securities laws.  By executing this Agreement, the Investor further represents that the Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Shares.
4.4Disclosure of Information.  The Investor believes it has received all the information it considers necessary or appropriate for deciding whether to purchase the Shares.  The Investor further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Shares and the business, properties, prospects and financial condition of the Company.  The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 3 of this Agreement or the right of the Investor to rely thereon.
4.5Investment Experience.  The Investor is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares.  Investor also represents it has not been organized for the purpose of acquiring the Shares. 
4.6Accredited Investor.  The Investor is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the SEC under the Securities Act, as presently in effect.
4.7Brokers or Finders.  The Investor has not engaged any brokers, finders or agents such that the Company will incur, directly or indirectly, as a result of any action taken by the Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the sale of the Shares contemplated by this Agreement.
4.8Restricted Securities.  The Investor understands that the Shares will be characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act, only in certain limited circumstances.  In this connection, the Investor represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.
4.9Legends.  The Investor understands that the Market Stand-Off Shares (as defined below) may bear one or all of the following legends (and with respect to Section 4.9(b) below, substantially similar language with respect to the Secondary Sale Shares (as defined below) in order to accurately reflect the parties that are party to the Secondary Sale Agreement (as defined below)):
(a)“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTIONS.  THESE SECURITIES MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT, APPLICABLE STATE SECURITIES LAWS (PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM).  
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INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”
(b)“THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO A 365 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN AN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. AS A RESULT OF SUCH AGREEMENT, THESE SECURITIES MAY NOT BE TRADED PRIOR TO 365 DAYS AFTER THE EFFECTIVE DATE OF THE INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.”
(c)Any legend required by applicable state “blue sky” securities laws, rules and regulations.
Following the expiration of the Market Stand-Off Period (as defined below), in the event that the Market Stand-Off Shares become registered under the Securities Act or are eligible to be transferred without restriction in accordance with Rule 144 under the Securities Act, the Company shall (x) instruct the Company’s transfer agent to issue new uncertificated (book-entry) instruments representing such Market Stand-Off Shares, which shall not contain such portion of the above legend that is no longer applicable, (y) take all actions with the Company’s transfer agent reasonably requested by the Investor to permit such un-legended Market Stand-Off Shares to be deposited into the account specified by the Investor to the Company in writing, and (z) instruct the Company’s transfer agent to cause such Market Stand-Off Shares to be assigned the same CUSIP as the shares of Class A Common Stock that are then traded on the principal stock exchange on which the shares of Class A Common Stock are then listed; provided that, (1) the Investor (or the Designee, as applicable) surrenders to the Company the previously issued uncertificated (book-entry) instruments representing the Market Stand-Off Shares and (2) the Investor (or the Designee, as applicable) delivers a customary representation letter requested by the Company’s transfer agent.
4.10Market Stand-Off Agreement; Lock-Up Agreement. The Investor agrees, on behalf of itself and the Designee, that it shall not sell or otherwise transfer or dispose of the Shares and any shares of capital stock of the Company purchased by the Investor or any subsidiary of the Investor (the “Secondary Sale Shares” and together with the Shares, the “Market Stand-Off Shares”) pursuant to that certain Stock Transfer Agreement by and among the Investor, Robert Muglia and Robert & Laura Ellen Muglia Descendants’ Trust dated as of the date hereof (the “Secondary Sale Agreement”), other than to donees, partners or Affiliates (as defined below) of the Investor who agree to be similarly bound, for up to 365 days following the effective date of the Qualified IPO (the “Market Stand-Off Period”). In order to enforce this covenant, the Company shall have the right to place restrictive legends on the book-entry accounts representing the Market Stand-Off Shares and to impose stop transfer instructions with respect to the Market Stand-Off Shares until the end of such period. The provisions of this Section 4.10 shall not apply to shares acquired in market purchases following the Qualified IPO. In addition, the Investor hereby confirms that the Designee has executed and delivered to the Underwriters the lock-up agreement provided by the Company pursuant to the Underwriting Agreement (the “Lock-Up Agreement”). The Lock-Up Agreement is in full force and effect, and following the consummation of the transactions contemplated by this Agreement and the Secondary Sale Agreement will remain in full force 
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and effect, including with respect to the Market Stand-Off Shares.  For purposes of this Agreement, the term “Affiliates” means any individual or entity that directly or indirectly controls, is controlled by, or is under common control with the individual or entity in question.
5.Conditions of the Investor’s Obligations at Closing.  The obligations of the Investor under subsection 1.1 of this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions.
5.1Representations and Warranties.  The representations and warranties of the Company contained in Sections 3.1(b), 3.4(b), 3.7, and 3.8 shall be true on and as of the Closing, except as would not reasonably be expected to have a material adverse effect on the Company.  The representations and warranties of the Company contained in Sections 3.1(a), 3.2, 3.3, 3.4(a), and 3.5 shall be true on and as of the Closing.
5.2Public Offering Shares.  The Underwriters shall have purchased, immediately prior to the purchase of the Shares by the Investor hereunder, the Firm Shares (as defined in the Underwriting Agreement) pursuant to the Registration Statement and Underwriting Agreement.
5.3Rights Agreement Amendment.  The Rights Agreement Amendment shall have been executed and delivered by the Company and the other parties to the Existing Rights Agreement sufficient to amend the Existing Rights Agreement pursuant to Section 5.5 thereof.
5.4Absence of Injunctions, Decrees, Etc.  During this period from the date of this Agreement to immediately prior to the Closing, no governmental authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any decision, injunction, decree, ruling, law or order permanently enjoining or otherwise prohibiting or making illegal the consummation of the transactions contemplated at the Closing.
6.Conditions of the Company’s Obligations at Closing. The obligations of the Company under subsection 1.1 of this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions.
