Document:

Exhibit
4.2

 

EXECUTION
VERSION

 

WARRANT

 

THE
SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN GENERALLY ACCEPTABLE FORM THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

KRAIG
BIOCRAFT LABORATORIES, INC.

 

Warrant
To Purchase Common Stock

 

	Warrant
    No.: KBLB-1-1	Number
    of Shares: 3,125,000
	 	 
	 	Warrant
    Exercise Price: $0.16
	 	 
	 	Expiration
    Date: December 11, 2025

 

Date
of Issuance: December 11, 2020

 

Kraig
Biocraft Laboratories, Inc., a Wyoming corporation (the “Company”), hereby certifies that, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, YAII PN, LTD. (the “Holder”),
the registered holder hereof or its permitted assigns, is entitled, subject to the terms set forth below, to purchase from the
Company upon surrender of this Warrant, at any time or times on or after the date hereof, but not after 11:59 P.M. Eastern Time
on the Expiration Date (as defined herein) up to 3,125,000 fully paid and nonassessable shares of Common Stock (as defined herein)
of the Company (the “Warrant Shares”) at the exercise price per share provided in Section 1(b) below or as
subsequently adjusted; provided, however, that in no event shall the holder be entitled to exercise this Warrant for a number
of Warrant Shares in excess of that number of Warrant Shares which, upon giving effect to such exercise, would cause the aggregate
number of shares of Common Stock beneficially owned by the holder and its affiliates to exceed 4.99% of the outstanding shares
of the Common Stock following such exercise, except within 60 days of the Expiration Date (however, such restriction may be waived
by Holder (but only as to itself and not to any other holder) upon not less than 65 days prior notice to the Company). For purposes
of the foregoing proviso, the aggregate 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 exercise of this Warrant with respect to which the determination of
such proviso is being made, but shall exclude shares of Common Stock which would be issuable upon (i) exercise of the remaining,
unexercised Warrants beneficially owned by the holder and its affiliates and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company beneficially owned by the holder and its affiliates (including, without
limitation, any convertible notes or preferred stock) subject to a limitation on conversion or exercise analogous to the limitation
contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this Warrant,
in determining the number of outstanding shares of Common Stock a holder may rely on the number of outstanding shares of Common
Stock as reflected in (1) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (2) a more recent public
announcement by the Company or (3) any other notice by the Company or its transfer agent setting forth the number of shares of
Common Stock outstanding. Upon the written request of any holder, the Company shall promptly, but in no event later than 1 Business
Day following the receipt of such notice, confirm in writing to any such 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 exercise of Warrants
(as defined below) by such holder and its affiliates since the date as of which such number of outstanding shares of Common Stock
was reported.

 

    	 

    	 

    

 

Section
1.

 

(a)
This Warrant is issued pursuant to the Securities Purchase Agreement (“Securities Purchase Agreement”) dated
the date hereof between the Company and the Holder or issued in exchange or substitution thereafter or replacement thereof. Each
Capitalized term used, and not otherwise defined herein, shall have the meaning ascribed thereto in the Securities Purchase Agreement.

 

(b)
Definitions. The following words and terms as used in this Warrant shall have the following meanings:

 

(i)
“Approved Stock Plan” means a stock plan that has been approved by the Board of Directors of the Company prior
to the date of the Securities Purchase Agreement, pursuant to which the Company’s securities may be issued only to any employee,
officer or director for services provided to the Company.

 

(ii)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City
of New York are authorized or required by law to remain closed.

 

(iii)
“Closing Bid Price” means the closing bid price (or closing trade if there is no closing bid price) of Common
Stock as quoted on the Principal Market (as reported by Bloomberg, LP (“Bloomberg”) through its “Volume
at Price” function).

 

(iv)
“Common Stock” means (i) the Company’s Class A common stock, no par value per share, and (ii) any capital
stock into which such Common Stock shall have been changed or any capital stock resulting from a reclassification of such Common
Stock.

 

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(v)
“Event of Default” means an event of default under the Securities Purchase Agreement or the Convertible Debenture
issued in connection therewith.

 

(vi)
“Excluded Securities” means, (a) shares issued or deemed to have been issued by the Company pursuant to an
Approved Stock Plan, (b) the shares of Common Stock issued or deemed to be issued by the Company upon conversion of the Convertible
Debenture or exercise of the Warrants, (c) shares of Common Stock or other securities issued in connection with a strategic acquisition,
intellectual property licensing agreement or other similar transaction not initiated for the purpose of capital raising, (d) warrants
and options existing and issued as of the Issuance Date and shares issued pursuant to the exercise of said warrants and options,
and (e) any securities of the Company registered in registration statement No. 333-238883 currently on file with the SEC.

 

(vii)
“Expiration Date” means the date set forth on the first page of this Warrant.

 

(viii)
“Issuance Date” means the date hereof.

 

(ix)
“Options” means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

(x)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization and a government or any department or agency thereof.

 

(xi)
“Primary Market” means the OTC Markets’ OTCQBÒ Market.

 

(xii)
“Securities Act” means the Securities Act of 1933, as amended.

 

(xiii)
“Warrant” means this Warrant and all Warrants issued in exchange, transfer or replacement thereof.

 

(xiv)
“Warrant Exercise Price” shall be $0.16 or as subsequently adjusted as provided in Section 8 hereof.

 

(c)
Other Definitional Provisions.

 

(i)
Except as otherwise specified herein, all references herein (A) to the Company shall be deemed to include the Company’s
successors and (B) to any applicable law defined or referred to herein shall be deemed references to such applicable law as the
same may have been or may be amended or supplemented from time to time.

 

(ii)
When used in this Warrant, the words “herein”, “hereof”, and “hereunder”
and words of similar import, shall refer to this Warrant as a whole and not to any provision of this Warrant, and the words
“Section”, “Schedule”, and “Exhibit” shall refer to Sections of, and
Schedules and Exhibits to, this Warrant unless otherwise specified.

 

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(iii)
Whenever the context so requires, the neuter gender includes the masculine or feminine, and the singular number includes the plural,
and vice versa.

 

Section
2. Exercise of Warrant.

 

(a)
Subject to the terms and conditions hereof, this Warrant may be exercised by the holder hereof then registered on the books of
the Company, pro rata as hereinafter provided, at any time on any Business Day on or after the opening of business on such Business
Day, commencing with the first day after the date hereof, and prior to 5:00 P.M. Eastern Time on the Expiration Date (i) by delivery
of a written notice, in the form of the subscription notice attached as Exhibit A hereto (the “Exercise Notice”),
of such holder’s election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be purchased,
payment to the Company of an amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares being purchased, multiplied
by the number of Warrant Shares (at the applicable Warrant Exercise Price) as to which this Warrant is being exercised (plus any
applicable issue or transfer taxes) (the “Aggregate Exercise Price”) in cash or wire transfer of immediately
available funds and the surrender of this Warrant (or an indemnification undertaking with respect to this Warrant in the case
of its loss, theft or destruction) to a common carrier for overnight delivery to the Company or (ii) if at the time of exercise,
the Warrant Shares are not subject to an effective registration statement or if an Event of Default has occurred and is continuing,
by delivering an Exercise Notice and in lieu of making payment of the Aggregate Exercise Price in cash or wire transfer, elect
instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following
formula (the “Cashless Exercise”):

 

Net
Number = (A x B) – (A x C)

B

 

For
purposes of the foregoing formula:

 

A
= the total number of Warrant Shares with respect to which this Warrant is then being exercised.

 

B
= the Closing Bid Price of the Common Stock on the date of exercise of the Warrant.

 

C
= the Warrant Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

In
the event of any exercise of the rights represented by this Warrant in compliance with this Section 2, the Company shall on or
before the 3rd Business Day following the date of receipt of the Exercise Notice, the Aggregate Exercise Price and
this Warrant (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction) and
the receipt of the representations of the holder specified in Section 6 hereof, if requested by the Company (the “Exercise
Delivery Documents”), and if the Warrant Shares are subject to an effective and current Registration Statement and the
Common Stock is DTC eligible, credit such aggregate number of shares of Common Stock to which the holder shall be entitled to
the holder’s or its designee’s balance account with The Depository Trust Company; provided, however, if the holder
who submitted the Exercise Notice requested physical delivery of any or all of the Warrant Shares, or, if the Warrant Shares are
not subject to an effective and current Registration Statement and the Common Stock is not DTC eligible then the Company shall,
on or before the 3rd Business Day following receipt of the Exercise Delivery Documents, issue and surrender to a common
carrier for overnight delivery to the address specified in the Exercise Notice, a certificate, registered in the name of the holder,
for the number of shares of Common Stock to which the holder shall be entitled pursuant to such request. The Warrant Shares shall
be issued with a legend unless they are subject to an effective and current Registration Statement or they are being transferred
pursuant to an exemption from such registration requirements, the availability of which is confirmed in an opinion of counsel
acceptable to the Company’s Transfer Agent. Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to
in clause (i) or (ii) above the holder of this Warrant shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been exercised. In the case of a dispute as to the determination
of the Warrant Exercise Price, the Closing Bid Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly
issue to the holder the number of Warrant Shares that is not disputed and shall submit the disputed determinations or arithmetic
calculations to the holder via facsimile within 1 Business Day of receipt of the holder’s Exercise Notice.

 

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(b)
If the holder and the Company are unable to agree upon the determination of the Warrant Exercise Price or arithmetic calculation
of the Warrant Shares within 1 day of such disputed determination or arithmetic calculation being submitted to the holder, then
the Company shall immediately submit via electronic mail (i) the disputed determination of the Warrant Exercise Price or the Closing
Bid Price to an independent, reputable investment banking firm or (ii) the disputed arithmetic calculation of the Warrant Shares
to its independent, outside accountant. The Company shall cause the investment banking firm or the accountant, as the case may
be, to perform the determinations or calculations and notify the Company and the holder of the results no later than 72 hours
from the time it receives the disputed determinations or calculations. Such investment banking firm’s or accountant’s
determination or calculation, as the case may be, shall be deemed conclusive absent manifest error.

 

(c)
Unless the rights represented by this Warrant shall have expired or shall have been fully exercised, the Company shall, as soon
as practicable and in no event later than 5 Business Days after any exercise and at its own expense, issue a new Warrant identical
in all respects to this Warrant exercised except it shall represent rights to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant exercised, less the number of Warrant Shares with respect to which such
Warrant is exercised.

 

(d)
No fractional Warrant Shares are to be issued upon any pro rata exercise of this Warrant, but rather the number of Warrant Shares
issued upon such exercise of this Warrant shall be rounded up or down to the nearest whole number.

 

(e)
If the Company or its Transfer Agent shall fail for any reason or for no reason to issue to the holder within 5 days of receipt
of the Exercise Delivery Documents, a certificate for the number of Warrant Shares to which the holder is entitled or to credit
the holder’s balance account with The Depository Trust Company for such number of Warrant Shares to which the holder is
entitled upon the holder’s exercise of this Warrant, unless such failure results from a failure of the Company’s Transfer
Agent to issue such shares as a result of an act of terrorism, war, natural disaster, act of god or other force majure event,
the Company shall, in addition to any other remedies under this Warrant or otherwise available to such holder, pay as additional
damages in cash to such holder on each day the issuance of such certificate for Warrant Shares is not timely effected an amount
equal to 0.025% of the product of (A) the sum of the number of Warrant Shares not issued to the holder on a timely basis and to
which the holder is entitled, and (B) the Closing Bid Price of the Common Stock for the trading day immediately preceding the
last possible date which the Company could have issued such Common Stock to the holder without violating this Section 2.

