Document:

Exhibit 10.1

 

THIS NOTE HAS BEEN ISSUED WITH “ORIGINAL
ISSUE DISCOUNT” FOR U.S. FEDERAL INCOME TAX PURPOSES. THE ISSUER WILL MAKE AVAILABLE TO ANY HOLDER OF THIS NOTE: (1) THE ISSUE PRICE
AND ISSUE DATE OF THE NOTE, (2) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE NOTE, (3) THE YIELD TO MATURITY OF THE NOTE, AND (4) ANY
OTHER INFORMATION REQUIRED TO BE MADE AVAILABLE BY U.S. TREASURY REGULATIONS UPON RECEIVING A WRITTEN REQUEST FOR SUCH INFORMATION AT
THE FOLLOWING ADDRESS: 20295 29TH PLACE, #200, AVENTURA, FL 33180.

 

NEITHER THE ISSUANCE NOR SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B)
AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND ACCEPTABLE BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE
FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES.

 

	Principal Amount: $555,555.56	Issue Date: April 7, 2021 

Purchase Price: $500,000

Original Issue Discount: $55,555.56

 

SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

 

For value received, CROSSWIND
RENEWABLE ENERGY CORP., an Oklahoma corporation, (referred to hereinafter as “CWNR” or the “Borrower”),
hereby promises to pay to the order of LEONITE CAPITAL, LLC, a Delaware limited liability company, or registered assigns (the “Holder”)
the principal sum of up to five hundred fifty five thousand five hundred fifty five and 56/100 Dollars ($555,555.56) or so much as has
been advanced in one or more tranches (the “Principal Amount”), together with interest on the Principal Amount, on
the dates set forth below or upon acceleration or otherwise, as set forth herein (or as may be amended, extended, renewed and refinanced,
collectively, this “Note”). The “Interest Rate” shall reset daily and accrue at a rate equal to
the greater of (i) the Prime Rate plus six and three quarter percent (6.75%) per annum, or (ii) ten percent (10%). The “Prime
Rate” shall mean that variable rate of interest published from time to time by the Wall Street Journal as the prime rate of
interest. In no event shall the Interest Rate exceed the maximum rate allowed by law; any interest payment which would for any reason
be unlawful under applicable law shall be applied to principal.

 

The consideration to the Borrower
for this Note is five hundred thousand Dollars ($500,000) (the “Consideration”) to be paid in one or more tranches
(each, a “Tranche”). The first Tranche shall consist of a payment by Holder to Borrower on the Issue Date of no less
than two hundred fifty thousand Dollars ($250,000). Holder shall retain five thousand dollars ($5,000) from the first Tranche advanced
to the Borrower to cover legal fees. The timing and amounts of the remainder of the Tranches (the “Subsequent Tranches”)
shall be distributed at Holder’s sole discretion, except that so long as no Event of Default shall have occurred, and the Registration
Statement contemplated in Section 3.13 below shall have been declared effective by the SEC within 180 days of the Issue Date, then if
shares of the Borrower’s common stock close at or above $1.50 per share for five consecutive Trading Days, with trading volume of
no less than 100,000 for each of such Trading Days, Holder agrees to advance any unadvanced portion of the Consideration. Each Subsequent
Tranche will be evidenced by a signed Flow of Funds Memorandum.

 

The maturity date (“Maturity
Date”) for each Tranche shall be at the end of the period that begins from the date each Tranche is advanced and ends twelve
(12) months thereafter (such periods each referred to herein as a “Tranche Term”). The principal sum, as well as interest
and other fees shall be due and payable in accordance with the payment terms set forth in Article I herein. Notwithstanding the foregoing,
the Maturity Date for this Note and all Tranches advanced hereunder, shall be no later than the date upon which the Borrower competes
a Registered Public Offering of shares of the Company. Subject to Section 5.9 below, this Note may not be prepaid in whole or in part
except as otherwise explicitly set forth herein.

 

Any amount of principal, interest,
other amounts due hereunder or penalties on this Note, which is not paid by the due date as specified herein, shall bear interest at the
lesser of the rate of twenty percent (20%) per annum or the maximum legal amount permitted by law, from the due date thereof until the
same is paid (“Default Interest”).

 

 

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If any payment (other than
a payment due at maturity or upon default) is not made on or before its due date, the Holder may at its discretion collect a delinquency
charge equal to the greater of one hundred Dollars ($100.00) or five (5%) percent of the unpaid amount. The unpaid balances on all obligations
payable by Borrower and due to Holder pursuant to the terms of this Note, shall in addition to other remedies contained herein, bear interest
after default or maturity at an annual rate equal to the Default Interest rate.

 

Except as provided for in
Section 1.2.1 below, all payments of principal and interest due hereunder (to the extent not converted into Borrower’s common stock
(the “Common Stock”) shall be paid by automatic debit, wire transfer, check or in coin or currency which, at the time
or times of payment, is the legal tender for public and private debts in the United States of America and shall be made at such place
as Holder or the legal holder or holders of the Note may from time to time appoint in a payment invoice or otherwise in writing, and in
the absence of such appointment, then at the offices of Holder at such address as the Holder shall hereafter give to the Borrower by written
notice made in accordance with the provisions of this Note. Unless otherwise agreed or required by applicable law, payments will be applied
first to any accrued unpaid interest, then to any late charges, and then to principal. Whenever any amount expressed to be due by the
terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a
business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, interest shall continue
to accrue during such extension. As used in this Note, the term “business day” shall mean any day other than a Saturday,
Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain
closed.

 

This Note carries
an original issue discount of fifty five thousand five hundred fifty five and 56/100 Dollars ($55,555.56) (the “OID”),
to cover the Holder’s accounting fees, due diligence fees, monitoring, and/or other transactional costs incurred in connection with
the purchase and sale of the Note, which is included in the principal balance of this Note. Thus, the purchase price of this Note shall
be five hundred thousand Dollars ($500,000), computed as follows: the Principal Amount minus the OID. The OID shall be earned upon each
Tranche on a pro rata basis of their proportion of the total Consideration. (For example: upon the advance of the first Tranche, twenty
seven thousand seven hundred seventy seven and 78/100 Dollars ($27,777.78) shall be added to the principal amount of the outstanding Note
in addition to the amount advanced, and the total amount owed, or the total principal amount, shall be two hundred seventy seven thousand
seven hundred seventy seven and 78/100 Dollars ($277,777.78)). The portion of the Principal Amount that is owed by Borrower to Holder
at any time, is calculated based on the actual amounts advanced by Holder to Borrower pursuant to this Note, increased by the pro rata
portion of the OID earned for such actual amounts advanced, reduced by the amount of any payments or conversions applied towards the Principal
Amount.

 

It is further acknowledged
and agreed that the Principal Amount owed by Borrower under this Note shall be increased by the amount of all reasonable expenses incurred
by the Holder in connection with the collection of amounts due, or enforcement of any terms pursuant to, this Note. All such expenses
shall be deemed added to the Principal Amount hereunder to the extent such expenses are paid or incurred by the Holder.

 

This Note shall be a senior
secured obligation of the Borrower, with first priority over all current and future Indebtedness (as defined below) of the Borrower and
any subsidiaries, whether such subsidiaries exist on the Issue Date or are created or acquired thereafter (each a “Subsidiary”
and collectively, the “Subsidiaries”). The obligations of the Borrower under this Note are secured pursuant to the
terms of the security and pledge agreement (the “Security and Pledge Agreement”) of even
date herewith by and between the Borrower and the Holder, terms of which are incorporated by reference and
made part of this Note. With respect to any Subsidiary created or acquired subsequent to the Issue Date, Borrower agrees to cause such
Subsidiary to execute any documents or agreements that would bind the Subsidiary to the terms herein and in the Related Documents (defined
below).

 

This Note is issued by the
Borrower to the Holder pursuant to the terms of that certain Securities Purchase Agreement even date herewith (the “Purchase
Agreement” and collectively with the Security and Pledge Agreement, the “Related Documents”), terms of which
are incorporated by reference and made part of this Note. Each capitalized term used herein, and not otherwise defined, shall have the
meaning ascribed thereto in the Purchase Agreement. As used herein, the term “Trading Day” means any day that the Common Shares
are listed for trading or quotation on the OTC, or any other exchanges or electronic quotation systems on which the Common Shares are
then traded (as defined in the Purchase Agreement).

 

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

 

In addition to the terms
above, the following terms shall also apply to this Note:

 

 

 

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ARTICLE I. PAYMENTS

 

1.1           
Principal Payments. The Principal Amount of each Tranche shall be due and payable on the Maturity Date of such Tranche.

 

1.2           
Interest Payments. Interest on this Note (i) is computed separately for each Tranche; (ii) compounds monthly (that
is, for each month during each Tranche Term, the amount of accrued interest is determined by multiplying one twelfth (1/12th) of the Interest
Rate by the sum of the principal amount plus any accrued and unpaid interest of such Tranche); (iii) is payable on a monthly basis; and
(iv) is guaranteed to the Holder for the entirety of each Tranche Term, without regard to an acceleration of the Maturity Date, based
on the total Principal Amount of each Tranche, without regard to a reduction of the Principal Amount resulting from, without limitation,
Principal Payments, Conversion (as defined below), or prepayment by Borrower. Beginning on the date that is one month after the Issue
Date, and on the same day of each month thereafter throughout the term of this Note, Borrower shall make monthly payments of interest
due under this Note to the Holder at the Interest Rate as set forth above (each, an “Interest Payment”). See Exhibit
C, attached hereto, for a complete payment schedule for the first Tranche. Payment schedules for additional Tranche shall be provided
upon distribution of such additional Tranches.

 

1.3           
Other Payment Obligations. All payments, fees, penalties, and other charges, if any, due under this Note shall be payable
pursuant to the terms contained herein, but in any case, shall be payable no later than the Maturity Date.

 

ARTICLE II. CONVERSION RIGHTS

 

2.1           
Conversion Right. The Holder shall have the right at any time, at the Holder’s option to convert all or any part of
the outstanding and unpaid principal amount and accrued and unpaid interest of this Note into fully paid and non-assessable Common Shares
of Borrower or other securities into which such Common Shares shall hereafter be changed or reclassified (each, a “Conversion
Share”) at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”);
provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion
of this Note upon conversion of which the sum of (1) the number of Common Shares beneficially owned by the Holder and its affiliates (other
than Common Shares which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised
or unconverted portion of any other security of Borrower subject to a limitation on conversion or exercise analogous to the limitations
contained herein, and, if applicable, net of any shares that may be deemed to be owned by any person not affiliated with the Holder who
has purchased a portion of the Note from the Holder) and (2) the number of Common Shares issuable upon the conversion of the portion of
this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and
its affiliates of more than 4.99% of the outstanding Common Shares. For purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further,
however, that the limitations on conversion may be waived (up to a maximum of 9.99%) by the Holder upon, at the election of the
Holder, not less than 61 days’ prior notice to Borrower, and the provisions of the conversion limitation shall continue to apply
until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of Common
Shares to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the
applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit
A (the “Notice of Conversion”), delivered to Borrower by the Holder in accordance with Section 2.4 below; provided
that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in,
notice) to Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The
term “Conversion Amount” means, with respect to any conversion of this Note, the sum of: (1) the principal amount of
this Note to be converted in such conversion; plus (2) at the Holder’s option, accrued and unpaid interest; provided, however,
that at the option of Holder, the accrued and unpaid interest can be converted prior to any other amounts under the Note, if any, on such
principal amount at the interest rates provided in this Note to the Conversion Date; plus (3) at the Holder’s option, Default
Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2); plus (4) the Holder’s expenses
relating to a Conversion, including but not limited to amounts paid by Holder on the Borrower’s transfer agent account; plus
(5) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 2.3 and 2.4(g) hereof.

 

2.2           
Conversion Price.

 

(a)            
Calculation of Conversion Price. The Conversion Price shall be $0.02 (the “Fixed Conversion Price”);
provided that at any time after any Event of Default (as defined herein) under this Note, the Conversion Price shall immediately
be equal to the lesser of (i) the Fixed Conversion Price; (ii) sixty five percent (65%) of the lowest intraday price during the twenty
one (21) consecutive Trading Day period immediately preceding the Trading Day that the Borrower receives a Notice of Conversion or (iii)
the discount to market based on subsequent financing.

 

(b)            
Fixed Conversion Price Adjustments.

 

(1)            
Intentionally Omitted.

(2)            
Common Share Distributions and Splits. If Borrower, at any time while this Note is outstanding: (i) pays a distribution
on its Common Shares or otherwise makes a distribution or distributions payable in Common Shares on its Common Shares; (ii) subdivides
outstanding Common Shares into a larger (or smaller) number of shares; or (iii) issues, in the event of a reclassification of shares of
Common Shares, any Common Shares of Borrower, then the Fixed Conversion Price shall be multiplied by a fraction of which the numerator
shall be the number of Common Shares (excluding any treasury shares of Borrower) outstanding immediately before such event and of which
the denominator shall be the number of Common Shares outstanding immediately after such event.