6.1Representations, Warranties and Covenants.  The representations, warranties and covenants of the Investor contained in Section 4 shall be true on and as of the Closing.
6.2Public Offering Shares.  The Underwriters shall have purchased, immediately prior to the purchase of the Shares by the Investor hereunder, the Firm Shares (as defined in the Underwriting Agreement) pursuant to the Registration Statement and Underwriting Agreement.
6.3Absence of Injunctions, Decrees, Etc.  During this period from the date of this Agreement to immediately prior to the Closing, no governmental authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any decision, injunction, decree, ruling, law or order permanently enjoining or otherwise prohibiting or making illegal the consummation of the transactions contemplated at the Closing.
7.Termination.  This Agreement shall terminate (a) at any time upon the written consent of the Company and the Investor, (b) upon the withdrawal by the Company of the Registration Statement, or (c) on October 31, 2020 if the Closing has not occurred. 
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8.Miscellaneous.
8.1Publicity. No party shall issue any press release or make any other public announcement, including any website posting or social media post, that includes the name or any logo or brand name of any party, or discloses the terms of this Agreement or the fact that the Investor has made or proposes to make an investment in the Company, except as may be required by law or with the prior written consent of the other party.  Each party will provide reasonable advance notice to the other parties prior to making any disclosure of this Agreement or the terms hereof in any filings made with the SEC, and will provide the other party with reasonable opportunity to review and comment on such proposed disclosures.  
8.2Survival of Warranties.  The warranties, representations and covenants of the Company and the Investor contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of the Investor or the Company. 
8.3Successors and Assigns.  This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred, delegated or sublicensed by the Investor without the prior written consent of the Company; provided, however, that after the Closing, the Shares and the rights, duties and obligations of the Investor hereunder may be assigned to a subsidiary of the Investor without the prior written consent of the Company. Any attempt by the Investor without such permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement in a manner that is not permitted by the foregoing sentence to be made without such permission shall be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
8.4Governing Law.  This Agreement shall be governed in all respects by the internal laws of the State of Delaware as applied to agreements entered into among Delaware residents to be performed entirely within Delaware, without regard to principles of conflicts of law.
8.5Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.
8.6Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by electronic mail, or delivered by hand, messenger or courier service, or by nationally recognized overnight courier service,    addressed:
(a)if to the Investor, to the Investor’s address or electronic mail address as shown on the Investor’s signature page to this Agreement, or at such other current address or electronic mail address as the Investor shall have furnished to the Company, with a copy (which shall not constitute notice) to Judith T. Kitano, Munger, Tolles & Olson LLP, 350 South Grand Ave, 50th Floor, Los Angeles, California 90071, judith.kitano@mto.com.
(b)if to the Company, to the attention of the General Counsel of the Company at 450 Concar Drive, San Mateo, California 94402, or at such other current address or electronic mail address as the Company shall have furnished to the Investor, with a copy (which shall not 
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constitute notice) to Mark Tanoury, Jon Avina, Seth Gottlieb and Alex Kassai, Cooley LLP, 3175 Hanover Street, Palo Alto, California 94304.
Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally recognized overnight courier service, charges prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii)  if sent via electronic mail, when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day.
8.7Brokers or Finders.  The Company shall indemnify and hold harmless the Investor from any liability for any commission or compensation in the nature of a brokerage or finder’s fee or agent’s commission (and the costs and expenses of defending against such liability or asserted liability) for which the Investor or any of its constituent partners, members, officers, directors, employees or representatives is responsible or for which the existence of such liability is an inaccuracy in or breach of the representations and warranties contained in Section 3.7, and the Investor shall indemnify and hold harmless the Company from any liability for any commission or compensation in the nature of a brokerage or finder’s fee or agent’s commission (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its constituent partners, members, officers, directors, employees or representatives is responsible, or for which the existence of such liability is an inaccuracy in or breach of the representations and warranties contained in Section 4.7. 
8.8Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investor; provided, however, that any provision hereof may be waived by any waiving party on such party’s own behalf, without to consent of any other party.  
8.9Severability.  If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement, and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.
8.10Corporate Securities Law.  THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.
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8.11Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement among the parties. No party shall be liable or bound to any other party in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein or therein.
8.12Specific Performance.  The parties to this Agreement hereby acknowledge and agree that the Company would be irreparably injured by a breach of this Agreement by the Investor, and the Investor would be irreparably injured by a breach of this Agreement by the Company, and that money damages are an inadequate remedy for an actual or threatened breach of this Agreement because of the difficulty of ascertaining the amount of damage that will be suffered by the aggrieved party in the event that this agreement is breached.  Therefore, each of the parties to this Agreement agree to the granting of specific performance of this Agreement and injunctive or other equitable relief in favor of the aggrieved party as a remedy for any such breach, without proof of actual damages, and the parties to this Agreement further waive any requirement for the securing or posting of any bond in connection with any such remedy.  Such remedy shall not be deemed to be the exclusive remedy for breach of this Agreement, but shall be in addition to all other remedies available at law or in equity to the aggrieved party.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
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IN WITNESS WHEREOF, the parties have executed this Common Stock Purchase Agreement as of the date first above written.
									
