Document:

EXHIBIT 10.16

 

 

 

 

 

 

 

 

 

 

STOCK
PURCHASE AGREEMENT

Dated as of May 19, 2020

by and between

MEDTAINER, INC.

and

ARDELLI
HOLDINGS LLC

 

 

    	 

    	 

    

TABLE
OF CONTENTS 

	 	Page
	ARTICLE I DEFINITIONS	1
	ARTICLE II PURCHASE AND SALE OF COMMON STOCK	3
	Section 2.1. Purchase and Sale of the Shares	3
	Section 2.2. Closing	3
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE INVESTOR	4
	Section 3.1. Organization and Good Standing	4
	Section 3.2. Authorization and Enforceability	 
	Section 3.3. No Conflicts	4
	Section 3.4. Investment Purpose	5
	Section 3.5. Accredited Investor Status	5
	Section 3.6. Reliance on Exemptions	5
	Section 3.7. Information	5
	Section 3.8. No Governmental Review	5
	Section 3.9. No General Solicitation	6
	Section 3.10. Resales of Shares	6
	Section 3.11. Concerning Rule 144	6
	Section 3.12 Acknowledgment	6
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY	6
	Section 4.1. Organization, Good Standing and Power	6
	Section 4.2. Authorization and Enforceability	6
	Section 4.3. Capitalization	7
	Section 4.4. Concerning the Shares	7
	Section 4.5. No Conflicts	7
	Section 4.6 Commission Document; Financial Statements	8
	Section 4.7. No Material Adverse Effect	8
	Section 4.8. No Undisclosed Liabilities	9
	Section 4.9. No Undisclosed Events or Circumstances	9
	Section 4.10. Indebtedness	9
	Section 4.11. Title to Assets	10
	Section 4.12. No Actions Pending	10
	Section 4.13. Compliance with Law	10
	Section 4.14 Operation of Business	10
	Section 4.15. Material Agreements	11
	Section 4.16. Taxes	11
	Section 4.17. No General Solicitation or Advertising	12
	Section 4.18. Acknowledgement	12

    	 

    	 

    

	 	Page
	ARTICLE V ADDITIONAL COVENANTS	12
	Section 5.1. Securities Compliance	12
	Section 5.2. Compliance with Laws	12
	Section 5.3. Corporate Existence	12
	Section 5.4. Option	12
	ARTICLE VI CONDITIONS TO CLOSING	13
	ARTICLE VII TERMINATION	14
	Section 7.1. Termination	14
	Section 7.2. Effect of Termination	14
	ARTICLE VIII INDEMNIFICATION	14
	Section 8.1. Indemnification of Investor	14
	Section 8.2. Indemnification Procedures	15
	ARTICLE IX MISCELLANEOUS	15
	Section 9.1. Fees and Expenses	15
	Section 9.2. Legends	15
	Section 9.3. Remedies	16
	Section 9.4. Entire Agreement; Amendment	16
	Section 9.5. Notices	16
	Section 9.6. Waivers	17
	Section 9.7. Headings	17
	Section 9.8. Construction	17
	Section 9.9. Successors and Assigns	17
	Section 9.10. No Third-Party Beneficiaries	17
	Section 9.11. Governing Law	17
	Section 9.12. Survival	17
	Section 9.13. Counterparts	17
	Section 9.14. Severability	18
	Section 9.15. Further Assurances	18
	Section 9.16. Signatory	18

    	 

    	 

    

STOCK
PURCHASE AGREEMENT

This
STOCK PURCHASE AGREEMENT is made and entered into as of May 19, 2020 (this “Agreement”), by and
between MEDTAINER, INC., a corporation organized and existing under the laws of the State of Florida, and ARDELLI HOLDINGS
LLC, a limited liability company established and existing under the laws of the State of California (the “Investor”).

RECITALS

WHEREAS,
the parties desire that, upon the terms and subject to the terms and conditions set forth herein, at the times provided herein,
the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, a total of 20,000,000 newly
issued shares of the Company’s common stock, par value $0.000001 per share (“Common Stock”) for
the purchase price of $200,000.00 (the “Purchase Price”); and

WHEREAS,
such issuance and sale will be made in reliance upon the provisions of Section 4(a)(2) of the Securities Act and Rule 506(c)
of Regulation D promulgated by the Commission under the Securities Act (“Regulation D”), and upon such
other exemption or exemptions from the registration requirements of the Securities Act as may be available with respect to such
issuance and sale,

NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE
I

DEFINITIONS

In addition
to terms defined elsewhere in this Agreement, the following terms used herein have the meanings ascribed thereto:

“2018
Form 10-K” means the Annual Report on Form 10-K filed with the Commission by the Company for its fiscal year ended
December 31, 2018.

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with a Person, as such terms are used in and construed under Rule 144.

“Agreement”
has the meaning assigned to such term in the preamble hereof.

“Bylaws”
has the meaning assigned to such term in Section 3.6.

“Charter”
has the meaning assigned to such term in Section 3.6.

“Closing”
has the meaning assigned to such term in Section 2.2.

“Closing
Date” has the meaning assigned to such term in Section 2.2.

“Code”
means the Internal Revenue Code of 1986, as amended.

“Commission”
means the United States Securities and Exchange Commission.

“Commission
Documents” means all reports, schedules, registrations, forms, statements, information and other documents
filed with or furnished to the Commission by the Company pursuant to the reporting requirements of the Exchange Act,
including (i) the 2018 Form 10-K, (ii) all material filed or furnished pursuant to Section 13(a), Section 13(c), Section 14
or Section 15(d) of the Exchange Act, since January 1, 2017, and (iii) all certifications and statements required by
(i) Rule 13a-14 or Rule 15d-14 under the Exchange Act or (ii) 18 U.S.C. Section 1350 (Section 906 of the
Sarbanes-Oxley Act of 2002 with respect to the foregoing documents.

    1

    

    

“Common
Stock” has the meaning assigned to such term in the Recitals.

“Company”
has the meaning assigned to such term in the preamble hereto.

“Damages”
has the meaning assigned to such term in Section 9.1.

“EDGAR”
means the Commission’s Electronic Data Gathering, Analysis and Retrieval System.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder.

“GAAP”
means generally accepted accounting principles in the United States of America as applied by the Company.

“Governmental
Licenses” has the meaning assigned to such term in Section 4.14(a).

“Indebtedness”
means (a) any liabilities for borrowed money or amounts (other than trade accounts payable incurred in the ordinary course
of business), (b) all guaranties, endorsements, indemnities and other contingent obligations in respect of Indebtedness of
others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (c) the present value of any lease payments due under leases required to be capitalized in accordance with
GAAP.

“Intellectual
Property” has the meaning assigned to such term in Section 4.14(b).

“Investor”
has the meaning assigned to such term in the preamble.

“Knowledge”
means the actual knowledge of the Company’s Chief Executive Officer or Chief Financial Officer, after reasonable inquiry
of the officers, directors and employees of the Company who could reasonably be expected to have knowledge or information with
respect to the matter in question.

“Material
Adverse Effect” means any event, circumstance, development, change, occurrence or effect that, individually or in
the aggregate, is or is reasonably likely to result in, a material adverse effect on the condition (financial or otherwise), assets,
liabilities, business or results of operations of the Company and its Subsidiaries, taken as a whole, including, without limitation
(i) any changes in general United States or global economic conditions, including changes in United States or global securities,
credit, financial, debt or other capital markets, (ii) any changes in conditions generally affecting the industries in which the
Company or any of its Subsidiaries materially engages, (iii) any decline in the market price or trading volume of the Common Stock,
(iv) any changes in credit ratings and any changes in any analysts’ recommendations or ratings with respect to the
Company or any of its Subsidiaries, (v) any effect resulting from the announcement of, or the consummation of the transactions
contemplated by, this Agreement on the Company’s relationships, contractual or otherwise, with customers, suppliers, vendors,
bank lenders, strategic venture partners or employees; (vi) any failure by the Company or any of its Subsidiaries to meet any
internal or published projections, forecasts, estimates or predictions in respect of revenues, earnings or other financial or
operating metrics for any period, (vii) the execution and delivery of this Agreement,
the public announcement or the pendency of this Agreement, (viii) any changes after the date hereof in any law or GAAP (or authoritative
interpretations thereof), (ix) any act of God, natural disaster, terrorism, armed hostilities, sabotage, war or any escalation
or worsening of acts of war, epidemic, pandemic or disease outbreak (including, without limitation, the COVID-19 virus) and (x)
the receipt of any notice that the Common Stock may be ineligible to continue listing or quotation on the Trading Market, other
than a final and non-appealable notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated
on a date certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other Trading Market).

    2

    

    

“Material
Agreements” has the meaning assigned to such term in Section 4.15.

“Person”
means any person or entity, whether a natural person, trustee, corporation, partnership, limited partnership, limited liability
company, trust, unincorporated organization, business association, firm, joint venture, governmental agency or authority.

“Purchase
Price” has the meaning assigned to such term in the Recitals.

“Regulation
D” has the meaning assigned to such term in the Recitals.

“Rule
144” means Rule 144 promulgated by the Commission under the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect.

“Securities
Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated
thereunder.

“Shares”
shall mean the shares of Common Stock that are to be purchased by the Investor under this Agreement.

“Subsidiary”
shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary
voting power for the election of directors or other persons performing similar functions are at the time owned directly or indirectly
by the Company and/or any of its other Subsidiaries.

“Trading
Market” means the OTC Pink tier of the quotation system operated by OTC Markets Group Inc.; provided, however,
that in the event that the Common Stock shall be listed or quoted on the NASDAQ Global Market, the NASDAQ Global Select Market,
the NASDAQ Capital Market, the New York Stock Exchange, NYSE Area, the NYSE MKT, or the OTCQX or OTCQB tier operated by OTC Markets
Group Inc., than the “Trading Market” shall mean such other market or exchange or any successor to the foregoing on
which the Common Stock is then listed or quoted.

ARTICLE
II

PURCHASE
AND SALE OF COMMON STOCK

Section
2.1.Purchase and Sale of the Shares. Upon the terms and subject to the conditions of this Agreement,
the Company shall issue and sell to the Investor, and the Investor shall purchase the Shares from the Company, which Shares shall
be newly issued, duly authorized, validly issued, fully paid and nonassessable shares of Common Stock for the Purchase Price.

Section
2.2. Closing. The closing of said issue and sale shall take place at the offices of the Company, at its
address for notice set forth in Section 9.5, at 2:00 p.m., Los Angeles, California, time, as quickly as practicable, but in any
event within 3 business days after the signing of this Agreement
by both parties. Such closing is referred to herein as the “Closing.” At the Closing, (a) the Company
shall deliver to the Investor (i) the Company’s irrevocable instructions to its Transfer Agent to issue a certificate
representing the Shares to the Investor and (ii) a copy of resolutions of the Company’s board of directors authorizing
the execution and delivery of this Agreement and the issuance of the Shares and (b) the Investor shall deliver to the Company
by wire transfer or by certified or bank cashier’s check, payable to the order of the Company, for the Purchase Price. The
Closing shall be complete upon transmission to said transfer agent by email of said irrevocable instructions. The date on which
the Closing occurs is the “Closing Date.”

    3

    

    

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF THE INVESTOR

The
Investor hereby makes the following representations and warranties to the Company:

Section
3.1.Organization and Good Standing. The Investor is a limited liability company established and in good standing
under the laws of the State of California.

Section
3.2.Authorization and Enforceability. The Investor has all requisite power and authority to enter into and perform
its obligations under this Agreement and to purchase the Shares in accordance with the provisions hereof. The execution, delivery
and performance by the Investor of this Agreement and the consummation by it of the transactions contemplated hereby have been
duly and validly authorized by all necessary company action, and no further consent or authorization of the Investor, its managers
or its members is required. This Agreement has been duly executed and delivered by the Investor and constitutes a valid and binding
obligation of the Investor, enforceable against the Investor in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar
laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles
of general application (including any limitation of equitable remedies).

