Document:

Exhibit 10.9

 

 

MCTC HOLDINGS, INC.

(In Process of Changing Name to Cannabis
Global, Inc.)

 

(OTC:MCTC)

 

A Delaware Corporation

 

CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM

 

Up to $1,000,000

 

Offering Price: 

$0.025 per Common Share

 

This document is for
informational purposes only. The contemplated transactions between Cannabis Global Inc, Inc, and/or MCTC Holdings, Inc.
and/or various investors are pending at this time. Prospective investors should carefully read and retain this Confidential
Private Placement Memorandum (the “Memorandum”). This Private Placement Memorandum is confidential.

 

The Date of this Memorandum is June 21,
2019

 

THE SECURITIES OFFERED PURSUANT TO
THE TERMS OF THIS PRIVATE PLACEMENT MEMORANDUM ARE HIGHLY SPECULATIVE AND INVOLVE RISKS (SEE “RISK FACTORS”). NO
ONE SHOULD INVEST IN THIS OFFERING UNLESS THEY HAVE REVIEWED THIS PRIVATE PLACEMENT MEMORANDUM CAREFULLY AND THEY ARE
PREPARED TO BEAR THE RISK OF THIS ILLIQUID INVESTMENT.

 

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THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), NOR QUALIFIED, APPROVED
OR DISAPPROVED UNDER ANY OTHER FEDERAL OR STATE SECURITIES LAWS. NEITHER THE SECURITIES AND EXCHANGE COMMISSION (“SEC”)
NOR ANY OTHER FEDERAL OR STATE REGULATORY AUTHORITY HAS PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY
OF THIS MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. THE SECURITIES OFFERED HEREIN MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF BY AN INVESTOR UNLESS THEY ARE REGISTERED UNDER THE SECURITIES ACT AND, WHERE REQUIRED, UNDER THE LAWS
OF OTHER JURISDICTIONS, UNLESS SUCH PROPOSED SALE, TRANSFER OR DISPOSITION IS EXEMPT FROM SUCH REGISTRATION.

 

NO OFFERING LITERATURE OR ADVERTISING OR ORAL REPRESENTATIONS
SHALL BE USED IN THIS OFFERING

EXCEPT THE
INFORMATION USED IN THIS PRIVATE PLACEMENT MEMORANDUM. THE DELIVERY OF THIS PRIVATE PLACEMENT MEMORANDUM DOES NOT IMPLY THAT
THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF. NO PERSON HAS BEEN AUTHORIZED TO
MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED HEREIN AND, IF GIVEN OR MADE, SUCH INFORMATION AND REPRESENTATIONS MUST
NOT BE RELIED UPON. EACH OFFEREE AND HIS OR HER AUTHORIZED REPRESENTATIVE IS OFFERED THE OPPORTUNITY TO ASK QUESTIONS AND/OR
RECEIVE ANSWERS FROM THE COMPANY CONCERNING THE TERMS AND CONDITIONS OF THIS OFFERING AND TO OBTAIN SUCH ADDITIONAL
INFORMATION AS HE OR SHE SHALL DEEM NECESSARY TO VERIFY THE ACCURACY OF THE INFORMATION SET FORTH HEREIN TO THE EXTENT SUCH
ADDITIONAL INFORMATION MAY BE OBTAINED BY THE COMPANY WITHOUT UNREASONABLE EFFORT OR EXPENSE. DOCUMENTS REFERRED TO HEREIN
ARE AVAILABLE FOR INSPECTION BY POTENTIAL INVESTORS OR THEIR REPRESENTATIVES UPON REQUEST.

 

IMPORTANT NOTICES

 

THIS IS A PRIVATE OFFERING MADE PURSUANT TO APPLICABLE
FEDERAL AND STATE “PRIVATE PLACEMENT” EXEMPTIONS. THE SECURITIES MUST BE ACQUIRED FOR INVESTMENT PURPOSES ONLY
AND ONCE ACQUIRED WILL NOT BE FREELY TRANSFERABLE.

 

THIS PRIVATE PLACEMENT MEMORANDUM
DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS UNLAWFUL.
THIS MEMORANDUM CONSTITUTES AN OFFER ONLY IF DELIVERY OF THIS PRIVATE PLACEMENT MEMORANDUM IS PROPERLY AUTHORIZED BY THE
COMPANY. THIS PRIVATE PLACEMENT MEMORANDUM HAS BEEN PREPARED BY THE COMPANY SOLELY FOR THE BENEFIT OF PERSONS INTERESTED IN
THE PROPOSED SALE OF THE SECURITIES AND ANY DISTRIBUTION OR REPRODUCTION OF THIS PRIVATE PLACEMENT MEMORANDUM, IN WHOLE OR
PART, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY, IS PROHIBITED.

 

NO PERSON HAS BEEN
AUTHORIZED TO MAKE ANY REPRESENTATIONS OR PROVIDE ANY INFORMATION WITH RESPECT TO THE INTERESTS EXCEPT SUCH INFORMATION AS IS
CONTAINED IN THIS PRIVATE PLACEMENT MEMORANDUM OR TO MAKE ANY REPRESENTATIONS CONCERNING THE COMPANY OTHER THAN THOSE CONTAINED
IN THIS PRIVATE PLACEMENT MEMORANDUM AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON.

 

THE CONTENTS OF THIS PRIVATE
PLACEMENT MEMORANDUM SHOULD NOT BE CONSTRUED AS INVESTMENT, LEGAL OR TAX ADVICE. A NUMBER OF FACTORS MATERIAL TO A DECISION
WHETHER TO INVEST IN THE SECURITIES HAVE BEEN PRESENTED IN THIS PRIVATE PLACEMENT MEMORANDUM IN SUMMARY OR OUTLINE FORM ONLY
IN RELIANCE ON THE FINANCIAL SOPHISTICATION OF THE OFFEREES. EACH INVESTOR SHOULD CONSULT HIS OR HER OWN COUNSEL, ACCOUNTANT
AND OTHER PROFESSIONAL ADVISORS AS TO LEGAL, TAX AND OTHER RELATED MATTERS CONCERNING HIS OR HER INVESTMENT.

 

SECURITIES ARE
AVAILABLE ONLY TO PERSONS WILLING AND ABLE TO BEAR THE ECONOMIC RISKS OF THIS INVESTMENT. INVESTMENTS IN THE COMPANY ARE
SPECULATIVE, ILLIQUID AND INVOLVE A HIGH DEGREE OF RISK (SEE OUR FILINGS WITH THE SEC AND ANY/ALL CAUTIONARY STATEMENTS AND
RISK FACTORS). THE INVESTMENTS ARE SUITABLE AS AN INVESTMENT ONLY FOR A VERY LIMITED PORTION OF THE RISK SEGMENT OF AN
INVESTOR’S PORTFOLIO.

 

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THIS OFFERING IS AVAILABLE
ONLY TO “ACCREDITED INVESTORS” AS THAT TERM IS DEFINED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED (SEE “SUITABILITY
OF INVESTMENT,” BELOW).

 

SUITABILITY OF INVESTMENT

 

The investment described
herein involves risks and is offered only to entities and individuals who can afford to assume such risks for a substantial period
of time, and who agree to purchase only for investment purposes and not with a view toward transfer, resale, exchange or distribution.
Each investor agrees to purchase with the understanding that they may need to hold securities purchased in this offering indefinitely.
Resales and other transfers of the shares of common stock could have adverse Tax consequences and are restricted by federal and
state securities laws.

 

ACCORDINGLY, THIS
INVESTMENT IS NOT SUITABLE FOR INVESTORS WHO DO NOT HAVE ADEQUATE LIQUID ASSETS TO AFFORD A LONG TERM, ILLIQUID INVESTMENT.

 

The securities offered
hereby are suitable only for those investors whose business and investment experience make them capable of evaluating the merits
and risks of their prospective investment in the Company, who can afford to bear the economic risk of their investment for an indefinite
period, and who have no need for liquidity in this investment. Each investor will be required to represent that such investor is
acquiring the securities being purchased by such investor for his or her own account as principal, for investment purposes and
not with a view toward resale or distribution and that he or she is aware that his or her transfer rights are restricted by federal
and state securities laws and by the absence of a market for the securities.

 

In addition, each
investor must also represent that (i) his or her overall commitment to investments which are not readily marketable is not disproportionate
to his or her net worth and his or her investment in the securities will not cause such overall commitment to become excessive;
(ii) he or she has evaluated the risks of investing in the Company; (iii) he or she has substantial experience in making investment
decisions of this type or is relying on his, or her own tax adviser, or other qualified investment adviser in making this investment
decision; and (iv) he or she is purchasing the securities for his or her own account, for investment purposes and not with a view
to subsequent distributions. In addition, each investor must represent that he or she has (i) a net worth (excluding home, home
furnishings, and automobiles) in excess of $1,000,000.00, or (ii) a natural person who has an annual income in excess of $200,000.00
in each of the two most recent years, or a joint income with a spouse of $300,000.00 in each of those years, and who reasonably
expects to reach the same level in the current year.

 

The Company will
also require investors to complete a Subscription Agreement, and may make or cause to be made such other representations by investors
as the Company may deem appropriate. The Company will have absolute discretion regarding the sale of securities to any prospective
purchaser. In addition, because of the complexities, the lack of liquidity and the high degree of risk that an investment in the
securities involves, each prospective purchaser may be required to seek the advice of a person having such knowledge and experience
in financial and business matters as will permit meaningful evaluation of the merits and risks of an investment in the securities.

 

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SUMMARY OF THE OFFERING

 

The following is a summary of terms and
conditions of an investment in Cannabis Global Inc, Inc. a Delaware Corporation (the “Company”).

 

Offering Terms:

 

	Summary of Offering:	The Company is offering an approximate 10% common share position in the Company for $1,000,000.
	 	 
	Number of Shares Offered:	40,000,000
	 	 
	Price to Investors:	$0.025 per common share.
	 	 
	Minimum Purchase:	The minimum purchase for this financing is Fifty Thousand Dollars ($50,000). The Company may sell less than the minimum number of Shares at its sole discretion.
	 	 
	Offering Period:	June 21, 2019 through July 31, 2019, unless extended by us to a later date.
	 	 
	Subscription Agreement:	Each of the investors in this Offering and the Company will execute a Subscription Agreement which shall provide for the purchase and sale of the Securities and set forth representations and warranties on behalf of each of the investors and the Company and covenants of the Company.
	 	 
	Restrictions On Transfer:	Securities purchased in this Offering may not be transferred or resold except as permitted under The Securities Act of 1933, as amended, and applicable state securities laws, pursuant to registration or exemption therefrom. Securities purchased in this Offering will be legended to reflect the foregoing rights and obligations.

 

The Company reserves
the right to accept or reject any subscription in its sole discretion for any reason whatsoever and to withdraw this Offering
at any time prior to the acceptance of the subscriptions received. Subscription funds paid by a Subscriber whose subscription
is rejected will be returned promptly, without interest or deduction.

 

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Business Summary

 

MCTC Holdings, Inc.
will be changing its corporate identify to Cannabis Global, Inc. (“Cannabis Global Inc” or “the Company”).

 

The newly organized
Company will operate as a global player in the fast growing and highly lucrative cannabis marketplace and will be involved in both
the industrial hemp markets, where permitted and legal under the 2018 Farm Bill, and the legal marijuana markets, as permitted
and licensed by way of various state and local laws and regulations.

 

By way of definitions within this document, we reference “hemp” as cannabis that contains less than 0.03% Tetrahydrocannabinol (“THC”),
marijuana as cannabis cultivated and processed to produce a psychoactive effect and “cannabis” to mean either or both.

 

The philosophy behind the organization of Cannabis Global Inc
is simple:

 

Assemble
a team of highly experienced cannabis entrepreneurs and investors into a publicly traded company and then “roll in”
various high growth assets including IP’s & patents and initiate various new business initiatives within chosen cannabis
sectors in order to produce strong revenue growth and meaningful margins for the Company, thus, producing returns for investors
that exceed the returns generally available via other investments.

 

While the directors
and executives of the Company are detailed in a later section, these principles consist of individuals with significant specific and long standing experience as cannabis entrepreneurs, individuals
with successful track records as executives in publicly traded cannabis companies, individuals with meaningful cannabis cultivation
and processing experience, in addition to team members highly experienced in the cannabisrelated capital markets.

 

Initial Assets and Operations

 

While several acquisitions
and roll ups of assets associated with the principals are planned, the initial assets and operations of the Company will consist
of:

 

		1)	Project One - Hemp cultivation and research facility located in Southern California,

 

		2)	Project Two - Research and development hemp program located at the Southern California location,

 

		3)	Project Three - Powdered cannabis drink mixes, based on proprietary technologies and,

 

		4)	Project Four - Development of unique cannabis-related technologies and intellectual properties with the aim of developing a
robust IP portfolio.

 

 

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These are outlined in summary form below:

 

Cannabis Global Inc Redlands Hemp Project

 

The Redlands Hemp
Project will be an integrated hemp and research facility located in Redlands California, which is approximately 75 miles southeast
of Los Angeles. The facility will not hold a hemp cultivation operation, but also few selected research facilities dedicated to
new methods of hemp cultivation, harvesting, drying and packaging biomass for sales to the marketplace.

 

The project will be conducted as a joint venture with Marijuana
Company of America, Inc. (OTCQB:MCOA) based on its recently acquired cultivation rights.

 

Even though located
in an area rich in agriculture history, the land on which Redlands Hemp is located has never been farmed. Thus, the Company will
immediately apply for California Organic Certification, a process which generally
takes only a few weeks under such circumstances. Ample water and cultivation resources are also available on site via the Company’s
joint venture partners.

 

CBD and THC Drink Mixes

 

Investment bank, Canaccord Genuity is estimating the CBD cannabis
beverage market could make up approximately 20% of the overall cannabis edibles market by 2022. It is estimated that the THC portion
of the marketplace will also be growing very rapidly.