 

 

 

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(3)            
Fundamental Transaction. If, at any time while this Note is outstanding, (i) Borrower effects any merger or consolidation
of Borrower with or into another person, (ii) Borrower effects any sale of all or substantially all of its assets in one transaction or
a series of related transactions, (iii) any tender offer or exchange offer (whether by Borrower or another person) is completed pursuant
to which holders of Common Shares are permitted to tender or exchange their shares for other securities, cash or property, or (iv) Borrower
effects any reclassification of the Common Shares or any compulsory share exchange pursuant to which the Common Shares are effectively
converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”),
then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have
been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount
of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had
been, immediately prior to such Fundamental Transaction, the holder of 1 Common Share (the “Alternate Consideration”).
For purposes of any such conversion, the determination of the Fixed Conversion Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of Alternate Consideration issuable in respect of 1 Common Share in such Fundamental Transaction,
and Borrower shall apportion the Fixed Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration.

 

(4)            
Anti-dilution Adjustment. If at any time while this Note is outstanding, Borrower sells, grants, or otherwise makes a disposition
of Common Shares, or sells, grants, or otherwise makes a disposition of other securities (or in the case of securities existing on the
Issue Date, amends such securities) convertible into, exercisable for, or that would otherwise entitle any person or entity the right
to acquire Common Shares, or announces its intention, or files any document with the SEC or other regulatory body that reflects its intention
to do of any of the foregoing, at an effective price per share that is lower than the then Fixed Conversion Price (such lower price, the
“Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (it being agreed
that if the holder of the Common Shares or other securities so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which
are issued in connection with such issuance, be entitled to receive Common Shares at an effective price per share that is lower than the
Fixed Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive
Issuance, and the Base Conversion Price shall then be adjusted to equal the lowest of such issuance price), then the Fixed Conversion
Price shall be reduced to a price equal the Base Conversion Price as it may be adjusted as provided for above. Such adjustment shall be
made whenever such Common Shares or other securities are issued. Notwithstanding the foregoing, no adjustment will be made under this
Section 2.2(b)(4) in respect of an Exempt Issuance. For purposes of this Section 2.2(b)(4) an “Exempt Issuance” means
an issuance of Common Shares or other securities convertible into or exercisable or exchangeable for Common Shares (i) upon the exercise
or exchange of any securities issued hereunder under the Warrants and/or other securities exercisable or exchangeable for or convertible
into Common Shares issued and outstanding on the date of this Note, (ii) to employees or directors of, or consultants or advisors to,
Borrower or any of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors of Borrower, (iii)
to banks, equipment lessors or other financial institutions, or to real property lessors, pursuant to a debt financing, equipment leasing
or real property leasing transaction approved by the Board of Directors of Borrower, (iv) to suppliers or third party service providers
in connection with the provision of goods or services pursuant to transactions approved by the Board of Directors of Borrower, (v) pursuant
to the acquisition of another corporation or other entity by Borrower by merger, purchase of substantially all of the assets or other
reorganization or pursuant to a joint venture agreement, provided that such issuances are approved by the Board of Directors of Borrower,
(vi) to third parties in connection with collaboration, technology license, development, marketing or other similar agreements or strategic
partnerships approved by the Board of Directors of Borrower, or (vii) shares with respect to which the Holder waives its anti-dilution
rights granted hereby; provided, however, that any such issuance described in (iii) through (vi) shall only be to a person (or to the
equity holders of a person) which is, itself or through its Subsidiaries, an employee, director, consultant or advisor, in the case of
(ii) above, or an operating company or an owner of an asset in a business synergistic with the business of Borrower in the case of (iii)
through (vi) above and shall provide to Borrower additional benefits in addition to the investment of funds, but in none of (ii) through
(vi) above shall not include a transaction in which Borrower is issuing securities primarily for the purpose of raising capital or to
an entity whose primary business is investing in securities. In the event of an issuance of securities involving multiple tranches or
closings, any adjustment pursuant to this Section 2.2(b)(4) shall be calculated as if all such securities were issued upon distribution
of the initial tranche.

 

(5)            
Notice to the Holder. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 2.2(b), Borrower
shall within two (2) business days deliver to the Holder a notice setting forth the Fixed Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment, provided that Borrower’s failure to timely provide the notice shall
not affect the automatic adjustments contemplated hereby.

 

 

 

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2.3           
Authorized Shares. Borrower covenants that during the period the conversion right exists, Borrower will reserve from its
authorized and unissued Common Shares a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common
Shares upon the full conversion of this Note and exercise of the Warrants. Borrower is required at all times to have authorized and reserved
seven (7) times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the
Note in effect from time to time, which, if cannot be determined shall be estimated in good faith by Borrower) it being acknowledged and
agreed by the parties that for the initial issuance of the Note, 100,000,000 shares of Common Shares is sufficient and will be reserved
(the “Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance with Borrower’s
obligations hereunder. Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.
In addition, if Borrower shall issue any securities or make any change to its capital structure which would change the number of Common
Shares into which the Note shall be convertible at the then current Conversion Price, Borrower shall at the same time make proper provision
so that thereafter there shall be a sufficient number of Common Shares authorized and reserved, free from preemptive rights, for conversion
of the outstanding Note, including but not limited to authorizing additional shares or effectuating a reverse split. Borrower (i) acknowledges
that it has irrevocably instructed its transfer agent by letter, a copy of which is attached hereto as Exhibit B to issue certificates
for the Common Shares issuable upon conversion of this Note and exercise of the Warrants, and (ii) agrees that its issuance of this Note
shall constitute full authority to its officers and agents who are charged with the duty of executing Common Share certificates to execute
and issue the necessary certificates for Common Shares in accordance with the terms and conditions of this Note. If, at any time Borrower
does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

 

2.4           
Method of Conversion.

 

(a)            
Mechanics of Conversion. Subject to Section 2.1, this Note may be converted by the Holder in whole or in part, at any time
from the date hereof, by (A) submitting to Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication
dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 2.4(b), surrendering this Note
at the principal office of Borrower.

 

(b)            
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to Borrower unless the entire
unpaid principal amount of this Note is so converted. The Holder and Borrower shall maintain records showing the principal amount so converted
and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and Borrower, so as not to require
physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of Borrower shall,
prima facie, be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this
Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid
and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

 

(c)            
Payment of Taxes. Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of Common Shares or other securities or property on conversion of this Note in a name other than that of the
Holder (or in street name), and Borrower shall not be required to issue or deliver any such shares or other securities or property unless
and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s
account) requesting the issuance thereof shall have paid to Borrower the amount of any such tax or shall have established to the satisfaction
of Borrower that such tax has been paid.

 

(d)            
Delivery of Common Shares Upon Conversion. Upon receipt by Borrower from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section
2.4, Borrower shall issue and deliver to or cause to be issued and delivered to or upon the order of the Holder certificates for Common
Shares issuable upon such conversion by the end of the next business day after such receipt (the “Deadline”) (and,
solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof.

 

 

 

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(e)            
Obligation of Borrower to Deliver Common Shares. Upon receipt by Borrower of a Notice of Conversion, the Holder shall be
deemed to be the holder of record of the Common Shares issuable upon such conversion, the outstanding principal amount and the amount
of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless Borrower defaults on its obligations
under this Article II, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right
to receive the Common Shares or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have
given a Notice of Conversion as provided herein, Borrower’s obligation to issue and deliver the certificates for Common Shares shall
be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with
respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay
in the enforcement of any other obligation of Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder of any obligation to Borrower, and irrespective of any other circumstance which
might otherwise limit such obligation of Borrower to the Holder in connection with such conversion. The Conversion Date specified in the
Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by Borrower before 9:00 p.m., New York,
New York time, on such date.

 

(f)             
Delivery of Common Shares by Electronic Transfer. In lieu of delivering physical certificates representing the Common Shares
issuable upon conversion, provided Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in
Section 2.1 and in this Section 2.4, Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common
Shares issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”) system. If the Borrower is not registered with DTC as of the Issue Date, the Borrower shall
be required to register with DTC within 30 days of the Issue Date, and the provisions of this paragraph shall apply after such registration.
Failure to become DTC registered or maintain DTC eligibility as provided herein shall be an Event of Default under Section 4.22 of this
Note.

 

(g)            
Failure to Deliver Common Shares Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if Borrower causes the Common Shares issuable upon
conversion of this Note to not be delivered by the second (2nd) Trading Day following the Deadline (other than a failure due to the circumstances
described in Section 2.3 above, which failure shall be governed by such Section) Borrower shall pay to the Holder $1,000 per day in cash,
for each day beyond the Deadline that Borrower fails to deliver such Common Shares. Such cash amount shall be paid to Holder by the fifth
day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to Borrower by the first
day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest
shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Shares
in accordance with the terms of this Note. Borrower agrees that the right to convert is a valuable right to the Holder, and as such, Borrower
will not take any actions to hamper, delay or prevent any Holder conversion of the Note. The damages resulting from a failure, attempt
to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge
that the liquidated damages provision contained in this Section 2.4(g) are justified.

 

2.5           
Concerning the Common Shares. The Common Shares issuable upon conversion of this Note may not be sold or transferred unless
(i) such shares are sold pursuant to an effective registration statement under the Act or (ii) Borrower or its transfer agent shall have
been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable
transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration
or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”)
or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 2.5 and who is an Accredited Investor. Except as otherwise provided (and subject
to the removal provisions set forth below), until such time as the Common Shares issuable upon conversion of this Note have been registered
under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular
date that can then be immediately sold, each certificate for Common Shares issuable upon conversion of this Note that has not been so
included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

 

    	 	6	 

     

    

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B)
AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND ACCEPTABLE TO THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE
FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES.

 

The legend set forth above shall be removed and
Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) Borrower or its transfer agent shall
have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the
effect that a public sale or transfer of such Common Shares may be made without registration under the Act, which opinion shall be accepted
by Borrower (which acceptance shall be subject to and conditioned on any requirements, if any, of the its transfer agent, the exchange
on which Borrower is then trading or other applicable laws, rules or regulations) so that the sale or transfer is effected or (ii) in
the case of the Common Shares issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective
registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities
as of a particular date that can then be immediately sold. In the event that Borrower does not accept the opinion of counsel provided
by the Holder with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S,
at the Deadline, it will be considered an Event of Default pursuant to Section 4.2 of the Note; provided that notwithstanding the foregoing,
if Borrower is legally unable to accept such opinion as a result of any of Borrower’s transfer agent requirements, the requirements
of the exchange on which Borrower is then traded, or other applicable laws, rules or regulations, Borrower’s non-acceptance shall
be an Event of Default pursuant to Section 4.25.

 

2.6           
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than
the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount
or Maximum Share Amount) shall be deemed converted into Common Shares and (ii) the Holder’s rights as a Holder of such converted
portion of this Note shall cease and terminate, excepting only the right to receive certificates for such Common Shares and to any remedies
provided herein or otherwise available at law or in equity to such Holder because of a failure by Borrower to comply with the terms of
this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all Common Shares prior to the tenth (10th) business
day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder
otherwise elects to retain its status as a holder of Common Shares by so notifying Borrower) the Holder shall regain the rights of a Holder
of this Note with respect to such unconverted portions of this Note and Borrower shall, as soon as practicable, return such unconverted
Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been
converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive
Conversion Default Payments pursuant to Section 2.3 to the extent required thereby for such Conversion Default and any subsequent Conversion
Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 2.3)
for Borrower’s failure to convert this Note.

 

ARTICLE III. RANKING, CERTAIN COVENANTS AND POST
CLOSING OBLIGATIONS

 

3.1           
Warrants. Upon the advance of each Tranche by Holder to the Borrower, Borrower shall issue to the Holder warrants (the “Warrants”),
each in the same form, exercisable for an amount of the Borrower’s Common Shares equal to six (6) multiplied by the Purchase Price
of such Tranche. The Warrants shall have a term of 36 Months, an exercise price of five cents ($0.05) per share, and shall contain full-ratchet
anti-dilution protection provisions.

 

3.2           
Equity Interest. Upon the advance of the first Tranche by Holder to the Borrower, Borrower shall issue to Holder seven hundred
fifty thousand (750,000) shares of Borrower’s common stock (the “Initial Equity Interest”). Upon the advance
of any future Tranche under this Note, Borrower shall issue to Holder an amount of the Borrower’s common stock equal to three (3)
multiplied by the Purchase Price such future Tranches (the “Additional Equity Interest” and collectively with the Initial
Equity Interest, the “Equity Interest”).

 

 

 

    	 	7	 

     

    

 

3.3           
Distributions on Common Shares. So long as the Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether
in cash, property or other securities) on the Common Shares (or other capital securities of the Borrower) other than dividends on Common
Shares solely in the form of additional Common Shares or (b) directly or indirectly or through any Subsidiary make any other payment or
distribution in respect of Common Shares (or other securities representing its capital) except for distributions that comply with Section
3.7 below.