	SNOWFLAKE INC.
		
			
			
	By:
	/s/ Michael P. Scarpelli	
	Name:
	Michael P. Scarpelli	
	Title:
	Chief Financial Officer	
			
			
	Address:
		450 Concar Drive
			San Mateo, CA 94402

SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

IN WITNESS WHEREOF, the parties have executed this Common Stock Purchase Agreement as of the date first above written.
						
	INVESTOR:
	
		
		
	BERKSHIRE HATHAWAY INC.
	
		
	By:
	/s/ Todd A. Combs
		
		
	Name:
	Todd A. Combs
		
		
	Title:
	Investment Officer
		
		
	Address:
	[Intentionally Omitted.]
		
		
	Email: 
	

SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

Exhibit A
Amendment to the Existing Rights Agreement

SNOWFLAKE INC.
AMENDMENT TO THE
Amended and Restated Investor Rights Agreement
This Amendment to the Amended and Restated Investor Rights Agreement (this “Amendment”), is made as of September [●], 2020, by and among Snowflake Inc., a Delaware corporation (the “Company”) and each of those persons and entities whose names are set forth on the signature pages hereto. Capitalized terms used but not herein defined shall have the meanings ascribed to them in that certain Amended and Restated Investor Rights Agreement, by and among the Company, the Investors and the Holders, dated as of February 7, 2020 (the “Existing Rights Agreement”).
RECITALS
WHEREAS, the Company has entered into that certain Common Stock Purchase Agreement, dated September [●], 2020, with Salesforce Ventures LLC, a Delaware limited liability company (“Salesforce”) and salesforce.com, inc., a Delaware corporation (the “Salesforce Purchase Agreement”), pursuant to which Salesforce will purchase shares of the Company’s Class A Common Stock (the “Salesforce Shares”), immediately subsequent to the closing of the Qualified IPO (as defined in the Salesforce Purchase Agreement). 
WHEREAS, the Company has entered into that certain Common Stock Purchase Agreement, dated September [●], 2020, with Berkshire Hathaway Inc., a Delaware corporation (“Berkshire Hathaway”) (such agreement, the “Berkshire Hathaway Purchase Agreement”), pursuant to which Berkshire Hathaway will purchase shares of the Company’s Class A Common Stock (the “Berkshire Hathaway Shares”), immediately subsequent to the closing of the Qualified IPO (as defined in the Berkshire Hathaway Purchase Agreement). 
WHEREAS, the Company and the undersigned parties desire to amend the terms of the Existing Rights Agreement for the limited purpose of providing Salesforce and Berkshire Hathaway with certain registration rights under Section 2.2 of the Existing Rights Agreement with respect to the Salesforce Shares, the Berkshire Hathaway Shares and the Secondary Sale Shares (as defined in the Berkshire Hathaway Purchase Agreement), respectively.
WHEREAS, pursuant to Section 5.5 of the Existing Rights Agreement, the Existing Rights Agreement may be amended only upon the written consent of the Company and holders of a majority of the then-outstanding Registrable Securities (collectively, the “Requisite Consent”).
WHEREAS, the undersigned parties constitute the Requisite Consent and consent to this Amendment.
AGREEMENT
NOW, THEREFORE, the undersigned parties hereby agree as follows:
1.Amendment to Section 1.2(h) of the Existing Rights Agreement. Section 1.2(h) of the Existing Rights Agreement is hereby amended and restated in its entirety to read as follows: 
"(h)“Registrable Securities” means (a) Common Stock of the Company issuable or issued upon conversion of the Shares, (b) any 

Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, such above-described securities, (c) the shares of Common Stock issuable pursuant to that certain Common Stock Purchase Agreement, dated as of September [●], 2020, by and among the Company, Salesforce Ventures LLC, and salesforce.com, inc. (Salesforce Ventures LLC and salesforce.com, inc. collectively, with their affiliates, donees, and partners, “Salesforce” and such shares of Common Stock, the “Salesforce Registrable Securities”), (d) the shares of Common Stock issuable pursuant to that certain Common Stock Purchase Agreement, dated as of September [●], 2020 (the “Berkshire Hathaway Purchase Agreement”), by and between the Company and Berkshire Hathaway Inc. (Berkshire Hathaway Inc. collectively, with its affiliates, donees, and partners, “Berkshire Hathaway”) and the Secondary Sale Shares (as defined in the Berkshire Hathaway Purchase Agreement) (the shares of Common Stock issuable pursuant to the Berkshire Hathaway Purchase Agreement and the Secondary Sale Shares, collectively, the “Berkshire Hathaway Registrable Securities”), and  (e) the Tender Offer Registrable Securities; provided, however, that (i) such Salesforce Registrable Securities shall not be deemed Registrable Securities and Salesforce shall not be deemed to be a Holder with respect to such Salesforce Registrable Securities for the purposes of Sections 2.2 (and any other applicable sections of this Agreement with respect to registrations under Section 2.2), 2.4 (and any other applicable sections of this Agreement with respect to registrations under Section 2.4), 2.6, 3.1, 3.2, 3.6 and 4 of this Agreement, (ii) such Berkshire Hathaway Registrable Securities shall not be deemed Registrable Securities and Berkshire Hathaway shall not be deemed to be a Holder with respect to such Berkshire Hathaway Registrable Securities for the purposes of Sections 2.2 (and any other applicable sections of this Agreement with respect to registrations under Section 2.2), 2.4 (and any other applicable sections of this Agreement with respect to registrations under Section 2.4), 2.6, 3.1, 3.2, 3.6 and 5.15 of this Agreement, and (iii) such Tender Offer Registrable Securities shall not be deemed Registrable Securities and the Tender Offer Holders shall not be deemed to be Holders with respect to such Tender Offer Registrable Securities for the purposes of Sections 2.2 (and any other applicable sections of this Agreement with respect to registrations under Section 2.2), 2.4 (and any other applicable sections of this Agreement with respect to registrations under Section 2.4), 2.6, 3.1, 3.2, 3.6 and 4 of this Agreement. Notwithstanding the foregoing, Registrable Securities shall not include any securities (x) sold by a person to the public either pursuant to a registration statement or Rule 144 or (y) sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned.”
2.Full Force and Effect. Except as expressly modified by this Amendment, the terms of the Existing Rights Agreement shall remain in full force and effect.

3.Governing Law. This Amendment shall be governed by and construed under the laws of the State of California in all respects as such laws are applied to agreements among California residents entered into and to be performed entirely within California, without reference to conflicts of laws or principles thereof. The parties agree that any action brought by either party under or in relation to this Amendment, including without limitation to interpret or enforce any provision of this Amendment, shall be brought in, and each party agrees to and does hereby submit to the jurisdiction and venue of, any state or federal court located in the County of Santa Clara, California.
4.Integration. This Amendment and the Existing Rights Agreement, and the documents referred to herein and therein and the exhibits and schedules thereto, constitute the entire agreement among the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled.
5.Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 
[SIGNATURE PAGES FOLLOW]potn_ex108.htm

EXHIBIT 10.8
  
 CONFIDENTIAL RELEASE AND SETTLEMENT AGREEMENT
   
 This Confidential Release and Settlement Agreement (“Agreement”) is entered into between and among the following Parties: Kathryn Potter (“Plaintiff”) and Diamond CBD, Inc. (“CBD”), First Capital Venture, Co. (“First Capital”), and Potnetwork Holdings, Inc. (“Potnetwork,” and together with CBD, and First Capital, the “Defendants” and together with the Plaintiff, collectively, the “Parties”), and it sets forth the binding agreement of Parties for the settlement of the following case: Potter v. Potnetwork Holdings, Inc., Diamond CBD, Inc., and First Capital Venture Co., CASE NO.: 19-24017-CV-SCOLA (the “Lawsuit”).
  
 RECITALS
  
 A. The Parties to this Agreement intend to settle all disputes, controversies, contentions, allegations, and claims relating to, arising from, or in any way connected with the Lawsuit.
  
 B. The Parties to this Agreement agree that it is in its/his/her best interest to settle and resolve all disputes between or among the Parties hereto and to go their separate ways.
  
 COVENANTS
  
 1. Settlement Class. All current and former Diamond CBD customers for whom Defendant has email addresses who purchased a) Chill Gummies (Watermelon Slices) – 150 mg; b) Unflavored Diamond CBD Oil – 550 mg; or c) Diamond CBD Infused Gummy Worms – 75 mg (the “Class Products”) online at www.https://www.diamondcbd.com/ between the dates of January 1, 2015 and July 15, 2020 (each a “Settlement Class Member”).
  
 2. Settlement Consideration.
  
 	  
	 a. 
	 Voucher - Diamond CBD shall email each Settlement Class Member advising them they are entitled a voucher in the amount of $10.00, that may be used without limitation, for the purchase of any products sold by Diamond CBD on the website, https://www.diamondcbd.com/. There will be no expiration date associated with either the acceptance of the voucher or its usage. To accept the voucher, the Settlement Class Member need only click on a link, which will result in them receiving an email containing the voucher code. The voucher may be used at any time. When the voucher code is input in the shopping cart checkout page by the Settlement Class Member, it shall automatically reduce the amount of purchase by $10.00.