 

The report cites
that one of the major driving factors behind the current market growth for the CBD portion of the sector is the ease of distribution
as there are few regulations limiting market growth. Numerous large beverage companies have expressed strong interest in this market
sub-sector with several already making considerable investments.

 

The vast majority
of the cannabis beverages that have entered the market are pre-mixed beverages. We at Global Cannabis believe a strong opportunity
exists to introduce a different subset of cannabis drinks – pre-packaged powdered cannabis infused that the consumer mixes
with water before consumption.

 

We feel there are
several advantages to entering the powdered drink market. First, there are relatively few products on the market. While leading
websites like WeedMaps list dozens of cannabis edibles and premixed drinks, there are almost no premixed powdered drink mixes.
Second, while larger companies will have little trouble with the infusion technologies, smaller players will experience some level
of entry barrier due to technology issues of infusion and cost of machinery. Additionally, because powdered drink mixes are significantly cheaper to ship versus premixed drinks, there is an inherent profit margin advantage in favor of powdered drinks.

 

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Our Powdered Drink Mix Infusion Technologies

 

We have developed
a method to infuse water-soluble substrates with cannabis distillates and isolated cannabinoids. We then combine these infused
substrates with  flavorings to create our powdered drink mixes, which are then packaged
in “stick pack or sachets” formats.

 

Our infusion method
is based on a proprietary micro-encapsulated, nanoemulsion formulation of cannabis extracts, which are then infused into organic
substrates derived from organic fruits and vegetables.

 

The method, which
utilizes high sheer cavitation with a proprietary mixture of organic carrier oils allows us to produce
flavored powders that when combined with water create drinks with little to almost no cannabis taste.

 

It is well documented
within the  field of pharmaceutical science that the use of micro encapsulation and
nanoemulsions significantly increases bioavailability of fat soluble ingredients
and provides much faster onset, mainly relating to the psychoactive effects of THC.

 

While at this time
we are making no such claims, we believe it is likely that our formulations are producing similar results. We believe it is possible
at a future date to conduct clinical studies to confirm such possible results.

 

Cannabis Global Inc plans to introduce the following premixed
cannabis infused products:

 

Sweet
Drinks CBD Line – The Company will introduce a series of highly  flavored
drink mixes similar to the highly successful Crystal Light product line. These will be infused with 25mg of CBD full spectrum hemp
distillates. In the future CBD isolates could also be used, but the Company believes a full spectrum approach is superior. It is
expected that  five  flavors will initially
be made available. Margins on such products are expected to be very strong. Pricing on a per stick pack level will be targeted
at around $4.00, which compares favorably to other CBD-oriented premixed products. With low cost for shipping, retailers and distributors
will likely be able to command superior margins compared to pre-mixed drinks. Company all-in costs are expected to be well below
$1.00 per stick pack.

 

Sweet
Drinks THC Line - The Company will introduce a line of THC containing sweet drink mixes for the legal recreational cannabis
marketplace. These products will be made in strict accordance with state and local regulations and will, in most cases, contain
no more than 10MG of THC per serving.

 

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Dr. Matcha
Line for Matcha Green Tea Mixes - Under the brand name, Dr. Matcha, the Company will market a line of powdered green tea and
matcha tea drink mixes. We envision both organic and non-organic version of these products. It is envisioned that the Dr. Matcha
product line will be made in versions containing only THC, only CBD, and a combination of both THC and CBD.

 

Other
Coffee and Tea – The Company will approach the powdered coffee and tea markets with a similar cost and pricing
structure. The different target market will require an increased level of sophistication, which will be reflected in the
product positioning and packaging. Initial products will be mainstream ground and instant coffees and teas. The
Company will then expand into subcategories of coffee and tea powdered drink products. It is envisioned that coffee and tea
product lines will be made in versions containing only THC, only CBD, and a combination of both THC and CBD.

 

Energy
Effervescent Tablets – Utilizing excipients from the pharmaceutical industry, which require very little post processing,
the Company will launch a line of effervescent energy tablets containing CBD to be packed in ready made tubes. Several large companies
have developed the non-CBD market for effervescent tablets, but the Company has found no CBD products being marketed. While we
will  first produce a CBD only variety, we are also likely to follow on with THC versions
of these products.

 

Cocktail
Mixers - While almost all states prohibit the use of alcohol in cannabis products, we plan to introduce a line of powdered
non-alcoholic cocktail mixers that contain THC.

 

Distribution

 

White Label Initial Focus

 

While we will market our own brands, the
primary initial strategy will be to white label products for other companies.

 

Numerous companies
have expressed an interest in marketing and distributing the MCTC products. Many of these companies are growing rapidly, but the
product lines being marketed are relatively limited to CBD tinctures, pain creams, and beauty treatments.

 

MCTC management strongly
believes there is a significant void in the market for a white label premixed powdered
drinks containing CBD.

 

The Company believes
it will be able to command strong margins via a white label product strategy, while allowing distribution partners to mark up products
by at least 100%.

 

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Retail and Dispensary Distribution

 

Via our investors
and directors, we have strong access to the legal cannabis dispensary marketplace. We plan to make extensive use of this channel
to market our THC and CBD powdered drink mixes through our private labels.

 

Timing for Product Introductions

 

With product development completed, MCTC will be able to enter
the market very quickly.

 

Upon receipt of adequate
capital, management estimates products can be ready for market distribution within 60 days.

 

Intellectual Property

 

Cannabis Global Inc also plans to develop, patent and license
several cannabis-related technologies.

 

It is envisioned these will include:

 

Dissolvable Edible CBD Film

 

The Company
has made an agreement with a Southern California based inventor to create a joint venture to develop and patent a dissolvable edible
 film containing cannabidiol.

 

We envision
this dissolvable  film being utilized as a packaging technology for various powdered
foods. The Company will be able to develop its own products based on the  film technology
or will be able to license the  film to food manufacturers. Upon completion of an effective
joint venture agreement with the inventor, the joint venture plans to  file a provisional
patent to protect the invention(s).

 

4D Printed Cannabinoid Delivery System for Foods
and Beverages

 

Company
personnel have also developed a novel methodology for delivering cannabinoids to foods and beverages utilizing 3D printing technology.
This technology has been modified to include a “4th dimension” to the
delivery system.

 

The technology
is in the form of an edible disc that when placed into a beverage releases the active ingredient while changing into unique predetermined
shapes.

 

The Company will seek to
file provisional patent(s) on this technology.

 

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Patents on Unique Formulations

 

The Company will also seek intellectual
property for its unique product formulations, via provisional patent process.

 

We envision multiple provisional
patent applications  filings over the short-term relative to these formulations.

 

The Cannabis Global Inc Team

 

Arman Tabatabaei - CEO and Chairman

 

Mr. Tabatabaei is
a founder and Chairman of Cannabis Global Inc, Inc. With over 15 years of management and operations experience, he has earned a
strong reputation for a numbersbased analytical approach to the management of organizations. An expert at data collection and analysis
relative to resource management, risk forecasting and profit and loss management,
he has made significant progress in revamping operations of several companies over
the past few years.

 

Most recently, Mr.
Tabatabaei has consulted with Cannabis Strategic Ventures (OTCQB:NUGS) on various growth initiatives relative to both cannabis
cultivation and the organization of new hemp-related retail operations. At Sugarmade, Inc., (OTCQB:SGMD) he has been instrumental
in revamping various operations relative to the Company’s hydroponic growth supplies initiatives.

 

Previously, he consulted
with large corporations to create supply chain efficiencies using mathematical models
and software such as JPM, SPSS and Minitab. Arman is also well versed in the retail industry after having started and successfully
selling several retail establishments.

 

Mr. Tabatabaei possesses a Master of Business Administration
degree from the University of

 

Redlands, with additional
post-graduate work in predictive analysis from Pennsylvania State University and a Bachelor of Science degree in health sciences,
with an emphasis on mathematics and physics.

 

Robert Hymers - Director

 

Mr. Robert L. Hymers
is a founder and Director of Cannabis Global Inc. Inc. He has significant experiences
in the cannabis sector and as a  financial executive and consultant. Mr. Hymers is
the Managing Partner of Pinnacle Tax Services in Los Angeles and was previously Chief Financial Officer and Director of Marijuana Company of America, Inc. (OTC: MCOA). He currently serves as a member of the Strategic Advisory
Board at MassRoots, Inc., as a consultant for Cannabis Strategic Ventures, Inc. (OTC: NUGS) and Sugarmade Inc. (OTC: SGMD), with
significant experience in matters concerning tax accounting, auditing, SEC reporting,
mergers and acquisitions, and corporate finance. Mr. Hymers holds a Master of Science
in Taxation and a Bachelor’s of Science in Accountancy, in addition to a CPA license.

 

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Robert also has specific tax audit experience by way of employment at Ernst & Young (EY) where he worked
in the firm’s core assurance practice performing audits of publicly and privately
held companies, specifically in the real estate industry. Mr. Hymers subsequently
transferred to the EY’s tax practice, where he specialized in providing tax services to clients in the real estate industry. Mr.
Hymers specializes in partnership taxation. In addition, He has a broad range of experience, including ASC 740 tax provision audits,
FIN 48 compliance, REIT compliance, preparation of 1120, 1065, and 1120S returns, multi-state tax compliance and international
tax consulting. He was also a member of EY’s National Tax Group (FSO) for several years, which services private equity firms, hedge funds and banks. Previously he was also the VP of Finance and Accounting of Everlert’s wholly owned subsidiary, Totalpost
Services, Inc., located in Monrovia, California and was CFO of Global Hemp Group, Inc. (OTCQB: GBHPF).

 

Edward Manolos - Director

 

Mr. Edward Manolos
a founder and Director at Cannabis Global Inc, Inc. and is one of the most accomplished pioneers in California’s Medical
Marijuana industry.

 

In 2004, he opened
the very first Medical Marijuana Dispensary in Los Angeles County under the name CMCA.
He has managed and operated over thirty five dispensaries from Los Angeles to San
Jose including twenty In Los Angeles Pre-ICO/Prop D. He is also credited with starting Los Angeles’ first Medical Marijuana farmers market referred to as “The California Heritage Farmer’s Market,” which attracted
local and international media attention and was the first of its kind.

 

He is currently a member of the board of directors of
Marijuana Company of America (OTCQB: MCOA). In 2016, Mr. Manolos was appointed to the advisory board of Marijuana Company of
America and Cannabis Strategic Ventures (OTCQB: NUGS) and was tasked with identifying and structuring strategic partnerships
and driving product development.

 

Mr. Manolos is also
the founder of many successful companies, such as Natural Plant Extracts of California (NPEC), located in Lynwood, CA and holds
one of the first State of California issued volatile manufacturing licenses. NPEC
has added distribution and delivery licenses and is locking in distribution contracts with some of the largest licensed cannabis
brands in California. He is also affiliated with Everest Biosynthesis Group, a leading
producer of pharmaceutical grade CBD.

 

He also co-founded
Ocen Communications Inc. in 1997, which was previously traded on NASDAQ under the symbol OCEN, which was an Asia-focused internet
communications service provider transmitting voice, fax, and data communications for consumers, carriers and corporations. His
diverse entrepreneurial focus led him to later launch the KIWIBERRI Frozen yogurt franchise in 2005.

 

Mr. Manolos has also
provided consulting services to numerous other companies relative to the obtainment of California and Washington marijuana retail
and production licenses. Mr Manolos graduated from the University of California, Riverside with a Bachelor of Science degree in
Computer Science and Business Administration.

 

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Important Risk Factors

 

An investment in Cannabis Global Inc, Inc. involves
significant risk.

 

You should
seek the advice of appropriate professional advisors if you do not possess the necessary background or experiences to analyze or
manage these risks.

 

You should
carefully consider the following risks and uncertainties in addition to other information in this prospectus in evaluating our
company and our business before purchasing our securities. Our business, operating results and financial condition could be seriously harmed as a result of the occurrence of any of the following risks. You could lose all or
part of your investment due to any of these risks. You should invest in our common stock only if you can afford to lose your entire
investment.

 

Risks Related to Our Business

 

We plan on deriving most, or a substantial
portion of our revenues from the cultivation, processing, and distribution of cannabis and cannabis contained items.

 

Operation
of new businesses, or existing businesses, in the cannabis sector involves a great deal of risk and our investors should be prepared
accordingly to accept a high level of investment risk, including loss of all invested capital.

 

The Farm Bill recently passed, and
undeveloped shared state-federal regulations over hemp cultivation and production may impact our business.

 

The Farm
Bill was signed into law on December 20, 2018. Under Section 10113 of the Farm Bill, state departments of agriculture must consult
with the state’s governor and chief law enforcement officer to devise a plan
that must be submitted to the Secretary of USDA. A state’s plan to license and regulate hemp can only commence once the Secretary
of USDA approves that state’s plan. In states opting not to devise a hemp regulatory program, USDA will need to construct
a regulatory program under which hemp cultivators in those states must apply for licenses and comply with a federallyrun program.
The details and scopes of each state’s plans are not known at this time and may contain varying regulations that may impact
our business. Even if a state creates a plan in conjunction with its governor and chief law enforcement officer, the Secretary of the USDA must approve it. There can be no guarantee that any state plan will be approved. Review times may
be extensive. There may be amendments and the ultimate plans, if approved by states and the USDA, may materially limit our business
depending upon the scope of the regulations.

 

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Laws and regulations affecting our industry to be developed
under the Farm Bill are in development.

 

As a result
of the Farm Bill’s recent passage, there will be a constant evolution of laws and regulations affecting the hemp industry
that could detrimentally affect our operations. Local, state and federal hemp laws and regulations may be broad in scope and subject
to changing interpretations. These changes may require us to incur substantial costs associated with legal and compliance fees
and ultimately require us to alter our business plan. Furthermore, violations of these laws, or alleged violations, could disrupt
our business and result in a material adverse effect on our operations. In addition, we cannot predict the nature of any future
laws, regulations, interpretations or applications, and it is possible that regulations may be enacted in the future that will
be directly applicable to our business.

 

Our current or planned involvement
in the cultivation, processing, distribution, and general activities relating to cannabis may conflict with the Federal Controlled
Substances Act.