 

3.4           
Restrictions on Certain Transactions. Restrictions on Variable Rate Transactions. Unless approved by the Holder, Borrower
and each Subsidiary shall not enter into an agreement or amend an existing agreement to effect any
sale of securities involving, or convert any securities previously issued under, a Variable Rate Transaction. The term “Variable
Rate Transaction” means a transaction in which Borrower or any Subsidiary (i) issues or sells any convertible securities either
(A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of, or quotations
for, the Common Shares at any time after the initial issuance of such convertible securities, or (B) with a conversion, exercise or exchange
price that is subject to being reset at some future date after the initial issuance of such convertible securities or upon the occurrence
of specified or contingent events directly or indirectly related to the business of Borrower or the Subsidiary, as the case may be, or
the market for the Common Shares, or (ii) enters into any agreement (including, without limitation,
an “equity line of credit” or an “at-the-market offering”) whereby Borrower or any Subsidiary may sell securities
at a future determined price (other than standard and customary “preemptive” or “participation” rights).  The
Holder shall be entitled to obtain injunctive relief against Borrower and its Subsidiaries to preclude any such issuance, which remedy
shall be in addition to any right to collect damages. 

 

3.5           
Restrictions on Other Certain Transactions. So long as the Borrower shall have any obligation under this Note and unless
approved in writing by the Holder (which such approval not to be unreasonably withheld), the Borrower shall not directly or indirectly:
(a) change the nature of its business; (b) sell, divest, change the structure of any material assets of the Borrower or any Subsidiary
other than in the ordinary course of business (c) accept Merchant-Cash-Advances in which it sells future receivables at a discount, any
other factoring transactions, or similar financing instruments or financing transactions; or (d) Enter into a borrowing arrangement where
the Company pays an effective APR greater than 20%.

 

3.6           
Restriction on Common Share Repurchases. So long as the Borrower shall have any obligation under this Note, Borrower shall
not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or
other securities or otherwise) in any one transaction or series of related transactions any Common Shares (or other securities representing
its capital) of Borrower or any warrants, rights or options to purchase or acquire any such shares; except for the repurchase of shares
at a nominal price in connection with rights under an agreement with an employee or consultant of the Borrower whose shares have been
forfeited as a result of such employee or consultant’s ceasing to provide services to the Borrower.

 

3.7           
Payments from Future Funding Sources. The Borrower shall pay to the Holder on an accelerated basis, any outstanding Principal
Amount of the Note, along with all unpaid interest, and fees and penalties, if any, from the sources of capital below, at the Holder’s
discretion, it being acknowledged and agreed by Holder that Borrower shall have the right to make Bona Fide payments to vendors with Common
Shares:

 

3.7.1      
Future Financing Proceeds - one hundred percent (100%) of the net cash proceeds of any future financings by Borrower or
any Subsidiary, whether debt or equity, or any other financing proceeds such as cash advances, royalties or earn-out payments provided,
however, that this provision is not applicable if the transaction generating the future financing proceeds has a specific use of proceeds
requirement that such proceeds are to be used exclusively to purchase the assets or equity of an unaffiliated business in an arm’s
length transaction and the proceeds are used accordingly.

 

3.7.2      
Other Future Receipts - all net proceeds from any sale of assets of Borrower or any of its Subsidiaries other than sales
of inventory of the Borrower or its Subsidiaries in the ordinary course of business or receipt by Borrower or any of its Subsidiaries
of any tax credits or collections pursuant to any settlement or judgement.

 

3.7.3      
Asset Sale - The Borrower shall pay to the Holder on an accelerated basis, any outstanding Principal Amount of the Note,
along with unpaid interest, and fees and penalties, if any, from the net proceeds to the Borrower or Subsidiary resulting from the sale
of any assets outside of the ordinary course of business or securities in any Subsidiary.

 

3.8           
Use of Proceeds. Borrower agrees to use the proceeds of this Note in accordance with Section 5.3 of the SPA.

 

 

 

    	 	8	 

     

    

 

3.9           
Ranking and Security. The obligations of the Borrower under this Note shall constitute a first priority
security interest and rank senior with respect to any and all Indebtedness existing prior to or incurred as of or following the initial
Issue Date. The obligations of the Borrower under this Note are secured pursuant to the Security and Pledge Agreement attached hereto.
So long as the Borrower shall have any obligation under this Note, the Borrower shall not (directly or indirectly through any Subsidiary
or affiliate) incur or suffer to exist or guarantee any Indebtedness that is senior to or pari passu with (in priority of payment and
performance) the Borrower’s obligations hereunder. As used herein, the term “Indebtedness” means (a) all indebtedness
of the Borrower for borrowed money or for the deferred purchase price of property or services, including any type of letters of credit,
but not including deferred purchase price obligations in place as of the Issue Date or obligations to trade creditors incurred in the
ordinary course of business, (b) all obligations of the Borrower evidenced by notes, bonds, debentures or other similar instruments, (c)
purchase money indebtedness hereafter incurred by the Borrower to finance the purchase of fixed or capital assets, including all capital
lease obligations of the Borrower which do not exceed the purchase price of the assets funded, (d) all guarantee obligations of the Borrower
in respect of obligations of the kind referred to in clauses (a) through (c) above that the Borrower would not be permitted to incur or
enter into, and (e) all obligations of the kind referred to in clauses (a) through (d) above that the Borrower is not permitted to incur
or enter into that are secured and/or unsecured by (or for which the holder of such obligation has an existing right, contingent or otherwise,
to be secured and/or unsecured by) any lien or encumbrance on property (including accounts and contract rights) owned by the Borrower,
whether or not the Borrower has assumed or become liable for the payment of such obligation.

 

3.10        
Right of Participation. For a period of eighteen (18) months from the date hereof, in the event Borrower or any Subsidiary
of the Borrower, proposes to offer and sell its securities, whether debt, equity, or any other financing transaction (each a “Future
Offering”), the Holder shall have the right, but not the obligation, to participate in the purchase of the securities being
offered in such Future Offering up to an amount equal to one hundred percent (100%) of the maximum Principal Amount of this Note.

 

3.11        
Right of First Refusal. If at any time while this Note is outstanding, the Borrower or any Subsidiary has a bona fide offer
of capital or financing from any third party that the Borrower or any Subsidiary intends to act upon, then the Borrower must first offer
such opportunity to the Holder to provide such capital or financing to the Borrower or Subsidiary on the same terms as each respective
third party’s terms. Should the Holder be unwilling or unable to provide such capital or financing to the Borrower or Subsidiary
within 3 Trading Days from Holder’s receipt of written notice of the offer (the “Offer Notice”) from the Borrower,
then the Borrower or Subsidiary may obtain such capital or financing from that respective third party upon the exact same terms and conditions
offered by the Borrower to the Holder, which transaction must be completed within 30 days after the date of the Offer Notice. If the Borrower
or Subsidiary does not receive the capital or financing from the respective 3rd party within 30 days after the date of the
respective Offer Notice, then the Borrower must again offer the capital or financing opportunity to the Holder as described above, and
the process detailed above shall be repeated. The Offer Notice must be sent via electronic mail to avi@leonitecap.com Cc: dberger@bergerlawpllc.com.
Notwithstanding the foregoing, this clause shall not apply to a bona fide brokered offering in excess of five million Dollars ($5,000,000).

 

3.12        
Terms of Future Financings. So long as this Note is outstanding, upon any issuance of (or announcement of intent to effect
an issuance of) any security, or amendment to (or announcement of intent to effect an amendment to) any security that was originally issued
before the Issue Date, by the Borrower or any Subsidiary, with any term that the Holder reasonably believes is more favorable to the holder
of such security or with a term in favor of the holder of such security that the Holder reasonably believes was not similarly provided
to the Holder in this Note, then (i) the Borrower shall notify the Holder of such additional or more favorable term within three (3) business
days of the issuance and/or amendment (as applicable) of the respective security, and (ii) such term, at Holder’s option, shall
become a part of the transaction documents with the Holder (regardless of whether the Borrower complied with the notification provision
of this Section 3.12). The types of terms contained in another security that may be more favorable to the holder of such security include,
but are not limited to, terms addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, original
issue discounts, stock sale price, private placement price per share, and warrant coverage. If Holder elects to have the term become a
part of the transaction documents with the Holder, then the Borrower shall immediately deliver acknowledgment of such adjustment in form
and substance reasonably satisfactory to the Holder (the “Acknowledgment”) within three (3) business days of Borrower’s
receipt of request from Holder (the “Adjustment Deadline”), provided that Borrower’s failure
to timely provide the Acknowledgement shall not affect the automatic amendments contemplated hereby.

 

3.13        
Registration Rights. Borrower shall be required to file a Registration Statement within 90 days of the Issue Date to register
the Registrable Securities issued to Holder pursuant to this Note. Subsequent to the filing of the registration statement, Borrower shall
have the continuing obligation to use best efforts to have such registration statement declared effective by the SEC within 180 days of
the Issue Date, including but not limited to, the obligation to timely cure any questions, comments, or concerns the SEC may have concerning
the contemplated registration statement. As used herein, Registrable Securities shall mean the shares issuable upon Conversion of the
Note, the Reserved Amount, the Equity Interest shares and the shares underlying the Warrants.

 

 

 

    	 	9	 

     

    

 

3.14        
Exchange Act Reporting. Within three (3) months of the Issue Date, Borrower shall become a fully reporting company under
the SEC reporting requirements and become subject to and fully compliant with, the annual and periodic reporting requirements of the Exchange
Act (including but not limited to becoming current in its filings). Failure to become a fully reporting company and subject to and compliant
with the Exchange Act as described herein, as well as failure to maintain such fully reporting status once the Company becomes subject
to and fully compliant with the SEC reporting requirements under the Exchange Act (including but not limited to becoming delinquent in
its filings), shall be an event of default under Section 4.9.

 

3.15        
Opinion Letter. At the earlier of (i) six (6) months or (ii) on the date upon which the Borrower competes a Registered Public
Offering of shares of the Company, the Borrower shall be responsible for supplying an opinion letter specific to the fact that Common
Stock issued pursuant to conversion of the Note, as well as the Equity Interest and the shares issued pursuant to the Warrant are either
exempt from Registration Requirements pursuant to Rule 144 (so long as the requirements of Rule 144 are satisfied) or have been duly registered
and permitted to be sold and transferred without restriction. Failure to provide an opinion letter as described herein shall be an event
of default pursuant to Section 4.2 of the Note. Failure of the shares of the Company to be eligible for Rule 144 within six (6) months
shall be an event of default pursuant to Section 4.25 of the Note.

 

ARTICLE IV. EVENTS OF DEFAULT

 

It shall be considered an
event of default if any of the following events listed in this Article IV (each, an “Event of Default”) shall occur:

 

4.1       Failure
to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at
maturity, upon acceleration or otherwise. A three (3) day cure period shall apply for failure to make a payment when due except where
payments are noted herein as being due immediately or for payments due on the Maturity Date of any Tranche which in each case shall have
no cure period.

 

4.2           
Failure to Reserve Shares. Borrower fails to reserve a sufficient amount of Common Shares as required under the terms of
this Note (including the requirements of Section 2.3 of this Note), fails to issue Common Shares to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance
with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form)
Common Shares issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, Borrower directs
its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically
or in certificated form) Common Shares to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required
by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from
removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any Common Shares issued to the
Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement
or threat that it does not intend to honor the obligations described in this paragraph), or fails to supply an opinion letter specific
to the fact that Common Stock issued pursuant to conversion of the Note, as well as the Equity Interest and the shares issued pursuant
to the Warrant are exempt from Registration Requirements pursuant to Rule 144, and any such failure shall continue uncured (or any written
announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the
Holder shall have delivered a Notice of Conversion. It is an obligation of Borrower to remain current in its obligations to its transfer
agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance
owed by Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to Borrower’s transfer agent
in order to process a conversion, such advanced funds shall be paid by Borrower to the Holder within five (5) business days of a demand
from the Holder, either in cash or as an addition to the outstanding Principal Amount of the Note, and such choice of payment method is
at the discretion of Borrower.

 

4.3           
Breach of Covenants. Borrower, or the relevant related party, as the case may be, breaches any material covenant, post-closing
obligation or other material term or condition contained in this Note, or in the related Warrants, Purchase Agreement, Security and Pledge
Agreement, Term Sheet or any other collateral documents (together, the “Transaction Documents”) and breach continues
for a period of ten (10) days.

 

4.4           
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given pursuant hereto or in connection herewith, shall be false or misleading in any material respect when made
and the breach of which has (or with the passage of time will have) an effect on the rights of the Holder with respect to this Note and
the other Transaction Documents.

 

 

 

    	 	10	 

     

    

 

4.5           
Receiver or Trustee. Borrower or any subsidiary of Borrower shall make an assignment for the benefit of creditors, or apply
for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver
or trustee shall otherwise be appointed.

 

4.6           
Judgments or Settlements. (i) Any money judgment, writ or similar process shall be entered or filed against Borrower or
any subsidiary of Borrower or any of its property or other assets for more than $25,000, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) days unless otherwise consented to by the Holder; or (ii) the settlement of any claim or litigation, creating
an obligation on the Borrower in amount over $25,000.

 

4.7           
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against Borrower or any subsidiary
of Borrower. With respect to any such proceedings that are involuntary, Borrower shall have a 45 day cure period in which to have such
involuntary proceedings dismissed.

 

4.8           
Delisting of Common Shares. If at any time on or after the date in which Borrower’s Common Shares are listed or quoted
on the OTC Pink or an equivalent U.S. replacement exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the New York Stock Exchange,
or the NYSE MKT, Borrower shall fail to maintain the listing or quotation of the Common Shares, or if its shares have been suspended from
trading on the OTC Pink or a U.S. equivalent replacement exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the New York Stock
Exchange, or the NYSE MKT.

