Document:

Exhibit 10.6

 

Certain
identified information has been excluded from this exhibit because it is both not material and is the type that the registrant treats
as private or confidential. [***] indicates that information has been redacted.

 

RUBRYC THERAPEUTICS, INC.

SECOND AMENDED AND RESTATED

RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

    

    

    

 

TABLE OF CONTENTS

 

Page

 

	1.	Definitions	1
	 	 	 
	2.	Agreement among the Company, the Major Investors and the Key Holders	4

 

	 	2.1.	Right of First Refusal	4
	 	2.2.	Right of Co-Sale	5
	 	2.3.	Effect of Failure to Comply	7

 

	3.	Exempt Transfers	8

 

	 	3.1.	Exempted Transfers	8
	 	3.2.	Exempted Offerings	9
	 	3.3.	Prohibited Transferees	9

 

	4.	Legend	9
	 	 	 
	5.	Lock-Up	9

 

	 	5.1.	Agreement to Lock-Up	9
	 	5.2.	Stop Transfer Instructions	10

 

	6.	Miscellaneous	10

 

	 	6.1.	Term	10
	 	6.2.	Stock Split	10
	 	6.3.	Ownership	10
	 	6.4.	Dispute Resolution	11
	 	6.5.	Notices	11
	 	6.6.	Entire Agreement	12
	 	6.7.	Delays or Omissions	12
	 	6.8.	Amendment; Waiver and Termination	12
	 	6.9.	Assignment of Rights	12
	 	6.10.	Severability	13
	 	6.11.	Additional Major Investors	13
	 	6.12.	Governing Law	13
	 	6.13.	Titles and Subtitles	14
	 	6.14.	Counterparts	14
	 	6.15.	Aggregation of Stock	14
	 	6.16.	Specific Performance	14
	 	6.17.	Additional Key Holders	14
	 	6.18.	Consent of Spouse	14
	 	6.19.	Several Liability Among Major Investors	14

 

    

    

    

 

	Schedule A	-	Major Investors
	Schedule B	-	Key Holders
	Exhibit A	-	Consent of Spouse

 

    

    

    

 

Certain
identified information has been excluded from this exhibit because it is both not material and is the type that the registrant treats
as private or confidential. [***] indicates that information has been redacted.

 

SECOND AMENDED AND RESTATED

RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

THIS SECOND AMENDED AND RESTATED
RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT (this “Agreement”), is made as of 23, 2021 by and among RubrYc Therapeutics, Inc.,
a Delaware corporation (the “Company”), the Major Investors listed on Schedule A and the Key Holders listed
on Schedule B.

 

WHEREAS, as of the
date hereof, the Key Holders are the beneficial owners of an aggregate of 23,309 shares of the Common Stock of the Company and stock options
exercisable for 579,467 shares of the Common Stock of the Company, as reflected on Schedule B;

 

WHEREAS, certain of
the Major Investors (the “Prior Investors”) are holders of the Company’s Series A Preferred Stock, par
value $0.01 (the “Series A Preferred Stock”);

 

WHEREAS,
iBio, Inc., a Major Investor, is purchasing shares of the Company’s Series A-2 Preferred
Stock (“Series A-2 Preferred Stock” and along with the Series A Preferred Stock and the Founder Series Preferred
Stock (as defined herein), the “Preferred Stock”) pursuant to that certain Series A-2 Preferred Stock Purchase
Agreement of even date herewith (the “Purchase Agreement”);

 

WHEREAS, the Prior
Investors are parties to that certain Amended and Restated Right of First Refusal and Co-Sale Agreement, dated July 31, 2020, by
and among the Company, the Prior Investors and the Key Holders, as amended (the “Prior Agreement”);

 

WHEREAS, the parties to the Prior Agreement
desire to amend and restate the Prior Agreement in its entirety and accept the rights and covenants hereof in lieu of their rights and
covenants under the Prior Agreement;

 

WHEREAS, the Company,
the Key Holders and the Major Investors have agreed to the right of first refusal and co-sale as set forth herein;

 

NOW, THEREFORE, the
Company, the Key Holders and the Major Investors agree as follows:

 

1.            Definitions.

 

1.1.            “Affiliate”
means, with respect to any specified Person, any other Person who directly or indirectly, controls, is controlled by or is under common
control with such specified Person, including, without limitation, any general partner, managing member, officer or director of such
specified Person, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing
members of, or shares the same management company with, such specified Person.

 

1.2.            “Board
of Directors” means the Company’s board of directors.

 

    

    

    

 

1.3.            “Capital
Stock” means (a) shares of Common Stock and Preferred Stock (whether now outstanding or hereafter issued in any context),
(b) shares of Common Stock issued or issuable upon conversion of Preferred Stock and (c) shares of Common Stock issued or issuable
upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities (including the Common Stock issued
or issuable upon the conversion of the equity securities issued or issuable upon the conversion or exercise of such warrants or convertible
securities) of the Company, in each case now owned or subsequently acquired by any Key Holder, any Major Investor, or their respective
successors or permitted transferees or assigns. For purposes of the number of shares of Capital Stock held by a Major Investor or Key
Holder (or any other calculation based thereon), all shares of Preferred Stock shall be deemed to have been converted into Common Stock
at the then-applicable conversion ratio.

 

1.4.            “Certificate”
means the Company’s Certificate of Incorporation, as amended from time to time.

 

1.5.            “Change
of Control” means a transaction or series of related transactions in which a person, or a group of related persons, acquires
from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company.

 

1.6.            “Common
Stock” means shares of Common Stock of the Company, $0.0001 par value per share.

 

1.7.            “Company
Notice” means written notice from the Company notifying the selling Key Holder that the Company intends to exercise its Right
of First Refusal as to some or all of the Transfer Stock with respect to any Proposed Key Holder Transfer.

 

1.8.            “Founder
Series Preferred Stock” means shares of the Company’s Founder Series Preferred Stock, par value $0.0001 per
share.

 

1.9.            “Key
Holders” means the persons named on Schedule B hereto, each person to whom the rights of a Key Holder are assigned pursuant
to Subsection 3.1, each person who hereafter becomes a signatory to this Agreement pursuant to Subsections 6.9 or 6.17,
and any one of them, as the context may require.

 

1.10.            “Major
Investor Notice” means written notice from a Major Investor notifying the Company and the selling Key Holder that such Major
Investor intends to exercise its Secondary Refusal Right as to a portion of the Transfer Stock with respect to any Proposed Key Holder
Transfer.

 

1.11.            “Major
Investors” means the persons named on Schedule A hereto, each person to whom the rights of a Major Investor are assigned
pursuant to Subsection 6.9, each person who hereafter becomes a signatory to this Agreement pursuant to Subsection 6.11,
and any one of them, as the context may require.

 

1.12.            “Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

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1.13.            “Preferred
Stock” means, collectively, shares of the Company’s Founder Series Preferred Stock, the Series A Preferred
Stock, and the Series A-2 Preferred Stock.

 

1.14.            “Proposed
Key Holder Transfer” means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of
or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed by any of the Key Holders.

 

1.15.            “Proposed
Transfer Notice” means written notice from a Key Holder setting forth the terms and conditions of a Proposed Key Holder Transfer.

 

1.16.            “Prospective
Transferee” means any person to whom a Key Holder proposes to make a Proposed Key Holder Transfer.

 

1.17.            “Right
of Co-Sale” means the right, but not an obligation, of a Major Investor to participate in a Proposed Key Holder Transfer on
the terms and conditions specified in the Proposed Transfer Notice.

 

1.18.            “Right
of First Refusal” means the right, but not an obligation, of the Company, or its permitted transferees or assigns, to purchase
some or all of the Transfer Stock with respect to a Proposed Key Holder Transfer, on the terms and conditions specified in the Proposed
Transfer Notice.

 

1.19.            “Secondary
Notice” means written notice from the Company notifying the Major Investors and the selling Key Holder that the Company does
not intend to exercise its Right of First Refusal as to all shares of Transfer Stock with respect to any Proposed Key Holder Transfer.

 

1.20.            “Secondary
Refusal Right” means the right, but not an obligation, of each Major Investor to purchase up to its pro rata portion (based
upon the total number of shares of Capital Stock then held by all Major Investors) of any Transfer Stock not purchased pursuant to the
Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

 

1.21.            “Senior
Preferred Majority” means the holders of a majority of the shares of Common Stock issued or issuable upon conversion of (i) the
then outstanding shares of Series A Preferred Stock and (ii) the then outstanding shares of Series A-2 Preferred Stock,
in each case held by the Major Investors (voting as a single class and on an as-converted basis).

 

1.22.            “Transfer
Stock” means shares of Capital Stock owned by a Key Holder, or issued to a Key Holder after the date hereof (including, without
limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like).

 

1.23.            “Transaction
Agreements” means (i) this Agreement, (ii) the Second Amended and Restated Investors’ Rights Agreement of even
date herewith, by and among the Company and certain of its stockholders and (iii) the Second Amended and Restated Voting Agreement
of even date herewith, by and among the Company and certain of its stockholders, in each case as the same may be amended from time to
time.

 

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1.24.        “Undersubscription
Notice” means written notice from a Major Investor notifying the Company and the selling Key Holder that such Major Investor
intends to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant to the Right of First Refusal
or the Secondary Refusal Right.

 

2.        
     Agreement among the Company, the Major Investors and the Key
Holders.

 

2.1.          Right
of First Refusal.

 

(a)            Grant.
Subject to the terms of Section 3 below, each Key Holder hereby unconditionally and irrevocably grants to the Company a Right
of First Refusal to purchase all or any portion of Transfer Stock that such Key Holder may propose to transfer in a Proposed Key Holder
Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee.