 

Cannabis,
marijuana and derivatives, while legal in California and in some other states, remains illegal under federal law, and are “Schedule
1” drugs under the Controlled Substances Act (21 U.S.C. § 811). As Schedule 1 drugs, cannabis, marijuana and derivatives
are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled
Substances Act, and persons violating it are subject to federal criminal prosecution. The criminal penalty structure in the Controlled
Substances Act is determined based on the specific predicate violations, including
but not limited to: simple possession, drug trafficking, attempt and conspiracy,
distribution to minors, trafficking in drug paraphernalia, money laundering, racketeering,
environmental damage from illegal manufacturing, continuing criminal enterprise, and smuggling. A first conviction under the Controlled Substances Act can generally result in possible fines from $250,000 to $50 million dollars, and incarceration for periods generally from five and up to forty years. For a second conviction, fines increase generally from
$500,000 to $75 million dollars, and incarceration for periods generally from ten years to twenty years to life. Some of our such
business activities is in direct conflict with the federal Controlled Substances
Act. If the federal government were to enforce the Controlled Substances Act as it relates to cannabis, said activities could be
materially affected.

 

Risk of government action

 

While we
will use our best efforts to comply with all laws, including federal, state and local laws and regulations, there is a possibility
that governmental action to enforce any alleged violations may result in legal fees and damage awards that would adversely affect
us.

 

We are a new business and we may never be successful

 

We are
just beginning business operations and have as of yet developed no revenue streams. As a result, we may incur significant financial losses in the foreseeable future. There is no history upon which to base any assumption as to the likelihood that
our Company will prove successful. We cannot provide investors with any assurance that our business will attract customers
and investors. If we are unable to address these risks, there is a high probability that our business will fail.

 

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Because our business is dependent
upon continued market acceptance by consumers, any negative trends will adversely affect our business operations

 

We will
be substantially dependent on continued market acceptance and proliferation of consumers of cannabis and cannabis related products.
We believe that as cannabis, hemp and hemp-derived CBD becomes more accepted as a result of the passage of the Farm Bill, the stigma
associated with these sector will diminish and as a result consumer demand will continue to grow. While we believe that the market
and opportunity in the hemp space continues to grow, we cannot predict the future growth rate and size of the market. Any negative
outlook on the industry will adversely affect our business operations.

 

The possible
FDA Regulation of hemp and industrial hemp derived CBD, and the possible registration of facilities where hemp is grown and CBD
products are produced, if implemented, could negatively affect the cannabis industry generally, which could directly affect our
financial condition

 

The Farm Bill established that hemp containing less
the .03% THC was no longer a Schedule 1 drug under the CSA. Previously, the U.S. Food and Drug Administration (“FDA”)
did not approve hemp or CBD derived from hemp as a safe and effective drug for any indication. The FDA considered hemp and hemp-derived
CBD as illegal Schedule 1 drugs. Further, the FDA has concluded that products containing hemp or CBD derived from hemp are excluded
from the dietary supplement definition under sections 201(ff)(3)(B)(i) and (ii) of the U.S. Food, Drug & Cosmetic Act, respectively.
However, as a result of the passage of the Farm Bill, at some indeterminate future time, the FDA may choose to change its position
concerning products containing hemp, or CBD derived from hemp, and may choose to enact regulations that are applicable to such
products, including, but not limited to: the growth, cultivation, harvesting and processing of hemp; regulations covering the
physical facilities where hemp is grown; and possible testing to determine efficacy and safety of hemp derived CBD. In this hypothetical
event, products containing CBD may be subject to regulation. In the hypothetical event that some or all of these regulations are
imposed, we do not know what the impact would be on the hemp industry in general, and what costs, requirements and possible prohibitions
may be enforced. If we are unable to comply with the conditions and possible costs of possible regulations and/or registration
as may be prescribed by the FDA, we may be unable to continue to operate our business.

 

We may have difficulty accessing the service of
banks

 

It is
often difficult for cannabis business to access the services of banks and we may experience such difficulties. On February
14, 2014, the U.S. government issued rules allowing banks to legally provide financial services to state-licensed cannabis
businesses. A memorandum issued by the Justice Department to federal prosecutors re-iterated guidance previously given, this
time to the financial industry, that banks can do business with legal cannabis businesses and “may not” be
prosecuted. We assume this applies to hemp. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued
guidelines to banks that “it is possible to provide financial services”” to state-licensed cannabis (and hemp)
businesses and still be in compliance with federal anti-money laundering laws. These provisions created barriers to our
banking operations. With the passage of the Farm Bill, we expect that the banking industry will be more open to doing
business with compliant hemp businesses. However, this may take time and may not result in a more open banking climate. We
expect that banks will be more open to serving hemp businesses, but there is no guarantee – even with the passage of
the Farm Bill.

 

    14

     

    

 

Banking regulations in our business are costly and time
consuming

 

In assessing
the prospective risk of providing services to a cannabis or hemp-related business, a financial institutions may conduct customer due diligence that includes: (i) verifying with the appropriate state authorities whether
the business is duly licensed and registered; (ii) reviewing the license application (and related documentation) submitted by the
business for obtaining a state license to operate its cannabis-related business; (iii) requesting from state licensing and enforcement
authorities available information about the business and related parties; (iv) developing an understanding of the normal and expected
activity for the business, including the types of products to be sold; (v) ongoing monitoring of publicly available sources for
adverse information about the business and related parties; (vi) ongoing monitoring for suspicious activity, including for any
of the red flags described in this guidance; and (vii) refreshing information obtained
as part of customer due diligence on a periodic basis and commensurate with the risk. With respect to information regarding state
licensure obtained in connection with such customer due diligence, a financial institution
may reasonably rely on the accuracy of information provided by state licensing authorities, where states make such information
available. These regulatory reviews may be time consuming and costly.

 

Due to our
involvement in the cannabis and hemp industries, we may have a difficult time obtaining the various insurances that are desired
to operate our business, which may expose us to additional risk and financial liability

 

Insurance
that is otherwise readily available, such as general liability, and directors and officers’ insurance, is more difficult for us to
find, and more expensive, because we are service providers to companies in the cannabis industry. There are no guarantees that we
will be able to find such insurance in the future, or that the cost will be affordable
to us. If we are forced to go without such insurance, it may prevent us from entering into certain business sectors, may inhibit
our growth, and may expose us to additional risk and financial liabilities.

 

The Company’s
industry is highly competitive, and we have less capital and resources than many of our competitors which may give them an advantage
in developing and marketing products similar to ours or make our products obsolete.

 

We are involved
in a highly competitive industry where we may compete with numerous other companies who offer alternative methods or approaches,
who may have far greater resources, more experience, and personnel perhaps more qualified than we do. Such resources may give our competitors an advantage in developing and marketing products similar to ours or products
that make our products less desirable to consumers or obsolete. There can be no assurance that we will be able to successfully
compete against these other entities.

 

    15

     

    

 

We also
expect that new competitors may introduce products or services that are directly or indirectly competitive with us. These competitors
may succeed in developing products and services that have greater functionality or are less costly than our products and services
and may be more successful in marketing such products and services. Technological changes have lowered the cost of operating communications
and computer systems and purchasing software. These changes reduce our cost of selling products and providing services, but also
facilitate increased competition by reducing competitors’ costs in providing similar services. This competition could increase
price competition and reduce anticipated profit margins.

 

We cannot guarantee that we will
succeed in achieving our goals, and our failure to do so would have a material adverse effect on our business, prospects, financial
condition and operating results

 

We are a
new business operating in a relatively new market sector. As is typical in a new and rapidly evolving industry, demand and market
acceptance for recently introduced products and services are subject to a high level of uncertainty and risk. Because the market
for our Company is new and evolving, it is difficult to predict with any certainty
the size of this market and its growth rate, if any. We cannot guarantee that a market for our Company will develop or that demand
for our products will emerge or be sustainable. If the market fails to develop, develops more slowly than expected or becomes saturated
with competitors, our business, financial condition and operating results would be
materially adversely affected.

 

The Company’s failure to continue
to attract, train, or retain highly qualified personnel could harm the Company’s business

 

The Company’s
success also depends on the Company’s ability to attract, train, and retain qualified personnel, specifically those with management and product development skills.
In particular, the Company must hire additional skilled personnel to further the Company’s research and development efforts.
Competition for such personnel is intense. If the Company does not succeed in attracting new personnel or retaining and motivating
the Company’s current personnel, the Company’s business could be harmed.

 

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The loss of key management personnel could adversely affect
our business

 

We depend
on the continued services of our executive officers and senior management team as
they work closely with independent associate leaders and are responsible for our day-to-day operations. Our success depends in
part on our ability to retain our executive officers, to compensate our executive
officers at attractive levels, and to continue to attract additional qualified individuals to our management team. Although we have entered into employment agreements with our senior management team, and
do not believe that any of them are planning to leave or retire in the near term, we cannot assure you that our senior managers
will remain with us. The loss or limitation of the services of any of our executive officers or members of our senior management team, or the inability to attract additional qualified management personnel, could have a material adverse effect on our business, financial
condition, results of operations, or independent associate relations.

 

The lack of
available and cost-effective directors and officer’s insurance coverage in our industry may cause us to be unable to attract
and retain qualified executives, and this may result in our inability to further develop our business

 

Our business
depends on attracting independent directors, executives and senior management to advance our business plans. We currently do not
have directors and officers’ insurance to protect our directors, officers and the company against possible third-party claims. This is due to the significant lack availability of such policies in the cannabis industry at reasonably competitive prices. As a result, the Company and
our executive directors and officers are susceptible to liability claims arising
by third parties, and as a result, we may be unable to attract and retain qualified
independent directors and executive management causing the development of our business plans to be impeded as a result.

 

There could be unidentified risks involved with an investment
in our securities

 

The foregoing
risk factors are not a complete list or explanation of the risks involved with an investment in the securities. Additional risks
will likely be experienced that are not presently foreseen by the Company. Prospective investors must not construe the information
provided herein as constituting investment, legal, tax or other professional advice. Before making any decision to invest in our
securities, you should read this entire prospectus and consult with your own investment, legal, tax and other professional advisors.
An investment in our securities is suitable only for investors who can assume the financial risks of an investment in the Company for an indefinite period of time and
who can afford to lose their entire investment. The Company makes no representations or warranties of any kind with respect to
the likelihood of the success or the business of the Company, the value of our securities, any financial returns that may be generated or any tax benefits or consequences that may
result from an investment in the Company.

 

Risks Related to the Company

 

Uncertainty of profitability

 

We are a
new business and there can be no assurance we will ever produce viable products or produce meaningful revenues. Our revenues and
our profitability may be adversely affected by economic conditions and changes in
the market for our products. Our business is also subject to general economic risks that could adversely impact the results of
operations and financial condition.

 

    17

     

    

 

Because
of the nature of the type of businesses we plan to enter it is difficult to accurately forecast revenues and operating results
and these items could fluctuate in the future due to a number of factors. These factors may include, among other things, the following: 

 

		●	Our ability to raise sufficient capital to take advantage
of opportunities and generate sufficient revenues to cover expenses.

 

		●	Our
ability to source strong opportunities with sufficient risk adjusted returns.

   

		●	Our ability to manage our
capital and liquidity requirements based on changing market conditions generally and changes in the developing legal cannabis;
CBD, medical marijuana and recreational marijuana industries.

 

		●	The amount and timing of operating and other costs and expenses.

 

		●	The nature
and extent of competition from other companies that may reduce market share and create pressure on pricing and investment return
expectations.

 

		●	Adverse changes in the national and regional economies
in which we will participate, including, but not limited to, changes in our performance, capital availability, and market demand.

  

		●	Adverse changes in the projects in which we plan to invest which result from factors beyond our
control, including, but not limited to, a change in circumstances, capacity and economic impacts

 

		●	Adverse developments in the efforts to legalize cannabis or increased federal enforcement.

 

		●	Changes in laws, regulations,
accounting, taxation, and other requirements affecting our operations and business.

 

		●	Our operating results may fluctuate from year to year due
to the factors listed above and others not listed. At times, these fluctuations may be significant.

 

Management of growth will be necessary for us to be competitive

 

Successful
expansion of our business will depend on our ability to effectively attract and manage staff, strategic business relationships,
and shareholders. Specifically, we will need to hire skilled management and technical
personnel as well as manage partnerships to navigate shifts in the general economic environment. Expansion has the potential to
place significant strains on financial,
management, and operational resources, yet failure to expand will inhibit our profitability goals.

 

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We are entering into a potentially highly competitive
market

 

The markets
for businesses in the cannabis and hemp industries are competitive and evolving. In particular, we face strong competition from
larger companies that may be in the process of offering similar products and services to ours. Many of our current and potential
competitors have longer operating histories, significantly greater financial, marketing and other resources and larger client bases than we have (or may be expected to have).

 

Given
the rapid changes affecting the global, national, and regional economies generally and the cannabis and hemp industries, in
particular, we may not be able to create and maintain a competitive advantage in the marketplace. Our success will depend on
our ability to keep pace with any changes in its markets, especially with legal and regulatory changes. Our success will
depend on our ability to respond to, among other things, changes in the economy, market conditions, and competitive
pressures. Any failure by us to anticipate or respond adequately to such changes could have a material adverse effect on our
financial condition, operating results, liquidity, cash flow and our operational performance.

 

If we fail to protect our intellectual property, our business
could be adversely affected

 

Our viability
will depend, in part, on our ability to develop and maintain the proprietary aspects of products and brands to distinguish our
products and services from our competitors’ products and services. We will rely on patents, copyrights, trademarks, trade secrets,
and confidentiality provisions to establish and protect our intellectual property.

 

Any infringement
or misappropriation of our intellectual property could damage its value and limit our ability to compete. We may have to engage
in litigation to protect the rights to our intellectual property, which could result in significant litigation costs and require a significant amount of our time.

 

Competitors
may also harm our sales by designing products that mirror the capabilities of our products or technology without infringing on
our intellectual property rights. If we do not obtain sufficient protection for our
intellectual property, or if we are unable to effectively enforce our intellectual property rights, our competitiveness could be
impaired, which would limit our growth and future revenue.