Section
3.3.No Conflicts. The execution, delivery and performance by the Investor of this Agreement and the consummation
by the Investor of the transactions contemplated hereby do not and will not (i) conflict with, constitute a default (or an
event which, with notice or lapse of time or both, would become a default) under, or give rise to any rights of termination, amendment,
acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement,
instrument or obligation to which the Investor is a party or is bound, (ii) create or impose any lien, charge or encumbrance
on any property of the Investor under any agreement or any commitment to which the Investor is party or under which the Investor
is bound or under which any of its properties or assets are bound, or (iii) result in a violation of any federal, state,
local or foreign statute, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable
to the Investor or by which any of its properties or assets are bound or affected, except, for such conflicts, defaults, terminations,
amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, prohibit or otherwise interfere
with, in any material respect, the ability of the Investor to enter into and perform its obligations under this Agreement. The
Investor is not required under any applicable federal, state, local or foreign law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Agreement or to purchase the Shares in accordance with the provisions hereof;
provided, however, that for purposes of the representation made in this sentence,
the Investor is assuming and relying upon the accuracy of the relevant representations and warranties and the compliance with
the relevant covenants and agreements of the Company herein.

    4

    

    

Section
3.4.Investment Purpose. The Investor is acquiring the Shares for its own account, for investment purposes and
not with a view to, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered
under or exempt from the registration requirements of the Securities Act. The Investor does not have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Shares.

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

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

Section
3.7.Information. All materials relating to the business, financial condition, management and operations of the
Company and materials relating to the offer and sale of the Securities that have been requested by the Investor have been furnished
or otherwise made available to the Investor, including the Commission Documents and the exhibits filed therewith, and the Investor
has reviewed them to its satisfaction. The Investor understands that its investment in the Shares involves a high degree of risk.
The Investor is able to bear the economic risk of an investment in the Shares and has such knowledge and experience in financial
and business matters that it is capable, without the assistance of any representative or advisor, of evaluating the merits and
risks of an investment in the Shares. The Investor has been afforded the opportunity to ask questions of and receive answers from
representatives of the Company concerning the financial condition and business of the Company and other matters relating to an
investment in the Shares. Neither such inquiries nor any other due diligence investigations conducted by the Investor shall modify,
amend or affect the Investor’s right to rely on the Company’s representations and warranties contained in this Agreement
or the Investor’s right to rely on any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transaction contemplated hereby The Investor has sought such accounting, legal and tax advice as it
has deemed necessary to make an informed investment decision with respect to its acquisition of the Shares. The Investor understands
that it and not the Company shall be responsible for its tax liabilities that may arise as a result of this investment or the
transactions contemplated by this Agreement. The Investor has reviewed via EDGAR true and correct copies of the Company’s
Articles of Incorporation as in effect on the date hereof (the “Charter”), and the Company’s Bylaws
as in effect on the date hereof (the “Bylaws”).

Section
3.8.No Governmental Review. The Investor understands that no federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Shares or the fairness or suitability
of the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

    5

    

    

Section
3.9.No General Solicitation. The Investor is not purchasing the Shares as a result of any form of general solicitation
or general advertising (within the meaning of Regulation D) in connection with the offer or sale thereof.

Section
3.10.Resales of Shares. The Investor represents, warrants and covenants that it will resell the Shares in a
manner in compliance with all applicable federal and state securities laws, rules and regulations.

Section
3.11.Concerning Rule 144. The Investor understands that (i) the exemption from registration under the Securities
Act afforded by Rule 144 is subject to a number of conditions, one of which is that the Investor shall have held the Shares for
at least 6 months after it pays for them, (ii) notwithstanding the satisfaction of such conditions, said exemption will be
available for such resale only if, at the time thereof, the Company is subject to the reporting requirements of Section 13 or
Section 15(d) of the Exchange Act and has filed all reports and other materials required to be filed by Section 13 or Section
15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter period that the Company was required
to file such reports and materials), other than Current Reports on Form 8-K and (iii) the number of shares of Common Stock
that the Investor may sell pursuant to such exemption within any period of 3 months will be limited.

Section
3.12. Acknowledgement. The Investor acknowledges and agrees that the Company has not made and does not
make any representations or warranties with respect to the transactions contemplated by this Agreement other than those specifically
set forth in Article IV.

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY 

The
Company hereby makes the following representations, warranties and covenants to the Investor:

Section
4.1.Organization, Good Standing and Power. The Company and each of its Subsidiaries is a corporation or other
juridical entity validly existing and in good standing under the laws of the State of California and has the requisite corporate
power and authority to own, lease and operate its properties and assets and to conduct its business as it is now being conducted
and as presently proposed to be conducted. The Company and each Subsidiary is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except for any jurisdiction in which the failure to be so qualified would not have a Material Adverse
Effect.

Section
4.2.Authorization and Enforceability. The Company has all requisite corporate power and authority to enter into
and perform its obligations under this Agreement and to issue the Shares in accordance with the provisions hereof. The execution,
delivery and performance by the Company of this Agreement and the consummation by it of the transactions contemplated hereby have
been duly and validly authorized by all necessary corporate action, and no further consent or authorization of the Company, its
Board of Directors or its shareholders is required. This Agreement has been duly executed and delivered by the Company and constitutes
a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, , liquidation,
conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights
and remedies or by other equitable principles of general application (including any limitation of equitable remedies).

    6

    

    

Section
4.3.Capitalization. The authorized capital stock of the Company is as set forth in the Commission Documents.
On the date hereof there are 56,700,979 shares of Common Stock and no shares of the Company’s preferred stock issued and
outstanding. All of the outstanding shares of Common Stock have been duly authorized and validly issued, and are fully paid and
nonassessable. No shares of Common Stock are entitled to preemptive rights and, except as set forth in the Commission Documents,
there are no outstanding debt securities and no contracts, commitments, understandings, or arrangements by which the Company is
or may become bound to issue additional shares of the capital stock of the Company or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for,
any shares of capital stock of the Company.

Section
4.4. Concerning the Shares. The Shares have been duly authorized by all necessary corporate action on the part
of the Company and, when issued upon payment therefor in accordance with the provisions of this Agreement, will be validly issued
and outstanding, fully paid and nonassessable and free from all liens, charges, taxes, security interests, encumbrances, rights
of first refusal, preemptive or similar rights and other encumbrances with respect to the issue thereof.

Section
4.5.No Conflicts. The execution, delivery and performance by the Company of this Agreement and the consummation
by the Company of the transactions contemplated hereby do not and will not (i) result in a violation of any provision of
the Company’s Charter or Bylaws, (ii) conflict with or result in a breach or violation of any of the terms or provisions
of, or constitute a default (or an event which, with notice or lapse of time or both, would become a default) under, or give rise
to any rights of termination, amendment, acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture,
note, bond, license, lease agreement, instrument or obligation to which the Company or any of its Subsidiaries is a party or by
which it is bound, (iii) create or impose a lien, charge or encumbrance on any property or assets of the Company or any of
its Subsidiaries under any agreement or any commitment to which the Company or any of them is a party or by which the Company
or any of them is bound or to which any of their respective properties or assets is subject, or (iv) result in a violation
of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree applicable to the Company or any
of its Subsidiaries or by which any property or asset of the Company or any of them are bound or affected (including federal and
state securities laws and regulations and the rules and regulations of the Trading Market), except, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations, liens, charges, encumbrances and violations as would not, individually
or in the aggregate, have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under
the Securities Act and any applicable state securities laws, the Company is not required under any federal, state, local or foreign
law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or
governmental agency (including, without limitation, the Trading Market) in order for it to execute, deliver or perform any of
its obligations under this Agreement or to issue the Shares to the Investor in accordance with the terms hereof; provided,
however, that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy
of the representations and warranties of the Investor in this Agreement and the compliance by it with its covenants and agreements
contained in this Agreement.

    7

    

    

Section
4.6.Commission Documents, Financial Statements.

The
Company has timely filed all Commission Documents (giving effect to all permissible extensions of the due date therefor, including
those provided by Rule 12b-25 under the Exchange Act and Securities Exchange Act Release No. 34-88465). The Company has delivered
or made available to the Investor via EDGAR or otherwise true and complete copies of the Commission Documents filed with or furnished
to the Commission prior to the Closing Date (including, without limitation, the 2018 Form 10-K). No Subsidiary of the Company
is required to file or furnish any report, schedule, registration, form, statement, information or other document with the Commission.
As of its filing date, each Commission Document filed with or furnished to the Commission prior to the Closing Date (including,
without limitation, the 2018 Form 10-K) complied in all material respects with the requirements of the Securities Act or the Exchange
Act, as applicable, and other federal, state and local laws, rules and regulations applicable to it, and, as of its filing date,
such Commission Document did not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The Company has delivered or made available to the Investor via EDGAR or otherwise true and complete copies of
all comment letters and substantive correspondence received by the Company from the Commission relating to the Commission Documents
filed with or furnished to the Commission as of the Closing Date, together with all written responses of the Company thereto in
the form such responses were filed via EDGAR. There are no outstanding or unresolved comments or undertakings in such comment
letters received by the Company from the Commission. The Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company under the Securities Act or the Exchange Act.

The
financial statements, together with the related notes and schedules, of the Company included in the Commission Documents complied
when they were filed as to form in all material respects with all applicable accounting requirements and the published rules and
regulations of the Commission and all other applicable rules and regulations with respect thereto. Such financial statements,
together with the related notes and schedules, were prepared in accordance with GAAP applied on a consistent basis during the
periods involved (except as may be otherwise indicated in such financial statements or the notes thereto), and fairly present
in all material respects the financial condition of the Company and its consolidated Subsidiaries as of the dates thereof and
the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments).

The
Investor acknowledges that (i) the notes to the financial statements contained in the Commission Documents state that there is
substantial doubt about the ability of the Company to continue as a going concern and (ii). the Company has advised the Investor
that the Company requires substantial additional capital, in addition to the Purchase Price and that, in the event that the Company
cannot raise such capital, it may have to curtail its operations or could fail. The Investor further acknowledges that it has
consider these factors, together with others that it has deemed relevant, and after so considering, has determined to enter into
this Agreement.

Section
4.7.No Material Adverse Effect. Except as disclosed in any Commission Documents and except for the effects of
the current so-called “Covid-19 Pandemic,” on the Company and its business, the Company has not experienced or suffered
any Material Adverse Effect, and there exists no current state of facts, condition or event which would have a Material Adverse
Effect.

    8

    

    

The
Investor acknowledges that the Company has advised the Investor that the effects of the Covid-19 Pandemic have been and are expected
to continue to be material and adverse. In particular, for an unknown but possibly extended period, the following, among others,
may be substantially and adversely affected to an extent that the Company cannot presently predict: the Company’s ability
to conduct its operations, including its financial reporting systems, internal control over financial reporting and disclosure
controls and procedures; its financial condition and results of operations; its capital and financial resources, including its
liquidity; its balance sheet and its ability to account timely for those assets; demand for its products and services; the ability
of its suppliers to manufacture and deliver the products that it sells; its ability to deliver its products; the valuation of
its goodwill, intangible assets and long-lived assets; its ability to display and sell its products at trade shows and similar
events; its ability to conduct meetings with existing and prospective customers and suppliers; the ability of the Company and
its customers to meet their financial obligations to one another and to others; travel restrictions and border closures; and,
if its employees were to contract Covid-19, their ability to work; and to the extent that the Company will be able to continue
operating, it may incur additional costs in order to do so. The Investor further acknowledges that it has consider the factors
set forth above relating to the Covid-19 Pandemic, together with others that it has deemed relevant, and after so considering,
has determined to enter into this Agreement.