 

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(f)
If within 5 days after the Company’s receipt of the Exercise Delivery Documents and the written request of the Holder that
a new Warrant be issued, the Company fails to deliver a new Warrant to the holder for the number of Warrant Shares to which such
holder is entitled pursuant to Section 2 hereof, then, in addition to any other available remedies under this Warrant, or otherwise
available to such holder, the holder shall be entitled to exercise or transfer its rights under such new warrant as if it had
received such new Warrant and the Company shall be obligated to honor such exercises or transfers as if the holder had submitted
the new Warrant without violating this Section 2.

 

Section
3. Covenants as to Common Stock. The Company hereby covenants and agrees as follows:

 

(a)
This Warrant is, and any Warrants issued in substitution for or replacement of this Warrant will upon issuance be, duly authorized
and validly issued.

 

(b)
All Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly
issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof.

 

(c)
During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized
and reserved at least 100% of the number of shares of Common Stock needed to provide for the exercise of the rights then represented
by this Warrant and the par value of said shares will at all times be less than or equal to the applicable Warrant Exercise Price.
If at any time the Company does not have a sufficient number of shares of Common Stock authorized and available, then the Company
shall call and hold a special meeting of its stockholders within 60 days of that time for the sole purpose of increasing the number
of authorized shares of Common Stock.

 

(d)
If at any time after the date hereof the Company shall file a Registration Statement, the Company shall include the Warrant Shares
issuable to the holder, pursuant to the terms of this Warrant and shall maintain, so long as any other shares of Common Stock
shall be so listed, such listing of all Warrant Shares from time to time issuable upon the exercise of this Warrant on the Primary
Market or such national securities exchange or automated quotation system on which the Common Stock of the Company is listed;
and the Company shall so list on the Primary Market or such national securities exchange or automated quotation system on which
the Common Stock of the Company is listed, as the case may be, and shall maintain such listing of, any other shares of capital
stock of the Company issuable upon the exercise of this Warrant Shares if and so long as any shares of the same class shall be
listed on the Primary Market or such national securities exchange or automated quotation system on which the Common Stock of the
Company is listed. Provided, however, that the foregoing requirement shall not apply to registration statement No. 333-23888,
which is currently on file with the SEC (including any related registration statement, prospectus or supplement required by Rule
462 or 424 of the Securities Act).

 

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(e)
The Company will not, by amendment of its Articles of Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but will at all times in good faith assist in the carrying out
of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant against dilution or other impairment, consistent
with the tenor and purpose of this Warrant. The Company will not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the Warrant Exercise Price then in effect, and (ii) will take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the exercise of this Warrant.

 

(f)
This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or substantially
all of the Company’s assets.

 

Section
4. Taxes. The Company shall pay any and all taxes, except any applicable withholding, which may be payable with respect
to the issuance and delivery of Warrant Shares upon exercise of this Warrant.

 

Section
5. Warrant Holder Not Deemed a Stockholder. Except as otherwise specifically provided herein, no holder, as such, of this
Warrant shall be entitled to vote or receive dividends or be deemed the holder of shares of capital stock of the Company for any
purpose, nor shall anything contained in this Warrant be construed to confer upon the holder hereof, as such, any of the rights
of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive
dividends or subscription rights, or otherwise, prior to the issuance to the holder of this Warrant of the Warrant Shares which
he or she is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall
be construed as imposing any liabilities on such holder to purchase any securities (upon exercise of this Warrant or otherwise)
or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding
this Section 5, the Company will provide the holder of this Warrant with copies of the same notices and other information given
to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

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Section
6. Representations of Holder. The holder of this Warrant, by the acceptance hereof, represents that it is acquiring this
Warrant and the Warrant Shares for its own account for investment only and not with a view towards, or for resale in connection
with, the public sale or distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or exempted under
the Securities Act; provided, however, that by making the representations herein, the holder does not agree to hold this Warrant
or any of the Warrant Shares for any minimum or other specific term and reserves the right to dispose of this Warrant and the
Warrant Shares at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act.
The holder of this Warrant further represents, by acceptance hereof, that, as of this date, such holder is an “accredited
investor” as such term is defined in Rule 501(a)(1) of Regulation D promulgated by the Securities and Exchange Commission
under the Securities Act (an “Accredited Investor”). Upon exercise of this Warrant the holder shall, if requested
by the Company, confirm in writing, in a form satisfactory to the Company, that the Warrant Shares so purchased are being acquired
solely for the holder’s own account and not as a nominee for any other party, for investment, and not with a view toward
distribution or resale and that such holder is an Accredited Investor. If such holder cannot make such representations because
they would be factually incorrect, it shall be a condition to such holder’s exercise of this Warrant that the Company receive
such other representations as the Company considers reasonably necessary to assure the Company that the issuance of its securities
upon exercise of this Warrant shall not violate any United States or state securities laws.

 

Section
7. Ownership and Transfer.

 

(a)
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to the holder hereof), a register for this Warrant, in which the Company shall record the name and address of the person
in whose name this Warrant has been issued, as well as the name and address of each transferee. The Company may treat the person
in whose name any Warrant is registered on the register as the owner and holder thereof for all purposes, notwithstanding any
notice to the contrary, but in all events recognizing any transfers made in accordance with the terms of this Warrant.

 

Section
8. Adjustment of Warrant Exercise Price. The Warrant Exercise Price of this Warrant shall be adjusted from time to time
as follows:

 

(a)
Adjustment of Warrant Exercise Price. If and whenever on or after the Issuance Date of this Warrant, the Company issues
or sells, or is deemed to have issued or sold, any shares of Common Stock (other than Excluded Securities for a consideration
per share (the “New Issuance Price”) less than the Warrant Exercise Price, in effect immediately prior to such
issuance or sale (the “Applicable Price”), then immediately after such issue or sale the Warrant Exercise Price
then in effect shall be reduced to an amount equal to such New Issuance Price.

 

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(b)
Effect on Warrant Exercise Price of Certain Events. For purposes of determining the adjusted Warrant Exercise Price under
Section 8(a) above, the following shall be applicable:

 

(i)
Issuance of Options. If after the date hereof, the Company in any manner grants any Options, other than Excluded Securities,
and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion
or exchange of any convertible securities issuable upon exercise of any such Option is less than the Applicable Price, then such
share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting
or sale of such Option for such price per share. For purposes of this Section 8(b)(i), the lowest price per share for which one
share of Common Stock is issuable upon exercise of such Options shall be equal to the sum of the lowest amounts of consideration
receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise
of the Option or upon conversion or exchange of any convertible security issuable upon exercise of such Option. No further adjustment
of the Warrant Exercise Price shall be made upon the actual issuance of such Common Stock or of such convertible securities upon
the exercise of such Options or upon the actual issuance of such Common Stock upon conversion or exchange of such convertible
securities.

 

(ii)
Issuance of Convertible Securities. If the Company in any manner issues or sells any convertible securities, other than
Excluded Securities, and the lowest price per share for which 1 share of Common Stock is issuable upon the conversion or exchange
thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been
issued and sold by the Company at the time of the issuance or sale of such convertible securities for such price per share. For
the purposes of this Section 8(b)(ii), the lowest price per share for which one share of Common Stock is issuable upon such conversion
or exchange shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with
respect to one share of Common Stock upon the issuance or sale of the convertible security and upon conversion or exchange of
such convertible security. No further adjustment of the Warrant Exercise Price shall be made upon the actual issuance of such
Common Stock upon conversion or exchange of such convertible securities, and if any such issue or sale of such convertible securities
is made upon exercise of any Options for which adjustment of the Warrant Exercise Price had been or are to be made pursuant to
other provisions of this Section 8(b), no further adjustment of the Warrant Exercise Price shall be made by reason of such issue
or sale.

 

(iii)
Change in Option Price or Rate of Conversion. If the purchase price provided for in any Options, other than Excluded Securities,
the additional consideration, if any, payable upon the issue, conversion or exchange of any convertible securities, or the rate
at which any convertible securities are convertible into or exchangeable for Common Stock changes at any time, the Warrant Exercise
Price in effect at the time of such change shall be adjusted to the Warrant Exercise Price which would have been in effect at
such time had such Options or convertible securities provided for such changed purchase price, additional consideration or changed
conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 8(b)(iii), if
the terms of any Option or convertible security that was outstanding as of the Issuance Date of this Warrant, other than Excluded
Securities, are changed in the manner described in the immediately preceding sentence, then such Option or convertible security
and the Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the
date of such change. No adjustment pursuant to this Section 8(b) shall be made if such adjustment would result in an increase
of the Warrant Exercise Price then in effect.

 

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(iv)
Calculation of Consideration Received. If any Common Stock, Options or convertible securities are issued or sold or deemed
to have been issued or sold for cash, the consideration received therefore will be deemed to be the gross amount received by the
Company therefore. If any Common Stock, Options or convertible securities are issued or sold for a consideration other than cash,
the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration
consists of marketable securities, in which case the amount of consideration received by the Company will be the market price
of such securities on the date of receipt of such securities. If any Common Stock, Options or convertible securities are issued
to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount
of consideration therefore will be deemed to be the fair value of such portion of the net assets and business of the non-surviving
entity as is attributable to such Common Stock, Options or convertible securities, as the case may be. The fair value of any consideration
other than cash or securities will be determined jointly by the Company and the holders of Warrants representing at least two-thirds
(b) of the Warrant Shares issuable upon exercise of the Warrants then outstanding. If such parties are unable to reach agreement
within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair
value of such consideration will be determined within five (5) Business Days after the tenth (10th) day following the
Valuation Event by an independent, reputable appraiser jointly selected by the Company and the holders of Warrants representing
at least two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants then outstanding. The determination of such
appraiser shall be final and binding upon all parties and the fees and expenses of such appraiser shall be borne jointly by the
Company and the holders of Warrants.

 

(v)
Integrated Transactions. In case any Option is issued in connection with the issue or sale of other securities of the Company,
together comprising one integrated transaction in which any specific consideration or no consideration is allocated to such Options
by the parties thereto (1) the per-share value of the shares of Common Stock included in such integrated transaction shall be
the sole determinate as to whether the Warrant Exercise Price is to be adjusted in accordance with the provisions of Section 8(a),
above, (2) if no shares of Common Stock are included in such integrated transaction, but shares of the Company’s preferred
stock are included in such integrated transaction, then the per-share conversion price of shares of that preferred stock shall
be the sole determinate as to whether the Warrant Exercise Price is to be adjusted in accordance with the provisions of Section
8(a), above, and (3) if no shares of Common Stock and no shares of the Company’s preferred stock are included in such integrated
transaction, but debt convertible into shares of Common Stock (whether directly or through an intermediate step, e.g.,
an initial conversion of that debt into shares of the Company’s preferred stock that, thereafter, could be converted into
shares of Common Stock), then the per-share conversion price of shares of such debt shall be the sole determinate as to whether
the Warrant Exercise Price is to be adjusted in accordance with the provisions of Section 8(a), above; provided, however,
that, if the exercise price of the Option is less than the Warrant Exercise Price (after having taken into account any adjustments
thereto in accordance with the provisions of (1), (2), or (3), immediately above), then the Option exercise price shall be utilized
in connection with the Warrant Exercise Price adjustment provisions of Section 8(a), above.

 

(vi)
Treasury Shares. The number of shares of Common Stock outstanding at any given time does not include shares owned or held
by or for the account of the Company, and the disposition of any shares so owned or held will be considered an issue or sale of
Common Stock.

 

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(vii)
Record Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (1) to receive
a dividend or other distribution payable in Common Stock, Options or in convertible securities or (2) to subscribe for or purchase
Common Stock, Options or convertible securities, then such record date will be deemed to be the date of the issue or sale of the
shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution
or the date of the granting of such right of subscription or purchase, as the case may be.