 

We may also find it necessary to bring infringement or other actions against third parties to
seek to protect our intellectual property rights. Litigation of this nature, even if successful, is often expensive and time-consuming
to prosecute, and there can be no assurance that we will have the financial or other
resources to enforce our rights or be able to enforce our rights or prevent other parties from developing similar technology or
designing around our intellectual property.

 

    19

     

    

 

Our trade secrets may be difficult to protect

 

Our success
depends upon the skills, knowledge and experience of our personnel, our consultants and advisors. Because we operate in a highly
competitive industry, we rely in part on trade secrets to protect our proprietary products and processes. However, trade secrets
are difficult to protect. We will enter into confidentiality or non-disclosure agreements with our corporate partners, employees, consultants, outside scientific collaborators, developers and other advisors. These agreements generally require that the receiving party keep confidential and not disclose to third party’s confidential information developed
by the receiving party or made known to the receiving party by us during the course of the receiving party’s relationship with
us. These agreements also generally provide that inventions conceived by the receiving party in the course of rendering services
to us will be our exclusive property, and we enter into assignment agreements to protect our rights.

 

These confidentiality, inventions and assignment agreements may be breached and may not effectively
assign intellectual property rights to us. Our trade secrets also could be independently discovered by competitors, in which case
we would not be able to prevent the use of such trade secrets by our competitors. The enforcement of a claim alleging that a party
illegally obtained and was using our trade secrets could be difficult, expensive
and time consuming and the outcome would be unpredictable. The failure to obtain or maintain meaningful trade secret protection
could adversely affect our competitive position.

 

Our Business Can be affected by
unusual weather patterns or other problems inherent to cultivation and processing of cultivated materials.

 

The production
of some of our products relies on the availability and use of live plant material. Growing periods can be impacted by weather patterns
and these unpredictable weather patterns may impact our ability to harvest hemp. In addition, severe weather, including drought
and hail, can destroy a hemp crop, which could result in us having no hemp to harvest, process and sell. If our suppliers are unable
to obtain sufficient hemp from which to process CBD, our ability to meet customer
demand, generate sales, and maintain operations will be impacted. There are a host of other issues inherent to cultivation and
the processing of cultivated materials, these include, but are not limited to: pesticide residues, molds, mildews, insect damage,
spoilage, unacceptable test results of crops and/or completed products. All of these factors, and others inherent to cultivation
and related processing, could significantly affect our business and result in loss
of investment.

 

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Risks Related to Our Common Shares

 

Because we may issue additional
shares of our common stock, investment in our company could be subject to substantial dilution

 

We anticipate
that all or at least some of our future funding, if any, will be in the form of equity
financing from the sale of our common stock. If we do sell more common stock, investors’ investment in our company will be
diluted. Dilution is the difference between what investors pay for their stock and the net tangible book value per share immediately
after the additional shares are sold by us. If dilution occurs, any investment in our company’s common stock could seriously
decline in value.

 

Trading in our common stock has
been subject to wide fluctuations. Wide fluctuations in the future are likely

 

Our common
stock is currently quoted for public trading on the Pink Sheet Market Tier. The trading price of our common stock has been subject
to wide fluctuations. Trading prices of our common stock may
fluctuate in response to a number of factors, many of which will be beyond our control. The stock market has generally experienced
extreme price and volume fluctuations that have often been unrelated or disproportionate
to the operating performance of companies with limited business operation. There can be no assurance that trading prices and price
earnings ratios previously experienced by our common stock will be matched or maintained. These broad market and industry factors
may adversely affect the market price of our common stock, regardless of our operating performance. In the past, following periods
of volatility in the market price of a company’s securities, securities classaction litigation has often been instituted.
Such litigation, if instituted, could result in substantial costs for us and a diversion of management’s attention and resources.

 

We plan corporate action with The Financial Industry Regulatory
Authority (FINRA) - There can be no assurances will be successful in these corporate actions

 

A FINRA
corporate action is an event by a public company that may affect the company’s securities and, therefore, its shareholders.
Corporate actions can range from making a change to a company’s name to issuing a dividend or other distribution to a major
restructuring of the company. We plan several corporate actions which will require the approval by FINRA. There can be no assurances
we will be successful in these corporate actions. Our inability to implement such corporate actions could negatively affect our
ability to attract capital and could impact our business negatively in other ways.

 

Delaware law
provides the rights for corporations to indemnify officers and directors. Thus, our By-Laws provide for the indemnification
of our officers and directors at our expense, and correspondingly limits their liability, which may result in a major cost to us
and hurt the interests of our shareholders because corporate resources may be expended for the benefit of officers and/or directors

 

Our By-Laws
include provisions that eliminate the personal liability of our directors for monetary damages to the fullest extent possible under
the laws of the State of Delaware or other applicable law. These provisions eliminate the liability of our directors and our shareholders
for monetary damages arising out of any violation of a director of his  fiduciary duty
of due care. Under Delaware law, however, such provisions do not eliminate the personal liability of a director for (i) breach
of the director’s duty of loyalty, (ii) acts or omissions not in good faith or involving intentional misconduct or knowing violation
of law, (iii) payment of dividends or repurchases of stock other than from lawfully available funds, or (iv) any transaction from
which the director derived an improper benefit. These provisions do not affect a
director’s liabilities under the federal securities laws or the recovery of damages by third parties.

 

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We do not intend
to pay cash dividends on any investment in the shares of stock of our Company and any gain on an investment in our Company will
need to come through an increase in our stock’s price, which may never happen

 

We have
never paid any cash dividends and currently do not intend to pay any cash dividends for the foreseeable future. To the extent that
we require additional funding currently not provided for, our funding sources may prohibit the payment of a dividend. Because we
do not currently intend to declare dividends, any gain on an investment in our company will need to come through an increase in
the stock’s price. This may never happen, and investors may lose all of their investment in our company.

 

Our securities are subject to penny stock rules. You may
have difficulty re-selling your shares

 

Our shares
as penny stocks, are covered by Section 15(g) of the Securities Exchange Act of 1934 which imposes additional sales practice requirements
on broker/dealers who sell our company’s securities including the delivery of a standardized disclosure document; disclosure
and confirmation of quotation prices; disclosure of compensation the broker/dealer
receives; and, furnishing monthly account statements. These rules apply to companies whose shares are not traded on a national
stock exchange, trade at less than $5.00 per share, or who do not meet certain other financial requirements specified by the Securities and Exchange Commission. These
rules require brokers who sell “penny stocks” to persons other than established customers and “accredited investors”
to complete certain documentation, make suitability inquiries of investors, and provide investors with certain information concerning
the risks of trading in such penny stocks. These rules may discourage or restrict the ability of brokers to sell our shares of
common stock and may affect the secondary market for our shares of common stock. These rules could also hamper our ability to raise
funds in the primary market for our shares of common stock.

 

FINRA sales practice requirements may also limit a stockholder’s
ability to buy and sell our stock

 

In addition
to the “penny stock” rules described above, the Financial Industry Regulatory Authority (known as “FINRA”)
has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for
believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional
customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes
that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. FINRA
requirements make it more difficult for broker- dealers to recommend that their customers
buy our common shares, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our
shares.

 

Costs and expenses of being a reporting company under
the 1934 Securities and Exchange Act may be burdensome and prevent us from achieving profitability

 

As a public company, we are subject to
the reporting requirements of the Securities Exchange Act of 1934, as amended, and parts of the Sarbanes-Oxley Act. We expect that
the requirements of these rules and regulations will continue to increase our legal, accounting and financial compliance costs, make some activities more difficult, time-consuming and
costly, and place significant strain on our personnel, systems and resources.

 

    22

     

    

 

There could be unidentified risks involved with an investment
in our securities

 

The foregoing
risk factors are not a complete list or explanation of the risks involved with an investment in the securities. Additional risks
will likely be experienced that are not presently foreseen by the Company. Prospective investors must not construe this the information
provided herein as constituting investment, legal, tax or other professional advice. Before making any decision to invest in our
securities, you should read this entire prospectus and consult with your own investment, legal, tax and other professional advisors.
An investment in our securities is suitable only for investors who can assume the financial risks of an investment in the Company for an indefinite period of time and
who can afford to lose their entire investment. The Company makes no representations or warranties of any kind with respect to
the likelihood of the success or the business of the Company, the value of our securities, any financial returns that may be generated or any tax benefits or consequences that may
result from an investment in the Company.

 

COMMON STOCK SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”),
is dated as of July 10, 2019, by and between Cannabis Global Inc, a Nevada corporation (the “Company”) and wholly
owned subsidiary of MCTC Holdings, Inc. a Delaware Corporation, and Hampton Growth Resources, LLC (the “Su

 

RECITALS:

 

WHEREAS, the Company and the Subscriber
are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded by Rule
506(b) of Regulation D is considered a “safe harbor” under Section 4(a)(2) (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933, as amended (the “1933 Act”).

 

WHEREAS, the
Company has engaged in a private offering (the “Offering”) in which the Subscriber agrees to purchase and the
Company agrees to offer and sell common shares at the price of $0.025 for each common share with a maximum purchase of One Million
Dollars ($1,000,000).

 

WHEREAS, the
Company desires to enter into this Agreement to issue and sell the Purchased Shares and the Subscriber desires to purchase that
number of Purchased Shares set forth in Appendix A, hereto on the terms and conditions set forth herein.

 

AGREEMENT:

 

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

 

1. Purchase and Sale of Purchased
Shares. Subject to the satisfaction or waiver of the terms and conditions of this Agreement, on the Closing Date (as defined below), each Subscriber shall purchase and the Company shall sell to each Subscriber the Purchased Units for the portion
of the Purchase Price designated on the signature pages hereto.

 

2. Closing.
The issuance and sale of the Purchased Shares shall occur on the closing date (the “Closing Date”), which
shall be the date that Subscriber funds representing the net amount due to the Company from the Purchase Price of the
Offering is transmitted by wire transfer or otherwise to or for the benefit of the Company. The consummation of the
transactions contemplated herein (the “Closing”) shall take place such date and time as the Subscriber and
the Company may agree upon; provided, that all of the conditions set forth in Section 11 hereof and applicable to the
Closing shall have been fulfilled or waived in accordance herewith.

 

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 3. Subscriber Representations, Warranties and Covenants. The Subscriber hereby represents and warrants to and agrees with the Company that:

 

		(a)	Organization and Standing of the Subscriber. If such Subscriber is an entity, such Subscriber
is a corporation, partnership or other entity duly incorporated or organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization.

 

		(b)	Authorization and Power. Such Subscriber has the requisite power and authority to enter
into and perform this Agreement and the other Transaction Documents (as defined in
Section 4(c)) and to purchase the Purchased Shares being sold to it hereunder. The execution, delivery and performance of this
Agreement and the other Transaction Documents by such Subscriber and the consummation by it of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate or partnership action, and no further consent or authorization
of such Subscriber or its Board of Directors, stockholders, partners, members, as the case may be, is required. This Agreement
and the other Transaction Documents have been duly authorized, executed and delivered by such Subscriber and constitutes, or shall
constitute when executed and delivered, a valid and binding obligation of such Subscriber enforceable against such Subscriber in
accordance with the terms thereof.

 

		(c)	No Conflicts. The execution, delivery and
performance of this Agreement and the other Transaction Documents and the consummation by such Subscriber of the transactions contemplated
hereby and thereby or relating hereto do not and will not (i) result in a violation of such Subscriber’s charter documents
or bylaws or other organizational documents or (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which such Subscriber
is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order,
judgment or decree of any court or governmental agency applicable to such Subscriber or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such Subscriber).
Such Subscriber is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations
under this Agreement and the other Transaction Documents or to purchase the Purchased Shares in accordance with the terms hereof,
provided that for purposes of the representation made in this sentence, such Subscriber is assuming and relying upon the accuracy
of the relevant representations and agreements of the Company herein.

 

		(d)	Acquisition for Investment. The Subscriber is acquiring the Purchased Shares solely for
its own account for the purpose of investment and not with a view to or for resale in connection with a distribution. The Subscriber
does not have a present intention to sell the Purchased Shares, nor a present arrangement (whether or not legally binding) or intention
to effect any distribution of the Purchased
Shares to or through any person or entity. The Subscriber acknowledges that it is able to bear the financial risks associated with an investment in the Purchased Shares and that it has been given full access to such records of
the Company and the subsidiaries and to the officers of the Company and the subsidiaries
and received such information as it has deemed necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience in investing in companies similar to the Company
in terms of the Company’s stage of development so as to be able to evaluate the risks and merits of its investment in the
Company.

 

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		(e)	Information on Company. Such Subscriber has been furnished with or has had access his or
her required or requested information about the Company. Subscriber is satisfied
with the information made available.

 

		(f)	Opportunities for Additional Information. The Subscriber acknowledges that the Subscriber
has had the opportunity to ask questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and other affairs of the Company.

 

		(g)	Information on Subscriber. Subscriber is, and
will be on the Closing Date, an “accredited investor”, as such term is defined in Regulation D promulgated
by the Commission under the 1933 Act, is experienced in investments and business matters, has made investments of a speculative
nature and has Purchased Shares of United States publicly-owned companies in private placements in the past and, with its representatives,
has such knowledge and experience in financial, tax and other business matters as to enable such Subscriber to utilize the information
made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to
the proposed purchase, which represents a speculative investment. Such Subscriber has the authority and is duly and legally qualified to purchase and own the Purchased Shares. Such Subscriber is able to bear the risk of such investment for an indefinite period
and to afford a complete loss thereof. The information set forth on the signature page hereto regarding such Subscriber is accurate.

