Document:

Exhibit 4.2

 

THIS NOTE AND THE SECURITIES ISSUABLE
UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), AS AMENDED, OR UNDER
THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT
AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER,
SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

  

 

GROM SOCIAL ENTERPRISES, INC. 

  

SENIOR SECURED CONVERTIBLE NOTE 

  

	$ 	 	March 16, 2020 

 

FOR VALUE RECEIVED,
GROM SOCIAL ENTERPRISES, Inc., a Florida corporation (the “Company”), promises to pay to _______ (the “Holder”)
in lawful money of the United States of America or Common Stock, or any combination thereof, the principal sum of $_____, or such
lesser amount as shall equal the outstanding principal amount hereof, together with interest from the date of this Senior Secured
Convertible Note (this “Note”) on the unpaid principal balance at a rate equal to 12% per annum computed on
the basis of the actual number of days elapsed and a year of 365 days. All unpaid principal, together with any then unpaid and
accrued interest and other amounts payable hereunder, shall be due and payable on March  16, 2024 (the “Maturity Date”)
or such earlier date as this Note is permitted to be repaid as provided hereunder. This Note is one of the senior secured convertible
notes issued in connection with that certain offering of notes of the Company (the “Offering”) and pursuant
to that certain Subscription Agreement, dated the date hereof (the “Subscription Agreement”), by and between
the Company and the Holder. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Subscription
Agreement.

 

The following is a
statement of the rights of Holder and the conditions to which this Note is subject, and to which Holder, by the acceptance of this
Note, agrees:

 

1.                  
Payments. 

 

(a)               
Principal and Interest. Interest shall accrue on the outstanding principal amount of this Note at an annual rate of twelve
percent (12%). The Company shall pay monthly installments of principal and interest to the Holder, in accordance with the amortization
schedule attached hereto as Annex A, commencing from ______, the date which is sixty (60) days from the Original Issuance
Date, through the Maturity Date if not otherwise converted into shares of Common Stock pursuant to Section 2 hereof. Each
date upon which a payment of principal and interest is due hereunder shall be referred to as a “Payment Date”.
If any Payment Date is not a Trading Day, the applicable payment shall be due on the next succeeding Trading Day.

 

 

 

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(b)               
Voluntary Prepayment. Subject to the provisions of this Section 1(b), at any time after the Original Issuance Date, the
Company may deliver a notice to the Holder (an “Optional Redemption Notice” and the date such notice is deemed
delivered hereunder, the “Optional Redemption Notice Date”) of its irrevocable election to redeem some or all
of the then outstanding principal amount of this Note (the “Optional Redemption Amount”) for cash on the fifth
(5th ) Trading Day following the Optional Redemption Notice Date (such date, the “Optional Redemption Date”,
such five (5) Trading Day period, the “Optional Redemption Period ” and such redemption, the “Optional
Redemption”). The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Holder’s acceptance
of any Optional Redemption Amount is subject to the Company’s payment on the Optional Redemption Date of a prepayment penalty
(the “Optional Redemption Penalty”) in an amount equal to four (4%) of the Optional Redemption Amount.

  

2.                  
Conversion.

 

(a)               
Conversion; Calculation of Conversion Shares. The conversion price on any Conversion Date shall be equal to 75% of the average
sales price of the Common Stock over the sixty (60) day trading period immediately preceding such Conversion Date per share of
Common Stock (subject to adjustment as described herein (the “Conversion Price”), provided, however, that in
no event shall the Conversion be less than $0.10 per share. The number of Conversion Shares issuable upon a conversion hereunder
shall be determined by the quotient obtained by dividing (x) the aggregate amount of principal and interest outstanding under the
Note by (y) the Conversion Price.

 

(b)               
Holder Voluntary Conversion.

 

(i)                 
At any time until this Note is no longer outstanding, this Note shall be convertible, in whole or in part, into shares of Common
Stock at the option of the Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 2(j)
hereof). The Holder shall effect conversions by delivering to the Company a Notice of Conversion, the form of which is attached
hereto as Annex B (each, a “Notice of Conversion”), specifying therein the principal amount of this Note
to be converted and the date on which such conversion shall be effected (such date, the “Conversion Date”).
If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion
is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other
type of guarantee or notarization) of any Notice of Conversion form be required. To effect conversions hereunder, the Holder shall
not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued
and unpaid interest thereon, has been so converted in which case the Holder shall surrender this Note as promptly as is reasonably
practicable after such conversion without delaying the Company’s obligation to deliver the Conversion Shares otherwise pursuant
to the terms of this Note. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note
in an amount equal to the applicable conversion. The Holder and the Company shall maintain records showing the principal amount(s)
converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within one (1) Business
Days of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall 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 may be less than the amount stated on the face hereof. 

 

(ii)              
Mechanics of Conversion. Not later than two (2) Trading Days after each Conversion Date (the “Share Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder (A) the Conversion Shares which, on or after the earlier of
(i) the six month anniversary of the date of this Note or (ii) the Effective Date, shall be free of restrictive legends and trading
restrictions (other than those which may then be required by the Subscription Agreement) representing the number of Conversion
Shares being acquired upon the conversion of this Note and (B) a bank check in the amount of accrued and unpaid interest.

 

(c)               
Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered
to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice
to the Company at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Company
shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Company
the Conversion Shares issued to such Holder pursuant to the rescinded Conversion Notice.