Section
4.8.No Undisclosed Liabilities. Neither the Company nor any of its Subsidiaries has any liabilities, obligations,
claims or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would
be required to be disclosed on a balance sheet of the Company or any Subsidiary (including the notes thereto) in conformity with
GAAP and are not disclosed in the Commission Documents, other than those incurred in the ordinary course of the Company’s
or its Subsidiaries respective businesses since September 30, 2019, and which, individually or in the aggregate, do not or would
not have a Material Adverse Effect.

Section
4.9.No Undisclosed Events or Circumstances. Except as set forth in Section 4.7, no event or circumstance has
occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities,
operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company at or before the Closing but which has not been so publicly announced
or disclosed, except for events or circumstances which, individually or in the aggregate, do not or would not have a Material
Adverse Effect.

Section
4.10. Indebtedness. The Company’s Quarterly Report on Form 10-Q for its fiscal quarter ended September
30, 2019, sets forth, as of that date, all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or
for which the Company or any Subsidiary has commitments through such date. The Company has not taken any steps, and does not currently
expect to take any steps, to seek protection pursuant to Title 11 of the United States Code or any similar federal or state bankruptcy
law or law for the relief of debtors, nor does the Company have any Knowledge that its creditors intend to initiate involuntary
bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under Title 11 of the United
States Code or any other federal or state bankruptcy law or any law for the relief of debtors. There is no existing or continuing
default or event of default in respect of any Indebtedness of the Company or any of its Subsidiaries.

    9

    

    

Section
4.11. Title to Assets. Each of the Company and its Subsidiaries has good and valid title to, or has valid rights
to lease or otherwise use, all of their respective real and personal property reflected in the Commission Documents, free of mortgages,
pledges, charges, liens, security interests or other encumbrances, except for those indicated in the Commission Documents and
those that would not have a Material Adverse Effect. All real property and facilities held under lease by the Company or any of
its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and
do not interfere with the use made and proposed to be made of such property and buildings by the Company or any of its Subsidiaries.

Section
4.12. No Actions Pending. To the Knowledge of the Company, there is no action, suit, claim, investigation or
proceeding pending or threatened against the Company or any Subsidiary which questions the validity of this Agreement or the transactions
contemplated hereby or any action taken or to be taken pursuant hereto. Except as set forth in the Commission Documents, to the
Knowledge of the Company, there is no action, suit, claim, investigation or proceeding pending or threatened against or involving
the Company, any Subsidiary or any of their respective properties or assets, or involving any officers or directors of the Company
or any of its Subsidiaries, in each case which, if determined adversely to the Company, its Subsidiary or any officer or director
of the Company or its Subsidiaries, would have a Material Adverse Effect. Except as set forth in the Commission Documents, no
judgment, order, writ, injunction or decree or award has been issued by or, to the Knowledge of the Company, requested of any
court, arbitrator or governmental agency which would be reasonably expected to result in a Material Adverse Effect.

Section
4.13.Compliance with Law. The business of the Company and the Subsidiaries has been and is presently being conducted
in compliance with all applicable federal, state, local and foreign governmental laws, rules, regulations and ordinances, except
as set forth in the Commission Documents and except for such non-compliance which, individually or in the aggregate, would not
have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order
or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor
any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations
which could not, individually or in the aggregate, have a Material Adverse Effect.

Section
4.14. Operation of Business.

(a)     
The Company or one or more of its Subsidiaries possesses such permits, licenses, approvals, consents and other authorizations
(including licenses, accreditation and other similar documentation or approvals of any local health departments) issued by the
appropriate federal, state, local or foreign regulatory agencies or bodies as are necessary to conduct the business now operated
by it (collectively, “Governmental Licenses”), except where the failure to possess such Governmental
Licenses, individually or in the aggregate, would not have a Material Adverse Effect. The Company and its Subsidiaries are in
compliance with the terms and conditions of all such Governmental Licenses, except where the failure to so comply, individually
or in the aggregate, would not have a Material Adverse Effect or except as otherwise disclosed in the Commission Documents. All
of the Governmental Licenses are valid and in full force and effect, except where the invalidity of such Governmental Licenses
or the failure of such Governmental Licenses to be in full force and effect, individually or in the aggregate, would not have
a Material Adverse Effect or except
as otherwise disclosed in the Commission Documents. Except as set forth in the Commission Documents, neither the Company nor any
of its Subsidiaries has received any written notice of proceedings relating to the revocation or modification of any such Governmental
Licenses which, if the subject of any unfavorable decision, ruling or finding, individually or in the aggregate, would have a
Material Adverse Effect.

    10

    

    

(b)     
The Company or one or more of its Subsidiaries owns or possesses adequate patents, patent rights, licenses, inventions, copyrights,
know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or
procedures), trademarks, service marks, trade names, trade dress, logos, copyrights and other intellectual property, including,
without limitation, all of the intellectual property described in the Commission Documents as being owned or licensed by the Company
(collectively, “Intellectual Property”), necessary to carry on the business now operated by it. Except
as set forth in the Commission Documents, there are no actions, suits or judicial proceedings pending, or to the Company’s
Knowledge threatened, relating to patents or proprietary information to which the Company or any of its Subsidiaries is a party
or of which any property of the Company or any of its Subsidiaries is subject, and neither the Company nor any of its Subsidiaries
has received any notice or is otherwise aware of any infringement of or conflict with asserted rights of others with respect to
any Intellectual Property or of any facts or circumstances which could render any Intellectual Property invalid or inadequate
to protect the interest of the Company and its Subsidiaries therein, and which infringement or conflict (if the subject of any
unfavorable decision, ruling or finding) or invalidity or inadequacy, individually or in the aggregate, would have a Material
Adverse Effect.

Section
4.15. Material Agreements. Except as set forth in the Commission Documents, neither the Company nor any Subsidiary
of the Company is a party to any written or oral contract, instrument, agreement commitment, obligation, plan or arrangement,
a copy of which would be required to be filed with the Commission as an exhibit to an annual report on Form 10-K (collectively,
“Material Agreements”). Except as set forth in the Commission Documents, the Company and each of its
Subsidiaries have performed in all material respects all the obligations then required to be performed by them under the Material
Agreements, have received no notice of default or an event of default by the Company or any of its Subsidiaries thereunder and
are not aware of any basis for the assertion thereof, and neither the Company or any of its Subsidiaries nor, to the Knowledge
of the Company, any other contracting party thereto are in default under any Material Agreement now in effect, the result of which
would have a Material Adverse Effect. Except as set forth in the Commission Documents, each of the Material Agreements is in full
force and effect, and constitutes a legal, valid and binding obligation enforceable in accordance with its terms against the Company
and/or any of its Subsidiaries and, to the Knowledge of the Company, each other contracting party thereto, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable
principles of general application.

Section
4.16. Taxes. Except in relation to taxes not exceeding $250,000 in the aggregate, excluding interest and penalties,
the Company and each of its Subsidiaries (i) has filed all necessary federal, state and foreign income and franchise tax
returns or has duly requested extensions thereof, except for those the failure of which to file would not have a Material Adverse
Effect, (ii) has paid all federal, state, local and foreign taxes due and payable for which it is liable, except to the extent
that any such taxes are being contested in good faith and by appropriate proceedings, except for such
taxes the failure of which to pay would not have a Material Adverse Effect, and (iii) does not have any tax deficiency or
claims outstanding or assessed or, to the Company’s Knowledge, proposed against it which would have a Material Adverse Effect.
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 and its Subsidiaries know of no basis for any such claim.

    11

    

    

Section
4.17. No General Solicitation or Advertising. Neither the Company, nor any of its Subsidiaries or Affiliates,
nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with the offer or sale of the Shares.

Section
4.18. Acknowledgement. The Company acknowledges and agrees that the Investor has not made and does not make
any representations or warranties with respect to the transactions contemplated by this Agreement other than those specifically
set forth in Article III of this Agreement.

ARTICLE
V

ADDITIONAL
COVENANTS

The
Company covenants with the Investor, and the Investor covenants with the Company, as follows:

Section
5.1.Securities Compliance. The Company shall notify the Commission and the Trading Market, if and as applicable,
in accordance with their respective rules and regulations, of the transactions contemplated by this Agreement, and shall take
all necessary action, undertake all proceedings and obtain all registrations, permits, consents and approvals for the legal and
valid issuance of the Shares to the Investor in accordance with the terms of this Agreement.

Section
5.2. Compliance with Laws. The Investor shall comply with all laws, rules, regulations and orders applicable
to the performance by it of its obligations under this Agreement and its investment in the Shares.

Section
5.3Corporate Existence. The Company shall take all steps necessary to preserve and continue the corporate
existence of the Company; provided, however, that, nothing in this Agreement shall be deemed to prohibit the Company from
(a) consolidating or merging with or into another Person (whether or not the Company is the surviving entity), (b) selling,
leasing, licensing, assigning, transferring, conveying or otherwise disposing of all or substantially all of the properties or
assets of the Company to another Person, (c) taking action to facilitate a purchase, tender or exchange offer by another
Person that is accepted by the holders of more than 50% of the outstanding shares of Common Stock, (d) consummating a stock
or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person or (e) reorganizing, recapitalizing or reclassifying its Common
Stock.

Section
5.4Option. The Investor grants to the Company the right and option to repurchase the Shares for the purchase
price of $0.015 per share, but shall not be obligated to sell the Shares to the Company upon exercise of said option if it determines
in its discretion, that so doing is not in its best interest.

    12

    

    

ARTICLE
VI

CONDITIONS
TO CLOSING

The
obligation of the parties to consummate the Closing is subject to the satisfaction of the following conditions:

(a)         
Accuracy of the Investor’s Representations
and Warranties. It shall be a condition precedent to the obligation of the Company that the representations and warranties
of the Investor contained in this Agreement (i) that are not qualified by “materiality” shall be true and correct
in all material respects as of the Closing Date, except to the extent such representations and warranties are as of another date,
in which case, such representations and warranties shall be true and correct in all material respects as of such other date and
(ii) that are qualified by “materiality” shall be true and correct as of the date of such Closing Date, except
to the extent such representations and warranties are as of another date, in which case, such representations and warranties shall
be true and correct as of such other date. By virtue of its consummation of a Closing, the Investor shall be deemed to have delivered
to the Investor its certificate stating that its representations and warranties contained in this Agreement are true and correct
on such Closing Date as specified in the previous sentence.

(b)        
Accuracy of the Company’s Representations
and Warranties. It shall be a condition precedent to the obligation of the Investor that the representations and warranties
of the Company contained in this Agreement (i) that are not qualified by “materiality” or “Material Adverse
Effect” shall be true and correct in all material respects as of the date of the Closing Date, except to the extent such
representations and warranties are as of another date, in which case, such representations and warranties shall be true and correct
in all material respects as of such other date and (ii) that are qualified by “materiality” or “Material
Adverse Effect” shall be true and correct as of the Closing Date, except to the extent such representations and warranties
are as of another date, in which case, such representations and warranties shall be true and correct as of such other date. By
virtue of its consummation of the Closing, the Company shall be deemed to have delivered to the Investor its certificate stating
that its representations and warranties contained in this Agreement are true and correct on the Closing Date as specified in the
previous sentence.

(c)         
No Injunction. It shall be a condition
precedent to the obligation of the Company and the Investor that no statute, regulation, order, decree, writ, ruling or injunction
shall have been enacted, entered, promulgated, threatened or endorsed by any court or governmental authority of competent jurisdiction
which prohibits the consummation of or which would materially modify or delay any of the transactions contemplated by this Agreement.

(d)        
No Proceedings or Litigation. It
shall be a condition precedent to the obligation of the Company and the Investor that no action, suit or proceeding before any
arbitrator or any court or governmental authority shall have been commenced or threatened, and no inquiry or investigation by
any governmental authority shall have been commenced or threatened, against the Company or any Subsidiary, or any of the officers,
directors or affiliates of the Company or any Subsidiary, seeking to restrain, prevent or change the transactions contemplated
by this Agreement.

