Document:

Exhibit 10.2

 

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of April 28, 2022, by and between CANNABIS GLOBAL, INC.,
a Nevada corporation, with headquarters located at 520 S. Grand Avenue, Suite 320, Los Angeles, CA 90071 (the “Company”),
and SUGARMADE, INC., a Delaware corporation, for the benefit of its wholly owned subsidiary, LEMON GLOW COMPANY, INC., a California
corporation

(collectively,
the “Buyer”).

 

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

 

B.
Buyer desires to purchase from the Company, and the Company desires to issue and sell to the Buyer, upon the terms and conditions
set forth in this Agreement, a promissory note of the Company, in the aggregate principal amount of $400,000.00 (in the form attached
hereto as Exhibit A, the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company
(the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note; and

 

C.
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal

amount
of the Note as is set forth immediately below its name on the signature pages hereto; and,

 

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

 

1.
Purchase and Sale of Note.

 

a.
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer, and the
Buyer agrees to purchase from the Company, the Note, as further provided herein. As used in this Agreement, the term “business
day” shall mean any day other than a Saturday, Sunday, or a day on which commercial banks in the city of Las Vegas, Nevada are
authorized or required by law or executive order to remain closed.

 

b.
Form of Payment. On the Closing Date: (i) the Buyer shall execute the Cultivation and Supply Agreement (the
“Purchase Price”) for the Note, to be issued and sold to it at the Closing (as defined below). 

 

c.
Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and
Section 7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be on the date that the Cultivation and Supply Agreement for the Note is executed by the Parties.

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

f.
Transfer or Re-sale. The Buyer understands that (i) the sale or resale of the Securities has not been and is not
being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Company, an opinion of counsel (which may be the Legal Counsel Opinion (as defined below)) that shall be in form,
substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities
are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule
144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is
an Accredited Investor, (d) the Securities are sold pursuant to Rule 144 or other applicable exemption, or (e) the Securities are sold
pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to
the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel
in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule
144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities
under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term
is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC
thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act
or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged in connection with a bona fide margin
account or other lending arrangement secured by the Securities, and such pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities hereunder, and the Buyer in effecting such pledge of Securities shall be not required to provide the
Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or otherwise.

 

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g.
Legends. The Buyer understands that until such time as the Note, the Conversion Shares have been registered under
the 1933 Act or may be sold pursuant to Rule 144, Rule 144A under the 1933 Act, Regulation S, or other applicable exemption without any
restriction as to the number of securities as of a particular date that can then be immediately sold, the Securities may bear a restrictive
legend in substantially the following form (and a stop-transfer order may be placed against transfer of such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE]
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE
EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 

 

The
legend set forth above shall be removed and the Company shall issue a certificate or book entry statement for the applicable shares of
Common Stock without such legend to the holder of any Security upon which it is stamped or (as requested by such holder) issue the applicable
shares of Common Stock to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository
Trust Company (“DTC”), if, unless otherwise required by applicable state securities laws, (a) such Security is registered
for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144, Rule 144A,
Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then
be immediately sold, or (b) the Company or the Buyer provides the Legal Counsel Opinion (as contemplated by and in accordance with Section
4(m) hereof) to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which
opinion shall be accepted by the Company so that the sale or transfer is affected. The Company shall be responsible for the fees of its
transfer agent and all DTC fees associated with any such issuance. The Buyer agrees to sell all Securities, including those represented
by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In
the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant
to an exemption from registration, such as Rule 144, Rule 144A, Regulation S, or other applicable exemption at the Deadline (as defined
in the Note), it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

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

 

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3.
Representations and Warranties of the Company. The Company represents and warrants

to
the Buyer as of the Closing Date that:

 

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

 

