Document:

SusGlobal Energy Corp.: Exhibit 10.3 - Filed by newsfilecorp.com

    

    
        AMENDING AGREEMENT

        THIS AGREEMENT is made as of the 8TH___ day of April, 2021 (the “Agreement”).

        BETWEEN:

        RIC (NASH) INC.

        (the “Vendor”)

        - and -

        SUSGLOBAL ENERGY CANADA I LTD.

        (the “Purchaser”)

        RECITALS:

        A. The Purchaser and the Vendor entered into an agreement of purchase and sale dated February 10, 2021 (as extended via email between counsel to the Purchaser and Vendor, the “Purchase Agreement”) with respect to the purchase and sale of the Purchased Assets.

        B. The parties hereto have agreed to amend certain terms of the Purchase Agreement, all on the terms hereinafter set forth.

        C. All capitalized terms used but not otherwise defined herein shall have the meaning ascribed thereto in the Purchase Agreement.

        NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the sum of $10.00, the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

        1. The recitals hereto are true and accurate in all material respects.

        2. The Vendor acknowledges receiving the proposed scope of work for a Phase II environmental site assessment to be conducted by Trafalgar Environmental Consultants on the Property, at the sole cost and expense of the Purchaser, and hereby consents to the carrying out of such Phase II, the whole in accordance with Section 4.2(b) of the Purchase Agreement.

        3. The defined term “Closing Date” is hereby amended by deleting the definition of Closing Date in its entirety, and replacing it with the following:

        “ “Closing Date” means June 4, 2021, subject to Section 7.1(b).”

        4. The defined term “Due Diligence Date” is hereby amended by deleting the definition of Due Diligence Date in its entirety, and replacing it with the following:

        “ “Due Diligence Date” means May 19, 2021, subject to Section 7.1(b).”

    

    

    
        5. Section 4.2(b) is hereby amended by adding the following to the end of the provision:

        “The Purchaser shall provide the Vendor with copies of all environmental and physical reports it receives from its consultants forthwith after the Due Diligence Date (together with reliance letters in respect of the environmental reports in favour of the Vendor as mortgagee under the VTB Loan), or, if the Purchaser does not waive its Due Diligence Condition, forthwith after the date of the termination of this Agreement.”

        6. Section 5.1(a) is hereby struck in its entirety and replaced with the following:

        “by the Due Diligence Date, the Purchaser’s Phase II environmental site assessment (i) shall not disclose the presence of contaminants in soil or groundwater at the Property beyond the applicable site condition standards set out in ‘Soil, groundwater and sediment standards for use under Part XV.1 of the Environmental Protection Act’, promulgated by the Ontario Ministry of the Environment, Conservation and Parks, and (ii) shall not recommend any further testing or monitoring of soil, groundwater, or other environmental conditions present at the Property (such condition, the “Due Diligence Condition”). For greater certainty, in the event (and only in the event) both aforementioned conditions in subsections (i) and (ii) are satisfied, the Purchaser’s Due

        Diligence Condition shall be deemed waived. Otherwise, the Purchaser’s decision to deem the Due Diligence Condition waived or satisfied shall be made in the Purchaser’s sole, subjective, absolute, and unfettered discretion;”

        7. Section 5.4 is hereby amended by striking the last sentence and replacing it with the following:

        “Without limiting the generality of the foregoing, the Vendor covenants to assist if and as reasonably required (including by coordinating with Rosen Goldberg Inc., or such other party as may be reasonably required) (i) to transfer the existing Environmental Compliance Approvals benefitting the Property to the Purchaser (or as it may direct), and (ii) to assist the Purchaser in supplanting the existing Financial Assurance security in the amount of approximately $100,000 held by the Ministry of the Environment, Conservation and Parks with new security to be posted by the Purchaser. This covenant shall survive Closing.”

        8. The following sentence shall be added below Section 7.1(b):

        “Notwithstanding anything to the contrary herein, if the Purchaser receives the Phase II environmental site assessment prior to the Due Diligence Date and, as a result of subsections (i) and (ii) of Section 5.1(a) being satisfied, the Due Diligence Condition is deemed waived, the Purchaser shall advise the Vendor within two (2) Business Days of receipt of such Phase II, and both the Closing Date and Due Diligence Date shall be amended and brought forward by an equal number of days between the original Due Diligence Date (being May 19, 2021) and the date that the Purchaser notifies the Vendor as contemplated above.”