 

		(h)	Compliance with 1933 Act. Such Subscriber understands and agrees that the Purchased Shares
have not been registered under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction
that does not require registration under the 1933 Act (based in part on the accuracy of the representations and warranties of the
Subscriber contained herein), and that such Purchased Shares must be held indefinitely
unless a subsequent disposition is registered under the 1933 Act or any applicable state securities laws or is exempt from such
registration. The Subscriber acknowledges that the Subscriber is familiar with Rule 144 of the rules and regulations of the Commission,
as amended, promulgated pursuant to the Securities Act (“Rule 144”), and that such person has been advised that
Rule 144 permits resales only under certain circumstances. The Subscriber understands that to the extent that Rule 144 is not available,
the Subscriber will be unable to sell any Purchased Shares without either registration under the 1933 Act or the existence of another
exemption from such registration requirement. In any event, and subject to compliance with applicable securities laws, the Subscriber
may enter into lawful hedging transactions in the course of hedging the position they assume and the Subscriber may also enter
into lawful short positions or other derivative transactions relating to the Purchased Shares, and deliver the Purchased Shares,
to close out their short or other positions or otherwise settle other transactions, or loan or pledge the Purchased Shares, to
third parties who in turn may dispose of these Purchased Shares.

 

		(i)	Purchased Shares Legend. The Purchased Shares shall bear the following or similar legend

 

    25

     

    

 

THE
SALE OF THE PURCHASED SHARES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, NOR APPLICABLE STATE SECURITIES LAWS. THE PURCHASED SHARES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE PURCHASED SHARES UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT, OR OTHERWISE.
NOTWITHSTANDING THE FOREGOING, THE PURCHASED SHARES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE PURCHASED SHARES.”:

 

		(j)	Communication of Offer. The offer to sell the Purchased
Shares was directly communicated to such Subscriber by the Company. At no time was such Subscriber presented with or solicited
by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or
solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer.

 

		(k)	Restricted Securities. Such Subscriber understands
that the Purchased Shares have not been registered under the 1933 Act and such Subscriber will not sell, offer to sell, assign,
pledge, hypothecate or otherwise transfer any of the Purchased Shares unless pursuant to an effective registration statement under
the 1933 Act, or unless an exemption from registration is available. Notwithstanding anything to the contrary contained in this
Agreement, such Subscriber may transfer (without restriction and without the need for an opinion of counsel) the Purchased Shares
to its Affiliates (as defined below) provided that each such Affiliate is an “accredited investor” under  Regulation
D and such Affiliate agrees to be bound by the terms and conditions of this Agreement. For the purposes of this Agreement, an
“Affiliate” of any person or entity means any other person or entity directly or indirectly controlling, controlled
by or under direct or indirect common control with such person or entity. Affiliate includes each Subsidiary of the Company. For
purposes of this definition, “control” means the power to direct the management and policies of such person
or firm, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.

 

		(l)	No Governmental Review. Such Subscriber understands
that no United States federal or state agency or any other governmental or state agency has passed on or made recommendations
or endorsement of the Purchased Shares or the suitability of the investment in the Purchased Shares nor have such authorities
passed upon or endorsed the merits of the offering of the Purchased Shares.

 

		(m)	Correctness of Representations. Such Subscriber
represents that the foregoing representations and warranties are true and correct as of the date hereof and, unless such Subscriber
otherwise notifies the Company prior to the Closing Date, shall be true and correct as of the Closing Date. The Subscriber understands
that the Purchased Shares are being offered and sold in reliance on a transactional exemption from the registration requirement
of Federal and state securities laws and the Company is relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of the Subscriber set forth herein in order to determine the applicability of such
exemptions and the suitability of the Subscriber to acquire the Purchased Shares.

 

		(n)	No Brokers. Such Subscriber has not taken any action
which would give rise to any claim by any person for brokerage commissions, finder’s fees or similar payments relating to
this Agreement or the transactions contemplated hereby.

 

    26

     

    

 

		(o)	Risk Factor Review. The Subscriber has reviewed
and has further initialed on the Agreement signature page that he or she has reviewed and understands the Risk Factors outline
herein. The Subscriber further agrees that he or she has had the opportunity to ask questions of management of the Company relative
to these risk factors and any other factors relating the risk of this investment.

 

4. Company Representations
and Warranties. The Company represents and warrants to and agrees with each Subscriber that:

 

		(a)	Due Incorporation. The Company is a corporation or other entity duly incorporated or organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has the requisite
corporate power to own its properties and to carry on its business as presently conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted
or property owned by it makes such qualification necessary, other than those jurisdictions
in which the failure to so qualify would not have a Material Adverse Effect. For purposes of this Agreement, a “Material
Adverse Effect” means any material adverse effect on the business, operations, properties, or financial condition of the Company and its Subsidiaries individually, or in the aggregate and/or any condition, circumstance, or
situation that would prohibit or otherwise materially interfere with the ability of the Company to perform any of its obligations
under this Agreement in any material respect. For purposes of this Agreement, “Subsidiary” means, with respect
to any entity at any date, any corporation, limited or general partnership, limited liability company, trust, estate, association,
joint venture or other business entity of which more than 30% of (i) the outstanding capital stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case of
a partnership or limited liability company, the interest in the capital or profits
of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture or other entity,
the beneficial interest in such trust, estate, association or other entity business
is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries, by such entity.

 

		(b)	Outstanding Stock. All issued and outstanding shares of capital stock and equity interests in the Company have been
duly authorized and validly issued and are fully paid and non-assessable.

 

		(c)	Authority; Enforceability. This Agreement, the Purchased Shares, and any other agreements
delivered together with this Agreement or in connection herewith (collectively, the “Transaction Documents”)
have been duly authorized, executed and delivered by the Company and are valid and binding agreements of the Company enforceable
in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity. The
Company has full corporate power and authority necessary to enter into and deliver the Transaction Documents and to perform its
obligations thereunder.

 

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		(d)	Consents. No consent, approval, authorization or order of any court, governmental agency
or body or arbitrator having jurisdiction over the Company, or any of its Affiliates,
or the Company’s shareholders is required for the execution by the Company of the Transaction Documents and compliance and
performance by the Company of its obligations under the Transaction Documents, including, without limitation, the issuance and
sale of the Purchased Shares. The Transaction Documents and the Company’s performance of its obligations thereunder have
been approved by the Company’s Board of Directors. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or
filing with, any governmental authority in the world, including without limitation, the United States, or elsewhere is required
by the Company or any Affiliate of the Company in connection with the consummation
of the transactions contemplated by this Agreement, except as would not otherwise have a Material Adverse Effect or the consummation
of any of the other agreements, covenants or commitments of the Company or any Subsidiary contemplated by the other Transaction
Documents. Any such qualifications and filings will,S in the case of qualifications, be effective on the Closing and will, in the case of filings, be made within
the time prescribed by law.

 

		(e)	No Violation or Conflict. Assuming the representations
and warranties of the Subscriber in Section 3 are true and correct, neither the issuance nor sale of the Purchased Shares nor the
performance of the Company’s obligations under this Agreement and all other Transaction Documents entered into by the Company
relating thereto will:

 

violate, conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time or
both would be reasonably likely to constitute a default) under (A) the articles or certificate of incorporation, charter or bylaws of the Company, or (B) to the Company’s knowledge, any decree, judgment, order,
law, treaty, rule, regulation or determination applicable to the Company of any court, governmental agency or body, or arbitrator
having jurisdiction over the Company or over the properties or assets of the Company or any of its Affiliates; or

 

(i) result
in the creation or imposition of any lien, charge or encumbrance upon the Purchased Shares or any of the assets of the Company
or any of its Subsidiaries.

 

		(f)	The Purchased Shares. The Purchased Shares upon issuance:

 

(i) are, or will be, free
and clear of any security interests, liens, claims or other encumbrances, subject only to restrictions upon transfer under
the 1933 Act and any applicable state securities laws;

 

(ii) have been, or will be, duly and
validly authorized and on the date of issuance of the Purchased Shares, the Purchased Shares will be duly and validly issued,
fully paid and nonassessable;

 

(iii) will not have been issued or
sold in violation of any preemptive or other similar rights of the holders of any securities of the Company or rights to
acquire securities of the Company; and

 

(iv) will not subject the holders thereof
to personal liability by reason of being such holders.

 

    28

     

    

 

		(g)	Litigation. There is no pending or, to the best knowledge of the Company, threatened action,
suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company,
or any of its Affiliates that would affect the execution by the Company or the complete
and timely performance by the Company of its obligations under the Transaction Documents.

 

		(h)	Information Concerning Company. The Reports contain all material information relating to
the Company and its operations and financial condition as of their respective dates
which information is required to be disclosed therein. The Reports, including the financial statements included therein do not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, taken as a whole, not misleading in light of the circumstances
and when made.

 

		(i)	No General Solicitation. Neither the Company, nor any of its Affiliates, nor to its knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the 1933 Act) in connection with the offer or sale of the Purchased Shares.

 

		(j)	Survival. The foregoing representations and warranties shall survive for a period of one year after the Closing Date.

 

		(k)	No Brokers. Neither the Company nor any Subsidiary has taken any action which would give
rise to any claim by any person for brokerage commissions, finder’s fees or
similar payments relating to this Agreement or the transactions contemplated hereby.

 

		5.	Registration Rights.

 

		(a)	Registration Statement Requirements. The Company shall file, on a best efforts basis, within six months of closing, with the Commission a Form S-1 registration statement (the “Registration
Statement”) (or such other form that it is eligible to use) in order to register all or such portion of the Registrable
Shares as permitted by the Commission (provided that the Company shall use diligent efforts to advocate with the Commission for
the registration of all of the Registrable Shares) pursuant to Rule 415 for resale and distribution under the 1933 Act as soon
as practicable after the Closing Date, and use its reasonable efforts to cause the Registration Statement to be declared effective.

 

		(b)	Registration Procedures. If and whenever the Company is required by the provisions of Section
5(a) to effect the registration of any Registrable Shares under the 1933 Act, the Company will, as expeditiously as possible:

 

(i) prepare and file with the
Commission a registration statement with respect to such securities and use commercially reasonable efforts to cause such
registration statement to become and remain effective for the period of the distribution contemplated thereby;

 

(ii) prepare and file with the
Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as
may be necessary to keep such registration statement effective until such registration statement has been effective for the
earlier of (a) a period of one (1) year, and (b) the date on which the Purchased Shares can been sold by the Subscriber
pursuant to Rule 144 without volume restrictions;

 

    29

     

    

  

(iii)
notify the Subscriber within twenty-four hours of the Company’s becoming aware that a prospectus relating thereto is
required to be delivered under the 1933 Act, of the happening of any event of which the Company has knowledge as a result of
which the prospectus contained in such registration statement, as then in effect, includes an untrue statement of a material
fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing or which becomes subject to a Commission, state or other governmental
order suspending the effectiveness of the registration statement covering any of the Registrable Shares. Each Subscriber
hereby covenants that it will not sell any Registrable Shares pursuant to such prospectus during the period commencing at the
time at which the Company gives such Subscriber notice of the suspension of the use of such prospectus and ending at the time
the Company gives such Subscriber notice that such Subscriber may thereafter effect sales pursuant to the prospectus, or
until the Company delivers to such Subscriber or files with the Commission an amended or supplemented prospectus.

 

This document is not to be transferred
or reproduced without permission

 

		(c)	Provision of Documents. It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Agreement with respect to the Registrable Shares of a particular Subscriber that
such Subscriber shall furnish to the Company in writing such information and representation letters, including a completed form
of the Selling Securityholder Questionnaire, with respect to itself and the proposed distribution by it as the Company may reasonably
request to assure compliance with federal and applicable state securities laws.

 

		(d)	Expenses. All expenses incurred by the Company in complying with Section 5, including, without
limitation, all registration and filing fees, printing expenses (if required), fees
and disbursements of counsel and independent public accountants for the Company, fees and expenses (including reasonable counsel
fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the FINRA, transfer taxes,
and fees of transfer agents and registrars, are called “Registration Expenses.” The Company will pay all Registration
Expenses in connection with any registration statement described in Section 5.

  

    30

     

    

 

		(e)	Indemnification and Contribution.

 

(i) In the event of a registration
of any Registrable Shares under the 1933 Act pursuant to Section 5, the Company will, to the extent permitted by law,
indemnify and hold harmless the Subscriber, each of the officers, directors, agents, Affiliates, members, managers, control
persons, and principal shareholders of the Subscriber, each underwriter of such Registrable Shares thereunder and each other
person, if any, who controls such Subscriber or underwriter within the meaning of the 1933 Act, against any losses, claims,
damages or liabilities, joint or several, to which the Subscriber, or such underwriter or controlling person may become
subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in
any registration statement under which such Registrable Shares was registered under the 1933 Act pursuant to Section 5, any
preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are
based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances when made, and will subject to the provisions of
Section 5(e)(iii) reimburse the Subscriber, each such underwriter and each such controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company shall not be liable to the Subscriber to the extent that any such damages arise
out of or are based upon an untrue statement or omission made in any preliminary prospectus if (i) the Subscriber failed to
send or deliver a copy of the final prospectus delivered by the Company to the Subscriber with or prior to the delivery of
written confirmation of the sale by the Subscriber to the person asserting the claim from which such damages arise, and the final prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission,
or (ii) to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such
Subscriber in writing specifically for use in such registration statement or prospectus.

 

(ii) In
the event of a registration of any of the Registrable Shares under the 1933 Act pursuant to Section 5, each Subscriber severally
but not jointly will, to the extent permitted by law, indemnify and hold harmless the Company, and each person, if any, who controls
the Company within the meaning of the 1933 Act, each officer of the Company who signs the registration statement, each director
of the Company, each underwriter and each person who controls any underwriter within the meaning of the 1933 Act, against all
losses, claims, damages or liabilities, joint or several, to which the Company or such officer, director, underwriter or controlling
person may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained
in the registration statement under which such Registrable Shares were registered under the 1933 Act pursuant to Section 5, any
preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company and each such officer, director, underwriter and controlling
person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action, provided, however, that the Subscriber will be liable hereunder in any such case if and only
to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in conformity with information pertaining to such Subscriber,
as such, furnished in writing to the Company by such Subscriber specifically for use in such registration statement or prospectus.