(e)         
No Material Adverse Effect. It
shall be a condition precedent to the obligation of the Investor that no condition, occurrence, state of facts or event constituting
a Material Adverse Effect shall have occurred and be continuing.

    13

    

    

(f)         
Verification of Status as Accredited Investor.
It shall be a condition precedent to the obligation of the Company to consummate the Closing that the Investor shall have
delivered to the Issuer a written confirmation meeting the requirements of Section (c)(2)(ii)(C) of Rule 506 of Regulation D from
a registered broker-dealer, an investment adviser registered with the Commission, a licensed attorney who is in good standing
under the laws of the jurisdictions in which he or she is admitted to practice law or a certified public accountant who is duly
registered and in good standing under the laws of the place of his or her residence or principal office verifying the Investor’s
status as an Accredited Investor.

ARTICLE
VII

TERMINATION

Section
7.1. Termination. This Agreement may be terminated at any time prior to the Closing (i) by the mutual consent
of the parties, effective as of the date of such mutual written consent unless otherwise provided therein or (ii) upon notice
by a party upon the breach by the other party of such other party’s representations and warranties or a covenant to be complied
with by such other party.

Section
7.2.Effect of Termination. In the event of termination by the Company or the Investor pursuant to Section 7.1,
this Agreement shall become void and of no further force and effect, except that (i) the provisions of Article VIII (Indemnification),
Article IX (Miscellaneous) and this Article VII (Termination) shall remain in full force and effect indefinitely notwithstanding
such termination, and, (ii) as long as the Investor owns any Shares, the covenants and agreements of the Company contained
in Article V (Additional Covenants) shall remain in full force, notwithstanding such termination, for a period of 12 months following
such termination.

ARTICLE
VIII

INDEMNIFICATION

Section
8.1.Indemnification of Investor. In consideration of the Investor’s execution and delivery of this
Agreement and acquiring the Shares hereunder and in addition to all of the Company’s other obligations hereunder, subject
to the provisions of this Section 8.1, the Company shall indemnify and hold harmless the Investor from and against all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses (including all judgments, amounts paid in settlement,
court costs, reasonable attorneys’ fees and costs of defense and investigation)(collectively, “Damages”)
that the Investor may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or (b) any action, suit, claim or proceeding instituted against
the Investor arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement; provided,
however, that (i) the foregoing indemnity shall not apply to any Damages to the extent, but only to the extent, that
such Damages resulted directly and primarily from a breach of any of the Investor’s representations, warranties, covenants
or agreements contained in this Agreement, and (y) the Company shall not be liable under subsection (b) of this Section
8.1 to the extent, but only to the extent, that a court of competent jurisdiction shall have determined by a final judgment (from
which no further appeals are available) that such Damages resulted directly and primarily from any acts or failures to act, undertaken
or omitted to be taken by the Investor through its fraud, bad faith, gross negligence, or willful or reckless misconduct. Damages
shall be limited to the amount that the Investor paid for the Shares less any profit that it shall have recognized from its disposition
of any of them.

    14

    

    

Section
8.2.Indemnification Procedures. Promptly after an Investor Party receives notice of a claim or the commencement
of an action for which the Investor intends to seek indemnification under Section 8.1, the Investor will notify the Company in
writing of the claim or commencement of the action, suit or proceeding. The Company will be entitled to participate in the defense
of any claim, action, suit or proceeding as to which indemnification is being sought, and the Company may (but will not be required
to) assume the defense against the claim, action, suit or proceeding with counsel satisfactory to it. After the Company notifies
the Investor that the Company wishes to assume the defense of a claim, action, suit or proceeding, the Company will not be liable
for any further legal or other expenses incurred by the Investor in connection with the defense against the claim, action, suit
or proceeding. The Investor, as a condition to receiving indemnification as provided in Section 8.1, will cooperate in all reasonable
respects with the Company in the defense of any action or claim as to which indemnification is sought. The Company will not be
liable for any settlement of any action effected without its prior written consent, which consent shall not be unreasonably withheld,
delayed or conditioned. The Company will not, without the prior written consent of the Investor, effect any settlement of a pending
or threatened action with respect to which the Investor is, or is informed that it may be, made a party and for which it would
be entitled to indemnification, unless the settlement includes an unconditional release of the Investor from all liability and
claims which are the subject matter of the pending or threatened action.

The
remedies provided for in this Article XIII are exclusive with respect to indemnification.

ARTICLE
X

MISCELLANEOUS

Section
9.1.Fees and Expenses. Each party shall bear its own fees and expenses related to the transactions contemplated
by this Agreement; The Company shall pay all federal, state and local stamp and other similar transfer and other taxes and duties
levied in connection with issuance of the Shares.

Section
9.2.Legends. The certificates representing the Shares shall bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of such stock certificates:

THE
OFFER AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES 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 TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 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.

    15

    

    

Section
9.3.Remedies.

(a)
Arbitration. Except as provided in Section 9.3(b), any controversy or claim arising out of or relating to this Agreement
or the breach thereof shall be settled exclusively by arbitration administered by the American Arbitration Association (the “AAA”)
under its Commercial Arbitration Rules in Riverside County, California, by a single arbitrator, and judgment on the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof. Prior to instituting arbitration, the Parties agree
first to attempt in good faith to settle the dispute by mediation administered by the AAA under its Commercial Mediation Procedures.
The prevailing Party in such arbitration shall pay all of the expenses thereof and such expenses shall be included in the award.
A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter has arisen, but not after
the time when legal proceedings with respect thereto would be barred by a statute of limitations or otherwise.

(b)       Limitation
on Damages. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, CONSEQUENTIAL,
INCIDENTAL, SPECIAL, OR EXEMPLARY DAMAGES. 

Section
9.4. Entire Agreement; Amendment. This Agreement sets forth the entire agreement and understanding of
the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations and
understandings between the parties, both oral and written, with respect to such matters. There are no promises, undertakings,
representations or warranties by either party relative to subject matter hereof not expressly set forth herein. No provision of
this Agreement may be amended other than by a written instrument signed by both parties hereto.

Section
9.5. Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder
shall be in writing and shall be effective (a) upon hand delivery or facsimile (with facsimile machine confirmation of delivery
received) 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 address for such communications shall be:

If
to the Company:

Medtainer, Inc.

1620 Commerce St.

Corona, CA 92880

Attention: Chief Executive
Officer

If to the Investor:

Ardelli Holdings LLC

36625 Kevin Rd., Suite
150

Wildomar, CA 92525

    16

    

    

Either
party hereto may from time to time change its address for notices by giving at least 10 days advance written notice of such changed
address to the other party hereto.

Section
9.6.Waivers. No provision of this Agreement may be waived other than in a written instrument signed by the party
against whom enforcement of such waiver is sought. No failure or delay 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 exercises thereof or of any other right, power or privilege.

Section
9.7. Headings. The article, section and subsection headings in this Agreement are for convenience only and shall
not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions
hereof. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine,
neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and
words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

Section
9.8. Construction. Each of the parties acknowledges that it and its counsel has reviewed and had an opportunity
to revise this Agreement and therefore agrees that the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement. Any reference in this Agreement
to “Dollars” or “$” shall mean the lawful currency of the United States of America.

Section
9.9. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns. The Investor may not assign its rights or obligations under this Agreement.

Section
9.10. No Third-Party Beneficiaries. Except as expressly provided in Article IX, this Agreement is intended only
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.

Section
9.11. Governing Law. This Agreement shall be governed by and construed in accordance with the internal procedural
and substantive laws of the State of California, without giving effect to the choice of law provisions of such state that would
cause the application of the laws of any other jurisdiction.

Section
9.12. Survival. The representations, warranties, covenants and agreements of the Company and the Investor contained
in this Agreement shall survive the execution and delivery hereof until the termination of this Agreement; provided, however,
that (i) Article VII (Termination), Article VIII (Indemnification) and this Article IX (Miscellaneous) shall remain
in full force and effect indefinitely notwithstanding such termination, and, (ii) so long as the Investor owns any Shares,
the covenants and agreements of the Company contained in Article V (Additional Covenants), shall remain in full force and effect
notwithstanding such termination for a period of 12 months following such termination.

Section
9.13. Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute
one and the same original and binding instrument and shall become effective when all counterparts have been signed by each party
and delivered to the other parties hereto, it being
understood that all parties hereto need not sign the same counterpart. In the event any signature is delivered by facsimile, digital
or electronic transmission, such transmission shall constitute delivery of the manually executed original.

    17

    

    

Section
9.14. Severability. The provisions of this Agreement are severable and, in the event that any court of competent
jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall,
for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement, and this Agreement shall be reformed and construed
as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that
such provisions would be valid, legal and enforceable to the maximum extent possible.

Section
9.15. Further Assurances. From and after the date of the Closing, upon the request of the Investor or the Company,
each of the Company and the Investor shall execute and deliver such instrument, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

Section
9.16.Signatory. The person who executes and delivers this Agreement on behalf of the Investor by signing this
Agreement individually represents and warrants to the Company that he is authorized and empowered by the Investor to execute this
Agreement in the name and on behalf of the Investor.

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

MEDTAINER, INC.

By:/s/ Curtis Fairbrother

Curtis Fairbrother

Chief
Executive Officer

ARDELLI HOLDINGS LLC

By:/s/ Russell Ward

Russell Ward

Member

    18EX-10.1

 Exhibit 10.1 

COMMON STOCK PURCHASE AGREEMENT 

by and among 
 STONEMOR INC.

 AXAR CAPITAL MANAGEMENT, LP 

and 
 THE PURCHASERS PARTY
HERETO 

 Table of Contents 

 

									
	 	    	 	  	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	4	 
		    	Section 1.01	  	 Definitions
	  	 	4	 
		    	Section 1.02	  	 Accounting Procedures and Interpretation
	  	 	7	 
		
	 ARTICLE II AGREEMENT TO SELL AND PURCHASE
	  	 	8	 
		    	Section 2.01	  	 Sale and Purchase
	  	 	8	 
		    	Section 2.02	  	 Closing
	  	 	8	 
		    	Section 2.03	  	 Purchasers Closing Conditions; Deliveries by the Company
	  	 	8	 
		    	Section 2.04	  	 Company Closing Conditions; Purchaser Deliveries
	  	 	9	 
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	9	 
		    	Section 3.01	  	 Existence
	  	 	9	 
		    	Section 3.02	  	 Capitalization
	  	 	9	 
		    	Section 3.03	  	 No Conflict
	  	 	10	 
		    	Section 3.04	  	 Authority
	  	 	10	 
		    	Section 3.05	  	 Approvals
	  	 	10	 
		    	Section 3.06	  	 Compliance with Laws
	  	 	11	 
		    	Section 3.07	  	 Due Authorization
	  	 	11	 
		    	Section 3.08	  	 Valid Issuance; No Options or Preemptive Rights
	  	 	11	 
		    	Section 3.09	  	 Periodic Reports
	  	 	11	 
		    	Section 3.10	  	 Litigation
	  	 	11	 
		    	Section 3.11	  	 No Registration Required
	  	 	12	 
		    	Section 3.12	  	 Transfer Taxes
	  	 	12	 
		    	Section 3.13	  	 No Material Adverse Change; Absence of Changes; Operations in the Ordinary Course
	  	 	12	 
		    	Section 3.14	  	 Books and Records; Sarbanes-Oxley Compliance
	  	 	12	 
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
	  	 	13	 
		    	Section 4.01	  	 Existence, Capacity, Authorization and Enforceability
	  	 	13	 
		    	Section 4.02	  	 No Conflict
	  	 	13	 
		    	Section 4.03	  	 Certain Fees
	  	 	14	 
		    	Section 4.04	  	 Investment
	  	 	14	 
		    	Section 4.05	  	 Nature of Purchasers
	  	 	14	 
		    	Section 4.06	  	 Restricted Securities
	  	 	14	 
		    	Section 4.07	  	 Reliance on Exemptions
	  	 	15	 
		    	Section 4.08	  	 Ownership of Series A Preferred Stock
	  	 	15	 
		