        9. The following shall be added to the end of Schedule B:

    

    

    
        “The Vendor acknowledges the following Encumbrances are not Permitted Encumbrances and are to be discharged from title to the Lands prior to Closing:

        (i) Instrument No. WE1357585, registered May 31, 2019, being a charge securing the original principal amount of $30,026,129.00 in favour of RIC

        (Enviromaster) Inc. (“RIC (Enviromaster)”).

        (ii) Instrument No. WE1357586, registered May 31, 2019, being a notice of assignment of rents – general in favour of RIC (Enviromaster) relating to Instrument No. WE1357585.

        (iii) Instrument No. WE1424360, registered April 6, 2020, being a construction lien securing the original principal amount of $313,156 in favour of 880430

        Ontario Inc. (“880430”).

        (iv) Instrument No. WE1440256, registered July 6, 2020, being a certificate of action in favour of 880430 relating to Instrument No. WE1424360.

        The Vendor shall also discharge existing registrations under the Personal Property Security Act (Ontario) in favour of RIC (Enviromaster), or obtain and deliver no- interest letters in respect of the Property.”

        10. The third line in Schedule D shall be deleted in its entirety and replaced with the following:

        “Term: Two (2) years, expiring the day prior to the second (2nd) anniversary of the Closing Date (or, if such day is not a Business Day, the next following Business Day).

        11. The Purchase Agreement, as amended by this Agreement, is hereby ratified and confirmed and is binding upon the parties hereto in accordance with its terms and, except as expressly provided in this Agreement, remains unamended and in full force and effect and time shall continue to be of the essence.

        12. This Agreement may be executed in counterparts, each of which shall be an original and all counterparts together shall constitute a single document. The fact of execution of this Agreement may be communicated to the other parties by facsimile or email (with a .pdf attachment) transmission of the signature page of this Agreement.

        13. This Agreement shall be binding upon and shall enure to the benefit of the parties hereto and their respective successors and assigns.

        [Signature Page Follows]

    

    

    
        

        IN WITNESS WHEREOF the parties have executed this Agreement as of the first date written above.

        	 	SUSGLOBAL ENERGY CANADA I LTD.
	 	 	 
	 	 	 
	 	Per:	
	 	 	
                    Name: Marc Hazout

                    Title: President and CEO

                
	 	 	 
	 	 	 
	 	Per:	 
	 	 	
                    Name:

                    Title:

                

         

        	 	RIC (NASH) INC.
	 	 	 
	 	 	 
	 	Per:	 
	 	 	
                    Name:

                    Title:

                
	 	 	 
	 	 	 
	 	Per:	 
	 	 	
                    Name:

                    Title:

                

         

    

    

    
        

        IN WITNESS WHEREOF the parties have executed this Agreement as of the first date written above.

        	 	SUSGLOBAL ENERGY CANADA I LTD.
	 	 	 
	 	 	 
	 	Per:	 
	 	 	
                    Name:

                    Title:

                
	 	 	 
	 	 	 
	 	Per:	 
	 	 	
                    Name:

                    Title:

                

         

        	 	RIC (NASH) INC.
	 	 	 
	 	 	 
	 	Per:	
	 	 	
                    Name: RICHARD WELDON

                    Title: PRESIDENT

                
	 	 	 
	 	 	 
	 	Per:	 
	 	 	
                    Name:

                    Title:Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”), is dated as of May 14, 2021, entered into by and among
Puradigm LLC, a Nevada limited liability company (the “Company”), and DSS PureAir, Inc., a Texas corporation
(the “Investor”).

 

WITNESSETH:

 

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

 

WHEREAS,
the Company has authorized a new secured convertible note of the Company in the form attached hereto as Exhibit B
(the “Note”), which Note shall be convertible into membership interests (the “Membership Interests”)
of the Company (such interests issuable pursuant to the terms of the Note upon conversion or otherwise, collectively, the “Note
Conversion Units”) (together with the Note, the “Securities”), in accordance with the terms of the
Note;

 

WHEREAS,
the Investor wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, a Note
in the maximum principal amount of $5,000,000.00 (the “Loan Commitment Amount”); and

 

AGREEMENT

 

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

 

1.
PURCHASE AND SALE OF NOTE

 

(a)
Purchase of Note. Subject to the terms and conditions of this Agreement, the Company shall issue and sell to the Investor,
and the Investor agrees to purchase from the Company the Note. The Note shall be substantially in the form attached as Exhibit
B to this Agreement.