	  
	  
	  

	  
	 b. 
	 Plaintiff’s Payment - Defendants shall pay Plaintiff the sum of $5,000.00 on or before August 15, 2020. Payment shall be made by wire transfer to Kopelowitz Ostrow P.A., pursuant to wire instructions to be provided by Kopelowitz Ostrow P.A.

  
 	 
	
	

	 

  
 	  
	 c. 
	 Attorneys’ Fees - Defendants shall pay Plaintiff’s Counsel attorneys’ fees in the total amount of $200,000.00, per the schedule below (“Fees”). All Fees shall be paid to Kopelowitz Ostrow P.A., pursuant to separate wire instructions to be provided by Kopelowitz Ostrow P.A.. Plaintiffs’ counsel will be responsible for the allocation and distribution of the fees amongst themselves. Fees shall be paid in the amounts set forth below and on or before the dates set forth below, or on the preceding business day if the date falls on a Saturday, Sunday or other day that banks are closed in state of Florida:

  
 1) $10,000.00 on or before August 15, 2020;
 2) $5,000.00 on or before September 15, 2020;
 3) $5,000.00 on or before October 15, 2020;
 4) $5,000.00 on or before November 15, 2020;
 5) $5,000.00 on or before December 15, 2020;
 6) $5,000.00 on or before January 15, 2021;
 7) $5,000.00 on or before February 15, 2021;
 8) $5,000.00 on or before March 15, 2021;
 9) $5,000.00 on or before April 15, 2021;
 10) $5,000.00 on or before May 15, 2021;
 11) $5,000.00 on or before June 15, 2021;
 12) $5,000.00 on or before July 15, 2021;
 13) $7,500.00 on or before August 15, 2021;
 14) $7,500.00 on or before September 15, 2021;
 15) $7,500.00 on or before October 15, 2021;
 16) $7,500.00 on or before November 15, 2021;
 17) $7,500.00 on or before December 15, 2021;
 18) $7,500.00 on or before January 15, 2022;
 19) $7,500.00 on or before February 15, 2022;
 20) $7,500.00 on or before March 15, 2022;
 21) $7,500.00 on or before April 15, 2022;
 22) $7,500.00 on or before May 15, 2022;
 23) $7,500.00 on or before June 15, 2022;
 24) $7,500.00 on or before July 15, 2022;
 25) $7,500.00 on or before August 15, 2022;
 26) $7,500.00 on or before September 15, 2022;
 27) $7,500.00 on or before October 15, 2022;
 28) $7,500.00 on or before November 15, 2022;
 29) $7,500.00 on or before December 15, 2022; and
 30) $7,500.00 on or before January 15, 2023.
  
 3. Reporting Requirements. Defendants shall provide calendar quarterly written reports (no more than 15 days following the end of each quarter) beginning with the calendar quarter ending September 30, 2020, and through the calendar quarter ending December 31, 2022, by email to Plaintiff’s Counsel at ostrow@kolawyers.com, who shall confirm receipt thereof, confirming how many vouchers were claimed and how many redeemed. Further, Defendants shall provide, upon reasonable request by Plaintiff’s Counsel, confirmation and supporting documentation that Defendants are manufacturing, selling and distributing the Class Products that contain the amounts of ingredients as found on the labels adhered to the products, within the parameters acceptable for the level of active ingredients in dietary supplements. Defendants shall have no obligation under this Agreement to continue selling the Class Products.
  
 	 
	2
	

	 

  
  
 4. Dismissal of Lawsuit. Upon the execution of this Agreement by all Parties, the Parties shall dismiss the Lawsuit with prejudice; provided however that such dismissal shall be conditioned on Defendants’ compliance with this Agreement. The Court shall retain jurisdiction over this Settlement Agreement and the enforcement thereof.
  
 5. Release. Upon consummation of the terms of this Agreement, each Party hereto releases, discharges, and relinquishes any and all claims, demands, causes of action, choses in action, or other rights, whether known or unknown, arising from or any way related to the Lawsuit, or any other matter encompassed or related to this Agreement or this Agreement’s subject matter. The only exceptions to the Release provided for in this Paragraph 5, are: (a) claims based on events, acts, or omissions taking place after the effective date of this Agreement; (b) actions to enforce or challenge the terms of this Agreement; and (c) claims or rights that cannot be released by law.
  
 6. Default. Time is of the essence for Defendants to perform all of their obligations under this Agreement. Should the payments set forth in paragraph 2 above not be received on the due date then Plaintiff’s Counsel shall provide written email notice to Defendants’ Counsel by email or fax of such non-receipt and Defendants shall have 3 days from its receipt of said written notice to provide proof of payment (the “Cure Period”). In the event Defendants default on its payment obligations more than 3 times, Defendants shall forfeit its right to the Cure Period and Kopelowitz Ostrow P.A. will have the discretion to immediately avail itself to the remedies set forth in paragraph 7 herein.
  