 

(b)            Notice.
Each Key Holder proposing to make a Proposed Key Holder Transfer must deliver a Proposed Transfer Notice to the Company and each Major
Investor not later than forty-five (45) days prior to the consummation of such Proposed Key Holder Transfer. Such Proposed Transfer Notice
shall contain the material terms and conditions (including price and form of consideration) of the Proposed Key Holder Transfer, the
identity of the Prospective Transferee and the intended date of the Proposed Key Holder Transfer. To exercise its Right of First Refusal
under this Section 2, the Company must deliver a Company Notice to the selling Key Holder within fifteen (15) days after
delivery of the Proposed Transfer Notice. In the event of a conflict between this Agreement and any other agreement that may have been
entered into by a Key Holder with the Company that contains a preexisting right of first refusal, the Company and the Key Holder acknowledge
and agree that the terms of this Agreement shall control and the preexisting right of first refusal shall be deemed satisfied by compliance
with Subsection 2.1(a) and this Subsection 2.1(b).

 

(c)            Grant
of Secondary Refusal Right to Major Investors. Subject to the terms of Section 3 below, each Key Holder hereby unconditionally
and irrevocably grants to the Major Investors a Secondary Refusal Right to purchase all or any portion of the Transfer Stock not purchased
by the Company pursuant to the Right of First Refusal, as provided in this Subsection 2.1(c). If the Company does not intend to
exercise its Right of First Refusal with respect to all Transfer Stock subject to a Proposed Key Holder Transfer, the Company must deliver
a Secondary Notice to the selling Key Holder and to each Major Investor to that effect no later than fifteen (15) days after the selling
Key Holder delivers the Proposed Transfer Notice to the Company. To exercise its Secondary Refusal Right, a Major Investor must deliver
a Major Investor Notice to the selling Key Holder and the Company within ten (10) days after the Company’s deadline for its
delivery of the Secondary Notice as provided in the preceding sentence.

 

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(d)            Undersubscription
of Transfer Stock. If options to purchase have been exercised by the Company and the Major Investors with respect to some but not
all of the Transfer Stock by the end of the ten (10) day period specified in the last sentence of Subsection 2.1(c) (the
 “Major Investor Notice Period”), then the Company shall, immediately after the expiration of the Major Investor Notice
Period, send written notice (the “Company Undersubscription Notice”) to those Major Investors who fully exercised
their Secondary Refusal Right within the Major Investor Notice Period (the “Exercising Major Investors”). Each Exercising
Major Investor shall, subject to the provisions of this Subsection 2.1(d), have an additional option to purchase all or any part
of the balance of any such remaining unsubscribed shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer
Notice. To exercise such option, an Exercising Major Investor must deliver an Undersubscription Notice to the selling Key Holder and
the Company within ten (10) days after the expiration of the Major Investor Notice Period. In the event there are two (2) or
more such Exercising Major Investors that choose to exercise the last-mentioned option for a total number of remaining shares in excess
of the number available, the remaining shares available for purchase under this Subsection 2.1(d) shall be allocated to such
Exercising Major Investors pro rata based on the number of shares of Transfer Stock such Exercising Major Investors have elected to purchase
pursuant to the Secondary Refusal Right (without giving effect to any shares of Transfer Stock that any such Exercising Major Investor
has elected to purchase pursuant to the Company Undersubscription Notice). If the options to purchase the remaining shares are exercised
in full by the Exercising Major Investors, the Company shall immediately notify all of the Exercising Major Investors and the selling
Key Holder of that fact.

 

(e)            Forfeiture
of Rights. Notwithstanding the foregoing, if the total number of shares of Transfer Stock that the Company and the Major Investors
have agreed to purchase in the Company Notice, Major Investor Notices and Undersubscription Notices is less than the total number of
shares of Transfer Stock, then the Company and the Major Investors shall be deemed to have forfeited any right to purchase such Transfer
Stock, and the selling Key Holder shall be free to sell all, but not less than all, of the Transfer Stock to the Prospective Transferee
on terms and conditions substantially similar to (and in no event more favorable than) the terms and conditions set forth in the Proposed
Transfer Notice, it being understood and agreed that (i) any such sale or transfer shall be subject to the other terms and restrictions
of this Agreement, including, without limitation, the terms and restrictions set forth in Subsections 2.2 and 6.9(b); (ii) any
future Proposed Key Holder Transfer shall remain subject to the terms and conditions of this Agreement, including this Section 2;
and (iii) such sale shall be consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company
and, if such sale is not consummated within such forty-five (45) day period, such sale shall again become subject to the Right of First
Refusal and Secondary Refusal Right on the terms set forth herein.

 

(f)            Consideration;
Closing. If the consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration,
the fair market value of the consideration shall be as determined in good faith by the Company’s Board of Directors and as set
forth in the Company Notice. If the Company or any Major Investor cannot for any reason pay for the Transfer Stock in the same form of
non-cash consideration, the Company or such Major Investor may pay the cash value equivalent thereof, as determined in good faith by
the Board of Directors and as set forth in the Company Notice. The closing of the purchase of Transfer Stock by the Company and the Major
Investors shall take place, and all payments from the Company and the Major Investors shall have been delivered to the selling Key Holder,
by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Key Holder Transfer;
and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

 

2.2.            Right
of Co-Sale.

 

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(a)            Exercise
of Right. If any Transfer Stock subject to a Proposed Key Holder Transfer is not purchased pursuant to Subsection 2.1 above
and thereafter is to be sold to a Prospective Transferee, each respective Major Investor may elect to exercise its Right of Co-Sale and
participate on a pro rata basis in the Proposed Key Holder Transfer as set forth in Subsection 2.2(b) below and, subject
to Subsection 2.2(d), otherwise on the same terms and conditions specified in the Proposed Transfer Notice. Each Major Investor
who desires to exercise its Right of Co-Sale (each, a “Participating Major Investor”) must give the selling Key Holder
written notice to that effect within fifteen (15) days after the deadline for delivery of the Secondary Notice described above, and upon
giving such notice such Participating Major Investor shall be deemed to have effectively exercised its Right of Co-Sale.

 

(b)            Shares
Includable. Each Participating Major Investor may include in the Proposed Key Holder Transfer all or any part of such Participating
Major Investor’s Capital Stock equal to the product obtained by multiplying (i) the aggregate number of shares of Transfer
Stock subject to the Proposed Key Holder Transfer (excluding shares purchased by the Company or the Participating Major Investors pursuant
to the Right of First Refusal or the Secondary Refusal Right) by (ii) a fraction, the numerator of which is the number of shares
of Capital Stock owned by such Participating Major Investor immediately before consummation of the Proposed Key Holder Transfer and the
denominator of which is the total number of shares of Capital Stock owned, in the aggregate, by all Participating Major Investors immediately
prior to the consummation of the Proposed Key Holder Transfer, plus the number of shares of Transfer Stock held by the selling Key Holders.
To the extent one (1) or more of the Participating Major Investors exercise such right of participation in accordance with the terms
and conditions set forth herein, the number of shares of Transfer Stock that the selling Key Holder may sell in the Proposed Key Holder
Transfer shall be correspondingly reduced

 

(c)            Purchase
and Sale Agreement. The Participating Major Investors and the selling Key Holder agree that the terms and conditions of any Proposed
Key Holder Transfer in accordance with Subsection 2.2 will be memorialized in, and governed by, a written purchase and sale agreement
with the Prospective Transferee (the “Purchase and Sale Agreement”) with customary terms and provisions for such a
transaction, and the Participating Major Investors and the selling Key Holder further covenant and agree to enter into such Purchase
and Sale Agreement as a condition precedent to any sale or other transfer in accordance with this Subsection 2.2.

 

(d)            Allocation
of Consideration.

 

(i)            Subject
to Subsection 2.2(d)(ii), the aggregate consideration payable to the Participating Major Investors and the selling Key Holder
shall be allocated based on the number of shares of Capital Stock sold to the Prospective Transferee by each Participating Major Investor
and the selling Key Holder as provided in Subsection 2.2(b), provided that if a Participating Major Investor wishes to
sell Preferred Stock, the price set forth in the Proposed Transfer Notice shall be appropriately adjusted based on the applicable conversion
ratio of the Preferred Stock into Common Stock.

 

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(ii)            In
the event that the Proposed Key Holder Transfer constitutes a Change of Control, the terms of the Purchase and Sale Agreement shall provide
that the aggregate consideration from such transfer shall be allocated to the Participating Major Investors and the selling Key Holder
in accordance with Sections 2.1 and 2.2 of Article IV(B) of the Certificate as if (A) such transfer were a Deemed Liquidation
Event (as defined in the Certificate), and (B) the Capital Stock sold in accordance with the Purchase and Sale Agreement were the
only Capital Stock outstanding. In the event that a portion of the aggregate consideration payable to the Participating Major Investor(s) and
selling Key Holder is placed into escrow, the Purchase and Sale Agreement shall provide that (x) the portion of such consideration
that is not placed in escrow (the “Initial Consideration”) shall be allocated in accordance with Sections 2.1 and
2.2 of Article IV(B) of the Certificate as if the Initial Consideration were the only consideration payable in connection with
such transfer, and (y) any additional consideration which becomes payable to the Participating Major Investor(s) and selling
Key Holder upon release from escrow shall be allocated in accordance with Sections 2.1 and 2.2 of Article IV(B) of the Certificate
after taking into account the previous payment of the Initial Consideration as part of the same transfer.