 

(b)
Commitment Amount Limits. The maximum principal amount of the Note that is offered for purchase shall not exceed the Loan
Commitment Amount.

 

(c)
Advances. Subject to the terms and conditions of Section 6 of this Agreement, Investor agrees to advance funds under the
Note in such amounts as may be advanced from time to time by Investor to or for the account of the Company under the Note (each
such amount being an “Advance” and more than one such amounts being “Advances”), for the
account of the Company.

 

(d)
Closing. The initial closing of the purchase and sale of the Note (the “Closing”) shall take place on
the date when all of the Transaction Documents (as defined below) have been executed and delivered by the applicable parties and
the other conditions to the Closing set forth herein and in Sections 4 and 5 below have been satisfied or waived (or such later
date as is mutually agreed to by the Company and the Investor) (the “Closing Date”).

 

(e)
Security. The Note shall be secured by the Note Conversion Units and a Security Agreement among the parties in the form
attached hereto as Exhibit C (the “Security Agreement”).

 

(f)
Delivery of Note. On the Closing Date, the Company shall deliver to the Investor the Note to be issued at such Closing,
duly executed on behalf of the Company.

 

    	 

    	 

    

 

(g)
Use of Note Proceeds. Pursuant to the terms of the Note, the Company agrees that it not use any proceeds of the Note to
pay employee bonuses, shareholder dividends, nontrade payable debt retirement or other similar expenses. Except for aforementioned,
such proceeds will be used for the primary purpose of inventory financing, including manufacturing, marketing, research and development,
and shipping. In addition, the Company may use the proceeds of the Note for reasonable working capital expense, including payment
of legal fees, interest carry on the Note, the Origination Fee (as defined below) and other business-related expenses as the parties
shall agree.

 

(h)
Origination Fee. Subject to the terms and conditions of this Agreement, at the Closing (as defined herein) the Company
hereby agrees to pay to the Investor an origination fee equal of $75,000.00 (the “Origination Fee”). The Company
intends to pay the Origination Fee from a portion of funds from its first Advance hereunder, and shall deliver to the Investor
the Origination Fee by wire transfer of immediately available funds within ten (10) days of the Closing.

 

2.
REPRESENTATIONS AND WARRANTIES. 

 

(a)
Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to
the Investor:

 

(i)
Organization and Authority. The Company is an entity duly incorporated or otherwise organized, validly existing, and, if
applicable under the laws of the jurisdiction in which it is formed, in good standing under the laws of the jurisdiction of its
incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on
its business as currently conducted. Company has full corporate power and authority to enter into this Transactions Documents,
to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery, and performance
by Company of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite corporate action on the part of Company, including the approval of the Company’s
managing members. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Company,
and this Agreement and the documents to be delivered hereunder constitute legal, valid, and binding obligations of the Company,
enforceable against Company, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance,
or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. “Transaction
Documents” means, collectively, this Agreement, the Note, the Security Agreement, the Distribution Agreement and each
of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transaction
contemplated hereby and thereby, as may be amended from time to time.

 

(ii)
Legal Proceedings. Except as set forth on Schedule 2(a)(ii), there is no claim, action, suit, proceeding
or governmental investigation (“Action”) of any nature pending or, to Company’s knowledge, threatened
against or by Company (a) relating to or affecting the Securities; or (b) that challenges or seeks to prevent, enjoin, or otherwise
delay the transactions contemplated by this Agreement, except any Actions that would not, individually or in the aggregate, have
a material adverse effect on the Company’s ability to consummate the transactions contemplated hereby on a timely basis.
To Company’s knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any
such Action.