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

 

c.
Capitalization; Governing Documents. As of April 28, 2022, the authorized capital stock of the Company consists
of: 3,000,000,000 authorized shares of Common Stock, of which 528,142,691 shares were issued and outstanding, and 10,000,000 authorized
shares of preferred stock (of which 8,000,000 have been designated as Series A Preferred Stock and 1,000,000 have been designated as
Series B Preferred Stock), of which 6,229,250 shares were issued and outstanding (consisting of 6,000,000 shares of Series A Preferred
Stock and 229,250 shares of Series B Preferred Stock). All of such outstanding shares of capital stock of the Company, the Conversion
Shares, and the Exercise Shares are, or upon issuance will be, duly authorized, validly issued, fully paid and nonassessable. No shares
of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any
liens or encumbrances imposed through the actions or failure to act of the Company. As of the effective date of this Agreement, other
than as publicly announced prior to such date and reflected in the SEC Documents of the Company (i) there are no outstanding options,
warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital
stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under
which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and
(iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement
providing rights to security holders) that will be triggered by the issuance of any of the Securities. The Company has furnished to the
Buyer true and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate
of Incorporation”), the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of
all securities convertible into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect
thereto.

 

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

 

e.
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect of the Conversion
Shares to the Common Stock upon the conversion of the Note. The Company further acknowledges that its obligation to issue, upon conversion
of the Note, the Conversion Shares are absolute and unconditional regardless of the dilutive effect that such issuance may have on the
ownership interests of other shareholders of the Company.

 

f.
No Conflicts. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance
of the Conversion Shares and Exercise Shares) will not (i) conflict with or result in a violation of any provision of the Certificate
of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or
an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, note, evidence of indebtedness, indenture, patent, patent license or instrument to which
the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company
or its securities is subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or
any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as would not, individually or in the aggregate, have a Material Adverse Effect), or (iv) trigger any anti-dilution and/or
ratchet provision contained in any other contract in which the Company is a party thereto or any security issued by the Company. Neither
the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents
and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time or both
could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has taken any
action or failed to take any action that would give to others any rights of termination, amendment, acceleration or cancellation of,
any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which any property or assets
of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not, individually or in the aggregate,
have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be
conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity.
Except as specifically contemplated by this Agreement and as required under the 1933 Act and any applicable state securities laws, the
Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental
agency, regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute, deliver or perform
any of its obligations under this Agreement and the Note in accordance with the terms hereof or thereof or to issue and sell the Note
in accordance with the terms hereof and, upon conversion of the Note and issuance of the Conversion Shares as applicable. All consents,
authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been
obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the Principal Market
(as defined herein) and does not reasonably anticipate that the Common Stock will be delisted by the Principal Market in the foreseeable
future. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The
“Principal Market” shall mean the principal securities exchange or trading market where such Common Stock is listed or traded,
including but not limited to any tier of the OTC Markets, any tier of the NASDAQ Stock Market (including NASDAQ Capital Market), or the
NYSE American, or any successor to such markets.

 

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g.
SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the
“1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred
to herein as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and
none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended
or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during
the periods involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated
Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company
included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business subsequent to November 30, 2021, and (ii) obligations under contracts and commitments incurred in the ordinary course
of business and not required under generally accepted accounting principles to be reflected in such financial statements, which, individually
or in the aggregate, are not material to the financial condition or operating results of the Company. The Company is subject to the reporting
requirements of the 1934 Act. The Company has never been a “shell company” as described in Rule 144(i)(1)(i).

 

h.
Absence of Certain Changes. Since November 30, 2021, there has been no material adverse change and no material adverse
development in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934
Act reporting status of the Company or any of its Subsidiaries.

 

i.
Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or

investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company
or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in
their capacity as such, that could have a Material Adverse Effect. The SEC Documents contain a complete list and summary description of
any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without
regard to whether it would have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

 

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

 

The Company and each of its Subsidiaries have
taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual Property.

 

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k.
No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter,
corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s
officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect.

 

l.
Tax Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and
all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the statute of limitations
relating to the assessment or collection of any foreign, federal, state or local tax. None of the Company’s tax returns is presently
being audited by any taxing authority.

 

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

 

n.
Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement
and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby is true
and correct in all material respects and the Company has not omitted to state any material fact necessary in order to make the statements
made herein or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred
or exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial
conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not
been so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934 Act are being
incorporated into an effective registration statement filed by the Company under the 1933 Act).

 

o.
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company

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

 

p.
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that
would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer
will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder
approval provisions applicable to the Company or its securities.