 

 

 

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(d)               
Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares
upon conversion of this Note in accordance with the terms hereof are absolute and unconditional. In addition to any other rights
available to the Holder, if the Company fails for any reason to deliver to the Holder such Conversion Shares by the Share Delivery
Date pursuant to Section 2(b)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase
(in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock
to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in
addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total
purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual
sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and
(B) at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount
of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 2(b)(ii).
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
Conversion Shares upon conversion of this Note as required pursuant to the terms hereof.

 

(e)                
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available
out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note and payment
of interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of
Persons other than the Holder (and the other holders of the Notes), not less than such aggregate number of shares of the Common
Stock as shall (subject to the terms and conditions set forth in the Subscription Agreement) be issuable (taking into account the
adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal amount of this Note and payment
of interest hereunder. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly
authorized, validly issued, fully paid and nonassessable.

   

(f)               
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this
Note. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company
shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

(g)               
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Note shall be made without charge to
the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion
Shares, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved
in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holder of this Note
so converted and the Company shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons
requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day processing of any
Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar
functions) required for same-day electronic delivery of the Conversion Shares.

 

(h)                 
Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion
of the Notes), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by
way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of
a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of
the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately after
the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification.

 

 

 

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(i)                 
Notices of Record Date. In the event of:

 

(i)                 
Any taking by the Company of a record of the holders of any class of securities of Company for the purpose of determining the holders
thereof who are entitled to receive any dividend or other distribution or any right to subscribe for, purchase or otherwise acquire
any shares of stock of any class or any other securities or property, or to receive any other right; or

 

(ii)              
Any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all of the assets of the Company to any other Person or any consolidation or merger involving
the Company; or

 

(iii)            
Any voluntary or involuntary dissolution, liquidation or winding-up of the Company, or

 

(iv)             
the Company shall deliver to Holder at least ten (10) days prior to the earliest date specified therein, a notice specifying (A) the
date on which any such record is to be taken for the purpose of such dividend, distribution or right and the amount and character
of such dividend, distribution or right; and (B) the date on which any such reorganization, reclassification, transfer, consolidation,
merger, dissolution, liquidation or winding-up is expected to become effective and the record date for determining stockholders
entitled to vote thereon.

 

 (j)               Holder’s
Conversion Limitations. The Company shall not affect any conversion of this Note, and the Holder shall not have the right to
convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of
Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder
or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).
For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining,
unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise
analogous to the limitation contained herein (including, without limitation, any other Notes or the Warrants) beneficially owned
by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(j), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 2(j) applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is
convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the
Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder together
with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation.
To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice
of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and Company shall have
no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(j), in determining the number of outstanding shares of Common Stock, the Holder may rely on the
number of outstanding shares of Common Stock as stated in the most recent of the following: (i) Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii)
a more recent written notice by Company or Company’s transfer agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Company
or the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The
“Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder
may decrease the Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior notice to
the Company, and may increase the Beneficial Ownership Limitation provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section
2(j) shall continue to apply. Any such increase will not be effective until the 61 st day after such notice is delivered
to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 2(j) to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Note.

 

 

 

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3.                  
Security Interest. 

 

(a)               
As collateral security for the Company’s obligations pursuant to this Note, the Company hereby pledges, assigns and transfers
to the Holder a first priority security interest in and collateral assignment of the Company’s right, title and interest
in and to all of the assets and tangible and intangible property of the Company, other than the shares of (i) Grom Holdings, Inc.,
a Delaware corporation(ii) the shares of TD Holdings Limited, a Hong Kong corporation and (iii) the shares of Top Draw Animation
HongKong Limited (collectively, the “Collateral”).

 

 (b)            
The Company authorizes the Holder to file or cause to be filed one or more financing statements, amendments to financing statements,
continuations to financing statements, in lieu financing statements, and other similar filings with any filing or recording office
for the purpose of perfecting or continuing the perfection of or otherwise establishing Holder’s security interest in the
Collateral.

 

(c)               
So long as this Note remains outstanding, the Company agrees to (i) do, observe and perform or cause to be done, observed and performed
all of its obligations and all matters and things necessary to be done, observed and performed for the purpose of maintaining the
Collateral in good condition, including complying with and maintaining in effect all licenses, approvals and permits and all contracts
and contract rights related to the Collateral and (ii) upon the reasonable request of Holder, execute and deliver such further
instruments and do or cause to be done such further acts as may be necessary or advisable to carry out the intent and purposes
of this Note with respect to the Collateral.

 

4.                  
Events of Default. The occurrence of any of the following shall constitute an “Event of Default” under
this Note:

 

(a)               
Failure to Pay. The Company shall fail to pay (i) when due any principal payment on the due date hereunder or (ii)
any interest payment or other payment required under the terms of this Note on the date due and such payment shall not have been
made within thirty (30) days of the Company’s receipt of written notice by the Required Holders of such failure to pay; or

 

(b)               
Breaches of Covenants. The Company shall fail to observe or perform any other covenant, obligation, condition or
agreement contained in this Note (other than those specified in Section 4(a) hereof) the failure of which would have
a material adverse effect on the Company and such failure shall continue for thirty (30) days after the Company’s receipt
of written notice by the Required Holders to the Company of such failure; or

 

(c)               
Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment
of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) admit in writing
its inability to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of
its creditors, (iv) be dissolved or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official
in an involuntary case or other proceeding commenced against it, or (vi) take any action for the purpose of effecting any
of the foregoing; or

 

(d)               
Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator
or custodian of the Company, or of all or a substantial part of the property thereof, or an involuntary case or other proceedings
seeking liquidation, reorganization or other relief with respect to the Company or any of its subsidiaries, if any, or the debts
thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief
entered or such proceeding shall not be dismissed or discharged within forty-five (45) days of commencement.