 

(iii)
Financial Statements. Copies of financial statements of the Company as of and for the fiscal year ended December 31, 2020
are attached as Exhibit E hereto. To Company’s knowledge, the Financial Statements are true, correct, and
complete.] Beginning for the year-ended December 31, 2021, the Company will deliver to the Investor CPA reviewed financial statements
within ninety (90) days after the fiscal year end. In addition, the Company will provide and deliver to the Investor internally
prepared interim financial statements of the Company within thirty (30) days upon Investor’s requests. The Company will
be responsible for reviewing its results and data and for informing Investor immediately of any post-closing adjustments that
come to its attention.

 

    	 

    	 

    

 

(iv)
No Material Adverse Effect. The Company is not in violation nor default of any of the provisions of its respective certificate
or articles of incorporation, bylaws or other organizational or charter documents. The Company is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Documents , (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company , or (iii) a material adverse effect on the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a “Material Adverse Effect”) and no Action has been instituted in any such jurisdiction revoking, limiting
or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(v)
Issuance of Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company other than restrictions on transfer provided for in the Transaction Documents. Upon issuance or conversion or conversion
in accordance with the Note, the Note Conversion Units when issued and payment is made, if required, will be validly issued, fully
paid and non-assessable and free from all preemptive or similar rights or Liens with respect to the issuance thereof, with the
holder being entitled to all rights accorded to a holder of Membership Interests. Subject to the accuracy of the representations
and warranties of the Investor in this Agreement, the offer and issuance by the Company of the Securities is exempt from registration
under the Securities Act. For purposes of this Agreement, “Liens” means any and all liens, encumbrances, pledges,
security interests or other restrictions on transfer; provided, however, that the Securities will be subject to all restrictions
on transfer set forth in the Company’s internal governing documents, with the express exception that Investor may transfer
the Securities to an Affiliate of Investor without regard to any restriction in the Company’s internal governing documents
(a “Permitted Transfer”), so long as such Permitted Transfer complies with all relevant securities laws.

 

(vi)
No Conflicts. The execution, delivery and performance by the Company of this Agreement, and the other Transaction Documents
to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not (i) conflict with or violate any provision of the Company’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets
of the Company, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company
is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state
securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of
each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(vii)
Capitalization. The capitalization of the Company is as set forth on Schedule 2(a)(vii), which Schedule
2(a)(vii), shall also include the number and percentage of Membership Interests owned beneficially, and of record, by
Affiliates of the Company as of the date hereof. Except as set forth on Schedule 2(a)(vii), (x) no person or entity
has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents; (y) the issuance and sale of the Securities will not obligate the Company to issue
Membership Interests or other securities to any person or entity (other than the Investor); and (z) there are no outstanding securities
or instruments of the Company with any provision that adjusts the exercise, conversion or reset price of such security or instrument
upon an issuance of the Securities by the Company. For purposes of this Agreement, “Affiliate” means, with respect
to any Person, any other Person who is an “affiliate” (as defined in Rule 12b-2 of the General Rules and Regulations
under the Exchange Act), and “control” for purposes of that
definition shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or
entity, whether through ownership of voting securities, by contract or otherwise.)
of such Person. “Person” means any individual, firm, corporation, partnership, trust, incorporated or unincorporated
association, joint venture, joint stock company, limited liability company, governmental authority or other entity of any kind,
and shall include any successor (by merger or otherwise) of such entity.

 

    	 

    	 

    

 

(viii)
Compliance. Except as set forth in Schedule 2(a)(viii), the Company is not: (i) in default under or in violation
of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by
the Company under), nor has the received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case of
(i), (ii) and (iii) as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(b)
Representations and Warranties of the Investor. Investor hereby makes the following representations and warranties to the
Company:

 

(i)
Investment Purpose. Investor is acquiring the Securities for its own account for investment only and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under
the Securities Act; provided, however, that by making the representations herein, such Investor reserves the right to dispose
of the Securities at any time in accordance with or pursuant to an effective registration statement covering such Securities,
or an available exemption under the Securities Act. The Buyer agrees not to sell, hypothecate or otherwise transfer the Securities
unless such Securities are registered under the federal and applicable state securities laws or unless, in the opinion of counsel
satisfactory to the Company, an exemption from such law is available.