	 ARTICLE V COVENANTS
	  	 	15	 
		    	Section 5.01	  	 Use of Proceeds
	  	 	15	 
		    	Section 5.02	  	 Disclosure of Transaction
	  	 	15	 
		    	Section 5.03	  	 Rights Offering
	  	 	15	 
		    	Section 5.04	  	 Further Assurances
	  	 	15	 

									
	 ARTICLE VI INDEMNIFICATION
	  	 	16	 
		    	Section 6.01	  	 Indemnification by the Company
	  	 	16	 
		    	Section 6.02	  	 Indemnification by the Purchasers
	  	 	16	 
		    	Section 6.03	  	 Indemnification Procedure
	  	 	16	 
		    	Section 6.04	  	 Tax Matters
	  	 	17	 
		
	 ARTICLE VII TERMINATION
	  	 	18	 
		    	Section 7.01	  	 Termination
	  	 	18	 
		    	Section 7.02	  	 Effect of Termination
	  	 	19	 
		
	 ARTICLE VIII MISCELLANEOUS
	  	 	19	 
		    	Section 8.01	  	 Expenses
	  	 	19	 
		    	Section 8.02	  	 Interpretation and Severability
	  	 	19	 
		    	Section 8.03	  	 Survival of Provisions
	  	 	20	 
		    	Section 8.04	  	 No Waiver; Modifications in Writing
	  	 	20	 
		    	Section 8.05	  	 Binding Effect
	  	 	21	 
		    	Section 8.06	  	 Non-Disclosure
	  	 	21	 
		    	Section 8.07	  	 Communications
	  	 	21	 
		    	Section 8.08	  	 Entire Agreement
	  	 	22	 
		    	Section 8.09	  	 Governing Law; Submission to Jurisdiction
	  	 	22	 
		    	Section 8.10	  	 Waiver of Jury Trial
	  	 	22	 
		    	Section 8.11	  	 Exclusive Remedy
	  	 	23	 
		    	Section 8.12	  	 No Recourse Against Others
	  	 	23	 
		    	Section 8.13	  	 No Third-Party Beneficiaries
	  	 	24	 
		    	Section 8.14	  	 Relationship with Commitment Letter
	  	 	24	 
		    	Section 8.15	  	 Execution in Counterparts
	  	 	24	 

 SCHEDULE A – Form of Purchase Allocation 

SCHEDULE B – Exchange Allocation 

  
 3 

 COMMON STOCK PURCHASE AGREEMENT 

This COMMON STOCK PURCHASE AGREEMENT, dated as of May 27, 2020 (this “Agreement”), is entered into by and among
STONEMOR INC., a Delaware Corporation (the “Company”), Axar Capital Management, LP, a Delaware limited partnership (the “Investment Manager” or “Axar”), the accounts managed by
Axar set forth on Schedule B hereto and one or more accounts managed by Axar hereafter designated by it (the “Purchasers”). 

WHEREAS, Axar executed a Commitment Letter, dated April 1, 2020 (the “Commitment Letter”), pursuant to which the
Investment Manager committed funds and accounts managed by it to purchase (i) for $8.8 million, shares of Series A Preferred Stock of the Company that would be exchanged for shares of Common Stock in connection with a rights offering to be
conducted by the Company at a price of $0.73 per share of Common Stock and (ii) for $8.2 million, shares of Common Stock that were not purchased by other holders of the Company’s Common Stock in connection with the rights offering at
a price of $0.73 per share of Common Stock; 
 WHEREAS, as contemplated by the Commitment Letter, certain of the Purchasers acquired the
Series A Preferred Stock for $8.8 million pursuant to the Series A Preferred Stock Purchase Agreement, dated April 3, 2020; 

WHEREAS, since the date of the public announcement of the planned rights offering, the Common Stock has traded in the NYSE at a significant
discount to the agreed rights offering price of $0.73 per share, making it unlikely that any shares will be issued to stockholders of the Company other than to Axar Affiliates pursuant to the Commitment Letter; 

WHEREAS, the failure of the Company to obtain a cash equity investment of $8.2 million on or prior to July 31, 2020 would constitute
an event of default under the Indenture; and 
 WHEREAS, in order to satisfy the requirements of the Commitment Letter and the Indenture,
the Company desires to issue and sell to the Purchasers, and the Purchasers desire to purchase from the Company, shares of Common Stock, in accordance with the provisions of this Agreement. 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01    Definitions. As used in this Agreement, and unless the context
requires a different meaning, the following terms have the meanings indicated: 
 “Affiliate” means, with respect to
any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct
or 

 
indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. For the avoidance of
doubt, for purposes of this Agreement, any fund or account managed, advised or subadvised, directly or indirectly, by a Purchaser or its Affiliates, shall be considered an Affiliate of such Purchaser. 

“Agreement” has the meaning set forth in the introductory paragraph. 

“Board” means the board of directors of the Company. 

“Closing” has the meaning specified in Section 2.02. 

“Closing Date” has the meaning specified in Section 2.02. 

“Commission” means the United States Securities and Exchange Commission. 

“Commitment Letter” has the meaning specified in the Recitals. 

“Common Stock” has the meaning specified in Section 3.02(a). 

“Company” has the meaning specified in the introductory paragraph. 

“Company SEC Documents” means the Company’s forms, registration statements, reports, schedules and statements
filed by it or its predecessor registrant, StoneMor Partners L.P., under the Exchange Act or the Securities Act, as applicable. 

“Contract” means any contract, agreement, indenture, note, bond, mortgage, deed of trust, loan, instrument, lease,
license, commitment or other arrangement, understanding, undertaking, commitment or obligation, whether written or oral. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations
of the Commission promulgated thereunder. 
 “Exchange Consideration” has the meaning specified in
Section 2.01. 
 “Exchanged Shares” has the meaning specified in
Section 2.01. 
 “Funding Obligation” means an amount equal to the Purchase Price
multiplied by the number of Purchased Shares to be purchased by a Purchaser in exchange for cash as set forth opposite such Purchaser’s name on the Purchase Allocation. 

“GAAP” means generally accepted accounting principles in the United States of America as of the date hereof,
consistently applied during the periods involved; provided, that for the financial statements of the Company prepared as of a certain date, GAAP referenced therein shall be GAAP as of the date of such financial statements. 

“Governmental Authority” means, with respect to a particular Person, any country, state, county, city and political
subdivision in which such Person or such Person’s 

  
 5 

 
Property is located or that exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of
any of them and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise specified, all references to Governmental Authority herein with respect to the Company mean a Governmental
Authority having jurisdiction over the Company, its Subsidiaries or any of their respective Properties. 
 “Indemnified
Party” has the meaning specified in Section 6.03. 
 “Indemnifying Party” has
the meaning specified in Section 6.03. 
 “Indenture” means the Indenture, dated
June 27, 2019, as supplemented, with respect to StoneMor Partners L.P.’s 9.875%/11.500% Senior Secured PIK Toggle Notes due 2024. 

“Knowledge” shall mean, with respect to any party, the actual knowledge of the managers, directors or executive
officers of such party or such party’s managing member, as applicable. 
 “Law” means any federal, state, local
or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation. 
 “Lead
Purchaser” means Axar Capital Management, LP or its designee. 
 “Lien” means any interest in Property
securing an obligation owed to, or a claim by a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including any lien
or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. 

“Material Adverse Effect” means a material adverse effect (a) on the business, property, operations, assets,
liabilities (actual or contingent), operating results, prospects or financial condition of the Company and its Subsidiaries, taken as a whole, (b) on the ability of the Company or its Subsidiaries, as applicable, to perform any of their
obligations under the Transaction Documents or (c) on the validity or enforceability of any of the Transaction Documents or the rights and remedies of the Purchasers thereunder 

“NYSE” means The New York Stock Exchange, Inc. 

“Organizational Documents” means, as applicable, an entity’s agreement or certificate of limited partnership,
limited liability company agreement, certificate of formation, certificate or articles of incorporation, bylaws or other similar organizational documents. 

“Outside Date” has the meaning specified in Section 7.01(b)(ii). 

“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, government agency or political subdivision thereof or other form of entity. 

  
 6 

 “Property” means any interest in any kind of property or asset,
whether real, personal or mixed, or tangible or intangible. 
 “Purchase Allocation” has the meaning specified in
Section 2.04(c). 
 “Purchased Shares” has the meaning specified in
Section 2.01. 
 “Purchase Price” has the meaning specified in
Section 2.01. 
 “Purchasers” has the meaning specified in the introductory paragraph.

 “Purchaser Related Parties” has the meaning specified in Section 6.01. 

“Representatives” of any Person means the Affiliates, officers, directors, managers, employees, agents, counsel,
accountants, investment bankers and other representatives of such Person. 
 “Securities Act” means the Securities
Act of 1933, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder. 
 “Series A
Preferred Stock” means the Series A Preferred Stock, par value $0.01 per share, of the Company. 

“Subsidiary” means, as to any Person, any corporation or other entity of which: (a) such Person or a Subsidiary
of such Person is a general partner or, in the case of a limited liability company, the managing member or manager thereof; (b) at any of the outstanding equity interest having by the terms thereof ordinary voting power to elect a majority of
the board of directors or similar governing body of such corporation or other entity (irrespective of whether or not at the time any equity interest of any other class or classes of such corporation or other entity shall have or might have voting
power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries; or (c) any corporation or other entity as to which such Person consolidates for
accounting purposes. 
 “Transaction Documents” means, collectively, this Agreement and the Commitment Letter, each
as amended to date, and any and all other agreements or instruments executed and delivered by the Company hereunder. 

Section 1.02    Accounting Procedures and Interpretation. Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements of the Company and certificates and reports as to financial matters
required to be furnished to the Purchasers hereunder shall be prepared, in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as
permitted by Form 10-Q promulgated by the Commission) and in compliance as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the
Commission with respect thereto. 

  
 7 

 ARTICLE II 

AGREEMENT TO SELL AND PURCHASE 

Section 2.01    Sale and Purchase. Subject to the terms and conditions
hereof, (i) the Company hereby agrees to issue and sell to each Purchaser and each Purchaser hereby agrees to purchase from the Company, for cash, the number of shares of Common Stock set forth opposite such Purchaser’s name on the
Purchase Allocation delivered by Axar not less than two Business Days prior to the Closing Date (the “Purchased Shares”), for a cash purchase price of $0.73 per share of Common Stock (the “Purchase
Price”) and (ii) the Company hereby agrees to issue and sell to each Purchaser set forth on Schedule B and each such Purchaser hereby agrees to purchase from the Company, in exchange for the surrender of shares of Series A
Preferred Stock, the number of shares of Common Stock set forth opposite such Purchaser’s name on Schedule B (the “Exchanged Shares”) at an exchange ratio of 68,493.15 shares of Common Stock for each share of
Series A Preferred Stock surrendered, the equivalent of a price of $0.73 per share of Common Stock (the “Exchange Consideration”). 

Section 2.02    Closing. Subject to the terms and conditions hereof, the
closing of the transactions contemplated under this Agreement (the “Closing”) shall take place on the second business day following the date that all conditions of the parties required to be satisfied pursuant to Article
II have been satisfied (the “Closing Date”). The parties agree that the Closing may occur via delivery of .pdf of facsimile copies of the documents referred to herein. 