 

(c)
Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common Stock. If the Company at any time after
the date of issuance of this Warrant subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of shares, any Warrant Exercise Price in effect immediately
prior to such subdivision will be proportionately reduced and the number of shares of Common Stock obtainable upon exercise of
this Warrant will be proportionately increased. If the Company at any time after the date of issuance of this Warrant combines
(by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller
number of shares, any Warrant Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of Warrant Shares issuable upon exercise of this Warrant will be proportionately decreased. Any adjustment under
this Section 8(c) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

(d)
Distribution of Assets. If the Company shall declare or make any dividend or other distribution of its assets (or rights
to acquire its assets) to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any
distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant,
then, in each such case:

 

(i)
any Warrant Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination
of holders of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Warrant Exercise Price by a fraction of which (A) the numerator shall be
the Closing Sale Price of the Common Stock on the trading day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (B) the denominator
shall be the Closing Sale Price of the Common Stock on the trading day immediately preceding such record date; and

 

(ii)
either (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall be increased to a number of shares equal
to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for the
determination of holders of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the fraction set
forth in the immediately preceding clause (i), or (B) in the event that the Distribution is of common stock of a company whose
common stock is traded on a national securities exchange or a national automated quotation system, then the holder of this Warrant
shall receive an additional warrant to purchase Common Stock, the terms of which shall be identical to those of this Warrant,
except that such warrant shall be exercisable into the amount of the assets that would have been payable to the holder of this
Warrant pursuant to the Distribution had the holder exercised this Warrant immediately prior to such record date and with an exercise
price equal to the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant
to the terms of the immediately preceding clause (i).

 

    	11

    	 

    

 

(e)
Certain Events. If any event occurs of the type contemplated by the provisions of this Section 8 but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other
rights with equity features), then the Company’s Board of Directors will make an appropriate adjustment in the Warrant Exercise
Price and the number of shares of Common Stock obtainable upon exercise of this Warrant so as to protect the rights of the holders
of the Warrants; provided, except as set forth in section 8(c),that no such adjustment pursuant to this Section 8(e) will increase
the Warrant Exercise Price or decrease the number of shares of Common Stock obtainable as otherwise determined pursuant to this
Section 8.

 

(f)
Voluntary Adjustments By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise
Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

(g)
Notices.

 

(i)
Immediately upon any adjustment of the Warrant Exercise Price, the Company will give written notice thereof to the holder of this
Warrant, setting forth in reasonable detail, and certifying, the calculation of such adjustment.

 

(ii)
The Company will give written notice to the holder of this Warrant at least ten (10) days prior to the date on which the Company
closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to
any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any Organic Change
(as defined below), dissolution or liquidation, provided that such information shall be made known to the public prior to or in
conjunction with such notice being provided to such holder.

 

(iii)
The Company will also give written notice to the holder of this Warrant at least 10 days prior to the date on which any Organic
Change, dissolution or liquidation will take place, provided that such information shall be made known to the public prior to
or in conjunction with such notice being provided to such holder.

 

Section
9. Purchase Rights; Reorganization, Reclassification, Consolidation, Merger or Sale.

 

(a)
In addition to any adjustments pursuant to Section 8 above, if at any time the Company grants, issues or sells any Options, convertible
securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of
Common Stock (the “Purchase Rights”), then the holder of this Warrant will be entitled to acquire, upon the
terms applicable to such Purchase Rights, the aggregate Purchase Rights which such holder could have acquired if such holder had
held the number of shares of Common Stock acquirable upon complete exercise of this Warrant immediately before the date on which
a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which
the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

    	12

    	 

    

 

(b)
Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s
assets to another Person or other transaction in each case which is affected in such a way that holders of Common Stock are entitled
to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common
Stock is referred to herein as an “Organic Change.” Prior to the consummation of any (i) sale of all or substantially
all of the Company’s assets to an acquiring Person or (ii) other Organic Change following which the Company is not a surviving
entity, the Company will secure from the Person purchasing such assets or the successor resulting from such Organic Change (in
each case, the “Acquiring Entity”) a written agreement (in form and substance satisfactory to the holders of
Warrants representing at least two-thirds (iii) of the Warrant Shares issuable upon exercise of the Warrants then outstanding)
to deliver to each holder of Warrants in exchange for such Warrants, a security of the Acquiring Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant and satisfactory to the holders of the Warrants (including
an adjusted warrant exercise price equal to the value for the Common Stock reflected by the terms of such consolidation, merger
or sale, and exercisable for a corresponding number of shares of Common Stock acquirable and receivable upon exercise of the Warrants
without regard to any limitations on exercise, if the value so reflected is less than any Applicable Warrant Exercise Price immediately
prior to such consolidation, merger or sale). Prior to the consummation of any other Organic Change, the Company shall make appropriate
provision (in form and substance satisfactory to the holders of Warrants representing a majority of the Warrant Shares issuable
upon exercise of the Warrants then outstanding) to insure that each of the holders of the Warrants will thereafter have the right
to acquire and receive in lieu of or in addition to (as the case may be) the Warrant Shares immediately theretofore issuable and
receivable upon the exercise of such holder’s Warrants (without regard to any limitations on exercise), such shares of stock,
securities or assets that would have been issued or payable in such Organic Change with respect to or in exchange for the number
of Warrant Shares which would have been issuable and receivable upon the exercise of such holder’s Warrant as of the date
of such Organic Change (without taking into account any limitations or restrictions on the exercisability of this Warrant).

 

Section
10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company
shall promptly, on receipt of an indemnification undertaking (or, in the case of a mutilated Warrant, the Warrant), issue a new
Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

Section
11. Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of
this Agreement must be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii)
1 Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed
to the party to receive the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission
is not returned in error or the sender is not otherwise notified of any error in transmission. The addresses and e-mail addresses
for such communications shall be:

 

	If
    to Holder:	YAII PN, Ltd.

 

    	13

    	 

    

 

	With
    Copy to:	David Gonzalez, Esq.
	 	1012 Springfield Avenue
	 	Mountainside, NJ 07092
	 	Telephone: 	(201) 536-5109
	 	Email: 	 
	 	 	 
	If
    to the Company, to:	Kraig Biocraft Laboratories, Inc.
	 	2723 South State Street – Suite 150
	 	Ann Arbor, MI 48104
	 	Attention:	Kim Thompson
	 	Telephone: 	(734) 619-8066
	 	 

        

        Email: 
	 
	 	 	 
	With
    a copy (which shall not constitute notice to: 	Hunter Taubman Fischer & Li LLC

800 Third Avenue, Suite 2800

New York, NY 10022

	 	 	 
	 	Attention: 	Louis Taubman, Esq.
	 	Telephone:	(917) 512-0827
	 	

        

        Email:
	ltaubman@htflawyers.com

 

or
at such other address and/or electronic email address and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party 3 Business Days prior to the effectiveness of such change. Written confirmation
of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically
generated by the sender’s computer containing the time, date, recipient’s electronic mail address and the text of
such electronic mail or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of
personal service, receipt by electronic mail or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

    	14

    	 

    

 

Section
12. Date. The date of this Warrant is set forth on page 1 hereof. This Warrant, in all events, shall be wholly void and
of no effect after the close of business on the Expiration Date, except that notwithstanding any other provisions hereof, the
provisions of Section 3(d) shall continue in full force and effect after such date as to any Warrant Shares or other securities
issued upon the exercise of this Warrant.

 

Section
13. Amendment and Waiver. Except as otherwise provided herein, the provisions of the Warrant may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has
obtained the written consent of the holders of Warrants representing at least 2/3rds of the Warrant Shares issuable upon exercise
of the Warrants then outstanding; provided that, except for Section 8(c), no such action may increase the Warrant Exercise Price
or decrease the number of shares or class of stock obtainable upon exercise of any Warrant without the written consent of the
holder of such Warrant.

 

Section
14. Assignment. This Warrant may be assigned by the Holder only if such assignment is made in compliance with all applicable
laws, including federal and state securities laws. In connection with any permitted transfer, the transferee shall make such representation
and warranties to the Company, consistent with Section 6 hereof, s the Company may reasonably request.

 

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

 

Section
16. Remedies, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, in any other agreement between the Company and the Holder,
at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit
the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy
at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened
breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining
any breach, without the necessity of showing economic loss and without any bond or other security being required.

 

Section
17. Waiver of Jury Trial. AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO
HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE TRANSACTION
DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

 

REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

 

    	15

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed as of the date first set forth above.

 

	 	KRAIG
    BIOCRAFT LABORATORIES, INC.
	 	 	 
	 	By:	                
	 	Name:	 
	 	Title:	 

 

    	16

    	 

    

 

EXHIBIT
A TO WARRANT

 

EXERCISE
NOTICE

 

TO
BE EXECUTED

BY
THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

 

KRAIG
BIOCRAFT LABORATORIES, INC.

 

The
undersigned holder hereby exercises the right to purchase ______________ of the shares of Common Stock (“Warrant Shares”)
of KRAIG BIOCRAFT LABORATORIES, INC. (the “Company”), evidenced by the attached Warrant (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

Specify
Method of exercise by check mark:

 

1.
___ Cash Exercise

 

(a)
Payment of Warrant Exercise Price. The holder shall pay the Aggregate Exercise Price of $______________ to the Company
in accordance with the terms of the Warrant.

 

(b)
Delivery of Warrant Shares. The Company shall deliver to the holder _________ Warrant Shares in accordance with the terms
of the Warrant.

 

2.
___ Cashless Exercise

 

(a)
Payment of Warrant Exercise Price. In lieu of making payment of the Aggregate Exercise Price, if permitted by the terms
of the Warrant, the holder elects to receive upon such exercise the Net Number of shares of Common Stock determined in accordance
with the terms of the Warrant.

 

(b)
Delivery of Warrant Shares. The Company shall deliver to the holder _________ Warrant Shares in accordance with the terms
of the Warrant.

 

Date:
_______________ __, ______

 

	Name
    of Registered Holder	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

Address:

Taxpayer
ID No.:

 

    	 

    	 

    

 

EXHIBIT
B TO WARRANT

 

FORM
OF WARRANT POWER

 

FOR
VALUE RECEIVED, the undersigned does hereby assign and transfer to ________________, Federal Identification No. __________,
a warrant to purchase ____________ shares of the capital stock of KRAIG BIOCRAFT LABORATORIES, INC. represented by warrant certificate
no. _____, standing in the name of the undersigned on the books of said corporation. The undersigned does hereby irrevocably constitute
and appoint ______________, attorney to transfer the warrant of said corporation, with full power of substitution in the premises.

 

	Dated:	 	 		 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:Exhibit
10.1

 

EXECUTION
VERSION

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of December 11, 2020, by and among KRAIG
BIOCRAFT LABORATORIES, INC., a Wyoming corporation (the “Company”), and YA II PN, LTD., a Cayman
Islands exempt company (“Investor”).

 

WITNESSETH

 

WHEREAS,
the Company and the Investor are executing and delivering this Agreement in reliance upon an exemption from securities registration
pursuant to Section 4(a)(2) and/or Rule 506 of Regulation D (“Regulation D”) as promulgated by the U.S. Securities
and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities
Act”);

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the
Investor, as provided herein, and the Investor shall purchase a convertible debenture substantially in the form attached hereto
as “Exhibit A” in the aggregate principal amount of USD$1,000,000 (the “Convertible Debenture”),
which shall be convertible into shares of the Company’s Class A common stock, no par value (the “Common Stock”)
(as converted, the “Conversion Shares”), of which the Convertible Debenture in the face amount of $1,000,000
for a purchase price of $950,000 (the “Convertible Debenture Purchase Price” or “Purchase Price”)
shall be issued within 1 business day following the date hereof, subject to notification of satisfaction of the conditions to
the closing set forth herein and in Sections 7(a) and 8(a) herein (the “Closing” or “Closing Date”);

 

WHEREAS,
contemporaneously with the First Closing the Company shall issue to the Investor a warrant to purchase 3,125,000 shares of the
Company’s Common Stock (the “Warrant Shares”) in the form attached hereto as Exhibit B (the “Warrant”);

 

WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering Irrevocable
Transfer Agent Instructions (the “Irrevocable Transfer Agent Instructions”); and

 

WHEREAS,
the Convertible Debentures, the Conversion Shares, the Warrant and the Warrant Shares are collectively are referred to herein
as the “Securities”).