 

(ii)
Investor Status. At the time such Investor was offered the Securities, it was, and at the date hereof it is, an “accredited
investor” as defined in Rule 501(a) under the Securities Act or a “qualified institutional buyer” as defined
in Rule 144A(a) under the Securities Act. Such Investor is not a registered broker dealer registered under Section 15(a) of the
Exchange Act, or a member of the Financial Industry Regulatory Authority, Inc. or an entity engaged in the business of being a
broker dealer. Such Investor is not affiliated with any broker dealer registered under Section 15(a) of the Exchange Act, or a
member of the Financial Industry Regulatory Authority, Inc. or an entity engaged in the business of being a broker dealer.

 

(iii)
General Solicitation. Investor is not purchasing the Securities as a result of any advertisement, article, notice or other
communication regarding the Securities published in any newspaper, magazine or similar media, broadcast over television or radio,
disseminated over the Internet or presented at any seminar or any other general solicitation or general advertisement.

 

(iv)
Experience of Investor. Investor, either alone or together with its representatives has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Investor understands that it must bear the
economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete
loss of such investment.

 

(v)
Access to Information. Investor acknowledges that it has been afforded: (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company
and each Subsidiary and their respective financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company
possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with
respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its
representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy and completeness
of the Company’s representations and warranties contained in the Transaction Documents.

 

    	 

    	 

    

 

(vi)
Due Execution of the Delivery. The Transaction Documents constitute a legal, valid and binding obligation of the Investor
and, when executed and enforced in accordance with their terms; no consent approval, authorization, order, filing, registration
or qualification of or with any court, governmental authority or third person is required to obtained by the Company in connection
with the execution and delivery of the, or the performance of the Company’s obligations thereunder.

 

(vii)
Acknowledgment. The Investor acknowledges the legal proceeding(s) as set forth in Schedule 2(a)(ii) and Schedule
2(a)(viii).

 

3.
OTHER AGREEMENTS OF THE PARTIES

 

(a)
Transfer Restrictions. The Securities may only be disposed of in compliance with state and federal securities laws. In
connection with any transfer of Securities other than pursuant to an effective registration statement, or Rule 144, the Company
may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable
to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any
such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of
an Investor under this Agreement.

 

(b)
Legends. The Investor agree to the imprinting, so long as is required by this Section 4, of a legend on any of the Securities
in substantially the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE] HAS [NOT] BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES [AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY] MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) IN COMPLIANCE WITH RULE 144 UNDER
THE SECURITIES ACT, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (C) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN
EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. 

 

(c)
Right of First Refusal. Upon the Closing, the Investor shall have an irrevocable right of first refusal (the “Right
of First Refusal”), for a period of thirty (30) months after the Closing Date to act as an advisor and/or sponsor for
each and every future public or private equity or equity convertible offering of the Company (each, a “Subject Transaction”).
If the Company receives an offer from a third party with regard to a public or private equity or equity convertible offering,
whether as an investor, or an advisor or sponsor of a proposed Subject Transaction, or the Company of its own volition intends
to pursue a Subject Transaction pursuant to terms which it has internally developed, the Company shall notify the Investor of
its intention to pursue a Subject Transaction, including the material terms thereof, by providing written notice thereof to the
Investor. If the Investor fails to exercise its Right of First Refusal with respect to any Subject Transaction within ten (10)
Business Days after the receipt of such written notice, then the Investor shall have no further claim or right with respect to
such Subject Transaction. If, thereafter, such proposal is modified in any Material respect, the Company will adopt the same procedure
as with respect to the original Subject Transaction and the Investor shall have the right of first refusal with respect to such
revised proposal; for purposes of the foregoing, “Material” shall mean either a change in total valuation of the Subject
Transaction of greater than ten percent (10%) or a change in the form of equity being offered. The Investor may elect, in its
sole and absolute discretion, not to exercise its Right of First Refusal with respect to any Subject Transaction; provided that
any such election by the Investor shall not adversely affect the Investor’s Right of First Refusal with respect to any other
Subject Transaction. The Investor shall not have more than one opportunity to waive or terminate the right of first refusal in
consideration of any Subject Transaction. The terms and conditions of any such engagements shall be set forth in separate agreements
and may be subject to, among other things, satisfactory completion of due diligence by the Investor, market conditions, the absence
of a material adverse change to the Company’s business, financial condition and prospects, approval of the Investor’s
board of directors and any other conditions that the Investor may deem appropriate for transactions of such nature.