 

4.9           
Failure to Comply with the Exchange Act. Borrower shall fail within three months of the Issue Date to become a fully reporting
company under the SEC reporting requirements and become subject to, and fully compliant with, the annual and periodic reporting requirements
of the Exchange Act (including but not limited to failing to becoming current in its filings) and/or at any point after the earlier of
three months from the Issue Date or the date on which the Borrower becomes fully compliant with the Exchange Act, Borrower shall fail
to be fully compliant with, or cease to be subject to, the reporting requirements of the Exchange Act (including but not limited to becoming
delinquent in its filings).

 

4.10        
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

4.11        
Cessation of Operations. Any cessation of operations by the Borrower or the Borrower admits it is otherwise generally unable
to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

4.12        
Maintenance of Assets. The failure by Borrower to maintain any intellectual property rights, personal, real property or
other assets which are necessary to conduct its business (whether now or in the future), to the extent that such failure would result
in a material adverse condition or material adverse change in or affecting the business operations, properties or financial condition
of Borrower or any of its subsidiaries (a “Material Adverse Effect”).

 

4.13        
Financial Statement Restatement. Borrower restates any financial statements for any date or period from two years prior
to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to
the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note.

 

4.14        
Failure to Execute Transaction Documents or Complete the Transaction. The failure of the Borrower to execute any of the
Transaction Documents or to complete the transaction for the full Principal Amount of the Note, as contemplated by the Purchase Agreement.

 

4.15        
Illegality. Any court of competent jurisdiction issues an order declaring this Note, any of the other Transaction Documents
or any provision hereunder or thereunder to be illegal, as long as such declaration was not the result of an act of negligence by the
Holder, exclusive of the execution of the Transaction Documents or the transactions and acts contemplated herein.

 

4.16        
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents,
a breach or default by the Borrower of any covenant or other term or condition contained in any of the other financial instrument, including
but not limited to all promissory notes, currently issued, or hereafter issued, by the Borrower, to the Holder or any other third party
(the “Other Agreements”), after the passage of all applicable notice and cure or grace periods, that results in a Material
Adverse Effect shall, at the option of the Holder, be considered a default under this Note, in which event the Holder shall be entitled
to apply all rights and remedies of the Holder under the terms of this Note by reason of a default under said Other Agreement or hereunder.

 

 

 

    	 	11	 

     

    

 

4.17        
Variable Rate Transactions. The Borrower (i) enters into a Variable Rate Transaction (as defined
herein) (ii) issues Common Shares (or convertible securities or purchase rights) pursuant to an equity line of credit of the Borrower
or otherwise in connection with a Variable Rate Transaction (whether now existing or entered into in the future) or (iii) adjusts downward
the “floor price” at which Common Shares (or convertible securities or purchase rights) may be issued under an equity line
of credit or otherwise in connection with a Variable Rate Transaction (whether now existing or entered into in the future).

 

4.18        
Certain Transactions. Borrower enters into certain transactions prohibited by Sections 3.3, 3.4, 3.5, and 3.6 of this Agreement.

 

4.19        
Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice
to the Holder.

 

4.20        
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially
delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock
in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

4.21        
DTC “Chill”. The DTC places a “chill” (i.e. a restriction placed by DTC on one or more of DTC’s
services, such as limiting a DTC participant’s ability to make a deposit or withdrawal of the security at DTC) on any of the Borrower’s
securities.

 

4.22        
DWAC Eligibility. In addition to the Event of Default in Section 4.21, the Common Stock is otherwise not eligible for trading
through the DTC’s Fast Automated Securities Transfer or Deposit/Withdrawal at Custodian programs, or if the Borrower is not registered
with DTC on the Issue Date, Borrower fails to become DTC registered within 30 days of the Issue Date.

 

4.23        
Bid Price. The Borrower shall lose the “bid” price for its Common Stock ($0.0001 on the “Ask” with
zero market makers on the “Bid” per Level 2) and/or a market (including the OTC Pink, OTCQB or an equivalent replacement marketplace
or exchange).

 

4.24        
Inside Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose,
or any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public
information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing
of a Form 8-K pursuant to Regulation FD on that same date.

 

4.25        
Unavailability of Rule 144. If, at any time on or after the date which is six (6) months after the Issue Date, the Holder
is unable to (i) obtain a standard “144 legal opinion letter” from an attorney reasonably acceptable to the Holder, the Holder’s
brokerage firm (and respective clearing firm), and the Borrower’s transfer agent in order to facilitate the Holder’s conversion
of any portion of the Note into free trading shares of the Borrower’s Common Stock pursuant to Rule 144, and/or (ii) thereupon deposit
such shares into the Holder’s brokerage account.

 

4.26        
Intentionally Omitted.

 

4.27        
Remedies Upon Default.

 

(a)            
Upon the occurrence of any Event of Default specified in this Article IV, in addition to and without limitation of other remedies
set forth herein in this Note, (i) interest shall accrue at the Default Interest rate; (ii) this Note shall become immediately due and
payable, all without demand, presentment or notice, all of which are hereby expressly waived by the Borrower, and the Borrower shall pay
to the Holder, an amount (the “Default Amount”) equal to the Principal Amount then outstanding (including Liquidating Damages,
defined below) plus accrued and unpaid interest through the date of the Event of Default, unaccrued interest through the remainder of
the Tranche Terms, together with all costs, including, without limitation, legal fees and expenses of collection, and Default Interest
through the date of full repayment; and (iii) a liquidated damages charge equal to 25% of the outstanding balance due under the Note (“Liquidating
Damages”) will be assessed and will become immediately due and payable to the Holder, either in form of a cash payment or as an
addition to the Principal Amount due under the Note. In addition, the Holder shall be entitled to exercise all other rights and remedies
available at law or in equity, including, without limitation, those set forth in the Related Documents.

 

 

 

    	 	12	 

     

    

 

ARTICLE V. MISCELLANEOUS

 

5.1           
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to,
and not exclusive of, any rights or remedies otherwise available.

 

5.2           
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall
be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified,
return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, facsimile, or electronic mail addressed as set forth below or to such other address as such party shall have
specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery, upon electronic mail delivery, or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours
where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be:

 

If to the Borrower, to:

________________________

________________________

________________________

________________________

  

If to the Holder:

 

LEONITE CAPITAL LLC

1 Hillcrest Center Dr., Suite 232

Spring Valley, NY 10977

ATTN: Avi Geller

e-mail: avi@leonitecap.com 

Cc: Siegfied@leonitecap.com; jake@leonitecap.com;
dberger@bergerlawpllc.com

 

5.3           
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

5.4           
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in
Rule 501(a) of the 1933 Act).

 

5.5           
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including attorneys’ fees. Such amounts spent by Holder shall be added to the Principal Amount of the Note at the time of such expenditure.

 

 

 

    	 	13	 

     

    

 

5.6           
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Delaware without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state and/or federal courts located in Delaware. The parties to this Note hereby irrevocably
waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. THE BORROWER IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTIONS CONTEMPLATED
HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event
that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service
of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction
Documents 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 law. All transactions contemplated herein are being made subject to the rules of Iska as found on Leonite’s website
(Leonitecap.com/iska).

 

5.7           
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal
amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest,
the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult
to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty.

 

5.8           
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy
at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by
the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or
in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach
of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without
any bond or other security being required.

 

5.9           
Prepayment. Unless an Event of Default shall occur, Borrower shall have the right at any time prior to the Maturity Date,
upon thirty (30) days’ notice to the Holder, to prepay the Note by making a payment to Lender equal to 110% multiplied by the sum
of (i) the outstanding Principal Amount, (ii) all accrued and unpaid interest, (iii) all unaccrued interest through the remainder of the
Term that is guaranteed pursuant to Section 1.2 above, and (iv) any other amounts due under the Note. Notwithstanding the foregoing, Holder
may convert any or all of this Note into shares of Common Stock at any time.

 

5.10        
Usury. To the extent it may lawfully do so, the Borrower 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 the Holder in order to enforce any right
or remedy under this Note.  Notwithstanding any provision to the contrary contained in this Note, it is expressly agreed and provided
that the total liability of the Borrower under this Note for payments which under Delaware law are 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 which under Delaware
law in the nature of interest that the Borrower may be obligated to pay under this Note exceed such Maximum Rate.  It is agreed that
if the maximum contract rate of interest allowed by Delaware law and applicable to this Note 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 this Note 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 Borrower to the Holder with respect to indebtedness
evidenced by this Note, such excess shall be applied by the Holder to the unpaid principal balance of any such indebtedness or be refunded
to the Borrower, the manner of handling such excess to be at the Holder’s election.

 

 

 

    	 	14	 

     

    

 

5.11        
Section 3(a)(10) Transactions. If at any time while this Note is outstanding, the Borrower enters into a transaction structured
in accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act, then a liquidated
damages charge of 25% of the outstanding principal balance of this Note at that time, will be assessed and will become immediately due
and payable to the Holder, either in the form of cash payment or as an addition to the balance of the Note, as determined by mutual agreement
of the Borrower and Holder.

 

5.12        
No Broker-Dealer Acknowledgement. Absent a final adjudication from a court of competent jurisdiction stating otherwise,
so long as any obligation of Borrower under this Note or the other Transaction Documents is outstanding, the Company shall not state,
claim, allege, or in any way assert to any person, institution, or entity, that Holder is currently, or ever has been, a broker-dealer
under the Securities Exchange Act of 1934.

 

5.13        
Opportunity to Consult with Counsel. The Borrower represents and acknowledges that it has been provided with the opportunity
to discuss and review the terms of this Note and the other Transaction Documents with its counsel before signing it and that it is freely
and voluntarily signing the Transaction Documents in exchange for the benefits provided herein. In light of this, the Borrower will not
contest the validity of Transaction Documents and the transactions contemplated therein. The Borrower further represents and acknowledges
that it has been provided a reasonable period of time within which to review the terms of the Transaction Documents.

 

5.14        
Intentionally Omitted.

 

5.15        
Pending Legislation. As of the Issue Date hereof, proposed legislation exists, namely proposed amendments to Rule 144(d)(3)(ii)
proposed on December 22, 2020 in SEC Release 2020-336, that would fundamentally change the economic terms of this Note. In the event the
rule becomes law and becomes effective while any amounts are outstanding under this Note, Section 2.2 hereof shall be automatically amended
to contain only a fixed conversion price of $0.02 per share. In the event that the Borrower is in default of any of the provisions of
the Note or other Transaction Documents, and the Company has not cured said default within five (5) calendar days, the fixed conversion
price shall be reduced to $.01 per share (the “Default Fixed Price”) in addition to any other principal adjustments, default
interest, or other remedies available to it under law. Should the default remain uncured for 30 calendar days, the Default Fixed Price
shall decrease by 10% for every seven calendar days the respective default remains uncured. In the event the final rule, or any other
combination of final rules, make this provision inoperable, invalid, or otherwise have an effect that changes the economics of the transactions
contemplated hereby, the pertinent clause or mechanic of operation shall be stricken and only the fixed price provision shall remain.
The amendment contemplated in this paragraph 5.15 shall not apply so long as the Registrable Shares are saleable under an effective Registration
Statement.

 

[signature page to follow]

 

 

 

 

 

 

 

    	 	15	 

     

    

 

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be signed in its name by its duly authorized officer this April 7, 2021.

 

CROSSWIND RENEWABLE ENERGY CORP.

 

 

By:  /s/ Charles S. Arnold

Name: Charles S. Arnold

Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

    	 	16	 

     

    

 

EXHIBIT A – FORM OF NOTICE OF CONVERSION

 

(See Attached)

 

 

 

 

 

 

 

 

 

 

    	 	17	 

     

    

 

EXHIBIT B – FORM OF TRANSFER AGENT INSTRUCTION
LETTER

 

(See Attached)

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

EXHIBIT C – PAYMENT SCHEDULE FOR
THE FIRST TRANCHE

 

 

	Date	 	Total Payment	 
	4/7/2021*	 	 	–	 
	5/7/2021	 	$	2,314.81	 
	6/7/2021	 	$	2,314.81	 
	7/7/2021	 	$	2,314.81	 
	8/7/2021	 	$	2,314.81	 
	9/7/2021	 	$	2,314.81	 
	10/7/2021	 	$	2,314.81	 
	11/7/2021	 	$	2,314.81	 
	12/7/2021	 	$	2,314.81	 
	1/7/2022	 	$	2,314.81	 
	2/7/2022	 	$	2,314.81	 
	3/7/2022	 	$	2,314.81	 
	4/7/2022	 	$	280,092.59	 

 

* Date of Advance of 1st Tranche

 

 

 

 

 

 

    	 	19Exhibit
10.2

 

SECURITIES PURCHASE
AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT
(the “Agreement”) is made as of April 7, 2021 by and among CROSSWIND RENEWABLE ENERGY CORP., an Oklahoma corporation (the “Company”), and LEONITE
CAPITAL LLC, a Delaware limited liability company (the “Purchaser”).