 

NOW,
THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Investor
hereby agree as follows:

 

1.
CERTAIN DEFINITIONS.

 

(a)
“Anti-Bribery Laws” shall mean of any provision of any applicable law or regulation implementing the OECD Convention
on Combating Bribery of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), the U.K. Bribery Act 2010, or any other similar
law of any other jurisdiction in which the Company operates its business, including, in each case, the rules and regulations thereunder.

 

    	 	 	 

    	 

    

 

(b)
“Applicable Laws” shall mean applicable laws, statutes, rules, regulations, orders, executive orders, directives,
policies, guidelines, ordinance or regulation of any governmental entity and codes having the force of law, whether local, national,
or international, as amended from time to time, including without limitation (i) all applicable laws that relate to money laundering,
terrorist financing, financial record keeping and reporting, (ii) all applicable laws that relate to anti-bribery, anti-corruption,
books and records and internal controls, including the Anti-Bribery Laws, (iii) OFAC and any Sanctions Laws or Sanctions Programs,
and (iv) CAATSA and any CAATSA Sanctions Programs, Anti-Money Laundering Laws.

 

(c)
“BHCA” shall mean the Bank Holding Company Act of 1956, as amended.

 

(d)
“CAATSA” shall mean Public Law No. 115-44 The Countering America’s Adversaries Through Sanctions Act.

 

(e)
“CAATSA Sanctions Programs” shall mean a country or territory that is, or whose government is, the subject
of sanctions imposed by CAATSA.

 

(f)
“Anti-Money Laundering Laws” shall mean applicable financial recordkeeping and reporting requirements and all
other applicable U.S. and non-U.S. anti-money laundering laws, rules and regulations, including, but not limited to, those of
the Currency and Foreign Transactions Reporting Act of 1970, as amended, the United States Bank Secrecy Act, as amended by the
USA PATRIOT Act of 2001, and the United States Money Laundering Control Act of 1986 (18 U.S.C. §§1956 and 1957), as
amended, as well as the implementing rules and regulations promulgated thereunder, and the applicable money laundering statutes
of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any governmental agency or self-regulatory.

 

(g)
“OFAC” shall mean the U.S. Department of Treasury’s Office of Foreign Asset Control.

 

(h)
“Sanctioned Country” shall mean a country or territory that is the subject or target of a comprehensive embargo
or Sanctions Laws prohibiting trade with the country or territory, including, without limitation, Crimea, Cuba, Iran, North Korea,
Sudan and Syria.

 

(i)
“Sanctions Laws” shall mean any sanctions administered or enforced by OFAC or the U.S. Departments of State
or Commerce and including, without limitation, the designation as a “Specially Designated National” or on the “Sectoral
Sanctions Identifications List”, collectively “Blocked Persons”), the United Nations Security Council (“UNSC”),
the European Union, Her Majesty’s Treasury (“HMT”) or any other relevant sanctions authority.

 

    	 	2	 

    	 

    

 

(j)
“Sanctions Programs” shall mean any OFAC, HMT or UNSC economic sanction program including, without limitation,
programs related to a Sanctioned Country.

 

(k)
“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended.

 

2.
PURCHASE AND SALE OF THE CONVERTIBLE DEBENTURE.

 

(a)
Purchase of the Convertible Debenture. Subject to the satisfaction (or waiver) of the terms and conditions of this Agreement,
the Investor agrees, to purchase at the Closing and the Company agrees to sell and issue to Investor, at the Closing a Convertible
Debenture.

 

(b)
Closing Dates. The purchase and sale of the Convertible Debenture shall take place at 10:00 a.m. Eastern Standard Time
on the Closing Date, subject to notification of satisfaction of the conditions to the Closing set forth herein and in Sections
7 and 8 below (or such later date as is mutually agreed to by the Company and the Investor.

 

(c)
Form of Payment. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing Date, (i) the
Investor shall deliver to the Company the aggregate proceeds for the Convertible Debenture to be issued and sold to the Investor
at the Closing, minus the fees to be paid directly from the proceeds of the Closing as set forth herein, and (ii) the Company
shall deliver to the Investor a Convertible Debenture which the Investor is purchasing at the Closing duly executed on behalf
of the Company.

 

3.
INVESTOR’S REPRESENTATIONS AND WARRANTIES.

 

The
Investor represents and warrants, that:

 

(a)
Investment Purpose. The Investor is acquiring the Securities for its own account for investment only and not with a view
towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted
under the Securities Act; provided, however, that by making the representations herein, the Investor reserves the right to dispose
of the Securities at any time in accordance with or pursuant to an effective registration statement covering such Securities or
an available exemption under the Securities Act. The Investor does not presently have any agreement or understanding, directly
or indirectly, with any corporation, association, partnership, organization, business, individual, government or political subdivision
thereof or governmental agency (“Person”) to distribute any of the Securities.

 

(b)
Accredited Investor Status. The Investor is an “Accredited Investor” as that term is defined in Rule
501(a)(3) of Regulation D.

 

(c)
Reliance on Exemptions. The Investor understands that the Securities are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions
and the eligibility of the Investor to acquire the Securities.

 

    	 	3	 

    	 

    

 

(d)
Information. The Investor and its advisors (and his or, its counsel), if any, have been furnished with all materials relating
to the business, finances and operations of the Company and information he deemed material to making an informed investment decision
regarding the purchase of the Securities, which have been requested by the Investor. The Investor and its advisors, if any, have
been afforded the opportunity to ask questions of the Company and its management. Neither such inquiries nor any other due diligence
investigations conducted by the Investor or its advisors, if any, or its representatives shall modify, amend or affect the Investor’s
right to rely on the Company’s representations and warranties contained in Section 4 below. The Investor understands that
its investment in the Securities involves a high degree of risk. The Investor is in a position regarding the Company, which, based
upon employment, family relationship or economic bargaining power, enabled and enables the Investor to obtain information from
the Company in order to evaluate the merits and risks of this investment. The Investor has sought such accounting, legal and tax
advice, as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

(e)
No Governmental Review. The Investor understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities, or the fairness or suitability
of the investment in the Securities, nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)
Transfer or Resale. The Investor understands that: (i) the Securities have not been and are not being registered under
the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder, (B) the Investor shall have delivered to the Company an opinion of counsel, in a generally acceptable form,
to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption
from such registration requirements, or (C) the Investor provides the Company with reasonable assurances (in the form of seller
and broker representation letters) that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A
promulgated under the Securities Act, as amended (or a successor rule thereto) (collectively, “Rule 144”),
in each case following the applicable holding period set forth therein; (ii) any sale of the Securities made in reliance on Rule
144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities
under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that
term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules
and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register
the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption
thereunder.

 

    	 	4	 

    	 

    

 

(g)
Legends. The Investor agrees to the imprinting, so long as is required by this Section 3(g), of a restrictive legend in
substantially the following form:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

 

Certificates
evidencing the Conversion Shares and/or the Warrant Shares shall not contain any legend (including the legend set forth above),
(i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following
any sale of such Conversion Shares or Warrant Shares pursuant to Rule 144 and the Investor has complied with requirements of Section
3(f), (iii) if such Conversion Shares or Warrant Shares are eligible for sale under Rule 144, or (iv) if such legend is not required
under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff
of the SEC). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after
the effective date (the “Effective Date”) of a registration statement if required by the Company’s transfer
agent to affect the removal of the legend hereunder. If all or any portion of a Convertible Debenture is converted by the Investor
that is not an Affiliate of the Company (a “Non-Affiliated Investor”) at a time when there is an effective
registration statement to cover the resale of the Conversion Shares or Warrant Shares, such Conversion Shares or Warrant Shares
shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no
longer required under this Section 3(g), it will, no later than 3 Trading Days following the delivery by a Non-Affiliated Investor
to the Company or the Company’s transfer agent of a certificate representing Conversion Shares or Warrant Shares, issued
with a restrictive legend (such 3rd Trading Day, the “Legend Removal Date”), deliver or cause to
be delivered to such Non-Affiliated Investor a certificate representing such shares that is free from all restrictive and other
legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge
the restrictions on transfer set forth in this Section. The Investor acknowledges that the Company’s agreement hereunder
to remove all legends from Conversion Shares or Warrant Shares is not an affirmative statement or representation that such Conversion
Shares or Warrant Shares are freely tradable. The Investor, agrees that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 3(g) is predicated upon the Company’s reliance that the Investor will
sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus
delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will
be sold in compliance with the plan of distribution set forth therein.

 

    	 	5	 

    	 

    

 

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

 

(i)
Receipt of Documents. The Investor and his or its counsel has received and read in their entirety: (i) this Agreement and
each representation, warranty and covenant set forth herein and the Transaction Documents (as defined herein); (ii) all due diligence
and other information necessary to verify the accuracy and completeness of such representations, warranties and covenants; (iii)
the Company’s Form 10-K for the fiscal year ended December 31, 2019; (iv) the Company’s Form 10-Q for the fiscal quarters
ended March 30, 2020, June 31, 2020 and September 30, 2020 and (v) answers to all questions the Investor submitted to the Company
regarding an investment in the Company; and the Investor has relied on the information contained therein and has not been furnished
any other documents, literature, memorandum or prospectus.

 

(j)
Due Formation of Corporate and Other Investors. If the Investor is a corporation, trust, partnership or other entity that
is not an individual person, it has been formed and validly exists and has not been organized for the specific purpose of purchasing
the Securities and is not prohibited from doing so.

 

(k)
No Legal Advice From the Company. The Investor acknowledges, that it had the opportunity to review this Agreement
and the transactions contemplated by this Agreement with his or its own legal counsel and investment and tax advisors. The Investor
is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement
or the securities laws of any jurisdiction.

 

(l)
The Investor is not required to be registered as a broker or dealer pursuant to Section 15 of the Exchange Act.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND SUBSIDIARIES.

 

Except
as set forth under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof
and to qualify any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes
the representations and warranties set forth below to the Investor:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 4(a). The Company
owns, directly or indirectly, all of the capital stock or other equity interests 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 to subscribe for or purchase securities.

 

    	 	6	 

    	 

    

 

(b)
Security Interests Granted. Except as set forth on Disclosure Schedule 4(b). There are no security interests granted,
issued or allowed to exist in any assets of the Company or subsidiary.

 

(c)
Organization and Qualification. The Company and its subsidiaries are corporations duly organized and validly existing in
good standing under the laws of the jurisdiction in which they are incorporated, and have the requisite corporate power to own
their properties and to carry on their business as now being conducted. Each of the Company and its subsidiaries is duly qualified
as a foreign corporation to do business and is in good standing in every jurisdiction in which the nature of the business conducted
by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would
not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any
Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or
otherwise) of the Company and the subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a “Material Adverse Effect”) and no proceeding has been instituted in any such jurisdiction revoking, limiting
or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(d)
Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement, the Convertible Debentures, the Warrant, the Irrevocable Transfer
Agent Instructions and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated
by this Agreement (collectively the “Transaction Documents”) and to issue the Securities in accordance with
the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and the consummation
by it of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Securities, the
reservation for issuance and the issuance of the Conversion Shares have been duly authorized by the Company’s Board of Directors
and no further consent or authorization is required by the Company, its Board of Directors or its stockholders, (iii) the Transaction
Documents have been duly executed and delivered by the Company, (iv) the Transaction Documents constitute the valid and binding
obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. The authorized officer of the
Company executing the Transaction Documents knows of no reason why the Company cannot perform any of the Company’s other
obligations under the Transaction Documents.