Section 2.03    Purchasers Closing Conditions; Deliveries by the Company. The
obligation of the Purchasers to consummate the transactions contemplated by this Agreement is subject to the following conditions (any of which may be waived by the Lead Purchaser in its sole discretion): 

(a)    Delivery to the Lead Purchaser of a certificate of the Secretary of the Company, dated as of the Closing Date,
certifying as to and attaching Board resolutions authorizing the execution and delivery of this Agreement and the transactions contemplated thereby; 

(b)    Delivery to the Lead Purchaser of evidence that the Purchased Shares and the Exchanged Shares have been approved
for listing on the NYSE; 
 (c)    Delivery to the Lead Purchaser of confirmation by a representative of the
Company’s transfer agent that such transfer agent has all the information and materials necessary for the Company to issue the Purchased Shares and the Exchanged Shares credited to book-entry accounts maintained by the Company, free and clear
of any Liens; 
 (d)    Delivery to the Lead Purchaser of a duly executed amendment to the existing registration rights
agreement, by and among the Company, StoneMor GP, LLC and certain affiliates of Axar that provides that the Purchased Shares and the Exchanged Shares are registrable securities thereunder; and 

  
 8 

 (e)    The representations and warranties of the Company shall be true
and correct in all material respects (other than the representation and warranty set forth in Section 3.02(a), which shall be true and correct in all but de minimus respects, and the representations and warranties
set forth in Sections 3.02(b) and 3.03 or that are qualified by Material Adverse Effect shall be true and correct in all respects), and the Lead Purchaser shall have received a certificate of an officer of the
Company to such effect. 
 Section 2.04    Company Closing Conditions; Purchaser
Deliveries. The obligation of the Company to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions (any of which may be waived by the Company in its sole discretion) :

 (a)    Payment at Closing of the Purchasers’ Funding Obligations by wire transfer of immediately available
funds to an account designated by Company; 
 (b)    Delivery to the Company of instruments reasonably satisfactory to
the Company for the surrender of the Series A Preferred Stock to the Company for cancellation; 
 (c)    Delivery to
the Company of a completed schedule, the form of which is attached hereto as Schedule A, setting forth the number of shares of Common Stock opposite each Purchaser’s name that each Purchaser agrees to purchase from the Company for the
Purchase Price (the “Purchased Allocation”); and 
 (d)    The representations and warranties
of each Purchaser set forth in Article IV shall be true and correct in all material respect on as of the Closing Date as if made on such date, and the Company shall have received a certificate of an officer of the Lead Purchaser to such
effect. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company represents and warrants to the Purchasers as follows: 

Section 3.01    Existence. The Company is a corporation duly formed, validly
existing and in good standing under the Laws of the state of Delaware and has full corporate power and authority necessary to own or hold its properties and to conduct the businesses in which it is engaged. 

Section 3.02    Capitalization. 

(a)    As of the date hereof and prior to the issuance and sale of the Purchased Shares and the Exchanged Shares, the
issued and outstanding shares of capital stock of the Company consist of 176 shares of Series A Preferred Stock and 94,506,848 common stock, par value $0.01 per share (“Common Stock”). All outstanding shares of Common Stock
have been duly authorized, are validly issued and are fully paid and nonassessable. 

  
 9 

 (b)    The Common Stock is listed on the NYSE. The Company has received
notification from the New York Stock Exchange that, subject to the approval of the listing thereof as set forth in Section 2.03(b) hereof, the Company may issue the Purchased Shares and the Exchanged Shares to the Purchasers without stockholder
approval or completion of the rights offering contemplated by the Commitment Letter, and such notification remains in full force and effect. 

Section 3.03    No Conflict. None of the offering, issuance and sale by the
Company of the Purchased Shares or the Exchanged Shares and the application of the proceeds therefrom, the execution, delivery and performance of this Agreement by the Company, or the consummation of the transactions contemplated hereby
(i) conflicts or will conflict with, or constitutes or will constitute a violation of, the Organizational Documents of the Company, (ii) conflicts or will conflict with, or constitutes or will constitute a breach or violation of or a
default under (or an event that, with notice or lapse of time or both, would constitute such a breach or violation of or default under), any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which the
Company or any of its Subsidiary is a party, by which any of them is bound or to which any of their respective properties or assets is subject, (iii) violates or will violate any statute, law, ordinance, regulation, order, judgment, decree or
injunction of any court or governmental agency or body to which the Company or any of its Subsidiaries, or any of their respective properties or assets may be subject or (iv) will result in the creation or imposition of any Lien upon any
property or assets of the Company or any of its Subsidiaries, which conflicts, breaches, violations, defaults or Liens, in the case of clauses (ii), (iii) or (iv), would, individually or in the aggregate, have a Material Adverse
Effect. 
 Section 3.04    Authority. The Company has all requisite corporate
power and authority to issue, sell and deliver the Purchased Shares and the Exchanged Shares, in accordance with and upon the terms and conditions set forth in this Agreement and the Organizational Documents. This Agreement has been duly approved by
the Board, including the unanimous approval of the independent directors of the Company. All corporate actions required to be taken by the Company for the authorization, issuance, sale and delivery of the Purchased Shares and the Exchanged Shares,
the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby has been validly taken. No approval from the holders of outstanding shares of Common Stock is required under applicable Law, the Organizational
Documents or the rules of the NYSE in connection with the Company’s issuance and sale of the Purchased Shares or the Exchanged Shares to the Purchasers. 

Section 3.05    Approvals. No permit, consent, approval, authorization, order,
registration, filing or qualification (“consent”) of or with any court, governmental agency or body having jurisdiction over the Company or any of its Subsidiaries, or any of their respective properties is required in
connection with the offering and sale of the Purchased Shares or the Exchanged Shares in the manner contemplated by this Agreement, the execution, delivery and performance of this Agreement by the Company, or the consummation of the transactions
contemplated by this Agreement, except for such consents (i) required under the Securities Act and state securities or “Blue Sky” laws or (ii) that, if not obtained, would not, individually or in the aggregate, have a Material
Adverse Effect. 

  
 10 

 Section 3.06    Compliance with
Laws. As of the date hereof, neither the Company nor any of its Subsidiaries is in violation of any Law applicable to the Company or its Subsidiaries, except as would not, individually or in the aggregate, have a Material Adverse
Effect. The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates,
authorizations or permits would not, individually or in the aggregate, have a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such
certificate, authorization or permit, except where such potential revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect. 

Section 3.07    Due Authorization. This Agreement has been duly and validly
authorized and has been validly executed and delivered by the Company and constitutes (assuming the due authorization, execution and delivery by each other party hereto) the legal, valid and binding obligations of the Company enforceable in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’ rights generally or by general principles of equity, including principles of commercial
reasonableness, fair dealing and good faith. 
 Section 3.08    Valid Issuance; No
Options or Preemptive Rights. The Purchased Shares and the Exchanged Shares to be issued and sold by the Company to the Purchasers hereunder have been duly authorized in accordance with the Organizational Documents and, when issued
and delivered to the Purchasers against the consideration therefor pursuant to this Agreement, will be validly issued in accordance with the Organizational Documents, fully paid and non-assessable. No options, warrants or other rights to purchase,
agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, voting or ownership interests in the Company are outstanding, except as provided for in the Organizational Documents or grants
outstanding under an employee benefit plan. 
 Section 3.09    Periodic Reports.
The Company has filed all forms, reports, schedules and statements required to be filed by it under the Securities Act and the Exchange Act since December 31, 2018 and when they were filed with the Commission, or to the extent corrected or
updated by a subsequent amendment or restatement filed with the Commission, then as so corrected or updated, each such form, report, schedule and statement (i) conformed in all material respects to the requirements of the Securities Act and the
Exchange Act, and (ii) did not knowingly contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made therein, not
misleading; provided that none of the Purchasers had Knowledge of such untrue statement or omission as of the date of such filing, or amendment thereto or restatement thereof, with the Commission. 

Section 3.10    Litigation. Except (i) for proceedings of which each
Purchaser or any of its Representatives is aware, or (ii) as disclosed in the Company’s SEC Documents filed as of the date hereof, there are no legal or governmental proceedings pending to which the Company or any of its Subsidiaries is a
party or to which any Property or asset of the Company or its Subsidiaries is subject that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or which challenge the validity of this Agreement or the
right of the 

  
 11 

 
Company to enter into this Agreement or to consummate the transactions contemplated hereby and, to the Knowledge of the Company, no such proceedings are threatened by Governmental Authorities or
others. 
 Section 3.11    No Registration Required. Assuming the
accuracy of the representations and warranties of the Purchasers contained in Section 4.04 and Section 4.05, the issuance and sale of the Purchased Shares and the Exchanged Shares pursuant to this
Agreement is exempt from registration requirements of the Securities Act, and neither the Company nor, to the knowledge of the Company, any authorized Representative acting on its behalf has taken or will take any action hereafter that would cause
the loss of such exemption. 
 Section 3.12    Transfer Taxes. All stock
transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the sale and transfer of the Purchased Shares and Exchanged Shares to be issued to each Purchaser hereunder have been or will be fully paid
or provided for by the Company, and all laws imposing such taxes have been or will be complied with. 

Section 3.13    No Material Adverse Change; Absence of Changes; Operations in the Ordinary
Course. Except as expressly set forth in the Company SEC Documents, since December 31, 2018 through the date hereof no Material Adverse Effect has occurred. The Company is not in default under the Indenture. Neither the Company
nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy insolvency, reorganization, receivership, liquidation or winding up nor does the Company have any knowledge or reason to believe
that any of its or any of its Subsidiaries’ respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that would reasonably lead a creditor to do so. The Company and its Subsidiaries,
individually and on a consolidated basis, are not as of the date hereof and, after giving effect to the transactions contemplated by this Agreement, will not be Insolvent. Since December 31, 2019, and other than the transactions contemplated by
the Transaction Documents, the Company and its Subsidiaries have conducted its business in the ordinary course of business, preserved intact its existence and business organization, permits, goodwill and business relationships with all material
customers, suppliers, licensors, distributors and others having significant business relationships with the Company and its Subsidiaries. 

Section 3.14    Books and Records; Sarbanes-Oxley Compliance. 

(a)    Except as set forth in the Company SEC Documents, the Company maintains systems of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of the Company
consolidated financial statements in conformity with GAAP and to maintain accountability for its assets and liabilities, (iii) access to the assets or incurrence of liabilities is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets and liabilities is compared with existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any differences. 

  
 12 

 (b)    The Company has established and maintains disclosure controls
and procedures (to the extent required by and as defined in Rules 13a- 15(e) and 15d-15(e) under the Exchange Act), which are designed to provide reasonable assurance
that material information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and communicated to the Company’s management, including its principal executive
officer and principal financial officer, as appropriate, to allow for timely decisions regarding required disclosure. The Company or its predecessor registrant, StoneMor Partners L.P., has carried out evaluations of the effectiveness of its
disclosure controls and procedures as of the end of the most recently completed fiscal quarter covered by the Company’s or such predecessor registrant’s periodic reports filed with the Commission, and such disclosure controls and
procedures are, except as described in the Company SEC Documents, effective in all material respects to perform the functions for which they were established. 

(c)    The Company and its directors or officers, in their capacities as such, are in compliance with all applicable
provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 

Each of the Purchasers, severally but not jointly and solely with respect to itself, represents and warrants to the Company that: 

Section 4.01    Existence, Capacity, Authorization and Enforceability. Such
Purchaser (i) is duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization and (ii) has the requisite power, and has all material governmental licenses, authorizations, consents and approvals
necessary to own its Properties and carry on its business as its business is now being conducted. Such Purchaser has all requisite limited liability company or other similar entity power and authority to execute, deliver and perform its obligations
under this Agreement and to consummate the transactions contemplated hereby. All limited liability company action required to be taken by such Purchaser for the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby has been validly taken. This Agreement has been duly and validly authorized and has been validly executed and delivered by such Purchaser, and constitutes (assuming the due authorization, execution and delivery by the other party
hereto), the legal, valid and binding obligations of such Purchaser, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’
rights generally or by general principles of equity, including principles of commercial reasonableness, fair dealing and good faith. 