 

(e)            Purchase
by Selling Key Holder; Deliveries. Notwithstanding Subsection 2.2(c) above, if any Prospective Transferee or Transferees
refuse(s) to purchase securities subject to the Right of Co-Sale from any Participating Major Investor(s) or upon the failure
to negotiate in good faith a Purchase and Sale Agreement reasonably satisfactory to the Participating Major Investors, no Key Holder
may sell any Transfer Stock to such Prospective Transferee or Transferees unless and until, simultaneously with such sale, such Key Holder
purchases all securities subject to the Right of Co-Sale from such Participating Major Investor(s) on the same terms and conditions
(including the proposed purchase price) as set forth in the Proposed Transfer Notice and as provided in Subsection 2.2(d)(i);
provided, however, if such sale constitutes a Change of Control, the portion of the aggregate consideration paid by the
selling Key Holder to such Participating Major Investor(s) shall be made in accordance with the first sentence of Subsection
2.2(d)(ii). In connection with such purchase by the selling Key Holder, such Participating Major Investor(s) shall deliver to
the selling Key Holder any stock certificate or certificates, properly endorsed for transfer, representing the Capital Stock being purchased
by the selling Key Holder (or request that the Company effect such transfer in the name of the selling Key Holder). Any such shares transferred
to the selling Key Holder will be transferred to the Prospective Transferee against payment therefor in consummation of the sale of the
Transfer Stock pursuant to the terms and conditions specified in the Proposed Transfer Notice, and the selling Key Holder shall concurrently
therewith remit or direct payment to each such Participating Major Investor the portion of the aggregate consideration to which each
such Participating Major Investor is entitled by reason of its participation in such sale as provided in this Subsection 2.2(e).

 

(f)            Additional
Compliance. If any Proposed Key Holder Transfer is not consummated within sixty (60) days after receipt of the Proposed Transfer
Notice by the Company, the Key Holders proposing the Proposed Key Holder Transfer may not sell any Transfer Stock unless they first comply
in full with each provision of this Section 2. The exercise or election not to exercise any right by any Major Investor hereunder
shall not adversely affect its right to participate in any other sales of Transfer Stock subject to this Subsection 2.2.

 

2.3.          Effect
of Failure to Comply.

 

(a)            Transfer
Void; Equitable Relief. Any Proposed Key Holder Transfer not made in compliance with the requirements of this Agreement shall be
null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized by the Company.
Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto
for which monetary damages alone could not adequately compensate. Therefore, the parties hereto unconditionally and irrevocably agree
that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law
or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of
Transfer Stock not made in strict compliance with this Agreement).

 

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(b)            Violation
of First Refusal Right. If any Key Holder becomes obligated to sell any Transfer Stock to the Company or any Major Investor under
this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, the Company and/or such Major
Investor may, at its option, in addition to all other remedies it may have, send to such Key Holder the purchase price for such Transfer
Stock as is herein specified and transfer to the name of the Company or such Major Investor (or request that the Company effect such
transfer in the name of a Major Investor) on the Company’s books any certificates, instruments, or book entry representing the
Transfer Stock to be sold.

 

(c)            Violation
of Co-Sale Right. If any Key Holder purports to sell any Transfer Stock in contravention of the Right of Co-Sale (a “Prohibited
Transfer”), each Major Investor who desires to exercise its Right of Co-Sale under Subsection 2.2 may, in addition to
such remedies as may be available by law, in equity or hereunder, require such Key Holder to purchase from such Major Investor the type
and number of shares of Capital Stock that such Major Investor would have been entitled to sell to the Prospective Transferee had the
Prohibited Transfer been effected in compliance with the terms of Subsection 2.2. The sale will be made on the same terms, including,
without limitation, as provided in Subsection 2.2(d)(i) and the first sentence of Subsection 2.2(d)(ii), as applicable,
and subject to the same conditions as would have applied had the Key Holder not made the Prohibited Transfer, except that the sale (including,
without limitation, the delivery of the purchase price) must be made within ninety (90) days after the Major Investor learns of the Prohibited
Transfer, as opposed to the timeframe proscribed in Subsection 2.2. Such Key Holder shall also reimburse each Major Investor
for any and all reasonable and documented out-of-pocket fees and expenses, including reasonable legal fees and expenses, incurred pursuant
to the exercise or the attempted exercise of the Major Investor’s rights under Subsection 2.2.

 

3.            Exempt
Transfers.

 

3.1.          Exempted
Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Subsections 2.1 and 2.2
shall not apply (a) in the case of a Key Holder that is an entity, upon a transfer by such Key Holder to its stockholders, members,
partners, other equity holders or Affiliates, (b) to a repurchase of Transfer Stock from a Key Holder by the Company at a price
no greater than that originally paid by such Key Holder for such Transfer Stock and pursuant to an agreement containing vesting and/or
repurchase provisions approved by a majority of the Board of Directors, or (c) in the case of a Key Holder that is a natural person,
upon a transfer of Transfer Stock by such Key Holder made for bona fide estate planning purposes, either during his or her lifetime or
on death by will or intestacy to his or her spouse, child (natural or adopted), or any other direct lineal descendant of such Key Holder
(or his or her spouse), or any other family member approved by the Board of Directors (including by at least two of the Preferred Directors,
as such term is defined in the Certificate of Incorporation of the Company, as such may be amended from time to time) of the Company
(all of the foregoing collectively referred to as “family members”), or any trust, partnership or limited liability company
for the benefit of, or the ownership interests of which are owned wholly by, such Key Holder or any such family members; provided that
in the case of clauses (a) or (c), the Key Holder shall deliver prior written notice to the Company and the Major Investors of such
gift or transfer and such shares of Transfer Stock shall at all times remain subject to the terms and restrictions set forth in this
Agreement and any such transferee shall, as a condition to such issuance, deliver a counterpart signature page to this Agreement
as confirmation that such transferee shall be bound by all the terms and conditions of this Agreement as a Key Holder (but only with
respect to the securities so transferred to such transferee), including the obligations of a Key Holder with respect to Proposed Key
Holder Transfers of such Transfer Stock pursuant to Section 2; and provided further in the case of any transfer pursuant
to clause (a) or (c) above, that such transfer is made pursuant to a transaction in which there is no consideration actually
paid for such transfer.

 

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3.2.            Exempted
Offerings. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Section 2 shall not apply
to the sale of any Transfer Stock (a) to the public in an offering pursuant to an effective registration statement under the Securities
Act of 1933, as amended; or (b) pursuant to a Deemed Liquidation Event (as defined in the Company’s Certificate of Incorporation).

 

3.3.            Prohibited
Transferees. Notwithstanding the foregoing, no Key Holder shall transfer any Transfer Stock to (a) any entity which, in the
determination of the Company’s Board of Directors, directly or indirectly competes with the Company; or (b) any customer,
distributor or supplier of the Company, if the Company’s Board of Directors should determine that such transfer would result in
such customer, distributor or supplier receiving information that would place the Company at a competitive disadvantage with respect
to such customer, distributor or supplier.

 

4.            Legend.
Each certificate, instrument, or book entry representing shares of Transfer Stock held by the Key Holders or issued to any permitted
transferee in connection with a transfer permitted by Subsection 3.1 hereof shall be notated with the following legend:

 

THE SALE, PLEDGE, HYPOTHECATION, OR
TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN
RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION AND CERTAIN OTHER HOLDERS OF CAPITAL STOCK
OF THE CORPORATION. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

 

Each Key Holder agrees that the Company may instruct
its transfer agent to impose transfer restrictions on the shares notated with the legend referred to in this Section 4 above
to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination of
this Agreement at the request of the holder.

 

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5.            Lock-Up.

 

5.1.            Agreement
to Lock-Up. Each Key Holder and Major Investor hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the Company’s first underwritten public
offering of its Common Stock under the Securities Act of 1933, as amended (the “IPO”), and ending on the date specified
by the Company and the managing underwriter (such period not to exceed one hundred eighty (l80) days), or such other period as may be
requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of
research reports; and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA
Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), (a) lend, offer, pledge,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Capital Stock held immediately prior
to the effectiveness of the registration statement for the IPO; or (b) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described
in clause (a) or (b) above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. The foregoing
provisions of this Section 5 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement,
or the transfer of any shares to any trust, partnership or limited liability company for the benefit of, or the ownership interests of
which are owned wholly by, the Key Holder or the immediate family of the Key Holder, provided that the trustee of the trust or
the entity, as applicable, agrees to be bound in writing by the restrictions set forth herein and the terms of the Transaction Agreements,
and provided further that any such transfer shall not involve a disposition for value, and shall only be applicable to the Key
Holders and Major Investors if all officers and directors enter into similar agreements. The underwriters in connection with the IPO
are intended third-party beneficiaries of this Section 5 and shall have the right, power and authority to enforce the provisions
hereof as though they were a party hereto. Each Key Holder and Major Investor further agrees to execute such agreements as may be reasonably
requested by the underwriters in the IPO that are consistent with this Section 5 or that are necessary to give further effect
thereto.

 

5.2.            Stop
Transfer Instructions. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect
to the shares of Capital Stock of each Key Holder (and transferees and assignees thereof) until the end of such restricted period.

 

6.            Miscellaneous.

 

6.1.            Term.
This Agreement shall automatically terminate upon the earlier of (a) immediately prior to the consummation of the Company’s
IPO; and (b) the consummation of a Deemed Liquidation Event (as defined in the Certificate).