 7. Security for Payment of Attorneys’ Fees. As an inducement to enter into this Agreement, and to ensure payment of the Fees, Defendants have executed and delivered to Kopelowitz Ostrow P.A. a promissory note (the “Promissory Note”) with regard to the amounts payable pursuant to paragraph 2 and reserving with its transfer agent a number of shares of common stock of Defendant Potnetwork Holdings equal to the amounts due under the Promissory Note (based on seven day average trading price of such shares immediately before execution of this Agreement). The Promissory Note is attached hereto as Exhibit A. Upon a payment default, and after any Cure Period, Kopelowitz Ostrow P.A. may request Potnetwork Holdings’ transfer agent to transfer that number of pledged shares sufficient to satisfy the default into the name of Kopelowitz Ostrow P.A. (or its designee). Kopelowitz Ostrow P.A. and its designees may, in accordance with and subject to the federal securities laws, thereafter freely trade such shares, at such price and at such volume as Kopelowitz Ostrow P.A. may determine. Kopelowitz Ostrow P.A. shall keep a written account of all such shares sold and the net amount to Kopelowitz Ostrow P.A. after commissions, taxes, costs and all other expenses (the result being the “Net Sales Proceeds”). The Net Sales Proceeds shall be applied to reduce the amount of Fees owed by Defendants. The Parties shall establish a separate written document on file with the transfer agent that will instruct them to transfer such number of reserved shares to Kopelowitz Ostrow P.A. (or its designee) upon its request after a Default and Cure Period.
  
 	 
	3
	

	 

  
 8. Defendants’ Obligations are Joint and Several. Each Defendant shall be jointly and severally liable and responsible for performance of all the Defendants’ obligations under this Agreement.
  
 9. Confidentiality of Agreement. Each party represents and agrees that, except as required by law or judicial process, it/he/she will keep the fact, terms, allegations, circumstances, and settlement amount of this Agreement completely confidential and will not disclose such confidential information to anyone except their attorneys, tax advisors, and other providing either professional, legal, or financial advice, all of whom will be bound by a confidentiality terms of this Agreement. If a third party or representative of a medium asks questions of any Party concerning the Lawsuit or this Agreement, the only permitted response is that the matter or issue has been resolved. In the event of a demand under color of law or judicial process for information protected by this confidentiality term, each Party agrees to notify counsel for the other Parties that demand in writing as soon as practicable so as to enable any Party to move for judicial protection of confidential information. Notwithstanding the foregoing, a Party is permitted by this Agreement to publish a press release or make such public filing as may be required by law indicating that the Lawsuit has been settled provided that such press release is approved by the other Parties hereto.
  
 10. Mutual Non-Disparagement. No Party to this Agreement or any of their owners, officers, directors, or high-level employees shall directly or indirectly, publicly or privately, disparage any other Party to this Agreement.
  
 11. Parties Bound. This Agreement is binding on and shall inure to the benefit of the Parties as well as to their heirs, successors, and assigns.
   
 12. Agreement Voluntarily Made with Participation by Counsel. Each Party hereto acknowledges that this Agreement has been entered into voluntarily and with the assistance and advice of an attorney of each Party’s choice.
   
 13. Interpretation. No Party shall be deemed the draftsperson of this Agreement. No ambiguity herein shall be construed against any Party hereto.
  
 14. Entire Agreement. This Agreement constitutes a single integrated contract expressing the entire agreement of the Parties and supersedes all prior and contemporaneous oral and written agreements and discussions with respect to the subject matter, including that certain Term Sheet by and among the Parties dated July 21, 2020. There are no other agreements, written or oral, express or implied, between the Parties, concerning the subject matter of this Agreement.
  
 15. Severability. If a court determines that any part of this Agreement is invalid or unlawful, that determination will not affect any other part of this Agreement that can be enforced by disregarding the invalid or unlawful part. The rest of this Agreement will continue in full force and effect.
  
 	 
	4
	

	 

  
 16. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Florida, without regard to its choice of law rules.
   
 17. No Waiver. Failure by any Party to enforce any of its rights or remedies provided to it in this Agreement shall not be deemed a waiver of those rights.
  
 18. No Admission. This Agreement is entered into solely for the purpose of settlement. Nothing herein may be cited or construed as, or may be used as, an admission by or against any Party of any fault, wrongdoing or liability of any kind whatsoever.
  
 19. Amendment or Modification. This Agreement may only be amended or modified by a written instrument signed by all parties to this Agreement.
  
 20. Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile and pdf signatures shall be deemed originals.
  
 21. Effective Date. The Parties deem that the Effective Date of this Agreement is the date of signing.
  
 22. Notices. Any notice, other communication or payment required or permitted hereunder shall be in writing and shall be deemed to have been given upon delivery if personally delivered or three (3) business days after deposit if deposited in the United States mail for mailing by certified mail, postage prepaid or by electronic mail, if permitted by law, with read receipt received.
   