 

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(iii)
Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in
writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may
have to such indemnified party other than under this Section 5(e)(iii) and shall only relieve it from any liability which it
may have to such indemnified party under this Section 5(e)(iii), except and only if and to the extent the indemnifying party
is prejudiced by such omission. In case any such action shall be brought against any indemnified party and it shall notify
the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel satisfactory to such indemnified party, and,
after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party under this Section 5(e)(iii) for any legal
expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs
of investigation and of liaison with counsel so selected, provided, however, that, if the defendants in any such action
include both the indemnified party and the indemnifying party and the indemnifying party shall have reasonably concluded that
there may be reasonable defenses available to indemnified party which are different from or additional 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, the indemnified parties, as a group, shall have the right to select one separate counsel,
reasonably satisfactory to the indemnified and indemnifying party, and to assume such legal defenses and otherwise to
participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other expenses
related to such participation to be reimbursed by the indemnifying party as incurred.

 

This document is not to be transferred
or reproduced without permission

 

		6.	Closing Conditions.

 

		(a)	The obligation hereunder of the Subscriber to acquire and
pay for the Purchased Shares is subject to the satisfaction or waiver, at or before the Closing, of each of the conditions set
forth below. These conditions are for the Subscriber’s sole benefit and may be waived by the Subscriber at any time in its
sole discretion.

 

(i) The representations and
warranties of the Company contained in this Agreement shall have been true and correct on the date of this Agreement and
shall be true and correct on the Closing Date as if given on and as of the Closing Date (except for representations given as
of a specific date, which representations shall be true and correct as of such date), and on or before the Closing Date the
Company shall have performed all covenants and agreements of the Company contained herein or in any of the other Transaction
Documents required to be performed by the Company on or before the Closing Date; and

 

(ii) The
Transaction Documents have been duly executed and delivered by the Company to the Subscriber.

 

    32

     

    

 

		(b)	The obligation hereunder of the Company to issue and
sell the Purchased Shares to the Purchaser is subject to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any
time in its sole discretion.

 

(i)
The representations and warranties of the Subscriber in this Agreement and each of the other Transaction Documents to which
the Subscriber is a party shall be true and correct in all material respects as of the date when made and as of the Closing
Date as though made at that time, except for representations and warranties that are expressly made as of a particular date,
which shall be true and correct in all material respects as of such date;

 

(ii) The Purchase Price for the Purchased
Shares has been delivered to the Company; and

 

(iii) The
Transaction Documents to which the Subscriber is a party have been duly executed and delivered by the Subscriber to the Company.

 

		7.	Miscellaneous.

 

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

 

    33

     

    

 

If to the Company, to:

 

Cannabis Global Inc, Inc.

520 S. Grand Ave

Suite 320

Los Angeles, CA 90071

 

If to the Subscriber:

 

To the address and facsimile number
listed on the signature page of this Agreement

 

		(b)	Entire Agreement; Amendment. This Agreement and
the other Transaction Documents contain the entire understanding and agreement of the parties with respect to the matters covered
hereby and, except as specifically set forth herein or in the Transaction Documents, neither the Company nor the Subscriber makes
any representations, warranty, covenant or undertaking with respect to such matters and they supersede all prior understandings
and agreements with respect to said subject matter, all of which are merged herein. No provision of this Agreement nor any of
the Transaction Documents may be waived or amended other than by a written instrument signed by the Company and the Subscriber,
and no provision hereof may be waived other than by a written instrument signed by the party against whom enforcement of any such
waiver is sought.

 

		(c)	Counterparts/Execution. This Agreement may be executed
in any number of counterparts and by the different signatories hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be
executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same force and effect
as if such signature page were an original thereof.

 

    34

     

    

 

		(d)	Law Governing this Agreement. This Agreement shall
be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts
of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall
be brought only in the state courts of California or in the federal courts located in the state. The parties to this Agreement
hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum nonconveniens. The parties executing this Agreement and other
agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam
jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any
other agreement delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal
service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or
any other Transaction Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other
manner permitted by law.

  

		(e)	Consent to Jurisdiction. The Company and the Subscriber
hereby irrevocably waive, and agree not to assert in any such suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction in California of such court, that the suit, action or proceeding is brought in an inconvenient forum
or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit any right to serve
process in any other manner permitted by law.

 

		(f)	Captions: Certain Definitions. The captions of the
various sections and paragraphs of this Agreement have been inserted only for the purposes of convenience; such captions are not
a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict any of the provisions of
this Agreement. As used in this Agreement the term “person” shall mean and include an individual, a partnership,
a joint venture, a corporation, a limited liability company, a trust, an unincorporated organization and a government or any department
or agency thereof.

 

		(g)	Severability. In the event that any term or provision
of this Agreement shall be finally determined to be superseded, invalid, illegal or otherwise unenforceable pursuant to applicable
law by an authority having jurisdiction and venue, that determination shall not impair or otherwise affect the validity, legality
or enforceability: (i) by or before that authority of the remaining terms and provisions of this Agreement, which shall be enforced
as if the unenforceable term or provision were deleted, or (ii) by or before any other authority of any of the terms and provisions
of this Agreement.

 

[Signature and Subscriber Information
Pages Follow]

 

    35

     

    

 

APPENDIX A SUBSCRIBER

INFORMATION

 

U.S. ACCREDITED INVESTOR CERTIFICATE

 

MCTC Holdings, INC.

(the “Company”)

 

AND THE UNITED STATES SECURITIES ACT OF 1933
(the “Act”)

 

The undersigned covenants, represents and warrants
to the Company that:

 

I hereby
so declares and further declares that it is an “Accredited Investor” as that term is defined in Regulation D promulgated
under the Act, by virtue of its qualification under one or more of the following categories (PLEASE CHECK OFF APPROPRIATE CATEGORY):

 

		☒	I am a natural person whose individual net worth, or joint
net worth with that person’s spouse, at the time of purchase exceeds $1,000,000.

 

		☒	I am a natural person who had an individual income in excess
of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those
years and has a reasonable expectation of reaching the same income level in the current year.

 

		☐	_______________________________ is a corporation, organization
described in section 501(c)(3) of the United States Internal Revenue Code, or similar business trust, or partnership, not formed
for the specific purpose of acquiring the Securities, with total assets in excess of $5,000,000.

 

		☐	________________________________ is a trust, with total
assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by
a sophisticated person.

 

		☐	I am a director or executive officer of the Corporation.

 

		☐	 ________________________________ is a private business development company as defined in
                                                                                                          section 202(a)(22) of the Investment Advisers Act of 1940.

 

		☐	__________________________________is a bank as defined
in section 3(a)(2) of the Act, or a savings and loan association or other institution as defined in section 3(a)(5)(A) of the
Act whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to section 15 of the Securities
Exchange Act of 1934; an insurance company as defined in section 2(13) of the Act; an investment company registered under
the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; a Small Business
Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment
Act of 1958; a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state
or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; an employee
benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a
plan fiduciary, as defined in section 3(21) of such Act, which is either a bank, savings and loan association, insurance company,
or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self- directed
plan, with investment decisions made solely by persons that are accredited investors.

 

		☒	________________________________is an entity in which all
of the equity owners are Hampton Growth Resources, LLC accredited investors under one or more of the categories set forth above.

 

    36

     

    

 

The statements made in this Certificate are true.

 

On this Date: July 10, 2019

 

		X	 
	(Sign) 	Andrew W Haag, Managing Member

Hampton Growth Resources, LLC	 

 

Please acknowledge your acceptance of the foregoing Subscription
Agreement with MCTC Holdings, INC. by signing and returning a copy to the Company whereupon it shall become a binding agreement.

 

1,000,000 x $0.025 = $25,000 (the “Purchase
Price”)

 

	X	 	 
	Signature	 	Signature (if purchasing jointly)
	 	 	 
	Andrew W Haag	 	 
	Name Typed or Printed	 	Name Typed or Printed
	 	 	 
	Hampton Growth Resources, LLC	 	 
	Entity Name	 	Entity Name
	 	 	 
	401 Wilshire Blvd,
    12th Floor	 	 
	Address	 	Address
	 	 	 
	Santa Monica, CA
    90401	 	 
	City, State and Zip Code	 	City, State and Zip Code
	 	 	 
	310-770-9661	 	 
	Telephone - Business	 	Telephone - Business
	 	 	 
	 	 	 
	Telephone – Residence	 	Telephone – Residence
	 	 	 
	 	 	 
	Facsimile – Business	 	Facsimile – Business
	 	 	 
	 	 	 
	Facsimile – Residence	 	Facsimile – Residence

  

	20- 610966	 	 
	Tax ID # or
    Social Security #	 	Tax ID # or Social Security #

 

    37

     

    

 

EXACT Name or name of entity in which securities should be issued:

 

Hampton Growth Resources, LLC

 

This
Subscription Agreement is agreed to and accepted as of 07-10-2019.

 

	FOR SUBSCRIBER:	 
	 	 
	/S/ dAMON kIDWELL	 
	(Subscriber Sign)	 
	(Subscriber Print Name)	 
	 	 
	FOR MCTC Holdings, INC.:	 
	 	 
	/S/ Arman Tabatabaei	 
	Arman Tabatabaei – CEO	 
	 	 
	Dated: 07-10-2019	 

 

 

38Exhibit 10.12

 

OFFICE
LEASE

 

Landlord
and Tenant agree to lease the Office in the Premises at the rent and for the term stated:

 

	 	 	 	 
	PREMISES:	520 S Grand Ave #320, Los Angeles Ca 90071    	OFFICE NO:	B                                                                
	LANDLORD:	Pinnacle Tax Services                                            	TENANT:	Action Nutraceuticals Inc                          
	 	                                                                                	 	                                                                   
	Date of Lease:	May 30th, 2019                                                      	Annual Rent: $	9,600.00                                                     
	Lease Term:	1 year                                                                      	Monthly Rent: $ 	800.00                                                       
	Commencement Date:	June 3rd, 2019                                                        	Security Deposit: $	0                                                                
	Possession Date:	June
3rd, 2019                                                        	Termination Date:	June 3rd, 2020                                          
	 	 	 	  

 

1.
Use and Occupancy

 

Tenant
shall only occupy and use the office no. referenced above (the “Office”) for 1 year
      .

 

2.
Inability to Give Possession

 

The
failure of Landlord to give Tenant possession of the Office on the Commencement Date shall not create liability for Landlord.
In the event that possession of the Office is not delivered on the Commencement Date due to the holdover of a tenant, or, if a
newly constructed building, a final or temporary certificate of occupancy has not been obtained, or for any other reason which
is not due to Landlord’s acts or negligence, the validity of this Lease shall not be affected. Monthly Rent hereunder shall
begin on the date that possession of the Office is delivered to Tenant and shall be prorated for that portion of the month in
which possession is delivered. The Termination Date shall in no event be extended if delivery of possession is delayed. If, with
Landlord’s permission and consent, Tenant is to occupy the Office or another office space prior to the Commencement Date,
Tenant’s occupancy is subject to all the terms, conditions and provisions of this Lease except for the payment of Rent and
Additional Rent. The intent of this Paragraph is to constitute “...an express provision to the contrary...” contained
in New York Real Property Law Section 223-a.

 

3.
Rent

 

A. Tenant
shall pay Monthly Rent in full on the first day of each month of the Lease. Monthly Rent shall be paid in advance with no notice
being required from Landlord. Tenant shall not deduct any sums from the Monthly Rent unless Landlord consents thereto in writing.

 

Upon
signing this Lease, Tenant shall pay Landlord the first Monthly Rent due and the Security Deposit. The entire amount of rent due
for the Lease Term is due upon signing this Lease; however, Landlord consents to the Tenant paying same in monthly installments
provided there exists no defaults by Tenant under the terms of this Lease.

 

B. Additional
Rent may include, but is not limited to any additional insurance premiums and/or expenses paid by Landlord which are chargeable
to Tenant as stated hereinafter. Additional Rent is due and payable with the Monthly Rent for the next month after Tenant receives
notice form Landlord that Additional Rent is due and payable.

 

4.
Condition of Unit

 

Tenant
acknowledges that Tenant is accepting the Office in its “as is” condition. Tenant further acknowledges
that Tenant has thoroughly inspected the Office and has found the Office to be in good order.

 

5.
Security

 

Tenant
has deposited with the Landlord the Security Deposit to insure Tenant’s compliance with all of the terms, provisions
and conditions of this Lease. If Tenant is in default under any of the terms, conditions and provisions of this Lease,
Landlord may apply the Security Deposit, in whole or in part, to any sums Tenant owes Landlord, (including Rent and
Additional Rent), that Landlord expended or may have to expend due to Tenant’s default, including but not limited to
damages or insufficiency of rent in re-renting the Office. Within ten (10) days of the Termination Date, provided Tenant has
vacated the Office and is not in default under any of the terms, conditions and provisions of this Lease and the physical
condition of the Office is acceptable to Landlord upon surrender, the Security Deposit will be returned to Tenant at an
address Tenant provides to Landlord.

 

     

     

    

 

6. Services

 

Provided
Tenant is not in default of any of the terms, conditions and provisions of this Lease, Landlord shall provide: (a) elevator services
on business days from 8 a.m. to 6 p.m., and at all other times, provide one (1) elevator on call; (b) water for ordinary bathroom
purposes, however, if Tenant uses water for any other purpose or in high quantities (which decision is in Landlord’s sole
judgment), a water meter may be installed by Landlord at Tenant’s cost and expense, the maintenance and repair of which
shall be exclusively that of Tenant, and all charges for water consumption as shown by said meter shall be promptly paid by Tenant;
(c) heat to the Office, on business days, as required by law; (d) if Landlord provides air conditioning, such air conditioning
will be provided, on business days from 8 a.m. to 6 p.m., from May 15th to September 30th of each year and
if Tenant requires air conditioning for other days and for other hours, Landlord will provide Tenant with same at Tenant’s
sole cost at the rates as per the rider attached (the “Services”). Tenant shall pay for Tenant’s use of electricity
in the Office directly with the utility company. Landlord reserves the right to interrupt the providing of the Services and other
utilities, when Landlord deems it necessary for repairs, alterations, replacements or improvements to such Services or other utilities,
the decision for such interruption and the length of such interruption shall be solely Landlord’s.