 

    	 

    	 

    

 

(d)
Tag along Rights. If any holder of Membership Interests of the Company or the Investor, whether alone or in combination
which hold a majority of the outstanding Membership Interests (the “Tag-Along Seller”), proposes to sell, assign,
dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such Membership Interests or any participation or interest
therein, whether directly or indirectly, or agree or commit to do any of the foregoing (“Transfer”) to any
third party (a “Tag-Along Sale”), the Tag-along (i) the Tag-Along Seller shall provide the Investor and other
holders of Membership Interests a written notice of the terms and conditions of such proposed Transfer (“Tag-Along Notice”)
and offer the Investor or such other holder the opportunity to participate in such Transfer in accordance with this Section 3(d),
and (ii) the Investor or other holder of Membership Interests may elect, at its option, to participate in the proposed Transfer
in accordance with this Section 3(d). The Tag-Along Notice shall identify the number of Membership Interests proposed to be sold
by the Tag-Along Seller and all other securities of the Company subject to the offer (“Tag-Along Offer”), the
consideration for which the Transfer is proposed to be made, and all other material terms and conditions of the Tag-Along Offer,
including the form of the proposed agreement, if any, and a firm offer by the proposed third party transferee to purchase the
securities from the Tag-Along Seller in accordance with this Section 3(d). Notwithstanding the foregoing, the Investor may at
any time Transfer any or all of its Membership Interests to an Affiliate without the consent of the Company and without compliance
with this Section 3(d), as the case may be; provided, however, that any such transfer shall comply with Section 3(a).

 

(e)
Board Seat. Subject to the Investor’s continuous ownership of any equity interest in the Company or as long as Investor
is the holder of the Note, the Investor shall have the right, and the Company shall be required upon the Investor’s request,
to place a member on the board of directors of the Company. In the event the Company does not have a board of directors then the
Company shall designate the Investor as a Managing Member, as requested.

 

(f)
Access to Products. The Company will provide to the Investor access to purchase its products at a pricing of cost of product
plus 5% and up to 2,000 units annually.

 

(g)
Distribution Agreement. As an inducement for the Investor to consummate the transactions contemplated by this Agreement,
the Company and Investor are entering into the MOU attached hereto as Exhibit F concurrently with the Closing, and the parties
shall use best efforts to enter into (or shall have entered into) a distribution agreement consistent with the MOU within 15 days
from the date this Agreement is signed. The distribution agreement will include a minimum term of five (5) years.

 

4.
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL 

 

(a)
The obligations of the Company hereunder to issue and sell the Securities to the Investor at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the sole benefit and
may be waived by the Company at any time in its sole discretion by providing the Investor with prior written notice thereof:

 

(i)
The Investor shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

    	 

    	 

    

 

(ii)
The representations and warranties of the Investor are true and accurate in all material respects (or, to the extent representations
or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date in (unless
as of a specific date therein in which case they shall be accurate as of such date).

 

5.
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE 

 

(a)
       The obligations of the Investor hereunder to purchase the Securities at the Closing
is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions
are for the sole benefit and may be waived by the Investor at any time in its sole discretion by providing the Investor with prior
written notice thereof:

 

(i)
The Company shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)
The Company shall have delivered to the Investor the Origination Fee and Note.

 

(iii)
The representations and warranties of the Company are true and accurate in all material respects (or, to the extent representations
or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date in (unless
as of a specific date therein in which case they shall be accurate as of such date).

 

(iv)
There shall have been no Material Adverse Effect with respect to the Company and no material change in the capital stock or debt
of the Company since the date hereof.

 

(v)
The Investor shall have received such documents, instruments and agreements, including UCC financing statements or amendments
to UCC financing statements, as Investor shall reasonably request to evidence the perfection and priority of the security interests
granted to Investor pursuant to the Security Agreement. Pursuant to the terms of the Security Agreement, the Company authorizes
Investor to file any UCC financing statements, continuations of or amendments to UCC financing statements it deems necessary to
perfect its security interest in the Collateral as defined therein.