 

    	 	7	 

    	 

    

 

(e)
Capitalization. The authorized capital stock of the Company consists of an unlimited amount of shares of Class A Common
Stock of which 844,468,378 shares are issued and outstanding an unlimited amount of Class B Common Stock of which -0- shares are
issued and outstanding and an unlimited amount of Class A Preferred Stock of which 2 shares are issued and outstanding. All of
the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights
or similar rights to subscribe for or purchase securities. Except as disclosed in Schedule 4(e): (i) none of the Company’s
capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by
the Company; (ii) other than those disclosed in the SEC filings, there are no outstanding options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any capital stock of the Company or any of its subsidiaries, or contracts, commitments, understandings or
arrangements by which the Company or any of its subsidiaries is or may become bound to issue additional capital stock of the Company
or any of its subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or
any of its subsidiaries, except as those listed in Schedule 4(e) attached hereto; (iii) there are no outstanding debt securities,
notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company
or any of its subsidiaries or by which the Company or any of its subsidiaries is or may become bound; (iv) there are no financing
statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company
or any of its subsidiaries; (v) there are no outstanding securities or instruments of the Company or any of its subsidiaries which
contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which
the Company or any of its subsidiaries is or may become bound to redeem a security of the Company or any of its subsidiaries;
(vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance
of the Securities; (vii) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements
or any similar plan or agreement; and (viii) the Company and its subsidiaries have no liabilities or obligations required to be
disclosed in the SEC Documents but not so disclosed in the SEC Documents, other than those incurred in the ordinary course of
the Company’s or its subsidiaries’ respective businesses and which, individually or in the aggregate, do not or would
not have a Material Adverse Effect. The Company has furnished to the Investor true, correct and complete copies of the Company’s
Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”),
and the Company’s Bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms
of all securities convertible into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the
holders thereof in respect thereto. No further approval or authorization of any stockholder, the Board of Directors of the Company
or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or
other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s stockholders.

 

(f)
Issuance of Securities. The issuance of the Convertible Debentures and the Warrant are duly authorized and free from all
taxes, liens and charges with respect to the issue thereof. Upon conversion in accordance with the terms of a Convertible Debenture
and/or the exercise of the Warrant, the Conversion Shares and/or the Warrant Shares, respectively, when issued will be validly
issued, fully paid and nonassessable, free from all taxes, liens and charges with respect to the issue thereof. The Company has
reserved from its duly authorized capital stock the appropriate number of shares of Common Stock as set forth in this Agreement.

 

    	 	8	 

    	 

    

 

(g)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible
Debentures, and reservation for issuance and issuance of the Conversion Shares will not (i) result in a violation of any certificate
of incorporation, certificate of formation, any certificate of designations or other constituent documents of the Company or any
of its subsidiaries, any capital stock of the Company or any of its subsidiaries or bylaws of the Company or any of its subsidiaries
or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default)
in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules
and regulations of the OTC Markets’ OTCQB® Market (the “Primary Market”) applicable to
the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or
affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably
be expected to result in a Material Adverse Effect. The business of the Company and its subsidiaries is not being conducted, and
shall not be conducted in violation of any material law, ordinance, or regulation of any governmental entity. Except as specifically
contemplated by this Agreement and as required under the Securities Act and any applicable state securities laws, the Company
is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement or the Transaction
Documents in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.
The Company and its subsidiaries are unaware of any facts or circumstance, which might give rise to any of the foregoing.

 

    	 	9	 

    	 

    

 

(h)
SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange
Act”) during the 2 years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (all of the foregoing filed within the 2 years preceding the date hereof as amended after the date hereof
and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein,
being hereinafter referred to as the “SEC Documents”) on a timely basis or has received a valid extension of
such time of filing and has filed any such SEC Document prior to the expiration of any such extension (including pursuant to SEC
from 12b-25). The Company has delivered to the Investor or its representatives, or made available through the SEC’s website
at http://www.sec.gov, true and complete copies of the SEC Documents. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates,
the financial statements of the Company and its subsidiaries included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such
financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during
the periods involved (except (i) as may be otherwise indicated in such financial statements or the Debenture thereto, or (ii)
in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
No other information provided by or on behalf of the Company to the Investor which is not included in the SEC Documents contains
any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein,
in the light of the circumstance under which they are or were made, not misleading.

 

(i)
10(b)-5. The SEC Documents do not include any untrue statements of material fact, nor do they omit to state any material
fact required to be stated therein necessary to make the statements made, in light of the circumstances under which they were
made, not misleading.

 

(j)
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation of which the Company is aware before
or by any court, public board, government agency, self-regulatory organization or body pending against or affecting the Company,
the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable decision, ruling or finding would have a Material
Adverse Effect.

 

(k)
CAATSA. Neither the Company or its subsidiaries, nor, to Company’s knowledge, any director, officer, agent, employee
or affiliate of the Company or subsidiaries, is a Person that is, or is owned or controlled by a Person that has a place of business
in, or is operating, organized, resident or doing business in a country or territory that is, or whose government is, the subject
of the CAATSA Sanctions Programs.

 

(l)
Sarbanes-Oxley Act. The Company and its subsidiaries are in compliance with any and all applicable requirements of the
Sarbanes-Oxley Act, that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by
the SEC thereunder that are applicable to the Company and its subsidiaries and effective as of the date hereof.

 

(m)
BHCA. Neither the Company nor any of its subsidiaries or affiliates is subject to BHCA and to regulation by the Board of
Governors of the Federal Reserve System (the “Federal Reserve). Neither the Company nor any of its Subsidiaries or affiliates
owns or controls, directly or indirectly, 5% or more of the outstanding shares of any class of voting securities or 25% or more
of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the
Company nor any of its subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

    	 	10	 

    	 

    

 

(n)
No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s
ability to perform any of its obligations under any of the Transaction Documents.

 

(o)
Compliance with Applicable Laws. The operations of the Company and its subsidiaries are and have been conducted at all
times in compliance Applicable Laws and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its Subsidiaries with respect to Applicable Laws is pending or, to the
knowledge of the Company, threatened.

 

(p)
No Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries, nor any director, officer, employee,
agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates is,
or is directly or indirectly owned or controlled by, a Person that is currently the subject or the target of any Sanctions Laws
or is a Blocked Person; neither the Company, any of its subsidiaries, nor any director, officer, employee, agent, affiliate or
other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates, is located, organized
or resident in a country or territory that is the subject or target of a comprehensive embargo, Sanctions Laws or Sanctions Programs
prohibiting trade with a Sanctioned Country; the Company maintains in effect and enforces policies and procedures designed to
ensure compliance by the Company and its Subsidiaries with applicable Sanctions Laws and Sanctions Programs; neither the Company,
any of its subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or acting on behalf
of the Company or any of its subsidiaries or affiliates, acting in any capacity in connection with the operations of the Company,
conducts any business with or for the benefit of any Blocked Person or engages in making or receiving any contribution of funds,
goods or services to, from or for the benefit of any Blocked Person, or deals in, or otherwise engages in any transaction relating
to, any property or interests in property blocked or subject to blocking pursuant to any applicable Sanctions Laws or Sanctions
Programs; no action of the Company or any of its subsidiaries in connection with (i) the execution, delivery and performance of
this Agreement and the other Transaction Documents, (ii) the issuance and sale of the Securities, or (iii) the direct or indirect
use of proceeds from the Securities or the consummation of any other transaction contemplated hereby or by the other Transaction
Documents or the fulfillment of the terms hereof or thereof, will result in the proceeds of the transactions contemplated hereby
and by the other Transaction Documents being used, or loaned, contributed or otherwise made available, directly or indirectly,
to any subsidiary, joint venture partner or other person or entity, for the purpose of (i) unlawfully funding or facilitating
any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions
Laws or Sanctions Programs, (ii) unlawfully funding or facilitating any activities of or business in any Sanctioned Country or
(iii) in any other manner that will result in a violation by any Person (including any Person participating in the transaction,
whether as underwriter, advisor, investor or otherwise) of Sanctions Laws or Sanctions Programs. For the past 5 years, the Company
and its subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any
person that at the time of the dealing or transaction is or was the subject or the target of Sanctions Laws, Sanctions Programs
or with any Sanctioned Country.

 

    	 	11	 

    	 

    

 

(q)
No Conflicts with Anti-Bribery Laws. Neither the Company nor any of the subsidiaries has made any contribution or other
payment to any official of, or candidate for, any federal, state or foreign office in violation of any law. Neither the Company,
nor any of its subsidiaries or affiliates, nor any director, officer, agent, employee or other person associated with or acting
on behalf of the Company, or any of its subsidiaries or affiliates, has (i) used any funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee, to any employee or agent of a private entity with which the Company does
or seeks to do business (a “Private Sector Counterparty”) or to foreign or domestic political parties or campaigns,
(iii) violated or is in violation of any provision of any Anti-Bribery Laws, (iv) taken, is currently taking or will take any
action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person while knowing
that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action,
to obtain or retain business or otherwise to secure any improper advantage or (v) otherwise made any offer, bribe, rebate, payoff,
influence payment, unlawful kickback or other unlawful payment; the Company and each of its respective subsidiaries has instituted
and has maintained, and will continue to maintain, policies and procedures reasonably designed to promote and achieve compliance
with the laws referred to in (iii) above and with this representation and warranty; none of the Company, nor any of its subsidiaries
or affiliates will directly or indirectly use the proceeds of the Securities or lend, contribute or otherwise make available such
proceeds to any subsidiary, affiliate, joint venture partner or other person or entity for the purpose of financing or facilitating
any activity that would violate the laws and regulations referred to in (iii) above; to the knowledge of the Company, there are,
and have been, no allegations, investigations or inquiries with regard to a potential violation of any Anti-Bribery Laws by the
Company, its subsidiaries or affiliates, or any of their respective current or former directors, officers, employees, stockholders,
representatives or agents, or other persons acting or purporting to act on their behalf.

 

(r)
No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under
the 1933 Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer,
any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of
20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter
(as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each,
an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to any of
the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent
applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Investor a copy of any disclosures provided
thereunder.

 

    	 	12	 

    	 

    

 

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

 

(t)
No General Solicitation. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities.

 

(u)
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of the Securities under the Securities Act or cause this offering of the Securities to be integrated
with prior offerings by the Company for purposes of the Securities Act.

 

(v)
Employee Relations. Neither the Company nor any of its subsidiaries is involved in any labor dispute or, to the knowledge
of the Company or any of its subsidiaries, is any such dispute threatened. None of the Company’s or its subsidiaries’
employees is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

 

(w)
Intellectual Property Rights. The Company and its subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
The Company and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations,
trade secret or other similar rights of others, and, to the knowledge of the Company there is no claim, action or proceeding being
made or brought against, or to the Company’s knowledge, being threatened against, the Company or its subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations,
trade secret or other infringement; and the Company and its subsidiaries are unaware of any facts or circumstances which might
give rise to any of the foregoing.

 

    	 	13	 

    	 

    

 

(x)
Environmental Laws. The Company and its subsidiaries are (i) in compliance with any and all applicable foreign, federal,
state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval.