 

7. Alterations

 

Absent
Landlord’s written consent, Tenant may make no alterations to the Office. With Landlord’s written consent,
Tenant, at Tenant’s sole cost and expense, may make alterations, installations and improvements (the
“Alterations”) to the Office provided they are nonstructural in nature, which do not effect the Services,
utilities or other operations or services of the Premises and which are done by contractors and sub-contractors approved by
Landlord in every instance. Before making Alterations, Tenant shall obtain all permits, approvals, certificates required by
any and all municipal authorities or other agencies having jurisdiction of the Premises and the Alterations and upon
receiving same, Tenant shall deliver duplicate or certified copies to Landlord of each and every one. Tenant shall carry and
cause to be carried by each contractor and sub-contractor, workmen’s compensation, general liability, personal and
property damage insurance, in such amounts as Landlord requires, naming Landlord as insured and Tenant shall deliver evidence
of such insurance to Landlord prior to Tenant’s commencing the Alterations. Should a mechanic’s lien be
filed against the Office and/or Premises, for work done or claimed to have been done or materials supplied for Tenant or to
the Office, Tenant shall pay or cause to be paid or file a bond in the amount stated in the mechanic’s lien within
thirty (30) days of said filing at Tenant’s sole cost and expense. Any installation of materials, fixtures and the like
shall become the property of Landlord upon such installation and shall remain in the Office upon Tenant’s surrender of
same. However, Landlord may relinquish such right of ownership to the installations by giving Tenant thirty (30) days written
notice prior to the Termination Date of such relinquishment of ownership, in which event, they shall become Tenant’s
and must be removed upon the Termination Date. Nothing herein is meant to give Landlord any ownership rights in and to
Tenant’s trade fixtures, office furniture and equipment which can be easily moved. Upon the Termination Date and
surrender of possession of the Office, Tenant shall remove all personal property and installations to which Landlord’s
ownership interest has been relinquished and Tenant shall immediately restore and repair the Office to that condition
existing on the Commencement Date. Any and all property of Tenant remaining in the Office after the Termination Date shall be
deemed abandoned by Tenant and Landlord may either retain such abandoned property or may remove such abandoned property at
Tenant’s expense

 

    2

     

    

 

8. Maintenance
and Repairs

 

Tenant
shall maintain the Office in good condition. Tenant shall be responsible for any and all damage to the Office or any other
part of the Premises resulting from Tenant’s willful acts or negligence or the willful acts or negligence of
Tenant’s agents, employees, invitees or licensees or which may arise from any work done by of for Tenant or by
Tenant’s business operations. Tenant shall also be responsible for any damage to the Premises caused by Tenant’s
moving or removal of furniture, fixtures and/or equipment.Tenant shall only use contractor and/or sub-contractors for
these repairs which have been approved by Landlord in every instance. In the event that Tenant fails or refuses to make said
repairs , Landlord may do so at Tenant’s expense which shall be Additional Rent. Landlord shall maintain in proper
order and repair the exterior of the Premises as well as the common areas and the utilities servicing the Premises. Tenant
shall give immediate notice to Landlord of any defect or interruption of service or condition.The responsibility of
Tenant to pay Rent and Additional Rent shall not be reduced or abated by reason of injury to business or annoyance to
employees of Tenant caused by repairs, alterations or improvements to the Premises or the Office. Likewise there shall be no
liability on the part of the Landlord for such injury or annoyance as aforesaid. Should Landlord be in default under this
Paragraph or any other Paragraph of this lease, Tenant’s only remedy is to sue Landlord for breach of this
Lease.

 

9. Window
Cleaning

 

Tenant
will not clean or caused to be cleaned any window in the Office from outside of the Office in violation of any of the provisions
of the Labor Law or any law, provision or rule of any authority having jurisdiction thereof.

 

10. Damage,
Fire or Other Casualty

 

In
the case of fire damage or other damage to the Office not caused by Tenant, its agents, servants, employees, invitees and/or
licensees, Tenant shall give Landlord immediate notice of same. (a) If the Office is partially damaged by fire or other
casualty, Landlord shall repair the damage and the Rent and Additional Rent shall be apportioned from the day of the damage
in relation to the portion of the Office that has been rendered unusable to the day that the Office has been repaired and is
fully usable. (b) If the Office is totally damaged and rendered wholly unusable by fire or other casualty, Landlord has the
right to either repair the damages or terminate the lease. (I) In the event that Landlord elects to repair the damages, Rent
and Additional Rent shall be abated for the period of time from the date of occurrence of the damage to the date that
Landlord notifies Tenant that the Office can be re-occupied; (ii) In the event that Landlord elects to terminate this Lease,
Landlord may do so upon giving Tenant notice of his intent to do so within the sooner of ninety (90) days of the occurrence
of the damages or thirty (30) days from the date that the insurance claim is adjusted which notice shall set forth a date on
which the Lease shall expire, which date shall not be more than sixty (60) days from the date of such notice and upon which
date this Lease shall terminate and all obligations owed by Landlord and Tenant to each other shall cease and all obligations
due shall be paid from one to the other. Should this Lease not be terminated, Landlord shall make all repairs in an
expeditious manner subject to delays beyond the control of Landlord. Tenant shall cooperate fully with Landlord after such
damage is incurred in all of Landlord’s reasonable requests to remove undamaged items in the Office. Before making
claim against the other for damages as a result of fire or other casualty, each party shall look first to their respective
insurance carrier. To the extent permitted by law and by the respective insurance policies, Landlord and Tenant hereby
release and waive rights of discovery with respect to the above against the other or any one claiming through them. If this
condition can only be obtained by paying an additional premium, then the one benefiting from such waiver shall pay the
additional premium upon ten (10) days written notice and the one obtaining such insurance coverage is free from any other
obligation with respect to waiver of subrogation. Tenant acknowledges that Landlord shall not be obligated to carry any
insurance for the benefit of Tenant with respect to Tenant’s personal property, equipment, inventory or the like and
agrees that Landlord is not obligated to repair any damage to them. The provisions of New York Real Property Law Section 227
are waived by both parties and the provisions of this Paragraph shall be controlling.

 

    3

     

    

 

11. Loss,
Damage, Indemnity

 

Landlord
shall not be liable for any loss, damage or expense to any person or property of Tenant or to property of others given to employees
of the Premises. Landlord shall also not be liable for any theft of or by other tenants or otherwise, nor for injury or damage
to persons or property resulting from any cause whatsoever, unless due to the willful acts of Landlord, it agents, servants and/or
employees. Landlord shall not be liable for damages caused by construction in or about the Premises. Landlord shall not be liable
for any damages if the windows are permanently or temporarily closed, darkened, covered and Tenant shall not be entitled to any
abatement or reduction in rent and Additional Rent as a result thereby nor shall same be grounds for Tenant’s claim of eviction
nor shall Tenant be released from any of the terms, conditions and provisions of this Lease. Tenant shall indemnify and hold Landlord
harmless from all claims, liabilities, costs and expenses, including attorneys’ fees, paid or incurred by Landlord as a
result of any default by Tenant of the terms, conditions and provisions of this Lease for which Landlord is not covered or paid
by insurance. In the event that an action or proceeding is brought against Landlord, Tenant, upon written notice from Landlord,
will, at Tenant’s sole cost and expense, retain counsel approved by Landlord to defend such action or proceeding.

 

12. Electricity

 

Tenant
warrants that its use of electrical current will, at all times, not exceed the current capacity of the electrical service into
the Premises, or the risers or wiring installation. Tenant will not use or cause to be used equipment which will overload the
existing service and installations or interfere with other tenants’ electrical service. Any change in the character or nature
of electrical service to the Premise s and/or to the Office shall not impose liability on the Landlord for any loss or damage
sustained by Tenant as a result thereof.

 

13. Occupancy

 

Tenant
shall not, at any time, use or occupy the Office in violation of or contrary to the permitted uses contained in the
Certificate of Occupancy for the Premises and/or the Office. Tenant has fully inspected the Office and is accepting the
Office in its “as is” condition subject to any work to be performed by either party to this Lease on the Rider
annexed hereto and designated Rider__________. Tenant has performed “due diligence” with respect to the
Premises and accepts the Office subject to any and all violations, whether same are of record or not. Landlord makes no
representations as to the condition of the Office except as specifically set forth herein and on the Rider to this Paragraph,
if any.

 

    4

     

    

 

14. Landlord’s
Alterations and Management

 

Landlord
has the right to change the arrangement and/or location of entrances, hallways, passageways, doorways, doors, elevators,
stairs or any other part of the Premises used by the general public, including toilets, and to change the name and/or number
of the Premises. In the event that Landlord so changes as aforesaid, the same shall not constitute an eviction nor imposes
any liability on Landlord for such election. Rent and Additional Rent shall not be diminished or abated in such event
as a result of any inconvenience, annoyance or injury to Tenant’s business and Landlord shall have o liability
therefore. Landlord may impose rules for the access to the Premises by Tenant’s social or business guests as Landlord
deems proper and necessary for the security of the Premises and Tenant shall not have any claim against Landlord for any
damages resulting therefrom.

 

15. Condemnation

 

If
the whole or any part of the Premises and/or Office is taken by condemnation or otherwise by any governmental authority for public
or quasi-public use, this Lease shall be terminated as of the date that title is vested pursuant to said proceeding and Tenant
shall not have nay claim for the value of the remaining portion of this Lease and Tenant assigns to Landlord Tenant’s interest
in any award. Nothing contained herein shall prevent Tenant from making an independent claim to the authority for allowable expenses.

 

16.
Legal Requirements, Insurance, Floor Capacity

 

Tenant
shall, at its sole cost and expense, at all times under this Lease or prior to the Commencement Date if Tenant is in
possession of the Office as provided herein, comply promptly with all laws, regulations and orders of all municipalities and
their agencies having jurisdiction over the Premises and Office including, but not limited to fire and or insurance offices
which shall impose any violation or notice of violation or affirmative obligation upon Landlord and or the Premises, whether
or not concerning Tenant’s use of the Office or the Premises. Tenant shall not be required to make any structural
alterations and/or repairs unless Tenant, as a result of Tenant’s unauthorized uses and/or operations of business,
violated such laws, regulations and/or rules. Tenant may appeal or object to such violations, fines etc. provided Tenant has,
in Landlord’s sole judgment, secured Landlord with respect to same by either deposit of sufficient monies or by a
surety bond in an amount and by a company satisfactory to Landlord, for all damages, penalties, expenses and interest,
including reasonable attorneys’ fees provided same does not subject Landlord to criminal liability or create a default
under any lease and/or mortgage of Landlord’s and does not result in a condemnation or eviction, in whole or in part.
Such appeal or objection by Tenant must be undertaken in an expeditious manner and at no cost to Landlord. Tenant shall do or
cause to be done any act contrary to all laws, rules and regulations or which would violate any provision of Landlord’s
policies of insurance or which would subject Landlord to liability to any person or entity for personal and/or property
damages. Tenant shall not keep any substance in the Office which is in violation of any law, rule and/or regulation which
would result in a cancellation of Landlord’s policies of insurance. Tenant shall not use the Office in such a manner
that the premiums for Landlord’s policies of insurance would be increased over that rate in effect at the time the
Tenant obtains possession of the Office. Any cost, expense, fine, damages and/or penalties incurred by Landlord as a result
of Tenant’s violation of any provision in this Paragraph shall be borne by Tenant and shall be paid by Tenant as
Additional Rent. In any action or proceeding, the schedule of premiums issued by Landlord’s insurance carrier shall be
conclusive evidence of the rate therefore. Tenant shall place a load on the floor of the Office contrary to the maximum floor
area load permitted by law and the certificate of occupancy. The placement of heavy machines, mechanical equipment and/or
office equipment shall be approved by Landlord and shall be placed in such manner, in Landlord’s sole judgment, by
Tenant to avoid and prevent vibrations, noise and annoyance to other tenants. 

 

    5

     

    

 

17. No Mortgage or Assignment

 

Tenant shall not assign,
mortgage and/or encumber this Lease or sublet the Office or allow the Office to be used by anyone other than Tenant without the
prior written consent of Landlord. The transfer of the majority interest in Tenant shall be deemed an assignment for purposes of
this Paragraph. Should this Lease be assigned or the Office sublet or used by anyone other than Tenant without Landlord’s
written consent, Landlord may collect rent from the persons or entity so occupying and using the Office should Tenant default in
the payment of Rent and Additional Rent but such collection by Landlord shall not be deemed a waiver of the provisions of this
Paragraph or a consent to such assignment, sublet or use or a release of Tenant’s obligations under this Lease. Any consent
given by Landlord to Tenant under this Paragraph in one instance shall not act to be a consent or waiver of Landlord’s rights
in another.

 

18. No Other Space

 

Tenant is afforded
no other rights to use any space in the Premises other than the Office.

 

19. Tenant’s Defaults

 

A. If
there is a default by Tenant under the terms of this Lease, other than the obligation to pay Rent and Additional Rent, or Tenant
vacates the Office prior to the Termination Date, or if an execution has been issued against the property of Tenant or Tenant whereby
the Office is used and/or occupied by someone other than Tenant, or if this Lease be rejected in a Bankruptcy proceeding, or should
Tenant not take possession of the Office with thirty (30) days from the Possession Date, the Landlord, upon fifteen (15) days prior
written notice to Tenant which sets forth Tenant’s default(s) and should Tenant fail to completely cure said specified default(s)
within said fifteen (15) days, or if the default(s), by its nature cannot be cured within said fifteen (15) days or should Tenant
fail to undertake with diligent effort to cure the default(s) within said fifteen (15) days, then , in such event, Landlord may
serve upon Tenant, a written five (5) day notice canceling this Lease and Tenant, at the end of said five (5) days shall vacate
and surrender the Office and Tenant shall continue to remain liable as set forth under this Lease.