 

6.
ADVANCES 

 

(a)
Advance Requests. The Investor shall make Advances under the Note in the amounts, at the times, and to the accounts requested
by the Company from time to time, in each case upon delivery to Investor of a written request by the Company for an Advance under
the Note, in the form of request attached as Exhibit A hereto (each such request being an “Advance Request”);
provided, however, that the aggregate principal amount of all Advances made under this Note may not exceed the Loan Commitment
Amount.

 

(b)
Timing. To be effective, an Advance Request must be received by the Investor on or before the third business day before
the particular calendar date specified in such Advance Request that the Company requests to be the date on which the respective
Advance is to be made.

 

(c)
Authority. The Company hereby agrees that Investor, for its purposes, may consider any Advance Request approved by or on
behalf of the authorized officers of the Company and delivered to Investor in accordance with the terms of this Agreement to be
an accurate representation of the Company’s request for an Advance under the Note and the Company’s approval of that
Advance Request.

 

(d)
Conditions to Making Advances. Investor shall be under no obligation to make any Advance under the Note unless and until
each of the conditions specified in this section 6(d) is satisfied. For each Advance, the Borrower shall have delivered to the
Investor an Advance Request, which Advance Request shall specify, among other things:

 

    	 

    	 

    

 

(i)
the particular amount of funds that the Company requests to be advanced (such amount being the “Requested Advance Amount”
for the respective Advance);

 

(ii)
the particular calendar date that the Company requests to be the date on which the respective Advance is to be made (such date
being the “Requested Advance Date” for such Advance), which date: (A) must be a business day; and (B) shall
not be earlier than the third business day to occur after the date on which the Investor shall have received the respective Advance
Request; and

 

(iii)
the particular bank account or accounts to which the Borrower requests that the respective Advance be made;

 

(e)
Means of Advance. Each Advance shall be made in immediately available funds by electronic funds transfer to such bank account(s)
as shall have been specified in the respective Advance Request.

 

7.
MISCELLANEOUS

 

(a)
Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, the Company shall pay Investor
for all costs of preparing the Transaction Documents and recordation of any Transaction Document or exhibit thereto, payable up
to $10,000.00.

 

(b)
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. There
are no promises, representations or warranties between the Parties with regard to the Transaction Documents except as expressly
set forth in the Transaction Documents. At or after the Closing, and without further consideration, the Company will execute and
deliver to the Investors such further documents as may be reasonably requested in order to give practical effect to the intention
of the parties under the Transaction Documents.

 

(c)
Notices. Any notice, consents, waivers or other communication required or permitted to be given hereunder shall be in writing
and will be deemed to have been delivered: (i) upon receipt, when personally delivered; (ii) upon receipt when sent by certified
mail, return receipt requested, postage prepaid; (iii) when sent, if by e-mail, (provided that such sent e-mail is kept on file
(whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message
from the recipient’s e-mail server that such e-mail could not be delivered to such recipient); or (iv) one (1) business
day after deposit with a nationally recognized overnight courier service with next day delivery specified, in each case, properly
addressed to the party to receive the same. The addresses and email addresses for such communications shall be:

 

	 	If
    to the Company, to:	Puradigm,
    LLC
	 	 	111
    C Street, Encinitas, CA 92024
	 	 	Attention:
    Padraig Lawlor, Chief Operating Officer
	 	 	Email:
    plawlor@puradigm.com
	 	 	 
	 	If
    to the Investor, to: 	DSS
    PureAir, Inc. 
	 	 	1400
    Broadfield, Suite 100 
	 	 	Houston,
    Texas 77084
	 	 	Attention:
    President
	 	 	Email:
    fheuszel@dsssecure.com

 

(d)
Waivers. Either hereto may by written notice to the other: (i) extend the time for the performance of any of the obligations
or other actions of the other party under this Agreement; (ii) waive compliance with any of the conditions or covenants of the
other party contained in this Agreement; and (iii) waive or modify performance of any of the obligations of the other party under
this Agreement. Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without any
limitations, any investigation by or on behalf of either party, shall be deemed to constitute a wavier by the party taking such
action of compliance with any representations, warranties, covenants or agreements contained herein. The wavier by the either
party hereof of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or
succeeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such
party’s rights or privileges hereunder or shall be deemed a waiver of such party’s rights to exerciser the same at
any subsequent time or times hereunder.