 

Recital

 

A.                 
The Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506(b) promulgated
by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act;

 

B.               
The Purchaser desires to purchase from the Company, and the Company desires to issue and sell to the Purchaser, upon the terms
and conditions set forth in this Agreement, a Senior Secured Convertible Promissory Note of the Company, in the aggregate principal amount
of up to five hundred fifty five thousand five hundred fifty five and 56/100 Dollars ($555,555.56) or so much as has been advanced in
one or more tranches (the “Principal Amount,”) and together with any note(s) issued in replacement thereof or as a
dividend thereon or otherwise with respect thereto in accordance with the terms thereof, in the form attached hereto as Exhibit A
(the “Note”), upon the terms and subject to the limitations and conditions set forth in such Note;

 

C.               
The Note carries an original issue discount of fifty five thousand five hundred fifty five and 56/100 Dollars ($55,555.56) (the
“OID”), to cover the Purchaser’s accounting fees, due diligence fees, monitoring, and/or other transactional
costs incurred in connection with the purchase and sale of the Note, which is included in the principal balance of the Note. Thus, the
purchase price of the Note shall be five hundred thousand Dollars ($500,000), computed by subtracting the OID from the Principal Amount.

 

D.               
Company wishes to issue to the Purchaser, as additional consideration for the purchase of the Note, (i) a warrant in the form attached
hereto as Exhibit B to purchase shares of the Company’s common stock at an exercise price of $0.05 per share (the “Warrant”);
and (ii) shares of the Company’s common stock (the “Equity Interest”), both of which shall be issued to Purchaser
upon Closing (defined below) as further provided herein.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below,
the Company and the Purchaser, intending to be legally bound, hereby agree as follows:

 

		1.	Amount and Terms of the Note

 

1.1            
Purchase of the Note. Subject to the terms of this Agreement, for consideration of up five hundred thousand Dollars
($500,000) in cash (the “Consideration”) to be paid in one or more tranches (each, a “Tranche”)
with the first Tranche in the amount of not less than two hundred fifty thousand Dollars ($250,000) paid on the Issue Date (as defined
in the Note), and the remainder pursuant to the terms described in the Note, the Purchaser agrees to subscribe for and purchase from the
Company on the Closing Date (as hereinafter defined), and the Company agrees to issue and sell to the Purchaser, the Note. The OID shall
be earned upon each Tranche on a pro-rata basis. (For example: upon the advance of the first Tranche, twenty seven thousand seven hundred
seventy seven and 78/100 Dollars ($27,777.78) shall be added to the principal amount of the outstanding Note in addition to the amount
advanced, and the total amount owed, or the total principal amount, shall be two hundred seventy seven thousand seven hundred seventy
seven and 78/100 Dollars ($277,777.78).

 

1.2        
Form of Payment. At the Closing (as hereinafter defined), the Purchaser shall pay the Consideration as set forth
in section 1.1 above.

 

		2.	Closing and Delivery

 

2.1            
Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section
6 and Section 7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”)
shall be 4:00 PM, Eastern Time on the date first written above, or such other mutually agreed upon time.

 

 

 

    	 	1	 

     

    

 

2.2            
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall
occur on the Closing Date at such location as may be agreed to by the parties (including via exchange of electronic signatures).

 

2.3            
Delivery. At the Closing, or as promptly as commercially reasonable thereafter, in addition to the delivery by
the Purchaser of the Consideration and the delivery by the Company to the Purchaser of the Note, Company shall issue and deliver
to the Purchaser the Warrant and the Equity Interest.

 

		3.	Representations and Warranties of the Company

 

Except as set forth in the
corresponding section of the Disclosure Schedule delivered to the Purchaser concurrently herewith and attached hereto as Schedule I
(the “Disclosure Schedule”) or as disclosed in the Disclosure Materials (as defined below), the Company, its Subsidiaries,
Officers, Directors, and Affiliates, hereby makes the following representations and warranties as of the date hereof and as of the Closing
Date to the Purchaser:

 

3.1            
Organization, Good Standing and Qualification. The Company and each of its Subsidiaries (as defined below) is
a corporation or limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization. Each of the Company and its Subsidiaries has the requisite corporate power to own and operate its properties
and assets and to carry on its business as now conducted and as proposed to be conducted. The Company and each of its Subsidiaries is
duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature
of its activities and of its properties (both owned and leased) makes such qualification necessary, except where the failure to be so
qualified or in good standing, as the case may be, would not have or reasonably be expected to result in (i) a material adverse effect
on the legality, validity or enforceability of any Subscription Document, (ii) a material adverse effect on the results of operations,
assets, business or financial condition of Company and the Subsidiaries, taken as a whole, or (iii) adversely impair the Company’s
ability to perform in any material respect on a timely basis its obligations under any Subscription Document (any of (i), (ii) or (iii),
a “Material Adverse Effect”).

 

3.2            
Corporate Power. The Company has all requisite corporate power to execute and deliver this Agreement, to issue
the Note and the Equity Interest, and to enter into the security and pledge agreement of even date herewith (the “Security and
Pledge Agreement”) in the form of Exhibit C and the other instruments, documents and agreements being entered into at
the Closing (each a “Subscription Document” and collectively, the “Subscription Documents”) and
to carry out and perform its obligations under the terms of the Subscription Documents.

 

3.3            
Subsidiaries and Affiliates. Section 3.3 of the Disclosure Schedule sets forth a true and correct description
of all of the Company’s Subsidiaries and Affiliates and the capitalization (including options, warrants and other such equity),
pro forma as of the date hereof reflecting all pending acquisitions. For purposes of this Agreement, the term “Subsidiary”
means, with respect to the Company, any corporation or other entity of which at least a majority of the outstanding shares of stock or
other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors (or persons
performing similar functions) of such corporation or entity (regardless of whether or not at the time, in the case of a corporation, stock
of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency)
is at the time directly or indirectly owned or controlled by the Company or one or more of its Affiliates and the term “Affiliate”
means, as to any person (the “Subject Person”), any other person that directly or indirectly through one or more intermediaries
controls or is controlled by, or is under direct or indirect common control with, the Subject Person. For the purposes of this definition,
“control” when used with respect to any person means the power to direct the management and policies of such person, directly
or indirectly, whether through the ownership of voting securities, through representation on such person’s board of directors or
other management committee or group, by contract or otherwise. All references contained herein to the terms Subsidiary or Affiliate, shall
be applicable to all Subsidiaries and Affiliates whether they existed as of the date hereof or were created, acquired, or otherwise came
to be included in the foregoing terms subsequent to the date hereof.

 

3.4            
Authorization. All corporate action on the part of the Company, its directors and its stockholders necessary
for the authorization of the Subscription Documents and the execution, delivery and performance of all obligations of the Company under
the Subscription Documents, including, but not limited to, the issuance and delivery of the Note, the Equity Interest, and the reservation
of the equity securities issuable upon conversion of the Note and upon exercise of the Warrant (collectively, the “Underlying
Securities”) has been taken or will be taken prior to the issuance of such Underlying Securities. The Subscription Documents,
when executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with
their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights
to indemnity, subject to federal and state securities laws. The Underlying Securities, when issued in compliance with the provisions of
the Subscription Documents, will be, validly issued, fully paid and non-assessable and free of any liens, encumbrances, security interests
or other adverse claim (a “Lien”) and issued in compliance with all applicable federal and securities laws.

 

 

 

    	 	2	 

     

    

 

3.5            
Governmental Consents. Neither Company nor any Subsidiary is 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 foreign, federal, state, local or other governmental
authority or other person in connection with the execution, delivery and performance by the Company of the Subscription Documents, other
than (a) applicable Blue Sky filings, (b) such as have already been obtained or such exemptive filings as are required to be made under
applicable securities laws, (c) such other filings that have been made pursuant to applicable state securities laws and post-sale filings
pursuant to applicable state and federal securities laws which the Company undertakes to file within the applicable time periods. Subject
to the accuracy of the representations and warranties of the Purchaser set forth in Section 4 hereof, the Company has taken all action
necessary to exempt: (i) the issuance and sale of the Note and the Warrant, (ii) the issuance of the Equity Interest, (iii) the issuance
of the Underlying Securities upon due conversion of the Note and due exercise of the Warrant, and (iv) the other transactions contemplated
by the Subscription Documents from the provisions of any preemptive rights, stockholder rights plan or other “poison pill”
arrangement, any anti-takeover, business combination or control share law or statute binding on the Company or to which the Company or
any of its assets and properties may be subject and any provision of the Company’s Articles of Incorporation or Bylaws, or other
organizational documentation, as the case may be, that is or could reasonably be expected to become applicable to the Purchaser as a result
of the transactions contemplated hereby, including without limitation, the issuance of the Note, the Equity Interest, the Warrant, and
the Underlying Securities (collectively, the “Securities”) and the ownership, disposition or voting of the Securities
by the Purchaser or the exercise of any right granted to the Purchaser pursuant to this Agreement or the other Subscription Documents.

 

3.6            
Compliance with Laws. Neither Company nor any Subsidiary is in violation of any applicable statute, rule, regulation,
order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business
or the ownership of its properties, which violation would materially and adversely affect the business, assets, liabilities, financial
condition or operations of Company and its Subsidiaries.

 

3.7            
Compliance with Other Instruments. Neither Company nor any of its Subsidiaries is in violation or default of
any term of its organizational documents, or of any provision of any mortgage, indenture or contract to which it is a party and by which
it is bound or of any judgment, decree, order or writ, other than such violations that would not individually or in the aggregate have
a Material Adverse Effect on the Company. Except as set forth in Section 3.7 of the Disclosure Schedule, the execution, delivery and performance
of the Subscription Documents, and the consummation of the transactions contemplated by the Subscription Documents will not result in
any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice, either a default under
any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any Lien 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 or any of its Subsidiaries, its business or operations or any of its assets or properties. The sale of the Note,
the issuance of the Warrant and the subsequent issuance of the Underlying Securities are not and will not be subject to any preemptive
rights or rights of first refusal that have not been properly waived or complied with.

 

3.8            
Offering. Assuming the accuracy of the representations and warranties of the Purchaser contained in Section ‎4
hereof, the offer, issue, and sale of Securities are and will be exempt from the registration and prospectus delivery requirements of
the Securities Act, and have been registered or qualified (or are exempt from registration and qualification) under the registration,
permit, or qualification requirements of all applicable state securities laws. No “bad actor” disqualifying event described
in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification Event”) is applicable to the Company or, to
the Company’s knowledge, any person listed in the first paragraph of Rule 506(d)(1) of the Securities Act, except for a Disqualification
Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable.

 

3.9            
Capitalization. Company has authorized shares as set forth in Section 3.9 of the Disclosure Schedule. All outstanding
shares of capital stock are duly authorized, validly issued, fully paid and non-assessable and have been issued in compliance with all
applicable securities laws. Except for the Equity Interests, the Warrant and the Underlying Securities or as otherwise listed in Section
3.9 of the Disclosure Schedule, 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 common stock, or contracts, commitments, understandings or arrangements
by which Company or any Subsidiary is or may become bound to issue additional shares of common stock, or securities or rights convertible
or exchangeable into shares of common stock. There are no price based anti-dilution or price adjustment provisions contained in any security
issued by Company (or in any agreement providing rights to security holders) and the issue and sale of the Securities will not obligate
Company to issue shares of common stock or other securities to any person (other than the Purchaser) and will not result in a right of
any holder of Company’s securities to adjust the exercise, conversion, exchange or reset price under such securities. Except as
set forth in Section 3.9 of the Disclosure Schedule, Company owns, directly or indirectly, all of the capital stock of each Subsidiary
free and clear of any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are
fully paid, non-assessable and free of preemptive and similar rights.

 

 

 

    	 	3	 

     

    

 

3.10         
SEC Reports; Financial Statements. Except as set forth in Section 3.10 of the Disclosure Schedule, the Company
has filed all reports and registration statements required to be filed by it under (i) the Securities Act and the Exchange Act of 1934,
as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) of the Exchange Act, or (ii) under the
Alternative Reporting Standard as offered by OTC Markets Group, for the two years preceding the date hereof (or such shorter period as
the Company was required by law to file such material) (the foregoing materials, including the exhibits thereto, being collectively referred
to herein as the “SEC Reports” and, together with the Disclosure Schedule to this Agreement, the “Disclosure
Materials”). As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. Except as indicated in Section
3.10 of the Disclosure Schedule, the financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission or OTC Markets as applicable, with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with 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 except that unaudited financial statements may not contain all footnotes required by GAAP, 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.

 

3.11         
Material Changes. Since the date of the latest financial statements, (i) there has been no event, occurrence
or development that, individually or in the aggregate, has had or that could result in a Material Adverse Effect, (ii) the Company has
not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course
of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements
pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting
or the identity of its auditors, (iv) the Company has 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, and (v) the Company
has not issued any equity securities to any officer, director or affiliate, except pursuant to existing Company stock-based plans or agreements.

 

3.12         
Litigation. Except as set forth in Section 3.12 of the Disclosure Schedule, there is no action, suit, inquiry,
notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company,
any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory
authority (federal, state, county, local or foreign) (collectively, an “Action”) which: (i) adversely affects or challenges
the legality, validity or enforceability of any of the Subscription Documents or the Securities or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director
or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities
laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by governmental authority, or any litigation civil or otherwise, involving the Company or any current or former director
or officer of the Company or its Subsidiaries.