 

(y)
Title. All real property and facilities held under lease by the Company and its subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and its subsidiaries.

 

(z)
Insurance. The Company and each of its subsidiaries is insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its subsidiaries are engaged. Neither the Company nor any such subsidiary has been refused any insurance
coverage sought or applied for and neither the Company nor any such 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 at a cost that would not materially and adversely affect the condition, financial
or otherwise, or the earnings, business or operations of the Company and its subsidiaries, taken as a whole.

 

(aa)
Regulatory Permits. The Company and its subsidiaries possess all material certificates, authorizations and permits issued
by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, and neither
the Company nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such
certificate, authorization or permit.

 

(bb)
Internal Accounting Controls. The Company and each of its subsidiaries maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with generally accepted accounting principles and to maintain asset accountability, and (iii) the recorded amounts for assets
are compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences;
provided however, that the Company disclosed in its form 10-Q for the period ended September 30, 2020, that management had determined
that its internal accounting controls were not effective as of September 30, 2020.

 

(cc)
No Material Adverse Breaches, etc. Neither the Company nor any of its subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect on the business, properties, operations, financial condition,
results of operations or prospects of the Company or its subsidiaries. Neither the Company nor any of its subsidiaries is in breach
of any contract or agreement which breach, in the judgment of the Company’s officers, has or is expected to have a Material
Adverse Effect on the business, properties, operations, financial condition, results of operations or prospects of the Company
or its subsidiaries.

 

    	 	14	 

    	 

    

 

(dd)
Tax Status. The Company and each of its subsidiaries has made and filed all federal and state income and all other tax
returns, reports and declarations required by any jurisdiction to which it is subject and (unless and only to the extent that
the Company and each of its subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported taxes) has paid all taxes and other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on
its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such claim.

 

(ee)
Certain Transactions. Except for arm’s length transactions pursuant to which the Company makes payments in the ordinary
course of business upon terms no less favorable than the Company could obtain from third parties and other than the grant of stock
options disclosed in the SEC Documents, none of the officers, directors, or employees of the Company is presently a party to any
transaction with the Company (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.

 

(ff)
Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, all of which shall
be publicly disclosed by the Company as soon as possible after the date hereof, the Company covenants and agrees that neither
the Company, nor any other person acting on its behalf, will provide the Investor or its agents or counsel with any information
that the Company believes constitutes material non-public information, unless prior thereto the Investor shall have entered into
a written agreement with the Company regarding the confidentiality and use of such information. The Company understands and confirms
that the Investor shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

(gg)
Fees and Rights of First Refusal. The Company is not obligated to offer the securities offered hereunder on a right of
first refusal basis or otherwise to any third parties including, but not limited to, current or former shareholders of the Company,
underwriters, brokers, agents or other third parties.

 

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

 

    	 	15	 

    	 

    

 

(ii)
Registration Rights. Except as set forth on Schedule 4(ii), no Person has any right to cause the Company to effect the
registration under the Securities Act of any securities of the Company. There are no outstanding registration statements not yet
declared effective and there are no outstanding comment letters from the SEC or any other regulatory agency.

 

(jj)
Private Placement. Assuming the accuracy of the Investor’s representations and warranties set forth in Section 3,
no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Investor as
contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Primary
Market.

 

(kk)
Listing and Maintenance Requirements. The Company is a voluntary filer under Section 15(d) of the Exchange Act. The Company
has not, in the 12 months preceding the date hereof, received notice from the Primary Market on which the Common Stock is or has
been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such
Primary Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements.

 

(ll)
Reporting Status. With a view to making available to the Investor the benefits of Rule 144 or any similar rule or regulation
of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration, and
as a material inducement to the Investor’s purchase of the Securities, the Company represents and warrants that: (i) following
the filing and acceptance of its Form 8-A(12G) it will be subject to the reporting requirements of section 13 or 15(d) of the
Exchange Act and having filed all required reports under section 13 or 15(d) of the Exchange, as applicable, during the 12 months
preceding the date hereof (or for such shorter period that the Company was required to file such reports), (ii) it is not an issuer
defined as a “Shell Company,” and (iii) it is not an issuer that has been at any time previously an issuer defined
as a “Shell Company.” For the purposes hereof, the term “Shell Company” shall mean an issuer that meets
the description defined in paragraph (i)(1)(i) of Rule 144.

 

(mm)
Disclosure. The Company has made available to the Investor and its counsel all the information reasonably available to
the Company that the Investor or its counsel have requested for deciding whether to acquire the Securities. No representation
or warranty of the Company contained in this Agreement (as qualified by the Disclosure Schedule) or any of the other Transaction
Documents, and no certificate furnished or to be furnished to the Investor at the Closing, or any due diligence evaluation materials
furnished by the Company or on behalf of the Company, including without limitation, due diligence questionnaires, or any other
documents, presentations, correspondence, or information contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances
under which they were made.

 

    	 	16	 

    	 

    

 

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

 

(oo)
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares and/or Warrant Shares issuable
upon conversion of the Convertible Debenture and/or exercise of thew Warrant will increase in certain circumstances. The Company
further acknowledges that its obligation to issue Conversion Shares upon conversion of the Convertible Debenture or issue Warrant
Shares upon exercise of the Warrant in accordance with this Agreement, the Convertible Debenture and the Warrant is absolute and
unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of
the Company.

 

(pp)
Relationship of the Parties. Neither the Company, nor any of its subsidiaries, affiliates, nor any person acting on its
or their behalf is a client or customer of the Investor or any of its affiliates and neither the Investor nor any of its affiliates
has provided, or will provide, any services to the Company or any of its affiliates, its subsidiaries, or any person acting on
its or their behalf. The Investor’s relationship to Company is solely as investor as provided for in the Transaction Documents.

 

5.
COVENANTS.

 

(a)
Best Efforts. Each party shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided
in Sections 7 and 8 of this Agreement.

 

(b)
Compliance with Applicable Laws. While the Investor owns any Securities the Company shall comply with all Applicable Laws
and will not take any action which will cause the Investor to be in violation of any such Applicable Laws.

 

(c)
Conduct of Business. While the Investor owns any Securities, the business of the Company shall not be conducted in violation
of Applicable Laws and will not take any action which will cause the Investor to be in violation of any such Applicable Laws.

 

(d)
While the Investor owns any Securities, neither the Company, nor any of its Subsidiaries or affiliates, directors, officers, employees,
representatives or agents shall:

 

(i)
conduct any business or engage in any transaction or dealing with or for the benefit of any Blocked Person, including the making
or receiving of any contribution of funds, goods or services to, from or for the benefit of any Blocked Person;

 

(ii)
deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked or subject to blocking
pursuant to the applicable Sanctions Laws, Sanctions Programs, located in a Sanctioned Country, or CAATSA or CAATSA Sanctions
Programs;

 

    	 	17	 

    	 

    

 

(iii)
use any of the proceeds of the transactions contemplated by this Agreement to finance, promote or otherwise support in any manner
any illegal activity, including, without limitation, in contravention of any Anti-Money Laundering Laws, Sanctions Laws, Sanctioned
Program, Anti-Bribery Laws or in any Sanctioned Country.

 

(iv)
violate, attempt to violate, or engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of
evading or avoiding, any of the Anti-Money Laundering Laws, Sanctions Laws, Sanctions Program, Anti-Bribery Laws, CAATSA or CAATSA
Sanctions Programs.

 

(v)
While the Investor owns any Securities, the Company shall maintain in effect and enforce policies and procedures designed to ensure
compliance by the Company and its Subsidiaries and their directors, officers, employees, agents, representatives and affiliates
with Applicable Laws.

 

(vi)
While any Investor owns any Securities, the Company will promptly notify the Investor in writing if any of the Company, or any
of its Subsidiaries or affiliates, directors, officers, employees, representatives or agents, shall become a Blocked Person, or
become directly or indirectly owned or controlled by a Blocked Person.

 

(vii)
The Company shall provide such information and documentation it may have as the Investor or any of their affiliates may reasonably
request to satisfy compliance with Applicable Laws.

 

(viii)
The covenants set forth above shall be ongoing while the Investor owns any Securities. The Company shall promptly notify the Investor
in writing should it become aware during such period (a) of any changes to these covenants, or (b) if it cannot comply with the
covenants set forth herein. The Company shall also promptly notify the Investor in writing during such period should it become
aware of an investigation, litigation or regulatory action relating to an alleged or potential violation of Applicable Laws.

 

(e)
Form D. If required, the 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 Investor promptly after such filing. The Company shall, on or before each Closing Date, take
such action as the Company shall reasonably determine is necessary to qualify the Securities, or obtain an exemption for the Securities
for sale to the Investor at each Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws
of the states of the United States, and shall provide evidence of any such action so taken to the Investor on or prior to each
Closing Date.

 

    	 	18	 

    	 

    

 

(f)
Reporting Status. With a view to making available to the Investor the benefits of Rule 144 or any similar rule or regulation
of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration, and
as a material inducement to the Investor’s purchase of the Securities, the Company represents, warrants, and covenants to
the following:

 

(i) The Company
is a voluntary reporter under section 15(d) of the Exchange Act and has filed all required reports under section 13 or 15(d) of
the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the issuer was required to file
such reports), other than Form 8-K reports;

 

(ii) From the
date hereof until all the Securities either have been sold by the Investor, or may permanently be sold by the Investor without
any restrictions pursuant to Rule 144, (the “Registration Period”) the Company shall continue to file with
the SEC in a timely manner all reports under section 13 or 15(d) of the Exchange Act and such reports shall conform to the requirement
of the Exchange Act and the SEC for filing thereunder; 

 

(iii) The Company
shall furnish to the Investor so long as the Investor owns Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly report of
the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably
requested to permit the Investor to sell such securities pursuant to Rule 144 without registration; and

 

(iv) During the
Registration Period the Company shall not terminate its status as an issuer required to file reports under the Exchange Act even
if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination.

 

(g) Use
of Proceeds. The Company shall use the proceeds from the issuance of the Convertible Debenture hereunder for working
capital and other general corporate purposes. So long as any amounts are outstanding under the Convertible Debenture, the
Company shall not pay any related party obligations all of which related party obligations shall be subordinated to the
obligations owed to the Investor. Neither the Company nor any subsidiary shall, directly or indirectly, use any portion of
the proceeds of the transactions contemplated herein, or lend, contribute, facilitate or otherwise make available such
proceeds to any Person (i) to make any payment towards any indebtedness or other obligations of the Company or subsidiary;
(ii) to pay any obligations of any nature or kind due or owing to any officers, directors, employees, or shareholders of the
Company or subsidiary, other than salaries payable in the ordinary course of business of the Company; (iii) to fund, either
directly or indirectly, any activities or business of or with any Blocked Person, in any Sanctioned Country, (iv) or in any
manner or in a country or territory, that, at the time of such funding, is, or whose government is, the subject of CAATSA
Sanctions Programs or (iv) in any other manner that will result in a violation of Anti-Money Laundering Laws, Sanctions Laws,
Sanctioned Program, Anti-Bribery Laws or CAATSA Sanctions Programs.