 

B. If Tenant shall
be in default in the payment of Rent and/or Additional Rent, or if the notice given pursuant to “A” hereinabove has
expired or if Tenant is in default in payment of any other matter for which Tenant is liable to pay, then Landlord, without notice,
(the giving of notice is hereby expressly waived by Tenant), may reenter the Office, by force or otherwise, and dispossess
Tenant or other occupant, by any lawful manner, and remove their possessions and retake the Office. Tenant expressly waives the
right to receive notice of such reentry by Landlord and agrees that Landlord shall not be responsible for any damage sustained
to the property of Tenant or other occupant. If their be an extension or renewal of this Lease and Tenant shall default under any
term, condition and/or provision of this Lease, Landlord may cancel such renewal or extension upon three(3) days prior written
notice to Tenant.

 

20. Bankruptcy

 

A. This Lease may
be cancelled upon Landlord’s prior ten (10) day written notice to Tenant if there be commenced a case, whether voluntary
or involuntary, by or against Tenant or any other person or entity occupying the Office, in a bankruptcy court in any State, or
if Tenant or any other person or entity occupying the Office, should make an assignment for the benefit of creditors under any
law. Upon such event, Tenant or any other occupant shall not be entitled to possession of the Office and shall
immediately vacate the Office and surrender same to Landlord.

 

    6

     

    

 

B.
It is expressly agreed that in the event of a termination of this Lease pursuant to “A” above, notwithstanding any
other provision contained in this Lease, Landlord shall be entitled to receive from Tenant, as and for liquidated damages, the
higher of (1) the maximum amount permitted by law or (2) an amount equal to the difference between the Rent from the date of termination
as set forth pursuant to “A” above to the Termination Date and the fair and reasonable market rent for the same period
of time. In computing such amount, the same shall be discounted at the rate of three (3%) percent. If the Office shall be re-rented
during that period of time, the rent paid under the re-rental agreement shall be conclusive proof of the reasonable market rent.

 

21. Remedies

 

In
the event of any default, re-entry by Landlord, termination and/or eviction by summary proceedings or otherwise (a) Rent and Additional
Rent up to the date of such re-entry and/or eviction or termination shall be due, (b) Landlord may re-rent the Office, in whole
or in part, for a term equal to or in excess of the Termination Date, and Landlord may be free to grant such concessions or charge
rent in excess of the Rent as the Landlord sees fit, and/or (c) Tenant shall be obligated to Landlord for liquated damages (“Liquidated
Damages”) for such default, termination and/or eviction in an amount equal to the difference between the Rent and the rent
to be charged up to the Termination Date and any charges incurred by Landlord including, but not limited to reasonable attorneys’
fees, litigation costs and expenses, brokers’ fees, advertising fees, maintenance charges in keeping the Office in good
condition and charges incurred in getting the Office in a condition for such re-renting. Landlord’s failure to re-rent the
Office shall not affect or release Tenant form said liquidated damages. The Liquidated Damages shall be paid in monthly installment
when Rent is due prorated over the remaining term of this Lease. Landlord may, in getting the Office in condition for such re-renting,
make such alterations, repairs and/or decorations in the Office as in Landlord’s sole judgment are necessary and such undertakings
by Landlord shall not release Tenant from liability under the terms, conditions and provisions of this Lease. Landlord shall in
no way be liable to Tenant for failing to re-let the Office or to collect rent from the new tenant. The rights afforded Landlord
under this Paragraph are not exclusive and Landlord may avail itself of any and all remedies available to it under law. Tenant
expressly waives any right of redemption Tenant may now have or will have should Tenant be evicted from the Office or dispossessed
therefrom.

 

22. Fees
and Expenses

 

Should
Tenant default under any of the terms, conditions and/or provisions of this Lease, Landlord may, after giving notice if required
and upon the expiration of any grace period set forth in this Lease, immediately and without prior notice to Tenant perform or
cause to be performed Tenant’s obligations. If in connection with the aforesaid, Landlord incurs any cost and/or expense
or becomes obligated to pay money as a result thereof, including but not limited to legal fees, reasonable attorneys’ fees,
litigation expenses, Tenant shall pay to Landlord such monies, with interest. The foregoing cost, expense or payment of money
by Landlord shall be Additional Rent and shall be paid by Tenant within fifteen (15) days from the date Landlord bills Tenant.
Should these billed amounts come subsequent to the Termination Date, Landlord may institute proceedings against Tenant for the
recovery of same.

 

23. Access

 

Landlord
or Landlord’s agents, servants and/or employees may enter the Office for emergency purposes at any time and at any other
reasonable time in order to make inspections and/or make repairs, alterations or additions as Landlord deems proper and/or necessary
to the Office and/or the Premises. Tenant grants Landlord the right to use the Office to replace and/or maintain the HVAC services
and facilities. For this purpose, Landlord may bring into the Office all necessary materials and supplies and same shall
not be deemed to give Tenant any right to claim an actual or constructive eviction or any right to an abatement of Rent and Additional
Rent or to a claim for damages as a result of loss of or interruption of Tenant’s business. During the term of this Lease,
Landlord shall have the right to enter the Office, at reasonable times and upon reasonable notice, for the purpose of exhibiting
same to prospective purchasers and mortgagees. Landlord shall also have the right, within the six months prior to the Termination
Date, to enter the Office for the purpose of exhibiting same to prospective tenants. Should Tenant not be present to allow access
to the Office, Landlord may enter the Office by using a master key or by force providing Landlord exercises reasonable care to
insure Tenant’s property and such entry shall not subject Landlord or its agents liable for any damages as result thereof
and the obligations of Tenant under the terms, conditions and/or provisions of this Lease shall not be affected thereby. Should
Tenant entirely vacate the Office within thirty (30) days of the Termination Date, Landlord may enter the Office and make such
alterations, repairs, additions or changes without affecting Tenant’s obligations under this Lease, including, but not limited
to Tenant’s obligation to pay Rent and Additional Rent or creating liability for Landlord to Tenant.

 

    7

     

    

 

24. Waiver

 

The failure by Landlord
to seek redress or any remedy for Tenant’s default under any of the terms, conditions and/or provisions of this Lease or
of any rule imposed and declared by Landlord shall not constitute a waiver by Landlord for any future defaults or violations. Landlord’s
receipt of Rent and Additional Rent at a time when Landlord has knowledge or should have knowledge of any default or violation
shall not be deemed a waiver thereof. Only a written waiver signed by Landlord shall be effective and binding upon Landlord. Any
Rent and/or Additional Rent received by Landlord which is less than the amount due shall be deemed to be “on account”
and any notation or statement on Tenant’s check shall be deemed payment in full or accord and satisfaction and Landlord may
accept such payment without prejudice to Landlord’s right to pursue such available remedy for the balance of same or for
any other remedy afforded Landlord under the terms, provisions and/or conditions of this Lease. Only a surrender of the Office
in writing signed by Landlord shall be effective and binding upon Landlord and/or Tenant and such surrender must be made to Landlord
or Landlord’s authorized agent. An acceptance of a surrender of the Office and keys to same by persons other than Landlord
or its authorized agent shall be effective as a termination of this Lease.

 

25. Landlord’s Inability To Perform

 

Tenant’s obligation
to pay Rent and Additional Rent and/or to comply with any of the terms, provisions and/or conditions of this Lease as well as the
Lease itself shall not be affected, impaired, amended or excused due to Landlord’s inability to perform any of its obligations
contained in this Lease, or to supply any if delayed in supplying any service or item or is unable to make, or is delayed in the
making of any repair, alterations, additions, or is unable to supply or is delayed in supplying any equipment, services, fixtures
or any other material to be supplied hereunder, provided that Landlord is unable to do so because of labor problems, strife or
strike or any other cause whatsoever including, but not limited to war or other emergency.

 

26. Excavations

 

In the event that there
be an authorized excavation conducted upon lands adjacent to the Premises, Tenant shall allow the parties conducting same entry
into the Office for the purpose of performing necessary work as such party deems necessary to shore up and/or preserve the wall
of the Premises from damage including but not limited to supporting the existing exterior walls and foundations. Tenant further
agrees to waive any right Tenant may have to make a claim for damages caused thereby or indemnity therefore from that party or
Landlord or for an abatement of Rent and/or Additional Rent.

 

    8

     

    

 

27. No Representations by Landlord

 

Landlord
and/or Landlord’s agents, servants and/or employees have not made any representations nor promises of any kind to Tenant
as to the physical condition of the Premises and/or Office or as to the financial condition and health or as to the operation
of the Premises except as specifically set forth in this Lease and Tenant does not acquire any rights, easements or licenses except
as specifically set forth in this Lease. Tenant has accepted the Office in its “as is” condition after having
thoroughly inspecting same and without relying on any representations made by Landlord, its agents, servants and/or employees.
Tenant’s occupation of the Office is conclusive proof that the Office and Premises are in good and satisfactory condition
at the date Tenant first occupies the Office.

 

28. Non-merger

 

All
prior agreements, understandings and representations are merged in this Lease which fully expresses the parties’ agreement
and this Lease may only be amended or modified or terminated, other than on the Termination Date, by written agreement signed
by Tenant and Landlord.

 

29. Non-Disturbance

 

As
long as Tenant pays Rent and Additional Rent and complies fully with all of the terms, provisions and conditions of this Lease
on Tenant’s part to be performed, Tenant may peacefully occupy the Office subject too any mortgage, ground lease or underlying
lease.

 

30. Waiver

 

Tenant
and Landlord hereby waive trial by jury in any action, proceeding or litigation brought by one against the other or in which either
party is brought in by a third party, except for personal injury or property damage actions, in which any of the terms, provisions
and/or conditions of this Lease or any statutory remedy is involved or the use and/or occupancy of the Office is at issue. Tenant
and Landlord agree that in any action seeking possession of the Office, Tenant will not impose any counterclaim or set-off against
Landlord of any kind or nature except if mandated by statute.

 

31. Notices

 

Any
notice, statement or communication which Landlord is to give to Tenant, shall be deemed to be sufficiently given if it is in writing
and delivered personally to Tenant or sent by certified mail or overnight courier addressed to Tenant at the Office or other business
address of Tenant or at the residence of Tenant or left at any one of the addresses and the time of giving such notice, statement
or communication shall be deemed given at the time same are left with or mailed or delivered to the overnight courier. Any notice
to be given by Tenant to Landlord must be given by certified mail or overnight courier at Landlord’s address above.

 

32. Rules

 

Tenant,
its agents, servants and/or employees, licensees, business guests or visitors shall comply strictly and faithfully with the
Rules that Landlord may adopt, at any time, notice of which shall be given to Tenant. Landlord may choose the manner in which
said notice is given. In the event that Tenant disputes the reasonableness of any Rule, Tenant and Landlord agree to submit
such dispute to the American Arbitration Association, New York, New York for binding arbitration provided Tenant gives
written notice to Landlord within twenty (20) days of receipt of notice of adoption of the Rule or Rules. Notwithstanding the
provisions of this Paragraph, Landlord is not under any obligation to enforce the Rules with respect to any other tenant in
the Premises or to enforce any term, condition or provision of any other lease. Landlord is not liable to Tenant for any damages caused by another tenant violating the Rules or any term, provision or condition of that tenant's lease.

 

This
Lease has been entered into as of the Date of Lease.

 

    9

     

    

 

33. Definitions

 

Wherever and whenever
used in this Lease, the following definitions shall be ascribed to these words:

 

a) Business
Day” shall mean the days of the week except Saturday and Sunday and except legal holidays observed by either Staten of Federal
Governments and those set forth in any union contract which applies to the Premises

 

b) Office”
or “Offices” shall not mean Premises but shall mean premises other than those utilized for the sale of goods and merchandise
or for the display of same, or a restaurant, shop, machine shop, manufacturing plant or other retail establishment.

 

c) Landlord”
shall mean the owner of the Premises or a lessee thereof, or a mortgagee in possession and should there be a sale or lease of the
entire Premises, Landlord is released form all obligations and liabilities under this Lease and it will be conclusively presumed
that the purchaser or lessor will perform the obligations and liabilities of Landlord herein.

 

d) Re-enter”
and “Re-entry” are not to be strictly taken in their legal definitions.

 

34. Estoppel Certificate

 

Upon fifteen (15) prior
written notice to Tenant, Tenant shall execute and deliver to Landlord or to any other entity that Landlord directs, a certificate,
in recordable form, stating that the Lease, as it exists on the date of the certification, is in full force and effect, that it
has not be amended, modified or terminated, the date to which Rent and Additional Rent has been paid and setting forth specifically
if any defaults exist on the part of Landlord.

 

35. Subordination

 

The Lease is subject
and subordinate to all existing and future mortgages or ground leases or underlying leases which affects the Premises and to all
renewals, modifications or replacements thereof without the necessity of any notice or written instruments and Tenant shall, at
Landlord request, execute a document to this effect.

 

36. Surrender of Office

 

Upon the Termination
Date or other termination of this Lease, Tenant shall vacate and surrender the Office in broom clean condition and in good condition,
reasonable wear and tear excepted and free from Tenant’s property. All damages which were caused by or on behalf of Tenant
shall be repaired by Tenant at Tenant’s sole cost and expense prior to the surrender of the Office. This Paragraph survives
the Termination Date or the date of other termination of this Lease. Should the Termination Date be a Sunday or legal holiday,
the Termination Date shall be the immediate previous day.

 

37. Parties Bound

 

This Lease is binding
upon Landlord and Tenant and their respective assignees and/or successors in interest. Should Tenant obtain a judgment against
Landlord, Tenant shall look only to Landlord’s interest in the Premises for the collection of same.

 

38. Paragraph Headings

 

Paragraph headings are for reference only.

 

39. Effectiveness

 

This Lease shall become
effective as of the date when Landlord delivers a fully executed copy hereof to Tenant or Tenant’s attorney.

 

40. Riders

 

Additional terms are contained in the riders
annexed hereto and designated Rider NA                 .

 

    10

     

    

 

This
Lease has been entered into as of the Date of Lease.

 

	LANDLORD	 	TENANT
	 	 	 
		 	

 

 

11

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