 

    	 

    	 

    

 

(e)
Conflicts of Interest. The Company and the Investor, for themselves and on behalf of their Affiliates, successors and assigns,
expressly waive any conflicts of interest or potential conflicts of interest and agree that the each of the Company and the Investor,
and its Affiliates, respectively, shall have no liability to the other party or their Affiliates, successors and assigns with
respect to such conflicts of interest or potential conflicts of interest; provided, however, that nothing in the foregoing shall
waive or excuse any party from a breach of any contractual obligations between the parties, including, but not limited to, this
Agreement or the distribution agreement to be entered into by the parties.

 

(f)
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

(g)
Assignability. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof
shall be assignable by either the Company or Investor without the prior written consent of the other parties hereto, which may
not be unreasonably withheld provided that such Assignment is to an Affiliate.

 

(h)
Amendments. Neither this Agreement nor any term or provision hereof may be amended, modified, waived or supplemented orally,
but only by a written consent executed by the parties hereto.

 

(i)
Publicity. The Company and the Investor shall have the right to review a reasonable period of time before issuance of any
press releases, SEC, Trading Market or FINRA filings, or any other public statements with respect to the transactions contemplated
hereby; provided, however, that (i) the Company and Investor shall make a joint announcement with respect to the Note with such
announcement to include only the material economic terms of the Note or such other terms as may is required by applicable law
and regulations; and (ii) each of the Company and Investor shall be entitled, without the prior approval of the other party, to
make any press release or SEC, Trading Market or FINRA filings with respect to such transactions as is required by applicable
law and regulations (although the other party shall be consulted by the disclosing party in connection with any such press release
prior to its release and shall be provided with a copy thereof and be given an opportunity to comment thereon). It is intended
that the Company and Investor shall make a joint.

 

(j)
Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas without
regard to the principles of conflict of laws. The parties further agree that any action between them shall be heard exclusively
in federal or state court sitting in the Harris County, Texas.

 

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

 

(l)
Survival. Unless this Agreement is terminated under Section 7(n), the representations and warranties of the Company and
the Investor and the agreements and covenants set forth in this Agreement shall survive the Closing for a period of twelve (12)
months following the later of the date on which the Note is repaid in full or converted into Note Conversion Units in their entirety
as provided in the Transaction Documents; provided, however, that such representations and warranties shall in no way be affected
by any investigation or knowledge of the subject matter thereof made by or on behalf of the Investor or the Company.

 

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

 

(n)
Termination. In the event that the Closing shall not have occurred on or before May 17, 2021 due to the Company’s
or the Investor’s failure to satisfy the conditions set forth in Sections 4 and 5 above (and the non-breaching party’s
failure to waive such unsatisfied condition(s)), the non-breaching party shall have the option to terminate this Agreement with
respect to such breaching party by providing five (5) days’ written notice to such breaching party of the non-breaching
party’s intent to terminate this Agreement (and if the non-breaching party is the Investor, to also withdraw its subscription)
at the close of business on such date without liability of any party to any other party.

 

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

 

(p)
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, the Investor and the Company will be entitled to specific performance under this Agreement. The parties agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agree to waive in any action for specific performance of any such obligation the defense that a remedy at
law would be adequate.

 

[Signature
Page Follows]

 

    	 

    	 

    

 

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

 

	 	COMPANY:
	 	PURADIGM,
    LLC. 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	Managing
    Member 

 

	 	INVESTOR:
	 	DSS PUREAIR, INC.
	 	 	 
	 	By:	 
	 	Name:	Frank
    D. Heuszel 
	 	Title:	President

 

    	 

    	 

    

 

EXHIBIT
A 

 

Advance
Request

 

    	 

    	 

    

 

EXHIBIT
B 

 

Convertible
Promissory Note 

 

    	 

    	 

    

 

EXHIBIT
C 

 

Security
Agreement 

 

    	 

    	 

    

 

EXHIBIT
D 

 

Distribution
Agreement

 

    	 

    	 

    

 

EXHIBIT
E 

 

Financial
Statements

 

    	 

    	 

    

 

EXHIBIT
F 

 

Memorandum
of Understanding

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