 

6.2.            Stock
Split. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any stock dividend, split,
combination or other recapitalization affecting the Capital Stock occurring after the date of this Agreement.

 

6.3.            Ownership.
Each Key Holder represents and warrants that such Key Holder is the sole legal and beneficial owner of the shares of Transfer Stock subject
to this Agreement and that no other person or entity has any interest in such shares (other than a community property interest as to
which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder).

 

    10

    

    

 

6.4.            Dispute
Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the Delaware Court of Chancery
and any state appellate court therefrom within the State of Delaware (or, only if the Delaware Court of Chancery declines to accept jurisdiction
over a particular matter, any federal court within the State of Delaware) for the purpose of any suit, action or other proceeding arising
out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon
this Agreement except in the above-named courts, and (c) hereby waive, and agree not to assert, by way of motion, as a defense,
or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced
in or by such court.

 

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES
ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS
BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY
FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

Each of the parties to this Agreement consents
to personal jurisdiction for any equitable action sought in any federal court within the State of Delaware or any court of the State
of Delaware having subject matter jurisdiction.

 

6.5.            Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given
upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s
next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying
next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their
address as set forth on Schedule A or Schedule B hereof, as the case may be, or to such email address, facsimile number
or address as subsequently modified by written notice given in accordance with this Subsection 0. If notice is given to the Company,
it shall be sent to the Company at the address set forth on its signature page hereto, and a copy (which shall not constitute notice)
shall also be sent to Dorsey & Whitney LLP, 50 South Sixth Street, Suite 1500, Minneapolis, MN 55402, Attention: Brian
G. Moore.

 

    11

    

    

 

6.6.            Entire
Agreement. This Agreement (including the Schedules and Exhibits hereto), the Purchase Agreement, the Certificate and the Transaction
Agreements constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof,
and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

 

6.7.            Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach
or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting
party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach
or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must
be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement
or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

6.8.            Amendment;
Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant to Subsection 6.1 above)
and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively)
only by a written instrument executed by each of the following: (a) the Company, (b) the Key Holders holding at least a majority
of the shares of Transfer Stock then held by all of the Key Holders who are then providing services to the Company as officers, employees
or consultants, and (c) the Senior Preferred Majority. Any amendment, modification, termination or waiver so effected shall be binding
upon the Company, the Major Investors, the Key Holders and all of their respective successors and permitted assigns whether or not such
party, assignee or other shareholder entered into or approved such amendment, modification, termination or waiver. Notwithstanding the
foregoing, (i) this Agreement may not be amended, modified or terminated and the observance of any term hereunder may not be waived
with respect to any Major Investor or Key Holder without the written consent of such Major Investor or Key Holder (ii) the consent
of the Key Holders shall not be required for any amendment, modification, termination or waiver if such amendment, modification, termination
or waiver does not apply to the Key Holders, (iii) Schedule A and Schedule B hereto may be amended by the Company
from time to time to add information regarding additional Stockholders joined hereto pursuant to Subsections 6.9, 6.11
or 6.16, without the consent of the other parties hereto and (iv) this Agreement may not be amended or terminated and the
observance of any term of this Agreement may not be waived with respect to any Investor without the written consent of such Investor
unless such amendment, termination or waiver applies to all Investors in the same fashion without creating a disparate impact on any
Investor. The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any
party hereto that did not consent in writing to such amendment, modification, termination or waiver. No waivers of or exceptions to any
term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing
waiver of any such term, condition or provision.

 

    12

    

    

 

6.9.            Assignment
of Rights.

 

(a)            The
terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns
of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or
their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

(b)            Any
successor or permitted assignee of any Key Holder, including any Prospective Transferee who purchases shares of Transfer Stock in accordance
with the terms hereof, shall deliver to the Company and the Major Investors, as a condition to any transfer or assignment, a counterpart
signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be subject to and
bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted
assignee.

 

(c)            The
rights of the Major Investors hereunder are not assignable without the Company’s written consent (which shall not be unreasonably
withheld, delayed or conditioned), except by a Major Investor (i) to an assignee or transferee who together with its Affiliates
acquires at least 1,000,000 shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization
or other similar transaction) (a “Third Party Transferee”), or (ii) to any Affiliate, it being acknowledged and
agreed that any such assignment, including an assignment contemplated by the preceding clauses (i) or (ii), shall be subject to
and conditioned upon: such assignee’s delivery to the Company and the other Major Investors of a counterpart signature page to
each of the Transaction Agreements, pursuant to which such assignee shall confirm its agreement to be subject to and bound by all of
the provisions set forth in the Transaction Agreements that were applicable to the assignor of such assignee.

 

(d)            Except
in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations of the
Company hereunder may not be assigned under any circumstances.

 

6.10.            Severability.
The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

6.11.            Additional
Major Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s
preferred stock after the date hereof, any purchaser of such shares of preferred stock who together with its Affiliates owns at least
1,000,000 shares of Capital Stock may become a party to this Agreement by executing and delivering an additional counterpart signature
page to this Agreement pursuant to which such purchaser shall confirm its agreement to be subject to and bound by all of the provisions
set forth herein and thereafter shall be deemed an “Major Investor” for all purposes hereunder.

 

    13

    

    

 

6.12.            Governing
Law. This Agreement shall be governed by the internal law of the State of Delaware, regardless of the laws that might otherwise govern
under principles of conflicts of law.

 

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

 

6.14.            Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail or other transmission method
and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

6.15.            Aggregation
of Stock. All shares of Capital Stock held or acquired by Affiliated entities or persons shall be aggregated together for the purpose
of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves
in any manner they deem appropriate.

 

6.16.            Specific
Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement,
each Major Investor shall be entitled to specific performance of the agreements and obligations of the Company and the Key Holders hereunder
and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction.

 

6.17.            Additional
Key Holders. In the event that after the date of this Agreement, the Company issues shares of Common Stock, or options to purchase
Common Stock, to any Person, which shares or options would collectively constitute (taking into account all shares of Common Stock, options
and other purchase rights held by such employee or consultant) one percent (1%) or more of the Company’s then-outstanding Common
Stock (treating as issued for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options,
warrants or convertible securities, as if exercised or converted), the Company shall, as a condition to such issuance, cause such employee
or consultant to execute a counterpart signature page hereto as a Key Holder, and such person shall thereby be bound by, and subject
to, all the terms and provisions of this Agreement applicable to a Key Holder.

 

6.18.            Consent
of Spouse. If any Key Holder is married on the date of this Agreement, such Key Holder’s spouse shall execute and deliver to
the Company a Consent of Spouse in the form of Exhibit A hereto (“Consent of Spouse”), effective on the
date hereof. Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any
rights in such Key Holder’s shares of Transfer Stock that do not otherwise exist by operation of law or the agreement of the parties.
If any Key Holder should marry or remarry subsequent to the date of this Agreement, such Key Holder shall within thirty (30) days thereafter
obtain his/her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in
this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained
in this Agreement and agreeing and consenting to the same.

 

    14

    

    

 

6.19.            Several
Liability Among Major Investors. Each Major Investor’s obligations hereunder are several, and not joint and several. No Major
Investor shall be liable for any other Major Investor’s breach of this Agreement.

 

[Signature page follows]

 

    15

    

    

 

IN WITNESS WHEREOF, the parties
have executed this Second Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	RUBRYC THERAPEUTICS, INC.
	 	 
	 	 
	 	By: 	/s/ Isaac Bright                         
	 	Name:  Isaac Bright
	 	Title:  Chief Executive Officer
	 	 
	 	 
	 	Address:

 

[Signature Page To Second
Amended and Restated Right of First Refusal And Co-Sale Agreement]

 

    

    

    

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	KEY HOLDERS: 
	 	 
	 	[***] 
	 	 
	 	 
	 	 

 

[Signature Page To Second Amended and
Restated Right of First Refusal And Co-Sale Agreement]

 

    

    

    

 

IN WITNESS WHEREOF, the parties
have executed this Second Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	MAJOR INVESTORS:

 

[***]

 

[Signature Page To Second Amended and
Restated Right of First Refusal And Co-Sale Agreement]

 

    

    

    

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	MAJOR INVESTORS:

 

[Signature Page to Second Amended and
Restated Right of First Refusal and Co-Sale Agreement]

 

    

    

    

 

IN WITNESS WHEREOF, the parties
have executed this Second Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	MAJOR INVESTOR: 
	 	 
	 	[***] 

 

[Signature Page to Second Amended and
Restated Right of First Refusal and Co-Sale Agreement]

 

    

    

    

 

IN WITNESS WHEREOF, the parties
have executed this Second Amended and Restated Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	MAJOR INVESTOR:
	 	 
	 	IBIO, INC.
	 	 
	 	 
	 	By: 	/s/
    Tom Isett                         
	 	Name:  Thomas F. Isett
	 	Title:  President

 

[Signature Page to Second Amended and
Restated Right of First Refusal and Co-Sale Agreement]

 

    

    

    

 

[***]Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of August 23, 2021, by and between SIMPLICITY ESPORTS
AND GAMING COMPANY, a Delaware corporation, with headquarters located at 7000 West Palmetto Park Road, Suite 505, Boca Raton, Florida
33433 (the “Company”), and JEFFERSON STREET CAPITAL LLC, a New Jersey limited liability company, with its address
at 720 Monroe Street, Suite C401B, Hoboken, New Jersey 07030 (the “Buyer”).