 

    	 	19	 

    	 

    

 

(h)
Reservation of Shares. On the date hereof, the Company shall reserve for issuance to the Investor 27,847,396 shares for
issuance upon conversions of the Convertible Denture (the “Share Reserve”). The Company represents that it
has sufficient authorized and unissued shares of Common Stock available to create the Share Reserve after considering all other
commitments that may require the issuance of Common Stock. The Company shall take all action reasonably necessary to at all times
have authorized, and reserved for the purpose of issuance, such number of shares of Common Stock as shall be necessary to affect
the full conversion of the Convertible Debentures. If at any time the Share Reserve is insufficient to affect the full conversion
of the Convertible Debenture the Company shall increase the Share Reserve accordingly. If the Company does not have sufficient
authorized and unissued shares of Common Stock available to increase the Share Reserve, the Company shall call and hold a special
meeting of the shareholders within 30 days of such occurrence, for the sole purpose of increasing the number of shares authorized.
The Company’s management shall recommend to the shareholders to vote in favor of increasing the number of shares of Common
Stock authorized. Management shall also vote all of its shares in favor of increasing the number of authorized shares of Common
Stock.

 

(i)
Listings or Quotation. The Company’s Common Stock shall be listed or quoted for trading on the Primary Market. The
Company shall promptly secure the listing of all of the Securities upon each national securities exchange and automated quotation
system, if any, upon which the Common Stock is then listed (subject to official notice of issuance) and shall maintain such listing
of all Registrable Securities from time to time issuable under the terms of the Transaction Documents.

 

(j)
Obligation to Obtain Shareholder Approval. In the event that the Company’s Common Stock is listed on a market other
than the Primary Market and the Company is unable to issue Conversion Shares and or Warrant Shares to the Investor as a result
of such issuance of Common Stock being in excess of the aggregate number of shares of Common Stock that the Company may issue
under the rules or regulations of such market, or any other applicable rule or limitation, the Company, shall no later than 30
calendar days of the date of such conversion notice obtain the approval of its stockholders or approval of such market, as required
by the applicable rules of such market, to issue such shares of Common Stock issuable as Conversion Shares and or Warrant Shares.
1

 

(k)
Shareholder Votes. Should the Company require approval of its stockholders, including but not limited pursuant to Section
(j) above to enter into this transaction and or issue the Conversion Shares and or Warrant Shares, the Company shall recommend
that its shareholders vote in favor of such issuance of Conversion Shares and or Warrant Shares or to enter into this transaction.

 

(l)
Fees and Expenses.

 

(i) The Company shall
pay all of its costs and expenses incurred by it connection with the negotiation, investigation, preparation, execution and delivery
of the Transaction Documents. 

 

(ii) The Company paid
to YA Global II SPV, LLC, an affiliate of the Investor and as its designee (the “Designee”), a due diligence
and structuring fee of $10,000 on November 12, 2020.

 

 

1 May need
to amend depending on when Uplift Occurs.

 

    	 	20	 

    	 

    

 

(m)
Corporate Existence. So long as the Convertible Debenture remains outstanding, the Company shall not directly or indirectly
consummate any merger, reorganization, restructuring, reverse stock split consolidation, sale of all or substantially all of the
Company’s assets or any similar transaction or related transactions (each such transaction, an “Organizational
Change”) unless, prior to the consummation an Organizational Change, the Company obtains the written consent of the
Investor. In any such case, the Company will make appropriate provision with respect to such holders’ rights and interests
to insure that the provisions of this Section 5(k) will thereafter be applicable to the Convertible Debenture. Notwithstanding
the foregoing, the Company may consummate a reverse stock split if its board of Directors reasonably determines that such reverse
stock split is necessary to facilitate an uplisting of the Company’s Common Stock to the Nasdaq Capital Market.

 

(n)
Transactions With Affiliates. So long as the Convertible Debenture is outstanding, the Company shall not, and shall cause
each of its subsidiaries not to, enter into, amend, modify or supplement, or permit any subsidiary to enter into, amend, modify
or supplement any agreement, transaction, commitment, or arrangement with any of its or any subsidiary’s officers, directors,
person who were officers or directors at any time during the previous 2 years, stockholders who beneficially own 5% or more of
the Common Stock, or Affiliates (as defined below) or with any individual related by blood, marriage, or adoption to any such
individual or with any entity in which any such entity or individual owns a 5% or more beneficial interest (each a “Related
Party”), except for (a) customary employment arrangements and benefit programs on reasonable terms, (b) any investment
in an Affiliate of the Company, (c) any agreement, transaction, commitment, or arrangement on an arms-length basis on terms no
less favorable than terms which would have been obtainable from a person other than such Related Party, (d) any agreement, transaction,
commitment, or arrangement which is approved by a majority of the disinterested directors of the Company. “Affiliate”
for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has
a 10% or more equity interest in that person or entity, (ii) has 10% or more common ownership with that person or entity, (iii)
controls that person or entity, or (iv) shares common control with that person or entity. “Control” or “controls”
for purposes hereof means that a person or entity has the power, direct or indirect, to conduct or govern the policies of another
person or entity.

 

(o)
Transfer Agent. The Company covenants and agrees that, in the event that the Company’s agency relationship with the
transfer agent should be terminated for any reason prior to a date which is 2 years after the Closing Date, the Company shall
immediately appoint a new transfer agent and shall require that the new transfer agent execute and agree to be bound by the terms
of the Irrevocable Transfer Agent Instructions (as defined herein).

 

(p)
Restriction on Issuance of the Capital Stock and Prohibition on Variable Rate Transactions. So long as the Convertible
Debenture is outstanding, the Company shall not, without the prior written consent of the Investor, (i) issue or sell shares of
Common Stock or Preferred Stock without consideration or for a consideration per share less than the bid price of the Common Stock
determined immediately prior to its issuance, (ii) issue any preferred stock, warrant, option, right, contract, call, or other
security or instrument granting the holder thereof the right to acquire Common Stock without consideration or for a consideration
less than such Common Stock’s Bid Price, as quoted by Bloomberg, LP and determined immediately prior to its issuance, (iii)
enter into any agreement to issue or sell, any Common Stock, Preferred Stock, options, warrants or convertible securities that
are issuable pursuant to such agreement or convertible into or exchangeable or exercisable for shares of Common Stock at a price
which varies or may vary with the bid price or volume weighted average price of the shares of Common Stock, as quoted by Bloomberg,
LP, (iv) enter into any security instrument granting the holder a security interest in any and all assets of the Company, or (v)
file any registration statement on Form S-8.

 

    	 	21	 

    	 

    

 

(q)
Neither the Investor nor any of its affiliates have an open short position in the Common Stock of the Company, and the Investor
agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with
respect to the Common Stock as long as any Convertible Debenture shall remain outstanding.

 

(r)
Additional Registration Statements. So long as the Convertible Debenture and the Warrant are outstanding, the Company will
not file a registration statement under the Securities Act relating to securities that are not the Securities without including
the Warrant Shares; provided, however that such prohibition shall not apply to its registration statement No. 333-23888, which
is currently on file with the SEC (including any related registration statement, prospectus or supplement required by Rule 462
or 424 of the Securities Act).

 

(s)
Demand Registration Rights. So long as the Warrant is outstanding upon written demand from the Investor the Company shall
file a registration statement under the Securities Act relating to the Warrant Shares within 30 calendar days of such written
demand; provided however the Investor shall not be entitled to demand registration of the Warrant Shares for 60 calendar days
following a successful uplisting of the Company’s Common Stock onto the Nasdaq Capital Market.

 

(t)
Review of Public Disclosures. All SEC filings (including, without limitation, all filings required under the Exchange Act,
which include Forms 10-Q and 10-QSB, 10-K and 10K-SB, 8-K, etc) and other public disclosures made by the Company, including, without
limitation, all press releases, investor relations materials, and scripts of analysts meetings and calls, shall be reviewed and
approved for release by the Company’s attorneys and, if containing financial information, the Company’s independent
certified public accountants.

 

(u)
Disclosure of Transaction. Within 4 Business Day following the date of this Agreement, the Company shall file a Current
Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by
the Exchange Act and attaching the material Transaction Documents (including, without limitation, this Agreement, the form of
the Convertible Debenture, and the form of the Warrant) as exhibits to such filing.

 

    	 	22	 

    	 

    

 

(v)
Granting of Security. So long as any portion of Convertible Debenture is outstanding neither the Company nor any subsidiary
may grant, issue or allow to exist any security interest in any or all of the assets of the Company and or subsidiary.

 

(w)
Rights of First Refusal. So long as any portion of Convertible Debenture is outstanding, if the Company intends to raise
additional capital by the issuance or sale of, including but not limited to, shares of Common Stock, (ii) preferred stock, warrant,
option, right, contract, call, or other security or instrument granting the holder thereof the right to acquire Common Stock,
preferred stock, options, warrants or any other securities convertible or exercisable into shares of Common Stock (whether the
offering is conducted by the Company, underwriter, placement agent or any third party) the Company shall be obligated to offer
to the Investor such issuance or sale, by providing in writing the principal amount of capital it intends to raise and outline
of the material terms of such capital raise, prior to the offering such issuance or sale of capital stock to any third parties
including, but not limited to, current or former officers or directors, current or former shareholders and/or investors of the
obligor, underwriters, brokers, agents or other third parties. The Investor shall have two (2) business days from receipt of such
notice of the sale or issuance of capital stock to accept or reject all or a portion of such capital raising offer. Notwithstanding
the foregoing, the rights granted in this Section 5(w) shall not apply with regard to the securities offered on registration statement
No. 333-23888 currently on file with the SEC (including any related registration statement, prospectus or supplement required
by Rule 462 or 424 of the Securities Act).

 

(x)
So long as the Convertible Debenture is outstanding if the Company conducts a capital raise it shall utilize the proceeds of such
capital raise to fully redeem the Convertible Debenture pursuant to its terms. Notwithstanding the foregoing, the rights granted
in this Section 5(x) shall not apply with regard to the securities offered on registration statement No. 333-23888 currently on
file with the SEC (including any related registration statement, prospectus or supplement required by Rule 462 or 424 of the Securities
Act).

 

(y)
Obligation to Obtain Shareholder Approval. After the date of this Agreement so long as any portion of the Convertible Debenture
remains outstanding should the Company’s Common Stock become listed on an exchange other than the Primary Market and the
Company be unable to issue Conversion Shares to the Investor as a result of such issuance of Common Stock being in excess of the
aggregate number of shares of Common Stock that the Company may issue under the rules or regulations of such exchange or market,
or any other applicable rule or limitation, the Company, shall no later than 30 calendar days of the date of such conversion notice
obtain the approval of its stockholders or approval of the market or exchange, as required by the applicable rules of such market
or exchange, to issue such shares of Common Stock issuable as Conversion Shares.

 

(z)
Shareholder Votes. Should the Company require approval of its stockholders, including but not limited pursuant to Section
(y) above to issue the Conversion Shares, the Company shall recommend that its shareholders vote in favor of such issuance or
Conversion Shares.

 

    	 	23	 

    	 

    

 

6.
TRANSFER AGENT INSTRUCTIONS.

 

The Company shall issue
the Irrevocable Transfer Agent Instructions to its transfer agent in a form acceptable to the Investor. 

 

7.
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

(a)
The obligation of the Company hereunder to issue and sell the Convertible Debenture to the Investor at the Closing is subject
to the satisfaction, at or before the Closing Date, of each of the following conditions, 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:

 

(i)
The Investor shall have executed the Transaction Documents and delivered them to the Company.

 

(ii)
The Investor shall have delivered to the Company the Convertible Debenture Purchase Price by wire transfer of immediately available
U.S. funds pursuant to the wire instructions provided by the Company.

 

(iii)
The representations and warranties of the Investor 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 Investor 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 Investor at or prior to the Closing Date.

 

8.
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE.

 

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

 

(i)
The Company, and the Company’s Transfer Agent, as applicable, shall have executed the Transaction Documents and delivered
the same to the Investor.

 

(ii)
The Common Stock shall be authorized for quotation or trading on the Primary Market and trading in the Common Stock shall not
have been suspended for any reason.