 

 

 

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5.                  
Rights of Holder upon Default. Upon the occurrence of any Event of Default (other than an Event of Default described in
Section 4(c) or Section 4(d) ) hereof and at any time thereafter during the continuance of such Event of Default,
Holder may, with the written consent of the Required Holders, by written notice to the Company, declare all outstanding obligations
payable by the Company hereunder to be immediately due and payable, and take possession of and exercise control over, to the fullest
extent permitted by law, any Collateral, without presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived. Upon the occurrence of any Event of Default described in Section 4(c) and Section 4(d)
hereof, immediately and without notice, all principal and accrued and unpaid interest hereunder shall automatically become
immediately due and payable, and the Holder may take possession of and exercise control over, to the fullest extent permitted by
law, any Collateral, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived.
In addition to the foregoing remedies, upon the occurrence and during the continuance of any Event of Default, Holder may exercise
any other right power or remedy permitted to it by law, either by suit in equity or by action at law, or both.

 

6.                  
Definitions. As used in this Note, the following capitalized terms shall have the following meanings:

 

“Common Stock”
means the Common stock of the Company, par value $0.001 per share.

 

“Conversion
Shares” means the shares of Common Stock issuable upon conversion of this Note.

 

“Event
of Default” has the meaning given in Section 4 hereof.

 

“Holders”
means the Holder and the other holders of a Note issued in connection with this Offering.

 

“Maturity
Date” has the meaning given in the preamble to this Note.

 

 “Note”
has the meaning given in the preamble of this Note.

 

“Notes”
means the notes issued by the Company to those investors in connection with this Offering.

 

“Optional Redemption”
has the meaning given in Section 1(b) hereof.

 

“Optional Redemption
Date” has the meaning given in Section 1(b) hereof.

 

“Optional Redemption
Notice Date” has the meaning given in Section 1(b) hereof.

 

“Optional Redemption
Period” has the meaning given in Section 1(b) hereof.

 

“Optional Redemption
Penalty” has the meaning given in Section 1(b) hereof.

 

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

 

“Payment Date” has the
meaning given in Section 1(b) hereof.

 

“Required Holders”
means the Holders holding more than sixty-six and two third percent (66 2/3)% of the aggregate outstanding principal due under
the Notes.

 

“Subscription
Agreement” has the meaning given in the preamble of this Note.

 

 

 

    	 	6	 

     

    

 

7.                  
Miscellaneous.

 

(a)               
Successors and Assigns; Transfer of this Note or Securities Issuable on Conversion Hereof.

 

(i)                Subject to the restrictions on transfer described in this Section 7(a), the rights and obligations of the Company and
Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the Company and Holder.

 

(ii)              
With respect to any offer, sale or other disposition of this Note or securities into which such Note may be converted, Holder shall
give advance written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion
of Holder’s counsel or other evidence reasonably satisfactory to the Company, to the effect that such offer, sale or other
distribution may be effected without registration or qualification (under any federal or state law then in effect). Upon receiving
such written notice and reasonably satisfactory opinion or other evidence if so requested, the Company, as promptly as practicable,
shall notify Holder that Holder may sell or otherwise dispose of this Note or such securities, all in accordance with the terms
of the notice delivered to the Company. If a determination has been made pursuant to this Section 7(a) that the opinion
of counsel for Holder, or other evidence, is not reasonably satisfactory to the Company, the Company shall so notify Holder promptly
after such determination has been made. Each Note thus transferred and each certificate representing the securities thus transferred
shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act,
unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities
Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions. Subject to the
foregoing, transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of the
Company. Prior to presentation of this Note for registration of transfer, the Company shall treat the registered holder hereof
as the owner and holder of this Note for the purpose of receiving all payments of principal and interest hereon and for all other
purposes whatsoever, whether or not this Note shall be overdue and the Company shall not be affected by notice to the contrary.

 

(iii)            
Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise,
in whole or in part, by the Company without the prior written consent of Holder.

 

(b)               
Waiver and Amendment. Any provision of this Note may be amended, waived or modified only upon the written consent
of the Company and the Required Holders.

 

(c)               
Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder
shall be made in accordance with:

 

	If to the Company:	Grom Social Enterprises, Inc.
	 	
        2060 NW Boca Raton Blvd., Suite #6

        Boca Raton, FL 33431

	 	Facsimile No:
	 	
        Email:

        Attention:

	With copies to (which shall	 
	not constitute notice):	The Crone Legal Group, P.C.
	 	500 Fifth Avenue, Suite 938
	 	New York, NY 10110
	 	Facsimile No.: (917) 438-6137
	 	Email: mcrone@cronelegalgroup.com
	 	Attn: Mark Crone

 

	If to the Holder:	
        Name:

        Address:

        Email:

        Facsimile:

        Attn:

 

 

 

    	 	7	 

     

    

 

(d)               
Ranking. The Company and Holder acknowledge and agree that the Notes rank senior to all other securities of the Company.
Payment of all or any portion of the outstanding principal amount of this Note and all interest hereon shall be senior in right
of payment and in all other respects to all other securities of the Company. Payment of all or any portion of the outstanding principal
amount of this Note and all interest hereon shall be senior in right of payment and in all other respects to all other indebtedness
of the Company.

 

(e)               
Payment. Unless converted into the Company’s equity securities pursuant to the terms hereof, payment shall be made
in United States dollars.

 

(f)                
Usury. In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate,
then that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment
of principal and applied against the principal of this Note.

 

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

 

(h)               
Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and
construed in accordance with the laws of the State of Florida, without regard to its internal rules governing the conflict of laws.

  

 

 

 

[Remainder of page
intentionally left blank.] 