 

WHEREAS:

 

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

 

B. Buyer
desires to purchase from the Company, and the Company desires to issue and sell to the Buyer, upon the terms and conditions set forth
in this Agreement, a Convertible Promissory Note of the Company, in the aggregate principal amount of $333,333.33 (as the principal amount
thereof may be increased pursuant to the terms thereof, and together with any note(s) issued in replacement thereof or as a dividend
thereon or otherwise with respect thereto in accordance with the terms thereof, in the form attached hereto as Exhibit A (the
“Note”), convertible into shares of common stock of the Company (the “Common Stock”), upon the terms and subject
to the limitations and conditions set forth in such Note;

 

C. As
well as a warrant in the Company in accordance with the terms thereof, in the form attached hereto as Exhibit B (the “Warrant”)
exercisable for shares of Common Stock upon the terms and subject to the limitations and conditions set forth in such Warrant; and

 

D. To
induce the Buyer to enter into the transactions contemplated hereby, the Company is also issuing to Buyer three thousand one hundred
twenty five (3,125) shares of Common Stock (the “Commitment Shares”) at the Closing (as defined below);

 

NOW
THEREFORE, in consideration of the foregoing and of the agreements and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

		1.	Purchase
                                            and Sale of the Securities.

 

a.       Purchase
of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from
the Company the Note, subject to the terms of the Note and this Agreement as the case may be.

 

b.       Warrant.
On the Closing Date, the Company shall issue to Buyer the Warrant, subject to the terms of the Warrant and this Agreement as the case
may be.

 

c.       Commitment
Shares. Upon the Closing, the Company shall cause the Commitment Shares to be issued in book-entry form in the name of the Buyer.

 

d.       Form
of Payment. On the Closing Date, the Buyer shall pay the purchase price of $300,000.00 (the “Purchase Price”) for the
Note, by wire transfer of immediately available funds, in accordance with the Company’s written wiring instructions, against delivery
of the Note, the Warrant and the Commitment Shares, and the Company shall deliver such duly executed Note and Warrant on behalf of the
Company, to the Buyer.

 

    	1 

     

    

 

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

 

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

 

2.       Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company as of the Closing Date that:

 

a.       Investment
Purpose. As of the Closing Date, the Buyer is purchasing the Note and the Warrant, the Commitment Shares and the shares of Common
Stock issuable upon conversion or exercise thereof, or otherwise issued pursuant to the Note or Warrant and such additional shares of
Common Stock, if any, as are issuable on account of interest on the Note pursuant to this Agreement, such shares of Common Stock being
collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the Commitment Shares, and the
Warrant, the “Securities”) for its own account and not with a present view towards the public sale or distribution thereof,
except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making
the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves
the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the
1933 Act.

 

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

 

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

 

d.       Information.
The Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances, and operations of
the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The
Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company regarding its business and affairs.
Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information regarding the Company or
otherwise, and will not disclose such information unless such information is disclosed to the public prior to or promptly following such
disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or
representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained
in Section 3 below.

 

e.       Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed
upon or made any recommendation or endorsement of the Securities.

 

    	2 

     

    

 

f.       Transfer
or Resale. Without limiting any of the Company’s obligations hereunder, the Buyer understands that (i) the sale or resale of
the Securities have not been, and as of the date hereof, are currently not being registered under the 1933 Act or any applicable state
securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement
under the 1933 Act; (b) the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel (which may be
the Legal Counsel Opinion (as defined below)) that shall be in form, substance, and scope customary for opinions of counsel in comparable
transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such
registration, which opinion shall be accepted by the Company; (c) the Securities are sold or transferred to an “affiliate”
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell
or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor; (d) the Securities
are sold pursuant to Rule 144 or other applicable exemption and the Buyer shall have delivered to the Company, at the cost of the Company,
an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion
shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the
terms of said Rule and further, if said Rule is not applicable, any resale of such 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 1933 Act) may require
compliance with some other exemption under the 1933 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 such Securities under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder (in each case).

 

g.       Legends.
The Buyer understands that until such time as the Securities have been registered under the 1933 Act or may be sold pursuant to any
applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold,
the Securities may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer
of the certificates for such Securities):

 

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

 

The
legend set forth above shall be removed and the Company shall issue a certificate for the applicable shares of Common Stock without such
legend to the holder of any Security upon which it is stamped or (as requested by such holder) issue the applicable shares of Common
Stock to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository Trust Company
(“DTC”), if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under
an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an applicable exemption without any
restriction as to the number of securities as of a particular date that can then be immediately sold; or (b) the Company or the Buyer
provides the Legal Counsel Opinion (as contemplated by and in accordance herewith) to the effect that a public sale or transfer of such
Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer
is effected. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance.
The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance
with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided
by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, under any applicable exemption at
the Deadline (as defined in the Note), it will be considered an Event of Default pursuant to Section 3 of the Note.

 

    	3 

     

    

 

h.       Authorization;
Enforcement. This Agreement has been duly and validly authorized by the Buyer and has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms, except
as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally and except as may be limited by the exercise of judicial discretion in applying principles of equity.

 

i.       Manipulation
of Price. The Buyer 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, or that could reasonably be expected to cause or result, in the stabilization or manipulation of the
price of any security of the Company; (ii) paid any compensation for soliciting purchases of any Common Stock in the open market; or
(iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company.

 

j.       No
Shorting. Buyer and its affiliates shall be prohibited from engaging directly or indirectly in any short selling or hedging transactions
with respect to any securities of the Company while this Note is outstanding.

 

3.       Representations
and Warranties of the Company. The Company represents and warrants to the Buyer as of the Closing Date that:

 

a.       Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation or other entity duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it is incorporated or organized, with full power and
authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased,
used, operated and conducted. Schedule 3(a), if attached hereto, sets forth a list of all of the Subsidiaries of the Company and the
jurisdiction in which each is incorporated. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted
by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have a Material Adverse
Effect. “Material Adverse Effect” means any material adverse effect on the business, operations, assets or financial condition
of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments
to be entered into in connection herewith. “Subsidiaries” means any corporation or other organization, whether incorporated
or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest.

 

b.       Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note,
the Warrant, and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof; (ii) the execution and delivery of this Agreement, the Note, and the Warrant by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the Warrant, as
well as the issuance and reservation for issuance of the Conversion Shares issuable upon conversion of the Note or exercise of the Warrant)
have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board
of Directors, its shareholders, or its debt holders is required; (iii) this Agreement, the Note, and the Warrant, (together with any
other instruments executed in connection herewith or therewith) have been duly executed and delivered by the Company by its authorized
representative, and such authorized representative is the true and official representative with authority to sign this Agreement, the
Note, the Warrant, and the other instruments documents executed in connection herewith or therewith and bind the Company accordingly;
and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, the Warrant, and each of such instruments
will constitute, a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally and except as may be limited by the exercise of judicial discretion in applying principles of equity.

 

    	4 

     

    

 

c.       Capitalization;
Governing Documents. As of August 18, 2021, the authorized capital stock of the Company consists of: 20,000,000 authorized shares
of Common Stock, of which 1,463,470 shares were outstanding. All of such outstanding shares of capital stock of the Company and the Conversion
Shares, are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital stock of
the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances
imposed through the actions or failure to act of the Company. As of the effective date of this Agreement, other than as publicly announced
prior to such date and reflected in the SEC Documents (as defined in this Agreement) of the Company (i) there are no outstanding options,
warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital
stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its Subsidiaries; (ii) other than provided herein, there are no
agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their
securities under the 1933 Act; and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by
the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of any of the Securities.
The Company has furnished to the Buyer true and correct copies of the Company’s Certificate of Incorporation as in effect on the
date hereof (“Certificate of Incorporation”), the Company’s Bylaws, as in effect on the date hereof (the “Bylaws”),
and the terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of the holders
thereof in respect thereto.

 

d.       Issuance
of Conversion Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note or exercise
of the Warrant in accordance with their respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes,
liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e.       No
Broker-Dealer Acknowledgement. Unless otherwise advised by legal counsel to the Company, the Company shall not to any person, institution,
governmental or other entity, state, claim, allege, or in any way assert, that Buyer is currently, or ever has been a broker-dealer under
the Securities Exchange Act of 1934.

 

f.       Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect of the Conversion Shares to the Common Stock
upon the conversion of the Note or exercise of the Warrant. The Company further acknowledges that its obligation to issue, upon conversion
of the Note or exercise of the Warrant, the Conversion Shares, in accordance with this Agreement, the Note, and the Warrant are absolute
and unconditional, subject to the terms and conditions herein and therein, regardless of the dilutive effect that such issuance may have
on the ownership interests of other shareholders of the Company.

 

    	5 

     

    

 

g.       Ranking;
No Conflicts. The Note shall be a subordinate debt obligation of the Company. The execution, delivery and performance of this Agreement
and the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without
limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of
any provision of the Certificate of Incorporation or Bylaws; or (ii) violate or conflict with, or result in a breach of any provision
of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, note, evidence of indebtedness, indenture, patent,
patent license 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 federal and state securities laws and regulations and regulations of any self-regulatory
organizations to which the Company or its securities is subject) 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 for such conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect);
or (iv) trigger any anti-dilution or ratchet provision contained in any other contract in which the Company is a party thereto or any
security issued by the Company. Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation,
Bylaws or other organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred
which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the Company
nor any of its Subsidiaries has taken any action or failed to take any action that would 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
by which any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would
not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are
not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance or
regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under the 1933 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, governmental agency, regulatory agency, self-regulatory organization or stock market or any third party
in order for it to execute, deliver or perform any of its obligations under this Agreement, the Note, and the Warrant in accordance with
the terms hereof or thereof or to issue and sell each of the Note and the Warrant in accordance with the terms hereof and, upon conversion
of the Note or exercise of the Warrant, issue Conversion Shares. 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 circumstances which might give rise to any of the foregoing.