 

3.13         
Labor Relations. Neither Company nor any Subsidiary is a party to or bound by any collective bargaining agreements
or other agreements with labor organizations. Neither Company nor any Subsidiary has violated in any material respect any laws, regulations,
orders or contract terms, affecting the collective bargaining rights of employees, labor organizations or any laws, regulations or orders
affecting employment discrimination, equal opportunity employment, or employees’ health, safety, welfare, wages and hours. No material
labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which could
reasonably be expected to result in a Material Adverse Effect.

 

3.14         
Regulatory Permits. Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where
the failure to possess such permits would not have or reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification
of any Material Permit.

 

 

 

    	 	4	 

     

    

 

3.15         
Title to Assets. Except as set forth in Section 3.15 of the Disclosure Schedule, Company and the Subsidiaries
have good and marketable title in fee simple to all real property owned by them that is material to the business of Company and the Subsidiaries
and good and marketable title in all personal property owned by them that is material to the business of Company and the Subsidiaries,
in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by Company and the Subsidiaries and Liens for the payment of federal,
state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under
lease by Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which Company and the Subsidiaries
are in compliance.

 

3.16         
Taxes. 

 

(a)             
Except as otherwise itemized in Section 3.16 of the Disclosure Schedule, Company and its Subsidiaries have timely and properly
filed all tax returns required to be filed by them for all years and periods (and portions thereof) for which any such tax returns were
due, except where the failure to so file would not have a Material Adverse Effect; all such filed tax returns are accurate in all material
respects; the Company has timely paid all taxes due and payable (whether or not shown on filed tax returns), except where the failure
to so pay would not have a Material Adverse Effect; there are no pending assessments, asserted deficiencies or claims for additional taxes
that have not been paid; the reserves for taxes, if any, reflected in the financial statements are adequate, and there are no Liens for
taxes on any property or assets of the Company and any of its Subsidiaries (other than Liens for taxes not yet due and payable); there
have been no audits or examinations of any tax returns by any (a) nation, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; or (c) governmental or
quasi-governmental authority of any nature (including any governmental or administrative division, department, agency, commission, instrumentality,
official, organization, unit, body or entity) and any court or other tribunal (a “Governmental Body”), and the Company
or its Subsidiaries have not received any notice that such audit or examination is pending or contemplated; no claim has been made by
any Governmental Body in a jurisdiction where the Company or any of its Subsidiaries does not file tax returns that it is or may be subject
to taxation by that jurisdiction; to the knowledge of the Company, no state of facts exists or has existed which would constitute grounds
for the assessment of any penalty or any further tax liability beyond that shown on the respective tax returns; and there are no outstanding
agreements or waivers extending the statutory period of limitation for the assessment or collection of any tax.

 

(b)            
Neither the Company nor any of its Subsidiaries is a party to any tax-sharing agreement or similar arrangement with any
other Person.

 

(c)             
The Company has made all necessary disclosures required by Treasury Regulation Section 1.6011-4. The Company has not been
a participant in a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4(b).

 

(d)            
No payment or benefit paid or provided, or to be paid or provided, to current or former employees, directors or other service
providers of the Company will fail to be deductible for federal income tax purposes under Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”).

 

3.17         
Patents and Trademarks. Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material
for use in connection with their respective businesses and which the failure to so have could have or reasonably be expected to result
in a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither Company nor any Subsidiary
has received a written notice that the Intellectual Property Rights used by Company or any Subsidiary violates or infringes upon the rights
of any Person. All such Intellectual Property Rights are enforceable. Company and its Subsidiaries have taken reasonable steps to protect
Company’s and its Subsidiaries’ rights in their Intellectual Property Rights and confidential information (the “Confidential
Information”). Each employee, consultant and contractor who has had access to Confidential Information which is necessary for
the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed
to be conducted has executed an agreement to maintain the confidentiality of such Confidential Information and has executed appropriate
agreements that are substantially consistent with the Company’s standard forms thereof. Except under confidentiality obligations,
there has been no material disclosure of any of Company’s or its Subsidiaries’ Confidential Information to any third party.

 

 

 

    	 	5	 

     

    

 

3.18         
Environmental Matters. Neither Company nor any Subsidiary is in violation of any statute, rule, regulation, decision
or order of any Governmental Body relating to the use, disposal or release of hazardous or toxic substances or relating to the protection
or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”),
owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable for any off-site
disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental Laws, which violation,
contamination, liability or claim has had or could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;
and there is no pending or, to the Company’s knowledge, threatened investigation that might lead to such a claim.

 

3.19         
Insurance. Company and the Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as are prudent and customary in the businesses in which Company and the Subsidiaries are engaged.
Neither Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a
significant increase in cost.

 

3.20         
Transactions with Affiliates and Employees. Except as disclosed in the Company’s audited financial statements
or the Disclosure Materials, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees
of the Company is presently a party to any transaction with Company or any Subsidiary (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or,
to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer,
director, trustee or partner, other than (a) for payment of salary or consulting fees for services rendered, (b) reimbursement for expenses
incurred on behalf of the Company and (c) for other employee benefits, including stock option agreements under any stock option plan of
Company.

 

3.21         
Brokers and Finders. Except as otherwise itemized in Section 3.21 of the Disclosure Schedule, no person will
have, as a result of the transactions contemplated by the Subscription Documents, any valid right, interest or claim against or upon Company,
any Subsidiary or the Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding
entered into by or on behalf of the Company.

 

3.22         
Questionable Payments. Neither Company nor any of its Subsidiaries nor, to the Company’s knowledge, any
of their respective current or former stockholders, directors, officers, employees, agents or other persons acting on behalf of Company
or any Subsidiary, has on behalf of Company or any Subsidiary or in connection with their respective businesses: (a) used any corporate
funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b) made any direct
or indirect unlawful payments to any governmental officials or employees from corporate funds; (c) established or maintained any unlawful
or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on the books and records of Company or
any Subsidiary; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature.

 

3.23         
Solvency. The Company has not (a) made a general assignment for the benefit of creditors; (b) filed any voluntary
petition in bankruptcy or suffered the filing of any involuntary petition by its creditors; (c) suffered the appointment of a receiver
to take possession of all, or substantially all, of its assets; (d) suffered the attachment or other judicial seizure of all, or substantially
all, of its assets; (e) admitted in writing its inability to pay its debts as they come due; or (f) made an offer of settlement, extension
or composition to its creditors generally.

 

3.24         
Foreign Corrupt Practices Act. None of Company or any of its Subsidiaries, nor to the knowledge of the Company,
any agent or other person acting on behalf of the Company or any of its Subsidiaries, has, directly or indirectly: (a) used any funds,
or will use any proceeds from the sale of the Securities, for unlawful contributions, gifts, entertainment or other unlawful expenses
related to foreign or domestic political activity, (b) 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, (c) failed to disclose fully any contribution made
by Company or any of its Subsidiaries (or made by any person acting on their behalf of which the Company is aware) or any members of their
respective management which is in violation of any legal requirement, or (d) has violated in any material respect any provision of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder which was applicable to Company or any of
its Subsidiaries.

 

 

 

    	 	6	 

     

    

 

3.25         
Disclosures. Neither the Company nor any person acting on its behalf has provided the Purchaser or its agents
or counsel with any information that constitutes or might constitute material, non-public information, other than the terms of the transactions
contemplated hereby. The written materials delivered to the Purchaser in connection with the transactions contemplated by the Subscription
Documents 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 therein, in light of the circumstances under which they were made, not misleading.

 

3.26         
Transfer Agent. Company represents and warrants that it will not replace its transfer agents without Purchaser’s
permission so long as the Note is outstanding. Company acknowledges that this is extremely material to the Note and the investment is
made based on the assumption that this will not happen.

 

3.27         
Shell Company Status. Set forth in Schedule 3.27 of the Disclosure Schedule is the Company’s representation
as to its “Shell Company” status under Rule 144.

 

3.28         
Notice of Material Changes. The Company agrees and acknowledges that so long as any obligations of the Company
under any of the Subscription Documents shall exist, it shall be obligated to provide Notice to the Purchaser in the event of a material
change to any representation or disclosure in any of the Subscription Documents, including but not limited to, the disclosures on the
Disclosure Schedule, and failure to provide such notice shall be a breach of this Agreement and an Event of Default under Section 4.3
of the Note.

 

		4.	Representations and Warranties of the Purchaser

 

4.1            
Purchase for Own Account. The Purchaser represents that it is acquiring the Note for its own account.

 

4.2            
Information and Sophistication. Without lessening or obviating the representations and warranties of the Company
set forth in Section ‎3, the Purchaser hereby: (a) acknowledges that it has received all the information it has requested from the
Company and it considers necessary or appropriate for deciding whether to acquire the Note, (b) 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 Note and to obtain any
additional information necessary to verify the accuracy of the information given the Purchaser and (c) further represents that it has
such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risk of this investment.

 

4.3            
Ability to Bear Economic Risk. The Purchaser acknowledges that investment in the Note involves a high degree
of risk, and represents that it is able, without materially impairing its financial condition, to hold the Note for an indefinite period
of time and to suffer a complete loss of its investment.

 

4.4            
Accredited Investor Status. The Purchaser is an “accredited investor” as such term is defined in
Rule 501 under the Act.

 

4.5            
Existence; Authorization. The Purchaser is a limited liability company duly organized, validly existing and in
good standing under the laws of the state of its organization, having full power and authority to own its properties and to carry on its
business as conducted. The principal place of business of the Purchaser is as shown on the Accredited Investor Questionnaire. The Purchaser
has the requisite power and authority to deliver this Agreement, perform its obligations set forth herein, and consummate the transactions
contemplated hereby. The Purchaser has duly executed and delivered this Agreement and has obtained the necessary authorization to execute
and deliver this Agreement and to perform his, her or its obligations herein and to consummate the transactions contemplated hereby. This
Agreement, assuming the due execution and delivery hereof by the Company, is a legal, valid and binding obligation of the Purchaser enforceable
against the Purchaser in accordance with its terms.

 

4.6            
No Regulatory Approval. The Purchaser understands that no state or federal authority has scrutinized this Agreement
or the Note offered pursuant hereto, has made any finding or determination relating to the fairness for investment in the Note, or has
recommended or endorsed the Note, and that the Note has not been registered or qualified under the Act or any state securities laws, in
reliance upon exemptions from registration thereunder. The Note may not, in whole or in part, be resold, transferred, assigned or otherwise
disposed of unless it is registered under the Act or an exemption from registration is available, and unless the proposed disposition
is in compliance with the restrictions on transferability under federal and state securities laws.

 

 

 

    	 	7	 

     

    

 

4.7            
Purchaser Received Independent Advice. The Purchaser confirms that the Purchaser has been advised to consult
with the Purchaser’s independent attorney regarding legal matters concerning the Company and to consult with independent tax advisers
regarding the tax consequences of investing in the Company. The Purchaser acknowledges that Purchaser understands that any anticipated
United States federal or state income tax benefits may not be available and, further, may be adversely affected through adoption of new
laws or regulations or amendments to existing laws or regulations. The Purchaser acknowledges and agrees that the Company is providing
no warranty or assurance regarding the ultimate availability of any tax benefits to the Purchaser by reason of the subscription.

 

4.8            
Legends. The Purchaser understands that until such time as the Note, Warrant, and, upon the conversion of the
Note and the exercise of the Warrant in accordance with its respective terms, the Underlying Securities, have been registered under the
Securities Act or may be sold pursuant to Rule 144, Rule 144A under the Securities Act or Regulation S without any restriction as to the
number of securities as of a particular date that can then be immediately sold, the Securities may bear a restrictive legend in substantially
the following form (and a stop- transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
OR EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE PURCHASER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A OR REGULATION S
UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

		5.	Further Agreements; Post-Closing Covenants

 

5.1            
Warrant. Upon the advance of each Tranche by Purchaser to the Company, Company shall issue to the Purchaser warrants
(the “Warrants”), each in the same form, exercisable for an amount of the Company’s Common Shares equal to six (6) multiplied
by the Purchase Price of such Tranche. The Warrants shall have a term of 36 Months, an exercise price of five cents ($0.05) per share,
and shall contain full-ratchet anti-dilution protection provisions.

 

5.2            
Equity Interest. Upon the advance of the first Tranche by Purchaser to the Company, Company shall issue to Purchaser
seven hundred fifty thousand (750,000) shares of Company’s common stock (the “Initial Equity Interest”). Upon
the advance of any future Tranche under this Note, Company shall issue to Purchaser an amount of the Company’s common stock equal
to three (3) multiplied by the Purchase Price such future Tranches (the “Additional Equity Interest” and collectively
with the Initial Equity Interest, the “Equity Interest”).

 

5.3            
Use of Proceeds. Company agrees to use the proceeds of the first Tranche solely for the following purposes: to
pursue a Regulation A+ offering of the Company’s shares and for general working capital.