  

 

 

 

 

 

 

 

 

 

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The Company has caused this Note to be issued as of the
date first written above.

 

	 	GROM SOCIAL ENTERPRISES, inc. 
	 	 
	 	
        By:                                

        Name: Melvin Leiner

        Title: Executive Vice President

         

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

ANNEX A

 

[Amortization Schedule]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

ANNEX B

  

NOTICE OF CONVERSION 

  

The undersigned hereby
elects to convert principal under the Senior Secured Convertible Note due [●], 2020 of Grom Social Enterprises, Inc., a Florida
corporation (the “Company”), into shares of common stock (the “ Common Stock ”), of the Company
according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith
such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder
for any conversion, except for such transfer taxes, if any.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts specified under Section 2 of this Note, as determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock.

 

Conversion calculations:

 

	 	Date to Effect Conversion: ____________________________ 
	 	 
	 	Principal Amount of Note to be Converted: $__________________ 
	 	 
	 	Accrued Interest to be Converted, if any: $______________ 
	 	 
	 	 
	 	Number of shares of Common Stock to be issued: ______________ 
	 	 
	 	Signature: _________________________________________ 
	 	 
	 	Name: ____________________________________________ 
	 	 
	 	Address for Delivery of Common Stock Certificates: __________ 
	 	_____________________________________________________
	 	_____________________________________________________ 
	 	 
	 	Or 
	 	 
	 	DWAC Instructions: _________________________________ 
	 	 
	 	Broker No:_____________ 
	 	 
	 

 

 

    	 	11Exhibit 10.1

 

GROM
SOCIAL ENTERPRISES, INC.

 

SUBSCRIPTION
AGREEMENT

 

This Subscription Agreement
(this “Agreement”) is being delivered by the purchaser identified on the signature page to this Agreement (the
“Subscriber”) in connection with an offering conducted by Grom Social Enterprises, Inc., a Florida corporation
(the “Company”). The Company is conducting a private placement (the “Offering”) of 12% senior
secured convertible notes (each, a “Note”) and collectively, the “Notes”). As collateral
security for the Company’s obligations pursuant to this Note, the Company shall cause Grom Holdings, Inc., a Delaware corporation
and a wholly-owned subsidiary of the Company (“Grom Holdings”), to pledge, assign and transfer to the Subscriber
a first priority security interest in and collateral assignment of (i) Grom Holdings right, title and interest in and to all of
the shares of stock of TD Holdings Limited, a corporation organized under the laws of Hong Kong (“TDH”) and
(ii) TDH’s right, title and interest in and to all of the shares of Top Draw Animation HongKong Limited, a Hong Kong corporation.
In connection with the Offering, the Company agrees to sell, and the purchasers thereunder, severally and not jointly, agree to
purchase, a minimum of $3,000,000 and up to a maximum of $5,000,000 in aggregate principal amount of the Notes.

 

1.       SUBSCRIPTION
AND PURCHASE PRICE

 

(a)       Subscription.
Subject to the conditions set forth in Section 3 hereof, the Company desires to issue and sell, and the Subscriber hereby subscribes
for and agrees to purchase, the Note in the principal amount of $[●] on the terms and conditions described herein.

 

(b)       Purchase
of Note. The Subscriber understands and acknowledges that the purchase price to be remitted to the Company in exchange for
the Note is $[●] (the “Purchase Price”). The Subscriber’s delivery of this Agreement to the Company
shall be accompanied by payment of the Purchase Price, payable in United States Dollars, by wire transfer, or check of immediately
available funds delivered contemporaneously with the Subscriber’s delivery of this Agreement to the Company in accordance
with the wire instructions provided on Exhibit A. The Subscriber understands and agrees that, subject to Section 2 and applicable
laws, by executing this Agreement, it is entering into a binding agreement.

 

2.       grant
of common stock of the company

 

In connection with the Offering, the Company
shall issue to the Subscriber such number of shares (the “Incentive Shares”) of common stock of the Company,
par value $0.001, (the “Common Stock”) in an amount equal to twenty percent (20%) of the principal amount of
such holder’s Note divided by $0.10 as reflected on the signature page to this Agreement.

 

3.       Acceptance
and Closing Procedures

 

(a)       Closing.
The closing of the purchase and sale of the Notes in connection with the Offering (the “Closing”) shall take
place at the offices of Grom Social Enterprises, Inc., 2060 NW Boca Raton Blvd. #6 Boca Raton, Florida 33431 or such other place
as determined by the Company and may take place in one of more closings as mutually agreed to between the parties. As a condition
to the Closing, the Company shall sell a minimum of $3,000,000 of Notes in connection with the Offering.

 

(b)       Following
Acceptance or Rejection. The Subscriber acknowledges and agrees that this Agreement and any other documents delivered in connection
herewith will be held by the Company. In the event that this Agreement is not accepted by the Company for whatever reason, which
the Company expressly reserves the right to do, this Agreement, the Purchase Price received (without interest thereon) and any
other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth
in this Agreement. If this Agreement is accepted by the Company, the Company is entitled to treat the Purchase Price received as
an interest free loan to the Company until such time as the subscription is accepted.

 

4.       THE
SUBSCRIBER’s Representations, Warranties AND cOVENANTS

 

The Subscriber hereby
acknowledges, agrees with and represents, warrants and covenants to the Company, as follows:

 

(a)       The
Subscriber has full power and authority to enter into this Agreement, the execution and delivery of which has been duly authorized,
if applicable, and this Agreement constitutes a valid and legally binding obligation of the Subscriber, except as may be limited
by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to or affecting the enforcement
of rights of creditors, and except as enforceability of the obligations hereunder are subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or law).