Section 4.02    No Conflict. The execution, delivery and performance of this
Agreement by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any
material agreement to which such Purchaser is a party or by which such Purchaser is bound or to which any of the property or assets of such Purchaser is subject, (b) violate any statute, order, rule or regulation of any court or governmental

  
 13 

 
agency or body having jurisdiction over such Purchaser or the property or assets of such Purchaser, or (c) conflict with or result in any violation of the provisions of the organizational
documents of such Purchaser, except in the cases of clauses (a) and (b) for such conflicts, breaches, violations or defaults as would not prevent the consummation of the transactions contemplated by this Agreement and the
performance of such Purchaser’s obligations under this Agreement. 

Section 4.03    Certain Fees. No fees or commissions are or will be payable
by such Purchaser to brokers, finders, or investment bankers with respect to the acquisition of any of the Purchased Shares or the Exchanged Shares or the consummation of the transactions contemplated by this Agreement. Such Purchaser agrees that it
will indemnify and hold harmless the Company from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by such Purchaser in connection with the acquisition
of the Purchased Shares or Exchanged Shares or the consummation of the transactions contemplated by this Agreement. 

Section 4.04    Investment. The Purchased Shares and the Exchanged Shares
are being acquired for such Purchaser’s own account, not as a nominee or agent, and with no present intention of distributing the Purchased Shares or the Exchanged Shares or any part thereof, and such Purchaser has no present intention of
selling or granting any participation in or otherwise distributing the same in any transaction in violation of the securities laws of the United States or any state, without prejudice. If such Purchaser should in the future decide to dispose of any
of the Purchased Shares or the Exchanged Shares, such Purchaser understands and agrees (a) that it may do so only in compliance with the Securities Act, Exchange Act and applicable state securities law, as then in effect, including a sale
contemplated by any registration statement pursuant to which such securities are being offered, or pursuant to an exemption from the Securities Act, and (b) that stop-transfer instructions to that effect will be in effect with respect to such
securities. 
 Section 4.05    Nature of Purchasers. Such
Purchaser represents and warrants to, and covenants and agrees with, the Company that (a) such Purchaser is an -accredited
investor- as defined in Rule 501 of Regulation D promulgated by the Commission pursuant to the Securities Act, (b) by reason of its business and financial experience, such Purchaser
has such knowledge, sophistication and experience in making similar investments and in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Shares and the Exchanged
Shares, is able to bear the economic risk of such investment and, at the present time, would be able to afford a complete loss of such investment, and (c) it is acquiring the Purchased Shares and the Exchanged Shares only for its own account
and not for the account of others, for investment purposes and not on behalf of any other account or Person or with a view to, or for offer or sale in connection with, any distribution thereof other than the Rights Offering. Such Purchaser
acknowledges that it (i) has access to the Company SEC Documents, (ii) has been provided a reasonable opportunity to ask questions of and receive answers from Representatives of the Company regarding such matters and (iii) has sought
such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to the acquisition of the Purchased Shares and the Exchanged Shares. 

Section 4.06    Restricted Securities. Such Purchaser understands that the
Purchased Shares and the Exchanged Shares are characterized as “restricted securities” under the federal securities Laws in as much as they are being, or will be, as applicable, acquired from the

  
 14 

 
Company in a transaction not involving a public offering and that under such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in
certain limited circumstances. 
 Section 4.07    Reliance on Exemptions. Such
Purchaser understands that the Purchased Shares and the Exchanged Shares are being offered and sold to such Purchaser 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 such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the
availability of such exemptions and the eligibility of such Purchaser to acquire the Purchased Shares and the Exchanged Shares. 

Section 4.08    Ownership of Series A Preferred Stock. Each Purchaser set forth on
Schedule B has good and valid title to the shares of Series A Preferred Stock opposite such Purchaser’s name on Schedule B, free and clear of any Liens (other than arising under the applicable securities laws). 

ARTICLE V 
 COVENANTS

 Section 5.01    Use of Proceeds The Company will use the proceeds from
the sale of the Purchased Shares for general corporate purposes. 

Section 5.02    Disclosure of Transaction In compliance with the Exchange Act, the
Company shall file a Current Report on Form 8-K or an Annual Report for the fiscal year ended December 31, 2019 on Form 10-K, in either case, describing the terms
of the transactions contemplated by this Agreement in the form required by the Exchange Act and attaching this Agreement as an exhibit to such filing. 

Section 5.03    Rights Offering. In the event that the transactions contemplated
hereby are not consummated, the Company shall file a registration statement on Form S-1 to effect a rights offering, subject to the terms and conditions in the Commitment Letter, resulting in proceeds to the
Company of not less than $17,000,000, whereby the Company will distribute, at no charge, one purchase right (each, a “Right”) per each four shares of Common Stock to each holder of shares of the Common Stock outstanding and
held of record as of a record date to be set by the Board (the “Rights Offering”). Each Right will entitle the holder thereto to purchase one share of Common Stock, which shall be payable by shares (or fraction thereof) of
Series A Preferred Stock (valued at the stated value thereof) or $0.73 in cash. The Company shall use its best efforts to complete any required Rights Offering as provided in the Commitment Letter as promptly as practicable with an Expiration Time
(as defined in the Commitment Letter) of no later than July 24, 2020. 

Section 5.04    Further Assurances. Each of the Company and the Purchasers shall
use its respective reasonable best efforts to obtain all approvals and consents required by or necessary to consummate the transactions contemplated by this Agreement and the Commitment 

  
 15 

 
Letter. Each of the Company and the Purchasers agrees to execute and deliver all such documents or instruments, to take all appropriate action and to do all other things it determines to be
necessary, proper or advisable under applicable Laws and regulations or as otherwise reasonably requested by the other to consummate the transactions contemplated by this Agreement. 

ARTICLE VI 

INDEMNIFICATION 

Section 6.01    Indemnification by the Company. The Company agrees to
indemnify each Purchaser and its Representatives (collectively, “Purchaser Related Parties”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or
inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without
limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve
any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Company contained herein, provided that such claim for indemnification relating to a breach of the
representations or warranties is made prior to the expiration of such representations or warranties to the extent applicable; and provided further, that no Purchaser Related Party shall be entitled to recover special, consequential or
punitive damages under this Section 6.01. 

Section 6.02    Indemnification by the Purchasers. Each Purchaser agrees to
indemnify the Company and its Representatives (collectively, “Company Related Parties”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or
inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without
limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve
any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Purchaser contained herein, provided that such claim for indemnification relating to a breach of the
representations and warranties is made prior to the expiration of such representations and warranties to the extent applicable; and provided further, that no Company Related Party shall be entitled to recover special, consequential or
punitive damages under this Section 6.02. 

Section 6.03    Indemnification Procedure. 

(a)    A claim for indemnification for any matter not involving a Third-Party Claim may be asserted by notice to the
party from whom indemnification is sought; provided, however, that failure to so notify the indemnifying party shall not preclude the indemnified party from any indemnification which it may claim in accordance with this Article
VI, except as otherwise provided in Section 6.01. 

  
 16 

 (b)    As soon as reasonably practicable after any Purchaser Related
Party or Company Related Party (hereinafter, the “Indemnified Party”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified
Party believes in good faith is an indemnifiable claim under this Agreement (each a “Third-Party Claim”), the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written
notice of such Third-Party Claim, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is
materially prejudiced by such failure. Such notice shall state the nature and the basis of such Third-Party Claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel
who shall be reasonably acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly, and in no
event later than ten (10) days, notify the Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the
settlement thereof. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted
liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such
asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A)
the Indemnifying Party has, within ten (10) Business Days of when the Indemnified Party provides written notice of a Third-Party Claim, failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party and to notify
the Indemnified Party of such assumption or (B) if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses
available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party,
then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related
to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless
the settlement thereof imposes no liability or obligation on, and includes a complete and unconditional release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party or its Affiliates. The
remedies provided for in this Section 6.03 are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise. 

Section 6.04    Tax Matters. All indemnification payments under this
Article VI shall be adjustments to each Purchaser’s Purchase Price except as otherwise required by applicable Law. 

  
 17 

 ARTICLE VII 

TERMINATION 

Section 7.01    Termination. This Agreement may be terminated at any time prior to
the Closing: 
 (a)    By the mutual written consent of the Company and the Lead Purchaser; 

(b)    By the Lead Purchaser by written notice to the Company if: 

(i)    The Purchasers are not then in material breach of any provision of this Agreement and there has been a breach,
inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by the Company pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Article II and such breach,
inaccuracy or failure has not been cured by the Company within three days of the Company’s receipt of written notice of such breach from the Lead Purchaser; or 

(ii)    any of the conditions set forth in Section 2.03 shall not have been, or if it becomes
apparent that any of such conditions will not be, fulfilled by June 19, 2020 (the “Outside Date”), unless such failure shall be due to the failure of the Purchasers to perform or comply with any of the covenants,
agreements or conditions hereof to be performed or complied with by them prior to the Closing; 
 (c)    by the Company
by written notice to the Lead Purchaser if: 
 (i)    the Company is not then in material breach of any provision of
this Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by a Purchaser pursuant to this Agreement that would give rise to the failure of any of the conditions specified
in Article II and such breach, inaccuracy or failure has not been cured by such Purchaser within three days of the Purchaser’s’ receipt of written notice of such breach from the Company; or 

(ii)    any of the conditions set forth in Section 2.04 shall not have been, or if it becomes
apparent that any of such conditions will not be, fulfilled by the Outside Date, unless such failure shall be due to the failure of the Company to perform or comply with any of the covenants, agreements or conditions hereof to be performed or
complied with by it prior to the Closing; or 
 (d)    by the Lead Purchaser or the Company in the event that
(i) there shall be any Law that makes consummation of the transactions contemplated by this Agreement illegal or otherwise prohibited or (ii) any Governmental Authority shall have issued an order restraining or enjoining the transactions
contemplated by this Agreement, and such order shall have become final and non-appealable. 

  
 18 

 Section 7.02    Effect of
Termination. In the event of the termination of this Agreement in accordance with this Article VII, this Agreement shall forthwith become void and there shall be no liability on the part of any party hereto except: 

(a)    as set forth in this Article VII and Section 5.03 and Article VIII hereof;
and 
 (b)    that nothing herein shall relieve any party hereto from liability for any willful breach of any provision
hereof. 
 ARTICLE VIII 

MISCELLANEOUS 

Section 8.01    Expenses. Promptly following receipt of an invoice therefor, the
Company shall reimburse the Lead Purchaser and its Affiliates for its out-of-pocket expenses (including without limitation, fees and expenses of outside counsel)
incurred by the Lead Purchaser and its Affiliates with the transactions contemplated by this Agreement; provided, that for U.S. federal income tax purposes, the reimbursements described in Section 8.01 (a) are, and
will be treated by the parties as, adjustments to the Purchase Price paid by the Purchasers for the Purchased Shares; provided, further, the Lead Purchaser and its Affiliates shall not be entitled to reimbursement of their out-of-pocket expenses in connection with the Rights Offering, if conducted. 

Section 8.02    Interpretation and Severability. Article, Section, Schedule
and Exhibit references in this Agreement are references to the corresponding Article, Section, Schedule or Exhibit to this Agreement, unless otherwise specified. All Exhibits and Schedules to this Agreement are hereby incorporated and made a part
hereof as if set forth in full herein and are an integral part of this Agreement. All references to instruments, documents, Contracts and agreements are references to such instruments, documents, Contracts and agreements as the same may be amended,
supplemented and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to” and shall not be construed to limit any general statement that it follows to the
specific or similar items or matters immediately following it. Whenever the Company has an obligation under the Transaction Documents, the expense of complying with that obligation shall be an expense of the Company unless otherwise specified. Any
reference in this Agreement to “$” shall mean U.S. dollars. Whenever any determination, consent or approval is to be made or given by a Purchaser, such action shall be in such Purchaser’s sole discretion, unless otherwise specified in
this Agreement. If any provision in the Transaction Documents is held to be illegal, invalid, not binding or unenforceable, (a) such provision shall be fully severable and the Transaction Documents shall be construed and enforced as if such
illegal, invalid, not binding or unenforceable provision had never comprised a part of the Transaction Documents, and the remaining provisions shall remain in full force and effect so long as this Agreement as so modified continues to express,
without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or
reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good 

  
 19 

 
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or
unenforceable provision(s), and (b) the parties hereto shall negotiate in good faith to modify the Transaction Documents so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the
transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. When calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to the
Transaction Documents, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a non-Business Day, the period in question shall end on the next
succeeding Business Day. Any words imparting the singular number only shall include the plural and vice versa. The words such as “herein,” “hereinafter,” “hereof” and “hereunder” refer to this Agreement as a
whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The provision of a Table of Contents, the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings
are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement. 