 

5.4            
Form D; Blue Sky Laws. Company agrees to file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof to the Purchaser promptly after such filing. Company shall take such action as Company shall reasonably
determine is necessary to qualify the Securities for sale to the Purchaser at the applicable closing pursuant to this Agreement under
applicable securities or “blue sky” laws of the states of the United States (or to obtain an exemption from such qualification),
and shall provide evidence of any such action so taken to the Purchaser on or prior to the initial closing.

 

 

 

    	 	8	 

     

    

 

5.5            
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 the Purchaser in order to enforce
any right or remedy under the Note.  Notwithstanding any provision to the contrary contained in the Note, it is expressly agreed
and provided that the total liability of the Company under the Note for payments which under Delaware law are 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 which
under Delaware law in the nature of interest that the Company may be obligated to pay under the Note exceed such Maximum Rate.  It
is agreed that if the maximum contract rate of interest allowed by Delaware law and applicable to the Note 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 Note 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 the Purchaser with
respect to indebtedness evidenced by the Note, such excess shall be applied by the Purchaser to the unpaid principal balance of any such
indebtedness or be refunded to the Company, the manner of handling such excess to be at the Purchaser’s election.

 

5.6            
Registration Rights. 

 

(a)            
Company shall be required to file a Registration Statement within 90 days of the Issue Date to register the Underlying Securities
and the Equity Interest issued to Purchaser pursuant to the Note. Subsequent to the filing of the Registration Statement, the Company
shall have the continuing obligation to use best efforts to have such Registration Statement declared effective by the SEC within 180
days of the Issue Date, including but not limited to, the obligation to timely cure any questions, comments, or concerns the SEC may have
concerning the contemplated Registration Statement.

 

(b)            
In the event of a registration pursuant to these provisions, Company shall use its reasonable best efforts to cause the Underlying
Securities and the Equity Interest so registered to be registered or qualified for sale under the securities or blue sky laws of such
jurisdictions as the Purchaser may reasonably request; provided, however, that Company shall not be required to qualify to do business
in any state by reason of this section in which it is not otherwise required to qualify to do business.

 

(c)            
Company shall keep effective any registration or qualification contemplated by this section and shall from time to time amend or
supplement each applicable registration statement, preliminary prospectus, final prospectus, application, document and communication for
such period of time as shall be required to permit the Purchaser to complete the offer and sale of the Underlying Securities and the Equity
Interest covered thereby.

 

(d)            
In the event of a registration pursuant to the provisions of this section, Company shall furnish to the Purchaser such reasonable
number of copies of the registration statement and of each amendment and supplement thereto (in each case, including all exhibits), of
each prospectus contained in such registration statement and each supplement or amendment thereto (including each preliminary prospectus),
all of which shall conform to the requirements of the Act and the rules and regulations thereunder, and such other documents, as the Purchaser
may reasonably request to facilitate the disposition of the Underlying Securities and the Equity Interest included in such registration.

 

(e)            
Company shall notify the Purchaser within three (3) business days after such registration statement has become effective or a supplement
to any prospectus forming a part of such registration statement has been filed.

 

(f)             
Company shall advise the Purchaser within three (3) business days after it shall receive notice or obtain knowledge of the issuance
of any stop order by the Commission suspending the effectiveness of such registration statement, or the initiation or threatening of any
proceeding for that purpose and within three (3) business days take action using its reasonable best efforts to prevent the issuance of
any stop order or to obtain its withdrawal if such stop order should be issued.

 

(g)            
Company shall within three (3) business days notify the Purchaser at any time when a prospectus relating thereto is required to
be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, would include an untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and at the reasonable
request of the Purchaser prepare and furnish to it such number of copies of a supplement to or an amendment of such prospectus as may
be necessary so that, as thereafter delivered to the purchasers of such Underlying Securities and the Equity Interest or securities, such
prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the circumstances under which they were made. The Purchaser shall
suspend all sales of the Underlying Securities and the Equity Interest upon receipt of such notice from Company and shall not re-commence
sales until they receive copies of any necessary amendment or supplement to such prospectus, which shall be delivered to the Purchaser
within 30 days of the date of such notice from Company.

 

 

    	 	9	 

     

    

 

(h)            
The rights of the Purchaser under this Section 5.9 shall apply equally to the filing by Company of an offering statement under
Regulation A promulgated under the Act and, if Company files such an offering statement instead of a registration statement, all references
to (A) registration statement shall be deemed to be references to offering statement, (B) prospectus shall be deemed to be references
to offering circular, and (C) effective date of a registration statement shall be deemed to be references to qualification date of an
offering statement. The Purchaser’s rights under this Section 5.9 shall automatically terminate once the Purchaser has sold all
of the Underlying Securities and the Equity Interest.

 

5.7            
Legal Counsel Opinions.

 

(a)            
Upon the request of the Purchaser from to time to time, Company shall be responsible (at its cost) for promptly supplying to Company’s
transfer agent and the Purchaser a customary legal opinion letter of its counsel (the “Legal Counsel Opinion”) to the
effect that the resale of the Underlying Securities by the Purchaser or its affiliates, successors and assigns is exempt from the registration
requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule 144 are satisfied and provided the Underlying Securities
are not then registered under the 1933 Act for resale pursuant to an effective registration statement). Should Company’s legal counsel
fail for any reason to issue the Legal Counsel Opinion, the Purchaser may (at Company’s cost) secure another legal counsel to issue
the Legal Counsel Opinion, and Company will instruct its transfer agent to accept such opinion. Company shall not impede the removal by
its stock transfer agent of the restricted legend from any common stock certificate upon receipt by the transfer agent of a Rule 144 Opinion
Letter. COMPANY HEREBY AGREES THAT IT MAY NEVER TAKE THE POSITION THAT IT IS A “SHELL COMPANY” IN CONNECTION WITH ITS OBLIGATIONS
UNDER THIS AGREEMENT OR OTHERWISE.

 

5.8            
Listing. Company will, so long as the Purchaser owns any of the Securities, maintain the listing and trading
of its common stock on the OTC Pink or any equivalent exchange or electronic quotation system and will comply in all respects with Company’s
reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority, or FINRA, and such exchanges,
as applicable, as well as with the SEC. Company shall promptly provide to the Purchaser copies of any notices it receives from the OTC
and any other exchanges or electronic quotation systems on which the common stock is then traded regarding the continued eligibility of
the common stock for listing on such exchanges and quotation systems.

 

5.9            
Information and Observer Rights.

 

(a)            
As long as the Purchaser owns at least five percent (5%) of the Securities originally purchased hereunder, Company covenants to
timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by
Company pursuant to the Exchange Act. As long as the Purchaser owns at least five percent (5%) of the Securities originally purchased
hereunder, if Company is not required to file reports pursuant to such laws, it will prepare and furnish to the Purchaser and simultaneously
make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to sell the Securities under
Rule 144. Company further covenants that it will take such further action as any holder of Securities may reasonably request, all to the
extent required from time to time to enable the Purchaser to sell the Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rule 144. If Company fails to remain current in its reporting obligations or to provide currently
publicly available information in accordance with Rule 144(c) and such failure extends for a period of more than fifteen Trading Days
(the date which such fifteen Trading Day-period is exceeded, being referred to as “Event Date”), then in addition to
any other rights the Purchaser may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of
each such Event Date (if the applicable Event shall not have been cured by such date) until the information failure is cured, Company
shall pay to the Purchaser an amount in cash, as partial liquidated damages and not as a penalty, equal to one percent (1%) of purchase
price paid for the Securities held by the Purchaser at the Event Date. The partial liquidated damages pursuant to the terms hereof shall
apply on a daily pro-rata basis for any portion of a month prior to the cure of an information failure (except in the case of the first
Event Date).

 

(b)            
As long as the Purchaser owns at least five percent (5%) of the Securities, if the Purchaser notifies Company that it wishes to
attend meetings of Company’s Board of Directors, Company shall invite a designated representative of the Purchaser to attend all
meetings of Company’s Board of Directors in a nonvoting observer capacity and, in this respect, and subject to the Purchaser’s
having informed Company that it wishes to attend, Company shall give such representative copies of all notices, minutes, consents, and
other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided,
however, that such representative shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to
all information so provided; and provided further, that Company reserves the right to withhold any information and to exclude such
representative from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect
the attorney-client privilege between Company and its counsel or result in disclosure of trade secrets or a conflict of interest.

 

 

 

    	 	10	 

     

    

 

5.10         
Confidentiality. The Purchaser agrees that the it will keep confidential and will not disclose, divulge, or use
for any purpose (other than to monitor its investment in the Company) the terms and conditions of this Agreement or any confidential information
obtained from the Company pursuant to the terms of this Agreement (including notice of Company’s intention to file a registration
statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach
of this Section 5.10 by the Purchaser), (b) is or has been independently developed or conceived by the Purchaser without use of the Company’s
confidential information, or (c) is or has been made known or disclosed to the Purchaser by a third party without a breach of any obligation
of confidentiality such third party may have to the Company; provided, however, that the Purchaser may disclose confidential information
(i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection
with monitoring its investment in the Company; (ii) to any prospective purchaser of any Securities from the Purchaser, if such prospective
purchaser agrees to be bound by the provisions of this Section 5.10; (iii) to any existing or prospective affiliate, partner, member,
stockholder, or wholly owned subsidiary of the Purchaser in the ordinary course of business, provided that the Purchaser informs such
person that such information is confidential and directs such person to maintain the confidentiality of such information; or (iv) as may
otherwise be required by law, provided that the Purchaser notifies the Company within three (3) business days of such disclosure and takes
reasonable steps to minimize the extent of any such required disclosure.

 

5.11         
Restrictions on Activities. Commencing as of the date first above written, and so long as the Company has an
obligation under the Note, the Company shall not, directly or indirectly, without the Purchaser’s prior written consent, which consent
shall not be unreasonably withheld: (a) change the nature of its business; (b) sell, divest, acquire, change the structure of any material
assets other than in the ordinary course of business; (c) solicit any offers for, respond to any unsolicited offers for, or conduct any
negotiations with any other person or entity in respect of any variable rate debt transactions (i.e., transactions were the conversion
or exercise price of the security issued by the Company varies based on the market price of the common stock); (d) accept a Merchant-Cash-Advance
in which it sells future receivables at a discount or any other factoring transactions, or similar financing instruments or financing
transactions, whether a transaction similar to the one contemplated hereby or any other investment; or (e) Enter into a borrowing arrangement
where the Company pays an effective APR greater than 20%.

 

5.12         
Other Restrictions. Unless approved by the Purchaser, Company and each Subsidiary shall not enter
into an agreement or amend an existing agreement to effect any sale of securities involving, or convert any securities previously issued
under, a Variable Rate Transaction or a merchant cash advance transaction in which it sells future receivables at a discount, or a substantially
similar transaction. The term “Variable Rate Transaction” means a transaction in which Company or any Subsidiary (i)
issues or sells any convertible securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or
varies with the trading prices of, or quotations for, the shares of common stock at any time after the initial issuance of such convertible
securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial
issuance of such convertible securities or upon the occurrence of specified or contingent events directly or indirectly related to the
business of Company or the Subsidiary, as the case may be, or the market for the common stock, other than pursuant to a customary “weighted
average” anti-dilution provisions, or (ii) enters into any agreement (including, without limitation, an “equity line of credit”
or an “at-the-market offering”) whereby Company or any Subsidiary may sell securities at a future determined price (other
than standard and customary “preemptive” or “participation” rights). The Purchaser shall be entitled to obtain
injunctive relief against Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to
collect damages.

 

5.13         
Sale of Assets; Issuance of Equity or Debt. Should Company sell any material assets, or issue any equity, debt,
or other security, including the sale of any Subsidiary, the Purchaser shall have the right to be repaid on any outstanding amount owed
under the Note with up to 100% of the proceeds of any such sale or offering, provided however, that the Company shall not be required
to repay the outstanding Principal Amount from the proceeds of the aforementioned funding sources so long as those proceeds are used solely
for an arm’s length acquisition.

 

5.14         
Participation Rights. For a period of eighteen (18) months from the date hereof, in the event Company or any
Subsidiary proposes to offer and sell its securities, whether in the form of debt, Equity Financing (defined below), or any other financing
transaction (each a “Future Offering”), the Purchaser shall have the right, but not the obligation, to participate
in the purchase of the securities being offered up to an amount equal to the Principal Amount (the “Participation Right”).
For the avoidance of doubt, an “Equity Financing” shall mean Company’s or its Subsidiary’s sale of its common
stock or any securities conferring the right to purchase Company’s or Subsidiary’s common stock or securities convertible
into, or exchangeable for (with or without additional consideration), shares of the Company’s or Subsidiary’s common stock.
In connection with each Participation Right, Company shall provide written notice to the Purchaser
of the terms and conditions of the Future Financing at least ten business days prior to the anticipated first closing of such Future Financing
(the “FF Notice”). If the Purchaser shall elect to exercise its Participation Right, it shall notify Company, in writing,
of such election at least five business days prior to the anticipated closing date set forth in the FF Notice (the “Participation
Notice”). In the event the Purchaser does not return a Participation Notice to Company within such five-business day period,
the Participation Right granted hereunder shall terminate and be of no further force and effect; provided, however, that such Participation
Right shall be reinstated if the anticipated closing referenced in the FF Notice does not occur prior to ten business days following the
anticipated first closing date specified in such FF notice.