 

 

 

    	 	1	 

     

    

 

(b)       The
Subscriber acknowledges its understanding that the offering and sale of the Note, the issuance of shares of Common Stock upon conversion
of the Note (the “Note Shares”), and the grant of the Incentive Shares is intended to be exempt from registration
under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4 (a)(2) of the Securities
Act and the provisions of Regulation D promulgated thereunder (“Regulation D”). In furtherance thereof, the
Subscriber represents and warrants to the Company and its affiliates as follows:

 

(i)       The
Subscriber realizes that the basis for the exemption from registration may not be available if, notwithstanding the Subscriber’s
representations contained herein, the Subscriber is merely acquiring the Note (including the Note Shares) and the Incentive Shares
for a fixed or determinable period in the future, or for a market rise, or for sale if the market does not rise. The Subscriber
attests that it does not have any such intention.

 

(ii)       The
Subscriber realizes that the basis for exemption would not be available if the offering of the Note (including any issuance of
the Note Shares) and the acceptance of the Incentive Shares is part of a plan or scheme to evade registration provisions of the
Securities Act or any applicable state or federal securities laws.

 

(iii)       The
Subscriber is acquiring the Note (including any Note Shares) and the Incentive Shares solely for the Subscriber’s own beneficial
account, for investment purposes, and not with a view towards, or resale in connection with, any distribution of the Note.

 

(iv)       The
Subscriber has the financial ability to bear the economic risk of the Subscriber’s investment, has adequate means for providing
for its current needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

 

(v)       The
Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively,
the “Advisors”) has such knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of a prospective investment in the Note (including any Note Shares) and the Incentive Shares. If other than
an individual, the Subscriber also represents it has not been organized solely for the purpose of acquiring the Note (including
any Note Shares) and the Incentive Shares.

 

(vi)       The
Subscriber (together with its Advisors, if any) has received all documents requested by the Subscriber, if any, and has carefully
reviewed such documents and understands the information contained therein, prior to the execution of this Agreement.

 

(c)       The
Subscriber is not relying on the Company or any of its employees, agents, sub-agents or advisors with respect to the legal, tax,
economic and related considerations involved in this investment. The Subscriber has relied on the advice of, or has consulted with,
only its Advisors. Each Advisor, if any, has disclosed to the Subscriber in writing (a copy of which is annexed to this Agreement)
the specific details of any and all past, present or future relationships, actual or contemplated, between the Advisor and the
Company or any affiliate or sub-agent thereof.

 

(d)       The
Subscriber has carefully considered the potential risks relating to the Company and a purchase of the Note (including the Note
Shares), and fully understands that the Note (including the Note Shares) and the Incentive Shares are a speculative investment
that involves a high degree of risk of loss of the Subscriber’s entire investment. Among other things, the Subscriber has
carefully considered each of the risks described under the heading “Risk Factors” in the Company’s SEC
Filings (as defined below), which risk factors are incorporated herein by reference.

 

(e)       The
Subscriber will not sell or otherwise transfer the Note, the Note Shares or the Incentive Shares without registration under the
Securities Act or an exemption therefrom, and fully understands and agrees that the Subscriber must bear the economic risk of its
purchase because, among other reasons, neither the Note, nor the Note Shares, nor the Incentive Shares have been registered under
the Securities Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned or otherwise disposed
of unless they are subsequently registered under the Securities Act and under the applicable securities laws of such states, or
an exemption from such registration is available. In particular, the Subscriber is aware that the Note, the Note Shares and the
Incentive Shares are “restricted securities,” as such term is defined in Rule 144 promulgated under the Securities
Act (“Rule 144”), and they may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144 are
met. The Subscriber also understands that the Company is under no obligation to register the Note, the Note Shares or the Incentive
Shares on behalf of the Subscriber or to assist the Subscriber in complying with any exemption from registration under the Securities
Act or applicable state securities laws. The Subscriber understands that any sales or transfers of the Note, the Note Shares and
the Incentive Shares are further restricted by state securities laws and the provisions of this Agreement. The Subscriber understands
that the Company may limit further the right to sell or transfer the Note, the Note Shares and the Incentive Shares by establishing
procedures for approval of any such transfer, limiting counsel authorized to review and approve Rule 144 transactions and approving
opinion fees, for transfers sought to be permitted under Rule 144, which may result in delays in desired sales or transfers by
Subscribers.

 

 

 

    	 	2	 

     

    

 

(f)       No
oral or written representations or warranties have been made, or information furnished, to the Subscriber or its Advisors, if any,
by the Company or any of its officers, employees, agents, sub-agents, affiliates, advisors or subsidiaries in connection with the
Offering, other than any representations of the Company contained herein, and in subscribing for the Note, the Subscriber is not
relying upon any representations other than those contained herein.

 

(g)       The
Subscriber’s overall commitment to investments that are not readily marketable is not disproportionate to the Subscriber’s
net worth, and an investment in the Note (or any Note Shares) will not cause such overall commitment to become excessive.

 

(h)       The
Subscriber understands and agrees that the certificates for the Note, the Note Shares and the Incentive Shares shall bear substantially
the following legend until (i) such Note, the Note Shares and the Incentive Shares shall have been registered under the Securities
Act and effectively disposed of in accordance with a registration statement that has been declared effective or (ii) in the opinion
of counsel for the Company, such Note, the Note Shares and the Incentive Shares may be sold without registration under the Securities
Act, as well as any applicable “blue sky” or state securities laws:

 

THESE SECURITIES REPRESENTED
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE
SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER
SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FILED BY THE ISSUER WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.