 [Signature Page Follows]
  
 	 
	5
	

	 

  
 
 	 
	
	

	 

   
 CONFIDENTIAL RELEASE AND SETTLEMENT AGREEMENT
  
  
  
 	 
	
	

	 

  
 EXHIBIT A
  
 (promissory note)
  
 	 
	
	

	 

  
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN ISSUED IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH ACTS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED, EXCEPT (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACTS; OR (ii) UPON THE ISSUANCE TO THE COMPANY OF AN OPINION OF COUNSEL, OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE, AS MAY BE SATISFACTORY TO THE COMPANY, THAT SUCH PROPOSED SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION WILL NOT BE IN VIOLATION OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACT.
   
 CONVERTIBLE PROMISSORY NOTE
  
 	 $200,0000 
	  
	 August 17, 2020

  
 The Company and the Holder (as defined below) having entered into that Settlement Agreement by and among Kathryn Potter and the Company of even date herewith (the “Settlement Agreement”), agree as follows:
  
 	 1. 
	Payment.

  
 	  
	 1.1. 
	 Principal Amount. Diamond CBD, Inc. (“CBD”), First Capital Venture, Co. (“First Capital”), and Potnetwork Holdings, Inc. (“Potnetwork,” and together with CBD, and First Capital, the “Company”), for value received, hereby promises to pay to the order of Kopelowitz Ostrow P.A. (the “Holder”) the sum of Two Hundred Thousand U.S. Dollars ($200,000.00) (the “Principal Amount”).

	  
	  
	  

	  
	 1.2. 
	 Schedule of Payments; No Interest or Fees. The Principal Amount of this Convertible Promissory Note (the “Note”) shall be payable in 30 installments at the time and in the manner provided in paragraph 2 of the Settlement Agreement, free of any and all interest or other fees or charges of any kind through the date of payment in full of the installments. No interest shall be charged or accrue on the Principal Amount and no fees shall be charged in respect thereof, including in the event of a default in payment. The only remedy available for default under this Note is conversion as described below.

	  
	  
	  

	  
	 1.3. 
	 Reservation of Shares. Upon execution of this Note, the Company shall reserve with its transfer agent that number of shares of common stock of Potnetwork equal to the amount owing hereunder (the “Share Reserve”). The Share Reserve will be governed by an Irrevocable Agent Instruction Letter in the form attached hereto as Exhibit A. The shares Company shall maintain an adequate number of shares in the Share Reserve to affect the foregoing.

   
 	 
	-1-
	

	 

  
 	  
	 1.4. 
	 Default in Payment Schedule; Conversion Right. Upon a failure by the Company of a scheduled installment payment as required under the Settlement Agreement, and the expiration of any Cure Period per the Settlement Agreement, the Holder may convert such amounts due in that installment period into such number of shares of Common Stock of Potnetwork sufficient to satisfy that particular default into the name of Kopelowitz Ostrow P.A. (or its designee). Under no circumstances should an event of default occur, shall Company be charged any default interest in addition to the Principal of this Note.

	  
	  
	  

	  
	 1.5. 
	 Calculation of Conversion Price. If the Holder requests to convert a past due amount owed into shares, the number of shares to be issued shall be determined by dividing the amount owed on the applicable payment date by the seven-day average market closing price of Potnetwork shares immediately prior to the date upon which the Holder requests such conversion in writing.

	  
	  
	  

	  
	 1.6. 
	 Transfers After Conversion. Upon transfer by the transfer agent of that number of pledged shares sufficient to satisfy any such default, Kopelowitz Ostrow P.A. and its designees may, in accordance with the other terms of this Note, including Section 6 and subject to federal and state securities laws, thereafter freely trade such shares, at such price and at such volume as Kopelowitz Ostrow P.A. may determine; provided that, any sale price shall not be less than 90% of the market price of the common shares of Potnetwork as reported by OTC Markets or its principal market (the “Minimum Sale Price”). “Market Price” shall mean the average volume weighted average price for the 5 trading days preceding the date upon which the Holder sells the Potnetwork shares.

	  
	  
	  

	  
	 1.7. 
	 Adjustment to Fees Owed and Principal Amount upon Sale. Kopelowitz Ostrow P.A. shall keep a written account of all such converted shares sold and the net amount to Kopelowitz Ostrow P.A. after reasonable commissions, taxes, costs and all other expenses of the sale, which taken as a whole, are not in excess of ordinary costs and fees (the result being the “Net Sales Proceeds”). The Net Sales Proceeds shall be applied to reduce the amount of Fees and Principal owed by the Company to the Holder under the Settlement Agreement and this Note.

	  
	  
	  

	  
	 1.8. 
	Maximum Conversion.

   
 	  
	 a. 
	 Notwithstanding anything to the contrary contained herein, if Potnetwork is a reporting issuer filing period reports with the U.S. Securities and Exchange Commission (the “SEC”), the number of conversion shares that may be acquired by the Holder upon any and all conversion of this Note (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that, following such conversion (or other issuance), the total number of shares of common stock of Potnetwork then beneficially owned by the Holder and its affiliates and any other persons whose as amended, (the “1934 Act”), does not exceed 4.999% of the total number of issued and outstanding shares of common stock of Potnetwork (including for such purpose the shares of common stock issuable upon such conversion). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder.