 

(iii)
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that
any of such representations and warranties is already qualified as to materiality in Section 5 above, in which case, such representations
and warranties shall be true and correct without further qualification) 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 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.

 

    	 	24	 

    	 

    

 

(iv)
The Company shall have executed and delivered to the Investor the t Convertible Debenture and the Warrant.

 

(v)
The Investor shall have received an opinion of counsel from counsel to the Company in a form satisfactory to the Investor, which
shall include but not be limited to whether the Company is an issuer defined as a “Shell Company,” as defined in paragraph
(i)(1)(i) of Rule 144 or has been at any time previously an issuer defined as a “Shell Company.”

 

(vi)
The Company shall have delivered to the Investor a certificate, executed by an officer of the Company in a form satisfactory to
the Investor and dated as of the Closing Date, as to (i) the Company’s Article of Incorporation, (ii) the Bylaws of the
Company, (iii) the resolutions as adopted by the Company’s Board of Directors in a form reasonably acceptable to the Investor,
(iv) the Company’s Certificate of Good, each as in effect at the Closing.

 

(vii)
The Company shall have provided Investor a true copy of a certificate of good standing evidencing the formation and good standing
of the Company from the secretary of state (or comparable office) from the jurisdiction in which the Company is incorporated,
as of a date within 10 days of the Closing Date.

 

(viii)
The Company and its transfer agent shall have created the Share Reserve.

 

(ix)
The Company shall have received any and all required approvals from the Primary Market to enter into this Agreement and the Transaction
Documents.

 

(x)
The Company shall have filed with and had accepted by the SEC a Form 8-A(12g) in order to become subject to the reporting requirements
of section 13 or 15(d) of the Exchange Act and (ii) 90 days following such filing the Investor shall be entitled to a holding
period under Rule 144 of 6 months.

 

    	 	25	 

    	 

    

 

9.
INDEMNIFICATION.

 

(a)
In consideration of the Investor’s execution and delivery of this Agreement and acquiring the Convertible Debentures, the
Conversion Shares upon conversion of the Debentures, and in addition to all of the Company’s other obligations under this
Agreement, the Company shall defend, protect, indemnify and hold harmless the Investor, and all of their officers, directors,
employees and agents (including, without limitation, those retained in connection with the transactions contemplated by this Agreement)
(collectively, the “Investor Indemnitees”) from and against any and all actions, causes of action, suits, claims,
losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such
Investor Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’
fees and disbursements (the “Indemnified Liabilities”), incurred by the Investor Indemnitees or any of them
as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by
the Company in this Agreement, the Convertible Debentures or the other Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in
this Agreement, or the other Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby,
or (c) any cause of action, suit or claim brought or made against such Investor Indemnitee and arising out of or resulting from
the execution, delivery, performance or enforcement of this Agreement or any other instrument, document or agreement executed
pursuant hereto by any of the parties hereto, any transaction financed or to be financed in whole or in part, directly or indirectly,
with the proceeds of the issuance of the Convertible Debentures or the status of the Investor or holder of the Convertible Debentures
or the Conversion Shares, as an Investor of Convertible Debentures in the Company. To the extent that the foregoing undertaking
by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities, which is permissible under applicable law.

 

(b)
In consideration of the Company’s execution and delivery of this Agreement, and in addition to all of the Investor’s
other obligations under this Agreement, the Investor shall defend, protect, indemnify and hold harmless the Company and all of
its officers, directors, employees and agents (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Company Indemnitees”) from and against any and all Indemnified
Liabilities incurred by the Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation
or breach of any representation or warranty made by the Investor(s) in this Agreement, instrument or document contemplated hereby
or thereby executed by the Investor, (b) any breach of any covenant, agreement or obligation of the Investor(s) contained in this
Agreement, the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby executed
by the Investor, or (c) any cause of action, suit or claim brought or made against such Company Indemnitee based on material misrepresentations
or due to a material breach and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement,
the Transaction Documents or any other instrument, document or agreement executed pursuant hereto by any of the parties hereto.
To the extent that the foregoing undertaking by the Investor may be unenforceable for any reason, the Investor shall make the
maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable
law.

 

(c)
The foregoing indemnity provisions of the Company and the Investor shall not apply to the extent that the indemnified liabilities
result from gross negligence or will fill misconduct of the party seeking indemnification hereunder.

 

10.
COMPANY LIABILITY.

 

(a)
The Company shall be liable for all debt, principal, interest, and other amounts owed to the Investor by Company pursuant to this
Agreement, the Transaction Documents, or any other agreement, whether absolute or contingent, due or to become due, now existing
or hereafter arising (the “Obligations”) and the Investor may proceed against the Company to enforce the Obligations
without waiving its right to proceed against any other party. This Agreement and the Debenture are a primary and original obligation
of the Company and shall remain in effect notwithstanding future changes in conditions, including any change of law or any invalidity
or irregularity in the creation or acquisition of any Obligations or in the execution or delivery of any agreement between the
Investor and the Company. The Company shall be liable for existing and future Obligations as fully as if all of the funds advanced
by the Investor hereunder were advanced to the Company.

 

    	 	26	 

    	 

    

 

(b)
Notwithstanding any other provision of this Agreement or any other Transaction Documents, the Company irrevocably waives, until
all obligations are paid in full, all rights that it may have at law or in equity (including, without limitation, any law subrogating
the Company to the rights of Investor under the Transaction Documents) to seek contribution, indemnification, or any other form
of reimbursement from the Investor, or any other person now or hereafter primarily or secondarily liable for any of the Obligations,
for any payment made by the Company with respect to the Obligations in connection with the Transaction Documents or otherwise
and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment
made by the Company with respect to the Obligations in connection with the Transaction Documents or otherwise. If any payment
is made to the Company in contravention of this Section, the Company shall hold such payment in trust for the Investor and such
payment shall be promptly delivered to the Investor for application to the Obligations, whether matured or unmatured.

 

11.
GOVERNING LAW: MISCELLANEOUS.

 

(a)
Governing Law; Mandatory Jurisdiction. TO INDUCE INVESTOR TO PURCHASE THE CONVERTIBLE DEBENTURES, THE COMPANY IRREVOCABLY
AGREES THAT ANY DISPUTE ARISING UNDER, RELATING TO, OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED TO
ANY MATTER WHICH IS THE SUBJECT OF OR INCIDENTAL TO THIS AGREEMENT ANY OTHER TRANSACTION DOCUMENT (WHETHER OR NOT SUCH CLAIM IS
BASED UPON BREACH OF CONTRACT OR TORT) SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE COURTS SITTING IN
UNION COUNTY, NEW JERSEY AND THE FEDERAL COURTS SITTING IN NEWARK, NEW JERSEY; PROVIDED, HOWEVER, INVESTOR MAY, AT ITS
SOLE OPTION, ELECT TO BRING ANY ACTION IN ANY OTHER JURISDICTION. THIS PROVISION IS INTENDED TO BE A “MANDATORY” FORUM
SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENT WITH NEW JERSEY LAW. THE COMPANY HEREBY CONSENTS TO THE EXCLUSIVE
JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT HAVING ITS SITUS IN SAID COUNTY, AND WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS. THE COMPANY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND CONSENT THAT ALL SUCH SERVICE OF PROCESS
MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE COMPANY AS SET FORTH HEREIN IN THE MANNER PROVIDED BY
APPLICABLE STATUTE, LAW, RULE OF COURT OR OTHERWISE

 

(b)
Counterparts. This Agreement may be executed in 2 or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and physically or electronically
delivered to the other party.

 

    	 	27	 

    	 

    

 

(c)
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 claim, action or proceeding that may be brought by the Investor in order
to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any
Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents
for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of
them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction
Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to
the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof,
the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from
the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by the Company to the Investor with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by the Investor 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 Investor’s election.

 

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

 

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

 

(f)
Entire Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Investor,
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement
and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor any Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other
than by an instrument in writing signed by the party to be charged with enforcement.

 

    	 	28	 

    	 

    

 

12.
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1 Business
Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the
party to receive the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission is not
returned in error or the sender is not otherwise notified of any error in transmission. The addresses and e-mail addresses for
such communications shall be:

 

	If
    to the Company, to:	Kraig
    Biocraft Laboratories, Inc.
	 	2723
    South State Street – Suite 150 
	 	Ann
    Arbor, MI 48104
	 	Attention:
        Kim Thompson

        Telephone:
        (734) 619-8066

        Email:

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

         

         
	Hunter
        Taubman Fischer & Li LLC

        800
        Third Avenue, Suite 2800

        New
        York, NY 10022

        Attention:
        Louis Taubman, Esq.

        Telephone:
        (917) 512-0827

        Email:
        ltaubman@htflawyers.com

 

	If
    to the Investor:	YA
    II PN, Ltd.
	 	 
	With
    a copy to:	David
    Gonzalez, Esq. 
	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Telephone:
    (201) 536-5109

 

or
at such other address and/or electronic email address and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party 3 Business Days prior to the effectiveness of such change. Written confirmation
of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically
generated by the sender’s computer containing the time, date, recipient’s electronic mail address and the text of
such electronic mail or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of
personal service, receipt by electronic mail or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

    	 	29	 

    	 

    

 

(a)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. Neither the Company nor any Investor shall assign this Agreement or any rights or obligations hereunder
without the prior written consent of the other party hereto.

 

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

 

(c)
Survival. Unless this Agreement is terminated under Section 11(f), all agreements, representations and warranties contained
in this Agreement or made in writing by or on behalf of any party in connection with the transactions contemplated by this Agreement
shall survive the execution and delivery of this Agreement and the Closing.

 

(d)
Publicity. The Company and the Investor shall have the right to approve, before issuance any press release or any other
public statement with respect to the transactions contemplated hereby made by any party; provided, however, that the Company shall
be entitled, without the prior approval of the Investor, to issue any press release or other public disclosure with respect to
such transactions required under applicable securities or other laws or regulations (the Company shall use its best efforts to
consult the Investor in connection with any such press release or other public disclosure prior to its release and Investor shall
be provided with a copy thereof upon release thereof).

 

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

 

(f)
Termination. In the event that the Closing shall not have occurred on or before 5th business days from the date
hereof due to the Company’s or the Investor’s failure to satisfy the conditions set forth in Sections 7 and 8 above
(and the non-breaching party’s failure to waive such unsatisfied condition(s)), the non-breaching party shall have the option
to terminate this Agreement with respect to such breaching party at the close of business on such date without liability of any
party to any other party.

 

(g)
Brokerage. The Company represents that other than Maxim Group LLC no broker, agent, finder or other party has been retained
by it in connection with the transactions contemplated hereby and that no other fee or commission has been agreed by the Company
to be paid for or on account of the transactions contemplated hereby.

 

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

 

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

 

    	 	30	 

    	 

    

 

IN
WITNESS WHEREOF, each of the Investor and the Company has affixed their respective signatures to this Securities Purchase
Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	KRAIG
    BIOCRAFT LABORATORIES, INC.
	 	 	 
	 	By:	                      
	 	Name:	 
	 	Title:	 

 

	 	INVESTOR:
    
	 	 
	 	YA
    II PN, LTD.
	 	 
	 	By: 	Yorkville
    Advisors Global, LP
	 	Its:	Investment
    Manager
	 	 	 
	 	By:	Yorkville
    Advisors Global II, LLC 
	 	Its:	General
    Partner

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	31	 

    	 

    

 

LIST
OF EXHIBITS:

 

Disclosure
Schedule

 

Exhibit
A – Form of Convertible Debenture

Exhibit
B – Form of Warrant

 

    	 	 	 

    	 

    

 

DISCLOSURE
SCHEDULE

 

    	 	 	 

    	 

    

 

EXHIBIT
A

 

    	 	 	 

    	 

    

 

EXHIBIT
B

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