 

(i)       Neither
the Securities and Exchange Commission (the “SEC”) nor any state securities commission has approved the Note,
the Note Shares or the Incentive Shares or passed upon or endorsed the merits of the Offering.

 

(j)       The
Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Company concerning the Offering and the business, financial condition, results of operations and
prospects of the Company, and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors,
if any.

 

(k)       The
Subscriber is unaware of, is in no way relying on, and did not become aware of, the Offering through or as a result of, any form
of general solicitation or general advertising, including, without limitation, any article, notice, advertisement or other communication
published in any newspaper, magazine or similar media or broadcast over television or radio, or electronic mail over the Internet,
in connection with the Offering and is not subscribing for Note and did not become aware of the Offering through or as a result
of any seminar or meeting to which the Subscriber was invited by, or any solicitation of a subscription by, a person not previously
known to the Subscriber in connection with investments in securities generally.

 

(l)       The
Subscriber has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees or
the like relating to this Agreement or the transactions contemplated hereby.

 

(m)       The
Subscriber is not relying on the Company or any of its employees, agents, or advisors with respect to the legal, tax, economic
and related considerations of an investment in the Note, and the Subscriber has relied on the advice of, or has consulted with,
only its own Advisors.

 

(n)        The
Subscriber acknowledges that any estimates or forward-looking statements or projections furnished by the Company to the Subscriber
were prepared by the management of the Company in good faith, but that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company or its management and should not be relied upon.

 

(o)       No
oral or written representations have been made, or oral or written information furnished, to the Subscriber or its Advisors, if
any, in connection with the Offering that are in any way inconsistent with the information contained herein.

 

 

 

    	 	3	 

     

    

 

(p)       (For
ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been informed
of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest “plan
assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification
of plan assets and impose other fiduciary responsibilities. The Subscriber or Plan fiduciary (i) is responsible for the decision
to invest in the Company; (ii) is independent of the Company and any of its affiliates; (iii) is qualified to make such investment
decision; and (iv) in making such decision, the Subscriber or Plan fiduciary has not relied primarily on any advice or recommendation
of the Company or any of its affiliates.

 

(q)       This
Agreement is not enforceable by the Subscriber unless it has been accepted by the Company, and the Subscriber acknowledges and
agrees that the Company reserves the right to reject any subscription for any reason.

 

(r)       The
Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors,
affiliates and shareholders, and each other person, if any, who controls any of the foregoing from and against any and all loss,
liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever
reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation
whether commenced or threatened) (a “Loss”) arising out of or based upon any representation or warranty of the
Subscriber contained herein or in any document furnished by the Subscriber to the Company in connection herewith being untrue in
any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber
herein or therein; provided, however, that the Subscriber shall not be liable for any Loss that in the aggregate
exceeds the Subscriber’s Purchase Price tendered hereunder.

 

(s)       The
Subscriber is, and on each date on which the Subscriber continues to own the restricted Note from the Offering will be, an “Accredited
Investor” as defined in Rule 501(a) under the Securities Act. In general, an “Accredited Investor” is deemed
to be an institution with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 (excluding such
person’s residence) or annual income exceeding $200,000 or $300,000 jointly with his or her spouse.

 

(t)       The
Subscriber, either alone or together with its representatives, has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and risks of the Offering, and has so evaluated the merits and risks
of such investment. The Subscriber has not authorized any person or entity to act as its Purchaser Representative (as that term
is defined in Regulation D of the General Rules and Regulations under the Securities Act) in connection with the Offering. The
Subscriber is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete
loss of such investment.

 

(u)       The
Subscriber has reviewed, or had an opportunity to review, all of the SEC Filings, and all “Risk Factors” and “Forward
Looking Statements” disclaimers contained therein. In addition, the Subscriber has reviewed and acknowledges it has such
knowledge, sophistication, and experience in securities matters, and understands the following additional Risk Factor related to
the Company.

 

5.       The
Company’s Representations, Warranties and Covenants

 

The Company hereby
acknowledges, agrees with and represents, warrants and covenants to the Subscriber, as follows:

 

(a)       Organization
and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the
state of Florida. The Company is duly qualified to do business, and is in good standing in the states required due to (a) the ownership
or lease of real or personal property for use in the operation of the Company's business or (b) the nature of the business conducted
by the Company, except where the failure to do so would not result in a material adverse effect to the Company. The Company has
all requisite power, right and authority to own, operate and lease its properties and assets, to carry on its business as now conducted,
to execute, deliver and perform its obligations under this Agreement to which it is a party, and to carry out the transactions
contemplated hereby and thereby. All actions on the part of the Company and its officers and directors necessary for the authorization,
execution, delivery and performance of this Agreement, the consummation of the transactions contemplated hereby and thereby, and
the performance of all of the Company's obligations under this Agreement have been taken or will be taken prior to the Closing.
This Agreement has been duly executed and delivered by the Company, and this Agreement is a legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms.

 

 

 

    	 	4	 

     

    

 

(b)       Issuance
of Securities. The Note, any Note Shares and the Incentive Shares to be issued to the Subscriber pursuant to this Agreement,
when issued and delivered in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid
and non-assessable.