 

h.       SEC
Documents; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934
Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules
thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein
as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the 1934 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 light of the circumstances under which they
were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under
applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their
respective dates, the financial statements of the Company 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 United States generally accepted accounting principles, consistently applied, during the periods
involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries
as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case
of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company included
in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course
of business subsequent to May 24, 2021, and (ii) obligations under contracts and commitments incurred in the ordinary course of business
and not required under generally accepted accounting principles to be reflected in such financial statements, which, individually or
in the aggregate, are not material to the financial condition or operating results of the Company. The Company is subject to the reporting
requirements of the 1934 Act. The Company has never been a “shell company” as described in Rule 144(i)(1)(i).

 

    	6 

     

    

 

i.       Absence
of Certain Changes. Since May 24, 2021, there has been no material adverse change and no material adverse development in the assets,
liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting status of
the Company or any of its Subsidiaries.

 

j.       Absence
of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened, against
or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such, that could have a Material
Adverse Effect. The SEC Documents contain a complete list and summary description of any pending or, to the knowledge of the Company,
threatened, proceeding against or affecting the Company or any of its Subsidiaries, without regard to whether it would have a Material
Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.
Notwithstanding the foregoing, the Buyer acknowledges the existence of all litigations disclosed and outstanding the SEC Documents.

 

k.       Intellectual
Property. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents, patent
applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service names, trade
names and copyrights (“Intellectual Property”) necessary to enable it to conduct its business as now operated (and, as presently
contemplated to be operated in the future); there is no claim or action by any person pertaining to, or proceeding pending, or to the
Company’s knowledge, threatened, which challenges the right of the Company or of a Subsidiary with respect to any Intellectual
Property necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future);
to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current and intended products, services
and processes do not infringe on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts
or circumstances which might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of their Intellectual Property.

 

l.       No
Materially Adverse Contracts, 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. Neither the Company nor any of its Subsidiaries is a party to any contract
or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect.

 

    	7 

     

    

 

m.       Tax
Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax returns,
reports and declarations required by any jurisdiction to which it is subject (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) and
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 provisions 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. The Company has not executed a waiver with respect to the statute of limitations relating to the assessment
or collection of any foreign, federal, state or local tax. None of the Company’s tax returns is presently being audited by any
taxing authority.

 

n.       Transactions
with Affiliates. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes payments
in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could obtain from third parties
and other than the grant of stock options described in the SEC Documents, none of the officers, directors, or employees of the Company
is presently a party to any transaction with the Company or any of its Subsidiaries (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.

 

o.       Disclosure.
All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the
Buyer pursuant to the terms hereof and otherwise in connection with the transactions contemplated hereby is true and correct in all material
respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein,
in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or exists with respect
to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which,
under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly
announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934 Act are being incorporated into
an effective registration statement filed by the Company under the 1933 Act).

 

p.       Acknowledgment
Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity
of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
that the Buyer 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 statement made by the Buyer or any of its respective representatives or agents in connection
with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer’s
purchase of the Securities. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement
has been based solely on the independent evaluation of the Company and its representatives.

 

q.       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 in any security or solicited any offers to buy any security under circumstances that would require
registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not
be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval
provisions applicable to the Company or its securities.

 

    	8 

     

    

 

r.       No
Brokers. Other than the use of Moody Capital Solutions, Inc., a registered broker dealer, the Company has taken no action which would
give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the
transactions contemplated hereby.

 

s.      Permits;
Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses, permits,
easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its properties and
to carry on its business as it is now being conducted (collectively, the “Company Permits”), and there is no action pending
or, to the knowledge of the Company, threatened, regarding suspension or cancellation of any of the Company Permits. Neither the Company
nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company Permits, except for any such conflicts,
defaults or violations which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. Since
May 24, 2021, neither the Company nor any of its Subsidiaries has received any notification with respect to possible conflicts, defaults
or violations of applicable laws, except for notices relating to possible conflicts, defaults or violations, which conflicts, defaults
or violations would not have a Material Adverse Effect.

 

		t.	Environmental
                                            Matters.

 

(i) There
are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past
or present violations of Environmental Laws (as defined below), releases of any material into the environment, actions, activities, circumstances,
conditions, events, incidents, or contractual obligations which may give rise to any common law environmental liability or any liability
under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws
and neither the Company nor any of its Subsidiaries has received any notice with respect to any of the foregoing, nor is any action pending
or, to the Company’s knowledge, threatened, in connection with any of the foregoing. The term “Environmental Laws”
means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating
to emissions, discharges, releases or threatened releases of chemicals, pollutants contaminants, or toxic or hazardous substances or
wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes,
decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations
issued, entered, promulgated or approved thereunder.

 

(ii) Other
than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained on or
about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released
on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during the period the property
was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the Company’s or any of its
Subsidiaries’ business.

 

(iii) There
are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries that are
not in compliance with applicable law.

 

    	9 

     

    

 

u.      Title
to Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable
title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free
and clear of all liens, encumbrances and defects except such as are described in Schedule 3(u), if attached hereto, or such as would
not have a Material Adverse Effect. Any 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 would not have a Material Adverse Effect.

 

v.      Insurance.
The Company and each of its Subsidiaries are 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 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 have a Material Adverse Effect. Upon written request the Company will provide to the
Buyer true and correct copies of all policies relating to directors’ and officers’ liability coverage, errors and omissions
coverage, and commercial general liability coverage.

 

w.     Internal
Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the
judgment of the Company’s board of directors, 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; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

x.       Foreign
Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other person acting
on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company, used any corporate funds
for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any foreign or domestic government official or employee.

 

y.      Solvency.
The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets have a fair market
value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured) and
currently the Company has no information that would lead it to reasonably conclude that the Company would not, after giving effect to
the transactions contemplated by this Agreement, have the ability to, nor does it intend to take any action that would impair its ability
to, pay its debts from time to time incurred in connection therewith as such debts mature. The Company’s financial statements for
its most recent fiscal year end and interim financial statements have been prepared assuming the Company will continue as a going concern,
which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

 

z.       No
Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement will not
be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment Company”).
The Company is not controlled by an Investment Company.

 

aa.
No Off-Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any
of its Subsidiaries and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its 1934
Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

    	10 

     

    

 

bb.
No Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering hereunder, any beneficial owner of twenty percent (20%) or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405
under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) 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.

 

cc.
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, or that could reasonably be expected to cause or 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.

 

dd.
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956,
as amended (the “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, five percent (5%) or more of
the outstanding shares of any class of voting securities or twenty-five percent (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.

 

ee.
Illegal or Unauthorized Payments; Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the Company’s
knowledge, any of the officers, directors, employees, agents or other representatives of the Company or any of its Subsidiaries or any
other business entity or enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or
indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of
applicable law, (i) as a kickback or bribe to any person; or (ii) to any political organization, or the holder of or any aspirant to
any elective or appointive public office except for personal political contributions not involving the direct or indirect use of funds
of the Company or any of its Subsidiaries.

 

ff.
Breach of Representations and Warranties by the Company. The Company agrees that if the Company breaches any of the representations
or warranties set forth in this Section 3 and in addition to any other remedies available to the Buyer pursuant to this Agreement, it
will be considered an Event of Default under Section 3 of the Note.

 

		4.	ADDITIONAL
                                            COVENANTS, AGREEMENTS AND ACKNOWLEDGEMENTS.

 

a.       Best
Efforts. The parties shall use their commercially reasonable efforts to satisfy timely each of the conditions described in Section
6 and 7 of this Agreement.

 

b.       Use
of Proceeds. The Company shall use the proceeds for working capital and for general corporate purposes; provided further that none
of the proceeds shall be used for the repayment of any indebtedness owed to officers, directors or employees of the Company or their
affiliates or in violation or contravention of any applicable law, rule or regulation.

 

    	11 

     

    

 

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 action or proceeding that may be brought by the Buyer in order to enforce any right or remedy under
this Agreement, the Note, the Warrant and any document, agreement or instrument contemplated thereby. Notwithstanding any provision to
the contrary contained in this Agreement, the Note, the Warrant and any document, agreement or instrument contemplated thereby, it is
expressly agreed and provided that the total liability of the Company under this Agreement, the Note, the Warrant or any document, agreement
or instrument contemplated thereby for payments which under applicable law are in the nature of interest shall not exceed the maximum
lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall
any rate of interest or default interest, or both of them, when aggregated with any other sums which under applicable law in the nature
of interest that the Company may be obligated to pay under this Agreement, the Note, the Warrant and any document, agreement or instrument
contemplated thereby exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law applicable to
this Agreement, the Note, the Warrant, and any document, agreement or instrument contemplated thereby is increased or decreased by statute
or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the
Maximum Rate applicable to this Agreement, the Note, the Warrant and any document, agreement or instrument contemplated thereby 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 Buyer with respect to indebtedness evidenced by this Agreement, the Note,
the Warrant and any document, agreement or instrument contemplated thereby, such excess shall be applied by the Buyer 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 Buyer’s election.