 

 

 

    	 	11	 

     

    

 

5.15         
Right of First Refusal. If at any time while this Note is outstanding, the Company or any Subsidiary has a bona
fide offer of capital or financing from any third party that the Company or Subsidiary intends to act upon, then the Company must first
offer such opportunity to the Purchaser to provide such capital or financing to the Company or Subsidiary on the same terms as each respective
third party’s terms. Should the Purchaser be unwilling or unable to provide such capital or financing to the Company within 3 Trading
Days from Purchaser’s receipt of written notice of the offer (the “Offer Notice”) from the Company, then the
Company or Subsidiary may obtain such capital or financing from that respective third party upon the exact same terms and conditions offered
by the Company to the Purchaser, which transaction must be completed within 30 days after the date of the Offer Notice. If the Company
does not receive the capital or financing from the respective 3rd party within 30 days after the date of the respective Offer
Notice, then the Company must again offer the capital or financing opportunity to the Purchaser as described above, and the process detailed
above shall be repeated. The Offer Notice must be sent via electronic mail to avi@leonitecap.com Cc: dberger@bergerlawpllc.com.

 

5.16         
Terms of Future Financings. So long as any obligations of the Company under the Subscription Documents are outstanding,
upon any issuance of (or announcement of intent to effect an issuance of) any security, or amendment to (or announcement of intent to
effect an amendment to) any security that was originally issued before the Issue Date, by the Company or any Subsidiary, with any term
that the Purchaser reasonably believes is more favorable to the holder of such security than, or with a term in favor of the holder of
such security that the Purchaser reasonably believes was not similarly provided, to the Purchaser in the Subscription Documents, then
(i) the Company shall notify the Purchaser of such additional or more favorable term within three (3) business days of the new issuance
and/or amendment (as applicable) of the respective security, and (ii) such term, at Purchaser’s option, shall become a part of the
transaction documents with the Purchaser (regardless of whether the Company complied with the notification provision of this Section 5.16).
The types of terms contained in another security that may be more favorable to the purchaser of such security include, but are not limited
to, terms addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, original issue discounts, stock
sale price, private placement price per share, and warrant coverage. If Purchaser elects to have the term become a part of the transaction
documents with the Purchaser, then the Company shall immediately deliver acknowledgment of such adjustment in form and substance reasonably
satisfactory to the Purchaser (the “Acknowledgment”) within three (3) business days of Company’s receipt of request
from Purchaser (the “Adjustment Deadline”), provided that Company’s failure to timely provide the Acknowledgement shall
not affect the automatic amendments contemplated hereby.

 

5.17         
Breach of Covenants. The Company acknowledges and agrees that if the Company breaches any covenants set forth
in this Section, in addition to any other remedies available to the Purchaser pursuant to this Agreement, it will be considered an Event
of Default under Section 4.3 of the Note.

 

5.18         
Transfer Agent Instructions. Company shall issue irrevocable instructions to Company’s transfer agent to
issue certificates, registered in the name of the Purchaser or its nominee, upon issuance of the Equity Interest or exercise of the Warrant,
in such amounts as specified from time to time by the Purchaser to Company in accordance with the terms thereof (the “Irrevocable
Transfer Agent Instructions”). In the event that Company proposes to replace its transfer agent, Company shall provide, prior
to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant
to this Agreement (including but not limited to the provision to irrevocably reserved shares of common stock in the Reserved Amount (as
defined in the Note)) signed by the successor transfer agent to Company and Company. Prior to registration of the Underlying Securities
under the Securities Act or the date on which the Underlying Securities may be sold pursuant to Rule 144 without any restriction as to
the number of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the restrictive legend
specified in Section 4.8 of this Agreement. Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions
referred to in this Section 5.18 will be given by Company to its transfer agent and that the Securities shall otherwise be freely transferable
on the books and records of Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer
agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing) (electronically or in certificated
form) any certificate for Securities to be issued to the Purchaser upon conversion of or otherwise pursuant to the Note as and when required
by the Note and this Agreement; (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or
hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on
any certificate for any Securities issued to the Purchaser upon conversion of or otherwise pursuant to the Note as and when required by
the Note and this Agreement and (iv) it will provide any required corporate resolutions and issuance approvals to its transfer agent within
one (1) business day of each conversion of the Note. Nothing in this Section shall affect in any way the Purchaser’s obligations
and agreement set forth in Section 5.6 hereof to comply with all applicable prospectus delivery requirements, if any, upon re-sale of
the Securities. If the Purchaser provides Company, at the cost of Company, with (i) an opinion of counsel in form, substance and scope
customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without
registration under the 1933 Act and such sale or transfer is effected or (ii) the Purchaser provides reasonable assurances that the Securities
can be sold pursuant to Rule 144, Company shall permit the transfer, and, in the case of the Securities, promptly instruct its transfer
agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified by the Purchaser.
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Purchaser, by vitiating the intent
and purpose of the transactions contemplated hereby. Accordingly, Company acknowledges that the remedy at law for a breach of its obligations
under this Section 5.18 may be inadequate and agrees, in the event of a breach or threatened breach by Company of the provisions of this
Section, that the Purchaser shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and
requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security being required.

 

 

 

    	 	12	 

     

    

 

5.19         
Further Assurances. The Purchaser agrees and covenants that at any time and from time to time it will execute
and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require within
three (3) business days of any such request in order to carry out the full intent and purpose of this Agreement and to comply with state
or federal securities laws or other regulatory approvals.

 

5.20         
Exchange Act Reporting. Within 90 days of the Issue Date of the Note, the Company shall become a fully reporting
company under the SEC reporting requirements and become subject to and fully compliant with, the annual and periodic reporting requirements
of the Exchange Act (including but not limited to becoming current in its filings). Failure to become a fully reporting company and subject
to and compliant with the Exchange Act as described herein, as well as failure to maintain such fully reporting status once the Company
becomes subject to and fully compliant with the SEC reporting requirements under the Exchange Act (including but not limited to becoming
delinquent in its filings), shall be an event of default under the Note and this Agreement.

 

		6.	Conditions to the Company’s Obligation to Sell

 

The obligation of the Company
hereunder to issue and sell the Note to the Purchaser at the Closing is subject to the satisfaction, at or before the Closing Date, of
each of the following conditions thereto, provided that these conditions are for the Company’s sole benefit and may be waived by
the Company at any time in its sole discretion:

 

(a)            
The Purchaser shall have executed this Agreement and delivered the same to the Company.

 

(b)            
The Purchaser shall have delivered the Consideration in accordance with Section 1.2 above.

 

(c)            
The representations and warranties of the Purchaser shall be true and correct in all material respects as of the date when made
and as of the Closing Date, as though made at that time (except for representations and warranties that speak as of a specific date),
and the Purchaser shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Closing Date.

 

(d)            
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

		7.	Conditions to The Purchaser’s Obligation to Purchase

 

The obligation of the Purchaser
hereunder to purchase the Note, on the Closing Date, is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for the Purchaser’s sole benefit and may be waived by the Purchaser at any time in
its sole discretion:

 

(a)            
The Company shall have executed this Agreement and delivered the same to the Purchaser.

 

(b)            
The Company shall have delivered to the Purchaser the duly executed Note in such denominations as the Purchaser shall request and
in accordance with Section 1.2 above.

 

(c)            
Company shall have delivered to the Purchaser the Warrant.

 

(d)            
Company shall have delivered executed Subscription Documents, or such other instruments as contemplated by this Agreement.

 

(e)            
Company shall have provided to Purchaser the necessary documents to enable Purchaser to perfect its first priority security in
the shares and other equity interests owned by Company, contemporaneously with the date of this Agreement.

 

 

 

    	 	13	 

     

    

 

(f)             
The Company has provided the Purchaser with a current schedule of liabilities and the results of a current certified UCC.

 

(g)            
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Purchaser, shall have been delivered to
and acknowledged in writing by Company’s Transfer Agent.

 

(h)            
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and
as of Closing Date, as though made at such time (except for representations and warranties that speak as of a specific date) and the Company
shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement
to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

(i)             
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

(j)             
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but
not limited to a change in the Exchange Act reporting status of the Company or the failure of the Company to be timely in its Exchange
Act reporting obligations.

 

(k)            
Company shall have delivered to the Purchaser (i) a certificate evidencing the formation and good standing of Company and each
of its Subsidiaries in such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction,
as of a date within ten (10) days of the Closing Date; (ii) resolutions adopted by the Company’s Board of Directors at a duly called
meeting or by unanimous written consent authorizing this Agreement and all other documents, instruments and transactions contemplated
hereby; and (iii) lien searches for Company dated within ten (10) days of the Closing Date and again as of the Closing Date.

 

(l)             
Intentionally Omitted.

 

(m)          
Intentionally Omitted.

 

		8.	Miscellaneous

 

8.1            
Binding Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any
third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this
Agreement.

 

8.2            
Governing Law; Consent to Jurisdiction. This Agreement shall be governed by and construed under the laws of the
State of Delaware, without giving effect to conflicts of laws principles. Each party to this Agreement hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in Delaware for the adjudication of any dispute hereunder or in connection
with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return
receipt requested) 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 manner permitted by law. All transactions contemplated herein are being made subject to the rules of Iska as found on Leonite’s
website (Leonitecap.com/iska).

 

 

 

    	 	14	 

     

    

 

8.3            
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature) 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.

 

8.4            
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement.

 

8.5            
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given:
(a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during
normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company and to the
Purchaser at the addresses set forth on the signature page to this Agreement or at such other addresses as the Company or Purchaser may
designate by 10 days’ advance written notice to the other parties hereto.

 

8.6            
Modification; Waiver. No modification or waiver of any provision of this Agreement or consent to departure therefrom
shall be effective only upon the written consent of the Company and the Purchaser. Any provision of the Note may be amended or waived
by the written consent of the Company and the Purchaser.

 

8.7            
Expenses. The Company and the Purchaser shall each bear its respective expenses and legal fees incurred with
respect to this Agreement and the transactions contemplated herein; provided, however, that the Purchaser may retain $17,500 of the Consideration
to cover its expenses incurred in connection with this Agreement and the transactions contemplated hereby.

 

8.8            
Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to
the Purchaser, upon any breach or default of the Company under the Subscription Documents shall impair any such right, power or remedy,
nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character by Purchaser of any
breach or default under this Agreement, or any waiver by any Purchaser of any provisions or conditions of this Agreement must be in writing
and shall be effective only to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by
law or otherwise afforded to the Purchaser, shall be cumulative and not alternative.

 

8.9            
Entire Agreement. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement
between the parties with regard to the subjects hereof and no party shall be liable or bound to any other party in any manner by any representations,
warranties, covenants and agreements except as specifically set forth herein.

 

[Signature page follows]

 

 

 

 

 

    	 	15	 

     

    

 

In
Witness Whereof, the parties have executed this Securities Purchase Agreement
as of the date first written above.

 

	
    COMPANY:

     

     

     
	 
	
    CROSSWIND RENEWABLE ENERGY CORP.

     

     

     

    By: /s/ Charles S. Arnold

    Name: Charles S. Arnold

    Title: Chief Executive Officer

     

    Address:  20295 29th Place, #200,

                      Aventura, FL 33180

     

     

     

     
	 
	
    PURCHASER:

     

    LEONITE
    CAPITAL LLC

     

     

    By: /s/ Avi Geller

    Name: Avi Geller

    Title: Chief Investment Officer

     

    Address:   1 Hillcrest Center Dr, Suite 232

                       Spring Valley, NY 110977

     
	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Securities Purchase Agreement – Signature
page]

 

 

 

    	 	16	 

     

    

 

SCHEDULE I

Disclosure Schedule

 

 

 

Section 3.3 Subsidiaries and Affiliates

 

Section 3.7 Compliance with Other Instruments

 

Section 3.9 Capitalization

 

Section 3.10 SEC Reports; Financial Statements

 

Section 3.12 Litigation

 

Section 3.15 Title to Assets

 

Section 3.16 Taxes

 

Section 3.21 Brokers and Finders

 

Section 3.27 Shell Company Status (check
only one, and insert the relevant dates if applicable)

 

 

	☒	The Company has never been a Shell Company as defined in in paragraph (i)(1)(i) of Rule 144.

 
	☐ 	1.	As of __________________, the Company ceased to be a Shell Company
as defined in paragraph (i)(1)(i) of Rule 144;

 
	 	2. 	As of ___________________, the Company became subject to the reporting requirements of section 13 or 15(d) of the Exchange Act. 
	 	 	 
	 	3.	On ___________________, the Company filed current “Form 10 information” with the SEC reflecting its status as an entity that is no longer an issuer described in paragraph (i)(1)(i) of Rule 144.

 

 

Section 7(f) Schedule of Liabilities and Lien
Search Results (Leonite will do Lien Search)

 

 

 

Exhibit
A

 

Form
of Convertible Promissory Note

 

(See
Attached)

 

 

 

 

 

 

 

    	 	17	 

     

    

Exhibit
B

 

Form
of Warrant

 

(See
Attached)

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

Exhibit
C

 

Form
of Security and Pledge Agreement

 

(See
Attached)

 

 

 

 

 

 

 

 

 

 

 

    	 	19

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