 

(c)       Authorization;
Enforcement. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated
hereby will not (a) constitute a violation (with or without the giving of notice or lapse of time, or both) of any provision of
any law or any judgment, decree, order, regulation or rule of any court, agency or other governmental authority applicable to the
Company, (b) require any consent, approval or authorization of, or declaration, filing or registration with, any person, (c) result
in a default (with or without the giving of notice or lapse of time, or both) under, acceleration or termination of, or the creation
in any party of the right to accelerate, terminate, modify or cancel, any agreement, lease, note or other restriction, encumbrance,
obligation or liability to which the Company is a party or by which it is bound or to which any assets of the Company are subject,
(d) result in the creation of any lien or encumbrance upon the assets of the Company, or upon any Notes or other securities of
the Company, (e) conflict with or result in a breach of or constitute a default under any provision of those certain articles of
incorporation (“Articles of Incorporation”) those certain bylaws (“Bylaws”) of the Company,
or (f) invalidate or adversely affect any permit, license, authorization or status used in the conduct of the business of the Company.

 

(d)       SEC
Filings. The Company is subject to, and in full compliance with, the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). The Company has made available to each Subscriber through
the EDGAR system true and complete copies of each of the Company’s Quarterly Reports on Form 10-Q, Annual Reports on Form
10-K and Current Reports on Form 8-K (collectively, the “SEC Filings”), and all such SEC Filings are incorporated
herein by reference.

 

(e)       No
Financial Advisor. The Company acknowledges and agrees that the Subscriber is acting solely in the capacity of an arm’s
length purchaser with respect to the Note and the transactions contemplated hereby. The Company further acknowledges that the Subscriber
is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and
the transactions contemplated hereby and any advice given by the Subscriber or any of its representatives or agents in connection
with this Agreement and the transactions contemplated hereby is merely incidental to the Subscriber’s purchase of the Note
(including any Note Shares) and acceptance of the Incentive Shares. The Company further represents to the Subscriber that the Company’s
decision to enter into this Agreement has been based solely on the independent evaluation of the transactions contemplated hereby
by the Company and its representatives.

 

(f)       Indemnification.
The Company will indemnify and hold harmless the Subscriber and, where applicable, its directors, officers, employees, agents,
advisors and shareholders, from and against any and all Loss arising out of or based upon any representation or warranty of the
Company contained herein or in any document furnished by the Company to the Subscriber in connection herewith being untrue in any
material respect or any breach or failure by the Company to comply with any covenant or agreement made by the Company to the Subscriber
in connection therewith; provided, however, that the Company’s liability shall not exceed the Subscriber’s
Purchase Price tendered hereunder.

 

(g)       Capitalization
and Additional Issuances. The authorized, issued and outstanding capital stock of the Company is as set forth in the SEC Filings
and all issued and outstanding Notes of the Company are validly issued, fully paid and non-assessable. Except as set forth in the
SEC Filings and as otherwise required by law, there are no restrictions upon the voting or transfer of any of the Notes of capital
stock of the Company pursuant to the Articles of Incorporation, the Bylaws or other governing documents or any agreement or other
instruments to which the Company is a party or by which the Company is bound.

 

(h)       Private
Placements. Assuming the accuracy of the Subscriber’s representations and warranties set forth in Section 3, no registration
under the Securities Act is required for the offer and sale of the Notes by the Company to the Subscribers as contemplated hereby.

 

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

 

(j)       Reservation
of Shares. The Company has reserved such adequate number of Note Shares as issuable upon conversion of the Note. Such Note
Shares, when issued in accordance with the terms of the Note, will be duly authorized, validly issued and outstanding, fully paid
and non-assessable.

 

 

 

    	 	5	 

     

    

 

6.       MISCELLANEOUS
PROVISIONS

 

(a)       All
parties hereto have been represented by counsel, and no inference shall be drawn in favor of or against any party by virtue of
the fact that such party’s counsel was or was not the principal draftsman of this Agreement.

 

(b)       Each
of the parties hereto shall be responsible to pay the costs and expenses of its own legal counsel in connection with the preparation
and review of this Agreement and related documentation.

 

(c)       Neither
this Agreement, nor any provisions hereof, shall be waived, modified, discharged or terminated except by an instrument in writing
signed by the party against whom any waiver, modification, discharge or termination is sought.

 

(d)       The
representations, warranties and agreement of the Subscriber and the Company made in this Agreement shall survive the execution
and delivery of this Agreement and the delivery of the Note.

 

(e)       Any
party may send any notice, request, demand, claim or other communication hereunder to the Subscriber at the address set forth on
the signature page of this Agreement or to the Company at its primary office (including personal delivery, expedited courier, messenger
service, fax, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication will be deemed
to have been duly given unless and until it actually is received by the intended recipient. Any party may change the address to
which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties written
notice in the manner herein set forth.

 

(f)       Except
as otherwise provided herein, this Agreement shall be binding upon, and inure to the benefit of, the parties to this Agreement
and their heirs, executors, administrators, successors, legal representatives and assigns. If the Subscriber is more than one person
or entity, the obligation of the Subscriber shall be joint and several and the agreements, representations, warranties and acknowledgments
contained herein shall be deemed to be made by, and be binding upon, each such person or entity and its heirs, executors, administrators,
successors, legal representatives and assigns. This Agreement sets forth the entire agreement and understanding between the parties
as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every
nature among them.

 

(g)       This
Agreement is not transferable or assignable by the Subscriber.

 

(h)       This
Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without giving effect to its
conflicts of law principles. 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 of Florida located in Palm Beach County, Florida. The parties 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 prevailing party shall be entitled to recover from
the other party its reasonable attorney’s fees and costs.

 

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

 

(j)       This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

[Signature Pages Follow]

 

 

 

 

 

    	 	6	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	
         

        Grom
        Social Enterprises, Inc. 

         

         
	
         

        Address for Notices:

        2060 NW Boca Raton Blvd., Suite #6

        Boca Raton, FL 33431

	
        By:                                         

        Name: Melvin Leiner

        Title: Executive Vice
        President

         

         
	 
	
        With a copy to (which shall not constitute
        notice):

         

        The Crone Legal Group, P.C.