 

d.       Restriction
on Activities. Commencing as of the date first above written, and until the earlier of payment of the Note in full or full conversion
of the Note, or full exercise of the Warrant, the Company shall not, directly or indirectly, without the Buyer’s prior written
consent, which consent shall not be unreasonably withheld: (a) change the nature of its business in any material respect; or (b) sell,
divest, acquire, change the structure of any material assets other than in the ordinary course of business.

 

e.       Listing.
The Company, for so long as the Buyer owns any of the Securities, will maintain the listing and trading of its Common Stock on the
OTC QB or any equivalent replacement exchange or electronic quotation system (including but not limited to the Pink Sheets electronic
quotation system) (as applicable, the “Principal Market”) and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such
exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the Principal Market
and any other exchanges or electronic quotation systems on which the Common Stock is then traded regarding the continued eligibility
of the Common Stock for listing on such exchanges and quotation systems.

 

f.       Corporate
Existence. The Company will, so long as the Buyer beneficially owns any of the Securities, maintain its corporate existence and shall
not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or substantially
all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s obligations
hereunder and under the agreements and instruments entered into in connection herewith, and (ii) is a publicly traded corporation whose
Common Stock is listed for trading or quotation on the Principal Market, any tier of the NASDAQ Stock Market or the New York Stock Exchange
(including the NYSE American).

 

g.       No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that
would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities
to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable
to the Company or its securities.

 

    	12 

     

    

 

h.       Breach
of Covenants. The Company acknowledges and agrees that if the Company breaches any of the covenants set forth in this Section 4,
in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default under
Section 3 of the Note.

 

i.       Compliance
with 1934 Act; Public Information Failures. For so long as the Buyer beneficially owns any of the Securities, the Company shall comply
with the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934
Act. During the period that the Buyer beneficially owns the Note, if the Company shall (i) fail for any reason to satisfy the requirements
of Rule 144(c)(1), including, without limitation, the failure to satisfy the current public information requirements under Rule 144(c);
or (ii) if the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company
shall fail to satisfy any condition set forth in Rule 144(i)(2) (each, a “Public Information Failure”) then, as partial relief
for the damages to the Buyer by reason of any such delay in or reduction of its ability to sell the Securities (which remedy shall not
be exclusive of any other remedies available pursuant to this Agreement, the Note, or at law or in equity), the Company shall pay to
the Buyer an amount in cash equal to three percent (3%) of the Purchase Price on each of the day of a Public Information Failure and
on every thirtieth day (pro-rated for periods totaling less than thirty days) thereafter until the date such Public Information Failure
is cured. The payments to which a Buyer shall be entitled pursuant to this Section 4(i) are referred to herein as “Public Information
Failure Payments.” Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during
which such Public Information Failure Payments are incurred; and (ii) the third business day after the event or failure giving rise to
the Public Information Failure Payments is cured. In the event the Company fails to make Public Information Failure Payments in a timely
manner, such Public Information Failure Payments shall bear interest at the rate of eight percent (8%) per month (prorated for partial
months) until paid in full.

 

j.       Disclosure
of Transactions and Other Material Information. By 9:00 a.m., New York time, three (3) business days following the Closing Date,
the Company shall file a Current Report on Form 8-K describing the terms of the transactions contemplated by this Agreement in the form
required by the 1934 Act and attaching this Agreement, the form of Note (the “8-K Filing”). From and after the filing of
the 8-K Filing with the SEC, none of the Company, any of its Subsidiaries or any of their respective officers, directors, employees or
agent shall disclose to the Buyer any material, nonpublic information that is not disclosed in the 8-K Filing. In addition, effective
upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under
any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors,
affiliates, employees or agents, on the one hand, and the Buyer or any of its affiliates, on the other hand, shall terminate.

 

k.       Legal
Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible, at its cost, for promptly
supplying to the Company’s transfer agent and the Buyer a customary legal opinion letter of its counsel (the “Legal Counsel
Opinion”) to the effect that the resale of the Conversion Shares by the Buyer or its affiliates, successors and assigns is exempt
from the registration requirements of the 1933 Act pursuant to Rule 144, provided the requirements of Rule 144 are satisfied and provided
the Conversion Shares are not then registered under the 1933 Act for resale pursuant to an effective registration statement, or other
applicable exemption, provided the requirements of such other applicable exemption are satisfied. Buyer will take no action or inaction
that would invalidate the proposed opinion. Buyer will provide the customary representations to counsel in order to provide such an opinion.
Should the Company’s legal counsel fail for any reason other than that the requirements of said exemption are unavailable in the
reasonable opinion of counsel to issue the Legal Counsel Opinion, the Buyer may, at the Company’s cost, secure another legal counsel
to issue the Legal Counsel Opinion, and the Company will instruct its transfer agent to accept such opinion. The Company hereby agrees
that it may never take the position that it is a “shell company” in connection with its obligations under this Agreement
or otherwise.

 

    	13 

     

    

 

l.       Most-Favored
Nation. So long the Note and/or the Warrant are outstanding, upon any issuance by the Company of any new security, with any term
that the Buyer reasonably believes is more favorable to the holder of such security or with a term in favor of the holder of such security
that the Buyer reasonably believes was not similarly provided to the Buyer in the Note, the Warrant, or under this Agreement, then (i)
the Holder shall notify the Company of such additional or more favorable term within one (1) business day of the issuance or amendment
(as applicable) of the respective security, and (ii) such term, at Buyer’s option, shall become a part of the Note, Warrant or
this Agreement, as applicable (regardless of whether the Company or Holder complied with the notification provision of this Section).
The types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited
to, terms addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, and original issue discounts.
If Buyer elects to have the term become a part of the Note, Warrant or this Agreement, as applicable, then the Company shall immediately
deliver acknowledgment of such adjustment in form and substance reasonably satisfactory to the Buyer (the “Acknowledgment”)
within one (1) business day of Company’s receipt of request from Buyer (the “Adjustment Deadline”), provided that Company’s
failure to timely provide the Acknowledgement shall not affect the automatic amendments contemplated hereby.

 

m.       Non-Public
Information. The Company covenants and agrees that neither it, nor any other person acting on its behalf will provide the Buyer or
its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public information,
unless prior thereto the Buyer shall have consented to the receipt of such information and agreed with the Company to keep such information
confidential. The Company understands and confirms that the Buyer shall be relying on the foregoing covenant in effecting transactions
in securities of the Company. To the extent that the Company delivers any material, non-public information to the Buyer without such
Buyer’s consent, the Company hereby covenants and agrees that such Buyer shall not have any duty of confidentiality to the Company,
any of its Subsidiaries, or any of their respective officers, directors, agents, employees or affiliates, not to trade on the basis of,
such material, non-public information, provided that the Buyer shall remain subject to applicable law. To the extent that any notice
provided, information provided, or any other communications made by the Company, to the Buyer, constitutes or contains material non-public
information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice or other material information
with the SEC pursuant to a Current Report on Form 8-K. In addition to any other remedies provided by this Agreement or the related transaction
documents, if the Company provides any material non-public information to the Buyer without Buyer’s prior written consent, and
the Company fails to immediately (no later than that business day) file a Form 8-K disclosing this material non-public information, it
shall pay the Buyer as partial liquidated damages and not as a penalty a sum equal to $3,000 per day beginning with the day the information
is disclosed to the Buyer and ending and including the day the Form 8-K disclosing this information is filed.

 

n.       Right
of Participation/Refusal in Subsequent Offerings.

 

i.       
From the date first written above until thirty-six (36) months thereafter, the Company will not, (i) directly or indirectly, offer, sell,
grant any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option to purchase or other disposition
of) any of its or its Subsidiaries’ debt, equity or equity equivalent securities, including without limitation any debt, preferred
shares or other instrument or security that is, at any time during its life and under any circumstances, convertible into or exchangeable
or exercisable for Common Stock (any such offer, sale, grant, disposition or announcement, other than an Excluded Issuance (as defined
below) being referred to as a “Subsequent Placement”); or (ii) enter into any definitive agreement with regard to the foregoing,
in each case unless the Company shall have first complied with this Section 4(n(.

 

ii.       The
Company shall deliver to the Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance
or sale or exchange (the “Offer”) of the securities being offered (the “Offered Securities”) in a Subsequent
Placement, which Offer Notice shall (w) identify and describe the Offered Securities, (x) describe the price and other terms upon which
they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (y) identify
the persons or entities (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (z)
offer to issue and sell to or exchange with the Buyer the greater of (i) at least one hundred percent (100%) of the Offered Securities
(the “Subscription Amount”); or (ii) the principal amount of the Note issued hereunder.

 

    	14 

     

    

 

 

iii.       To
accept an Offer, in whole or in part, the Buyer must deliver a written notice to the Company prior to the end of the next business day
after the Buyer’s receipt of the Offer Notice (the “Offer Period”), setting forth the portion of the Subscription Amount
that the Buyer elects to purchase (the “Notice of Acceptance”). The Company shall have ten (10) business days from the expiration
of the Offer Period to complete the Subsequent Placement and in connection therewith to issue and sell the Subscription Amount to the
Buyer but only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable
to the Buyer or less favorable to the Company than those set forth in the Offer Notice. Following such ten (10) business day period,
the Company shall publicly announce either (A) the consummation of the Subsequent Placement or (B) the termination of the Subsequent
Placement.

 

iv.       Notwithstanding
anything to the contrary contained herein, if the Company desires to modify or amend the terms and conditions of the Offer prior to the
expiration of the Offer Period, the Company shall deliver to the Buyer a new Offer Notice and the Offer Period shall expire on the next
business day after the Buyer’s receipt of such new Offer Notice.