  
 	 
	-2-
	

	 

  
 	  
	 b. 
	 Nowithstanding the foregoing, if Potnetwork is a non-reporting issuer, the number of conversion shares that may be acquired by the Holder upon conversion of this Note (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that, following such conversion (or other issuance), the total number of shares of common stock of Potnetwork then beneficially owned by the Holder and its affiliates and any other persons whose beneficial ownership of common stock of Potnetwork would be aggregated with the Holder’s for purposes of Section 13(d) of the 1934 Act, does not exceed 9.999% of the total number of issued and outstanding shares of common stock of Potnetwork (including for such purpose the shares of common stock issuable upon such conversion). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder.

	  
	  
	  

	  
	 c. 
	The limitations set forth in this Section 1.8 shall not be waived.

  
 	  
	 1.9. 
	 Satisfaction. Upon payment in full to the Holder of the amount due under this Note, by timely payment in accordance with the schedule set forth in the Settlement Agreement, Net Sales Proceeds or a combination of both, this Note shall be surrendered to the Company for cancellation.

   
 	 2. 
	Representations, Warranties and Covenants of the Company. The Company represents, warrants and covenants with the Holder as follows:

  
 	  
	 2.1. 
	 Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company

	  
	  
	  

	  
	 2.2. 
	 No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.

  
 	 
	-3-
	

	 

  
 	 3. 
	Representations and Covenants of the Holder. The Company has entered into this Note in reliance upon the following representations and covenants of the Holder:

  
 	  
	 3.1. 
	 Investment Purpose. This Note and the stock issuable upon default pursuant to this Note are “acquired” for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.

	  
	  
	  

	  
	 3.2. 
	 Private Issue. The Holder understands (i) that this Note and the shares issuable upon default and conversion hereunder are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 3.

   
 	 4. 
	Assignment. Subject to the restrictions on transfer described in Section 6 below, the rights and obligations of the Company and the Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.
	  
	  

	 5. 
	Waiver and Amendment. Any provision of this Note may only be amended, waived or modified upon the written consent of the Company and the Holder.
	  
	  

	 6. 
	 Transfer of This Note or Securities Issuable on Default. With respect to any offer, sale or other disposition of this Note or securities into which any part of this Note may be converted, the Holder will give written notice to the Company prior thereto, describing briefly the manner thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests and notifies the Holder thereof within five (5) business days after receiving notice of the transfer, the Holder may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

	  
	  

	 7. 
	 Notices. Any notice, other communication or payment required or permitted hereunder shall be in writing and shall be deemed to have been given upon delivery if personally delivered or three (3) business days after deposit if deposited in the United States mail for mailing by certified mail, postage prepaid or by electronic mail with read receipt received. Notice is as follows and may be changed by giving notice to the other party:

  
 Potnetwork Holdings
 3531 Griffin Road
 Fort Lauderdale, FL 33312
 Attn: Kevin Hagen kevin@potnetworkholding.com
  
 	 
	-4-
	

	 

  
 With a copy to (which shall not constitute notice)
  
 Jonathan D. Leinwand, P.A.
 18851 NE 29th Ave., Suite 1011
 Aventura, FL 33180
 Attn: Jonathan Leinwand <jonathan@jdlpa.com>
  
 Kopelowitz Ostrow
 Ferguson Weiselberg Gilbert
 One West Las Olas Blvd., Suite 500
 Fort Lauderdale, Florida 33301
 Attn: Jeff Ostrow <ostrow@kolawyers.com>
   
 	 8. 
	Governing Law. This Note is being delivered in and shall be construed in accordance with the laws of the State of Florida, without regard to the conflicts of laws provisions thereof.
	  
	  

	 9. 
	Heading; References; Terms. All headings used herein are used for convenience only and shall not be used to construe or interpret this Note. Except as otherwise indicated, all references herein to Sections refer to Sections hereof. Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Settlement Agreement.
	  
	  

	 10. 
	Delays. No delay by the Holder in exercising any power or right hereunder shall operate as a waiver of any power or right.
	  
	  

	 11. 
	Severability. If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of the Note shall be interpreted as if such provision was so excluded and shall be enforceable in accordance with its terms.
	  
	  

	 12. 
	Entire Agreement. Except as otherwise expressly provided herein, this Agreement and the other documents, agreements, and instruments, executed and delivered pursuant to or in connection with this Agreement, including the Settlement Agreement of even date herewith and the Irrevocable Transfer Agent Instruction Letter, attached hereto as Exhibit A, contains the entire agreement among the parties hereto with respect the subject matter hereof, and such Agreement supersedes all prior arrangements or understandings with respect to the subject matter hereof, both written and oral.

    
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 EXHIBIT A
  
 (Transfer Agent Instruction Letter)
   
 	 
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