        500 Fifth Avenue, Suite 938

        New York, NY 10110

        Attn: Mark Crone

         

         
	 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR SUBSCRIBER FOLLOWS]

 

 

 

    	 	7	 

     

    

 

[Subscriber
SIGNATURE PAGE TO Grom SOCial Enterprises, INC. 

SUBSCRIPTION
AGREEMENT]

 

 

 

IN WITNESS WHEREOF,
the undersigned have caused this Subscription Agreement to be duly executed by their respective authorized signatories as of the
16th day of March, 2020.

 

Name of Subscriber:

 

Signature of Authorized Signatory of
Subscriber: __________________________________

 

Name of Authorized Signatory: 

 

Email Address of Authorized Signatory:
__________________________________________

 

 

Facsimile Number of Authorized Signatory:
_______________________________________

 

Address for Notice to Subscriber: ___________________________________

 

Address for Delivery of Securities to Subscriber
(if not same as address for notice):

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

Purchase Price: $[●]

 

Principal Amount of Note: $[●]

 

Incentive Shares: [●] shares of Common
Stock

 

EIN Number, if applicable, will be provided
under separate cover: ________________________

 

 

 

[SIGNATURE PAGES CONTINUE]

 

 

 

    	 	8	 

     

    

 

INVESTOR QUESTIONNAIRE

 

Instructions: Check all boxes below
which correctly describe you.

 

		o	You are (i) a bank, as defined in Section 3(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”), (ii) a savings and loan association or other institution, as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in an individual or fiduciary capacity, (iii) a broker or dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (iv)
an insurance company as defined in Section 2(13) of the Securities Act, (v) an investment company registered under the Investment
Company Act of 1940, as amended (the “Investment Company Act”), (vi) a business development company as
defined in Section 2(a)(48) of the Investment Company Act, (vii) a Small Business Investment Company licensed by the U.S.
Small Business Administration under Section 301 (c) or (d) of the Small Business Investment Act of 1958, as amended, (viii)
a plan established and maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees and you have total assets in excess of $5,000,000, or (ix) an employee benefit
plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and (1)
the decision that you shall subscribe for and purchase Units of common stock and warrants to purchase common stock (the “Units”),
is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance
company, or registered investment adviser, or (2) you have total assets in excess of $5,000,000 and the decision that you shall
subscribe for and purchase the Units is made solely by persons or entities that are accredited investors, as defined in Rule 501
of Regulation D promulgated under the Securities Act (“Regulation D”) or (3) you are a self-directed plan and
the decision that you shall subscribe for and purchase the Units is made solely by persons or entities that are accredited investors.

 

		o	You are a private business development company as defined in Section 202(a)(22) of the Investment
Advisers Act of 1940, as amended.

 

		o	You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended (the “Code”), a corporation, Massachusetts or similar business trust or a partnership, in each case
not formed for the specific purpose of making an investment in the Units and its underlying securities in excess of $5,000,000.

 

		o	You are a director or executive officer of the Company.

 

		o	You are a natural person whose individual net worth, or joint net worth with your spouse, exceeds
$1,000,000 (excluding residence) at the time of your subscription for and purchase of the Units.

 

		o	You are a natural person who had an individual income in excess of $200,000 in each of the two
most recent years or joint income with your spouse in excess of $300,000 in each of the two most recent years, and who has a reasonable
expectation of reaching the same income level in the current year.

 

		o	You are a trust, with total assets in excess of $5,000,000, not formed for the specific purpose
of acquiring the Units and whose subscription for and purchase of the Units is directed by a sophisticated person as described
in Rule 506(b)(2)(ii) of Regulation D.

 

		o	You are an entity in which all of the equity owners are persons or entities described in one of
the preceding paragraphs.

 

Check all boxes below which correctly describe you.

 

With respect to this investment in the Note, your:

 

	Investment Objectives:  	p Aggressive Growth	p Speculation	 
	Risk Tolerance:  	o Low Risk  	o Moderate Risk  	p High Risk

 

Are you associated with a FINRA Member Firm?       o
Yes      o No

 

 

 

    	 	9	 

     

    

 

Your initials (subscriber and co-subscriber,
if applicable) are required for each item below:

 

____  
____  I/We understand that this investment is not guaranteed.

 

____  
____  I/We are sophisticated in financial and business affairs and are able to evaluate the risks and merits of an investment
in this offering.

 

____  
____  I/We confirm that this investment is considered “high risk.” (This type of investment is considered
high risk due to the inherent risks including lack of liquidity and lack of diversification.  Success or failure of private
placements such as this is dependent on the corporate issuer of these securities and is outside the control of the investors.
While potential loss is limited to the amount invested, such loss is possible.)

 

The Subscriber hereby
represents and warrants that all of its answers to this Investor Questionnaire are true as of the date of its execution of the
Subscription Agreement pursuant to which it purchased the Note.

 

	
        

        ___________________________________

        Name of Subscriber [please print]

         

        ___________________________________

         

        Signature of Subscriber (Entities please

         

        provide signature of Subscriber’s duly

         

        authorized signatory.)

         

        ___________________________________

        Name of Co-Subscriber [please print]

         

        __________________________________

         

        Signature of Co-Subscriber

         

         

         

        ___________________________________

         

        Name of Signatory (Entities only)

         

        ___________________________________

         

        Title of Signatory (Entities only)

         

 

 

 

    	 	10	 

     

    

 

Exhibit A

 

Wire Instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11

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