 

v.       If
by the fifteenth (15th) business day following delivery of the Offer Notice no public disclosure regarding a transaction with
respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by the
Buyer, such transaction shall be deemed to have been abandoned and the Buyer shall not be deemed to be in possession of any material,
non-public information with respect to the Company.

 

vi.
       Notwithstanding the forgoing, a Subsequent Placement shall not include any of the following
issuances (each, an “Excluded Issuance”): Any issuances of Common Stock:

 

	 	 	(1)	for
    compensatory or incentive purposes to officers, employees or directors of, or consultants to, the Company or any of its affiliates
    including, without limitation, the grant of stock options, deferred share units, restricted share units or restricted shares, duly
    adopted for such purposes by a majority of the non-employee members of the Board of Directors of the Company (the “Board”)
    or a majority of the members of the committee of nonemployee members of the Board established for such purpose;
	 	 	 	 
	 	 	(2)	pursuant
    to a rights offering by the Company or pursuant to a shareholder rights plan of the Company that is carried out on a pro rata basis
    among all holders of the applicable class of securities of the Company;

 

    	15 

     

    

 

	 	(3)	upon
    the exercise, conversion or exchange of any securities exercisable, convertible or exchangeable for or into shares of Common Stock;
	 	 	 
	 	(4)	pursuant
    to any over-allotment option granted to the underwriters in a securities offering;
	 	 	 
	 	(5)	as
    a result of the consolidation or subdivision of any securities of the Company, or as a special distribution or stock dividend or
    similar transaction that is carried out on a pro rata basis among all holders of the applicable class of securities of the Company;
    or
	 	 	 
	 	(6)	in
    connection with or pursuant to any merger, business combination, joint venture, exchange offer, take-over bid, arrangement, amalgamation,
    asset purchase transaction or acquisition of assets or shares of a third party. 

 

o.       Registration
Rights. The Company shall comply with all the terms of the Registration Rights Agreement entered into herewith.

 

p.       Business
Day. As used in this Agreement, the term “business day” shall mean any day other than a Saturday, Sunday or a day on
which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed.

 

5.Transfer
Agent Instructions. The Company shall issue irrevocable instructions to the Company’s transfer agent to issue certificates,
registered in the name of the Buyer or its nominee, upon conversion of the Note, or the Warrant, the Conversion Shares, in such amounts
as specified from time to time by the Buyer to the Company in accordance with the terms thereof (the “Irrevocable Transfer Agent
Instructions”). In the event that the Company proposes to replace its transfer agent, the Company shall provide, prior to the effective
date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to this
Agreement (including but not limited to the provision to irrevocably reserved shares of Common Stock in the Reserved Amount (as defined
in the Note)) signed by the successor transfer agent to the Company and the Company. Prior to registration of the Conversion Shares under
the 1933 Act or the date on which the Conversion Shares may be sold pursuant to any applicable exemption without any restriction as to
the number of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the restrictive
legend as specified in this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions
referred to in this Section 5 will be given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable
on the books and records of the Company as and to the extent provided in this Agreement, the Note, and the Warrant; (ii) it will not
direct its transfer agent not to transfer or delay, impair, or hinder its transfer agent in transferring (or issuing electronically or
in certificated form) any certificate for Securities to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as
and when required by the Note and this Agreement; (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs,
delays, or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect
thereof) on any certificate for any Securities issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required
by the Note and this Agreement; and (iv) it will provide any required corporate resolutions and issuance approvals to its transfer agent
within six (6) hours of each conversion of the Note. Nothing in this Section shall affect in any way the Buyer’s obligations and
agreement set forth herein to comply with all applicable prospectus delivery requirements, if any, upon resale of the Securities. If
the Buyer provides the Company, at the cost of the Company, with (A) an opinion of counsel in form, substance and scope customary for
opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without registration
under the 1933 Act and such sale or transfer is effected, or (B) the Buyer provides reasonable assurances that the Securities can be
sold pursuant to any applicable exemption, the Company shall permit the transfer, and, in the case of the Securities, promptly instruct
its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified
by the Buyer. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by
vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law
for a breach of its obligations under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by the
Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction
restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other
security being required.

 

    	16 

     

    

 

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

 

a.       The
Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.       The
Buyer shall have delivered the Purchase Price in accordance with the terms herein.

 

c.       The
representations and warranties of the Buyer 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 Buyer
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 Buyer at or prior to the Closing Date.

 

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

 

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

 

a.       The
Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.       The
Company shall have delivered to the Buyer the duly executed Note in such denominations as the Buyer shall request and in accordance with
Section 1 above.

 

c.       The
Warrant, Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have been delivered to and acknowledged
in writing by the Company’s Transfer Agent.

 

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

 

    	17 

     

    

 

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

 

f.       No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not limited
to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.

 

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

 

		8.	Governing
                                            Law; Miscellaneous.

 

a.       Governing
Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to
principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this
Agreement, the Note, the Warrant, or any other agreement, certificate, instrument or document contemplated hereby shall be brought only
in the state courts of New Jersey or in the federal courts located in the state of New Jersey. The parties to this Agreement hereby irrevocably
waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTIONS
CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorneys’ fees
and costs. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action
or proceeding in connection with this Agreement, the Note, or any other agreement, certificate, instrument or document contemplated hereby
or thereby by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law.

 

b.       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.
A facsimile or .pdf signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and
effect as if the signature were an original, not a facsimile or .pdf signature. Delivery of a counterpart signature hereto by facsimile
or email/.pdf transmission shall be deemed validly delivery thereof.

 

c.       Construction;
Headings. This Agreement shall be deemed to be jointly drafted by the Company and the Buyer and shall not be construed against any
person as the drafter hereof. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

 

    	18 

     

    

 

d.       Severability.
In the event that any provision of this Agreement, the Note, the Warrant, or any other agreement or instrument delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to
the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this
Agreement, the Note, the Warrant, or any other agreement, certificate, instrument or document contemplated hereby or thereby.

 

e.       Entire
Agreement; Amendments. This Agreement, the Note, the Warrant, 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 the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this
Agreement or any agreement or instrument contemplated hereby may be waived or amended other than by an instrument in writing signed by
the Buyer.

 

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

 

If
to the Company, to:

 

SIMPLICITY
ESPORTS AND GAMING COMPANY

7000
West Palmetto Park Road, Suite 505

Boca
Raton, Florida 33433

 

If
to the Buyer:

 

JEFFERSON
STREET CAPITAL LLC

720
Monroe Street, Suite C401B

Hoboken,
New Jersey 07030

 

g.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither
the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the
other. Notwithstanding the foregoing, subject to the provisions hereof, the Buyer may assign its rights hereunder to any person that
purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under
the 1934 Act, without the consent of the Company.

 

h.       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.

 

    	19 

     

    

 

i.       Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify
and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related
to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or
any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j.       Publicity.
The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC,
Principal Market or FINRA filings, or any other public statements with respect to the transactions contemplated hereby; provided,
however, that the Company shall be entitled, without the prior approval of the Buyer, to make any press release or SEC, Principal
Market (or other applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law and regulations
(although the Buyer shall be consulted by the Company in connection with any such press release prior to its release and shall be provided
with a copy thereof and be given an opportunity to comment thereon).

 

k.       Expense
Reimbursement; Further Assurances. At the Closing to occur as of the Closing Date, the Company shall pay on behalf of the Buyer or
reimburse the Buyer for its reasonable legal fees and expenses incurred in connection with this Agreement, pursuant to the disbursement
authorization signed by the Company of even date, up to a maximum of $7,000. 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.

 

l.       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.

 

m.       Indemnification.
In consideration of the Buyer’s execution and delivery of this Agreement and acquiring the Securities hereunder, and in addition
to all of the Company’s other obligations under this Agreement or the Note, the Company shall defend, protect, indemnify and hold
harmless the Buyer and its stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of
the foregoing persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all third party actions, causes
of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective
of whether any such 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 any Indemnitee 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 Note or
any other agreement, certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or
obligation of the Company contained in this Agreement, the Note or any other agreement, certificate, instrument or document contemplated
hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these
purposes a derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance
or enforcement of this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby;
(ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the
Securities; or (iii) the status of the Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated
by this Agreement. 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 that is permissible under applicable
law.

 

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

 

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

 

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

 

q.       Registered
Broker Dealer Fee. The Company shall pay Moody Capital Solutions, Inc., a registered broker dealer, a cash fee in the amount of $15,000.00
wired at closing from the proceeds funded by the Buyer for sourcing the transaction, and diligence and compliance review on the transactions
contemplated hereunder (“Registered Broker Dealer Fee”).

 

[Signature
Page Follows]

 

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IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

SIMPLICITY
ESPORTS AND GAMING COMPANY

 

	By:	 /s/
    Roman Franklin	 
	Name:	Roman
    Franklin	 
	Title:
    	Chief
    Executive Officer	 

 

JEFFERSON
STREET CAPITAL LLC

 

	By:	/s/
    Brian Goldberg	 
	Name:
    	Brian
    Goldberg 	 
	Title:
    	Managing
    Member	 

 

SUBSCRIPTION
AMOUNT:

 

	Principal
    Amount of Note: $333,333.33
	Purchase
    Price of Note: $300,000.00*

 

 

 

*The
purchase price of $300,000.00 shall be paid promptly after the full execution of the Note and related transaction documents.

 

    	22

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