Section 8.03    Survival of Provisions. The representations and warranties
set forth in Section 3.01, Section 3.02, Section 3.04, Section 3.05, Section 3.08,
Section 4.01, Section 4.03 and Section 4.05 hereunder shall survive the execution and delivery of this Agreement indefinitely, (B) the representations and warranties
set forth in Section 3.12 shall survive until the date that is 60 days after the expiration of the applicable statute of limitation and (C) the other representations and warranties set forth herein shall survive for a
period of eighteen (18) months following the date hereof, regardless of any investigation made by or on behalf of the Company or the Purchasers. The covenants made in this Agreement or any other Transaction Document shall survive the Closing
and remain operative and in full force and effect regardless of acceptance of any of the Purchased Shares and payment therefor and repayment, conversion or repurchase thereof. 

Section 8.04    No Waiver; Modifications in Writing. 

(a)    Delay. No failure or delay on the part of any party in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are
cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise. 

(b)    Specific Waiver. Except as otherwise provided herein, no amendment, waiver, consent, modification or
termination of any provision of any Transaction Document shall be effective against a Purchaser unless signed by such Purchaser. Any amendment, supplement or modification of or to any provision of any Transaction Document, any waiver of any
provision of any Transaction Document and any consent to any departure by the Company from the terms of any provision of any Transaction Document shall be effective only in the specific instance and for the specific purpose for which made or given.
Except where notice is specifically required by this Agreement, no notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand in similar or other

  
 20 

 
circumstances. Any investigation by or on behalf of any party shall not be deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant
or agreement contained herein. 
 Section 8.05    Binding Effect. This
Agreement shall be binding upon the Company, each of the Purchasers and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit
upon any Person other than the parties to this Agreement and their respective successors and permitted assigns. 

Section 8.06    Non-Disclosure. The
Company agrees that the Purchasers may (i) publicize their ownership in the Company, as well as the identity of the Company, the size of the investment and its pricing terms on its internet site or in marketing materials, press releases,
published “tombstone” announcements or any other print or electronic medium or in any regulatory filing and (ii) display the Company’s logo in conjunction with any such reference. 

Section 8.07    Communications. All notices and demands provided for
hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, email, air courier guaranteeing overnight delivery or personal delivery to the following addresses: 

(a)     If to a Purchaser, to the address set forth on Schedule A, with a copy to (which shall not constitute
notice): 
 Schulte Roth & Zabel LLP 

919 Third Avenue 
 New York, NY
10022 
 Attention: Stuart D. Freedman 

Email: stuart.freedman@srz.com 

(b)     If to the Company: 

StoneMor Inc. 
 3600 Horizon
Boulevard 
 Trevose, PA 19053 

Attention: Austin So 
 Email:
aso@stonemor.com 
 with a copy (which shall not constitute notice): 

Duane Morris LLP 
 30 South
17th Street 
 Philadelphia, PA 19103 

Attention: Thomas G. Spencer 

Email: tgspencer@duanemorris.com 

or to such other address as the Company or the Purchasers may designate in writing. All notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; upon actual receipt if sent by certified or registered mail, return 

  
 21 

 
receipt requested, or regular mail, if mailed; upon actual receipt of the overnight courier copy, upon actual receipt if sent via email; and upon actual receipt when delivered to an air courier
guaranteeing overnight delivery. 
 Section 8.08    Entire Agreement.
This Agreement, the Commitment Letter, the other Transaction Documents and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein, the
other Transaction Documents or the other agreements and documents referred to herein with respect to the rights granted by the Company or any of its Affiliates or the Purchasers or any of their respective Affiliates set forth herein or therein. 

Section 8.09    Governing Law; Submission to Jurisdiction. This Agreement,
and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon,
arising out of or related to any representation or warranty made in or in connection with this Agreement), will be construed in accordance with and governed by the laws of the State of New York without regard to principles of conflicts of laws. Any
action against any party relating to the foregoing shall be brought in any federal or state court of competent jurisdiction located within the State of New York, and the parties hereto hereby irrevocably submit to the
non-exclusive jurisdiction of any federal or state court located within the State of New York over any such action. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any
objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such
dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. 

Section 8.10    Waiver of Jury Trial. THE PARTIES TO THIS AGREEMENT EACH
HEREBY WAIVES, AND AGREES TO CAUSE ITS AFFILIATES TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THIS AGREEMENT OR (b) IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE.
THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF
THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

  
 22 

 Section 8.11    Exclusive
Remedy. 
 (a)    Each party hereto hereby acknowledges and agrees that the rights of each party to consummate
the transactions contemplated hereby are special, unique and of extraordinary character and that, if any party violates or fails or refuses to perform any covenant or agreement made by it herein, the
non-breaching party may be without an adequate remedy at law. If any party violates or fails or refuses to perform any covenant or agreement made by such party herein, the
non-breaching party subject to the terms hereof, may institute and prosecute an action in any court of competent jurisdiction to enforce specific performance of such covenant or agreement or seek any other
equitable relief. 
 (b)    The sole and exclusive remedy for the Purchasers for any and all claims arising under, out
of, or related to this Agreement or the transactions contemplated hereby, excluding for the avoidance of doubt, the failure of any of the representations or warranties contained in any Transaction Document other than this Agreement to be true and
correct as of the date made, shall be the rights of indemnification set forth in Article VI only, and no Purchaser will have any other entitlement, remedy or recourse, whether in contract, tort or otherwise, it being agreed that all of such
other remedies, entitlements and recourse are expressly waived and released by the Purchasers to the fullest extent permitted by Law. Notwithstanding anything in the foregoing to the contrary, nothing in this Agreement shall limit or otherwise
restrict a fraud claim brought by any party hereto or the right to seek specific performance pursuant to Section 8.11(a). 

Section 8.12    No Recourse Against Others. 

(a)    All claims, obligations, liabilities or causes of action (whether in contract or in tort, in law or in equity, or
granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with or relate in any manner to this Agreement, or the negotiation, execution or performance of this Agreement (including any representation or
warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and are expressly limited to) the Company and the Purchasers. No Person other than the Company or the Purchasers, including no member, partner,
stockholder, Affiliate or Representative thereof, nor any member, partner, stockholder, Affiliate or Representative of any of the foregoing, shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for
any claims, causes of action, obligations or liabilities arising under, out of, in connection with or related in any manner to this Agreement or based on, in respect of or by reason of this Agreement or its negotiation, execution, performance or
breach; and, to the maximum extent permitted by Law, each of the Company and the Purchasers hereby waives and releases all such liabilities, claims, causes of action and obligations against any such third Person. 

(b)    Without limiting the foregoing, to the maximum extent permitted by Law, (i) each of the Company and the
Purchasers hereby waives and releases any and all rights, claims, demands or causes of action that may otherwise be available at law or in equity, or granted by statute, to avoid or disregard the entity form of the other or otherwise impose
liability of the other on any third Person, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization or
otherwise; and (ii) each of the Company and the Purchasers disclaims any reliance upon any third Person with respect to the performance of this Agreement or any representation or warranty made in, in connection with or as an inducement to this

  
 23 

 Section 8.13    No Third-Party
Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person, other than the Company, the Purchasers, for purposes of Section 8.11 only, any member, partner,
stockholder, Affiliate or Representative of the Company or the Purchasers, or any member, partner, stockholder, Affiliate or Representative of any of the foregoing, any right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement. 
 Section 8.14    Relationship with Commitment Letter. This
Agreement is intended by the parties to effectuate the investment in the Company by the Purchasers contemplated by the Commitment Letter and to amend the terms of the Commitment Letter as described herein, and the obligations of the parties under
the Commitment Letter shall terminate upon consummation of the transactions contemplated by this Agreement. In the event that the Closing does not occur by the Outside Date, or if this Agreement is terminated without the Closing having occurred, the
Company shall promptly initiate the Rights Offering and the parties to the Commitment Letter shall be obligated, subject to the terms and conditions thereof, to consummate the transactions contemplated thereby. 

Section 8.15    Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but
one and the same Agreement. 
 [Signature pages follow.] 

  
 24 

 IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date
first above written. 
  

			
	 STONEMOR INC.

		
	By:	 	/s/ Joseph M. Redling
	Name:	 	Joseph M. Redling
	Title:	 	President and Chief Executive Officer

 [Signature Page to Common Stock Purchase Agreement] 

 
			
	 AXAR

	
	 AXAR CAPITAL MANAGEMENT LP

		
	By:	 	/a/ Andrew M. Axelrod
	Name:	 	Andrew Axelrod
	Title:	 	Authorized Signatory

 [Signature Page to Common Stock Purchase Agreement] 

			
	 PURCHASERS

	
	 AXAR CL SPV LLC

		
	By:	 	Axar Capital Management LP
		 	its Investment Manager
		
	By:	 	/a/ Andrew M. Axelrod
	 Name:
	 	 Andrew Axelrod

	 Title:
	 	 Authorized Signatory

	
	BLACKWELL PARTNERS LLC – SERIES E, solely with respect to the assets for which Axar Capital Management LP acts as its Investment Manager
		
	 By:
	 	 Axar Capital Management LP

		 	 its Investment Manager

		
	By:	 	/a/ Andrew M. Axelrod
	Name:	 	Andrew Axelrod
	Title:	 	Authorized Signatory
	
	 STAR V PARTNERS LLC

		
	 By:
	 	 Axar Capital Management LP

		 	 its Investment Manager

		
	By:	 	/a/ Andrew M. Axelrod
	Name:	 	Andrew Axelrod
	Title:	 	Authorized Signatory

 [Signature Page to Common Stock Purchase Agreement] 

 Schedule A 

Purchase Allocation 
  

									
	 Purchaser and Address
	  	Purchased Shares	 	  	Funding Obligation	 
	             
	  	 	                                  
                  	 	  	 	                                  
                  	 
		  	  
	  
	 	  	  
	  
	 
	             
	  	 	        	 	  	 	        	 
		  	  
	  
	 	  	  
	  
	 
	             
	  	 	        	 	  	 	        	 
		  	  
	  
	 	  	  
	  
	 
	             
	  	 	        	 	  	 	        	 
		  	  
	  
	 	  	  
	  
	 

 Schedule B 

Exchange Allocation 
  

									
	 Purchaser and Address
	  	Exchanged Shares	 	  	Series A Preferred
Shares to be
Surrendered	 
	AXAR CL SPV LLC 
c/o Axar Capital Management, LP 
1330 Avenue of the Americas, 30th Floor 
New York, NY 10019 
Attention: Andrew Axelrod 
E-mail: aaxelrod@axarcapital.com	  	 	8,082,192	 	  	 	118	 
		  	  
	  
	 	  	  
	  
	 
	BLACKWELL PARTNERS LLC – Series E 
c/o Axar Capital Management, LP 
1330 Avenue of the Americas, 30th Floor 
New York, NY 10019 
Attention: Andrew Axelrod 
E-mail:
aaxelrod@axarcapital.com	  	 	2,054,795	 	  	 	30	 
		  	  
	  
	 	  	  
	  
	 
	STAR V PARTNERS LLC 
c/o Axar Capital Management, LP 
1330 Avenue of the Americas, 30th Floor 
New York, NY 10019 
Attention: Andrew Axelrod 
E-mail:
aaxelrod@axarcapital.com	  	 	1,917,808	 	  	 	28

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