 

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q.
No Brokers; No Solicitation. Except with respect to Except with respect to J. H. Darbie & Co., a registered broker-dealer
(CRD#: 43520), the Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction
fees or similar payments relating to this Agreement or the transactions contemplated hereby. The Company acknowledges and agrees that
neither the Buyer nor its employee(s), member(s), beneficial owner(s), or partner(s) solicited the Company to enter into this Agreement
and consummate the transactions described in this Agreement.

 

r.
Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate
its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”), and there
is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company Permits.
Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company Permits, except
for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect. Since November 30, 2021, neither the Company nor any of its Subsidiaries has received any notification with respect to
possible conflicts, defaults or violations of applicable laws, except for notices relating to possible conflicts, defaults or violations,
which conflicts, defaults or violations would not have a Material Adverse Effect.

 

s.
Environmental Matters.

 

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

 

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

 

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

 

    	8 

    	 

    

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

 

u.
Insurance. The Company and each of its Subsidiaries are insured by insurers of

recognized
financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary
in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. Upon written
request the Company will provide to the Buyer true and correct copies of all policies relating to directors’ and officers’
liability coverage, errors and omissions coverage, and commercial general liability coverage.

 

v.
Internal Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting
controls sufficient, in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to
any differences.

 

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

 

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

 

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

 

    	9 

    	 

    

 

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

 

bb. No
Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other
officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933
Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject to any
of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to
determine whether any Issuer Covered Person is subject to a Disqualification Event.

 

cc. Manipulation
of Price. The Company has not, and to its knowledge no one acting on its behalf has: (i) taken, directly or indirectly, any action
designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid
any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for
soliciting another to purchase any other securities of the Company.

 

dd. Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956, as amended
(the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).
Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of
the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity
that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises
a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the
Federal Reserve.

 

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

 

ff. Breach
of Representations and Warranties by the Company. The Company agrees that if the Company breaches any of the representations or warranties
set forth in this Section 3 and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of Default under Section 3.4 of the Note.

    	10 

    	 

    

 

 

4. ADDITIONAL
COVENANTS, AGREEMENTS AND ACKNOWLEDGEMENTS.

 

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

 

b.
Form D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities if required under Regulation
D and to provide a copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action
as the Company shall reasonably determine is necessary to qualify the Securities for sale to the Buyer at the applicable closing pursuant
to this Agreement under applicable securities or “blue sky” laws of the states of the United States (or to obtain an exemption
from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date.

 

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

 

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

 

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

 

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

 

g.
Breach of Covenants. The Company acknowledges and agrees that if the Company breaches any of the covenants set forth
in this Section 4, in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event
of Default under Section 3.3 of the Note.

 

    	11 

    	 

    

h.
Compliance with 1934 Act; Public Information Failures. For so long as the Buyer beneficially owns the Note and the
Conversion Shares, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject
to the reporting requirements of the 1934 Act. During the period that the Buyer beneficially owns the Note, if the Company shall (i)
fail for any reason to satisfy the requirements of Rule 144(c)(1), including, without limitation, the failure to satisfy the current
public information requirements under Rule 144(c) or (ii) if the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes
such an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (each, a “Public
Information Failure”) then, as partial relief for the damages to the Buyer by reason of any such delay in or reduction of its ability
to sell the Securities (which remedy shall not be exclusive of any other remedies available pursuant to this Agreement, the Note, or
at law or in equity), the Company shall pay to the Buyer an amount in cash equal to three percent (3%) of the Purchase Price on each
of the day of a Public Information Failure and on every thirtieth day (prorated for periods totaling less than thirty days) thereafter
until the date such Public Information Failure is cured. The payments to which a holder shall be entitled pursuant to this Section 4(k)
are referred to herein as “Public Information Failure Payments.” Public Information Failure Payments shall be paid on the
earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (iii) the third
business day after the event or failure giving rise to the Public Information Failure Payments is cured. In the event the Company fails
to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate
of 5% per month (prorated for partial months) until paid in full.

 

i.
Acknowledgement Regarding Buyer’s Trading Activity. Until the Note is fully repaid or fully converted, the
Buyer shall not affect any “short sale” (as such term is defined in Rule 200 of Regulation SHO of the 1934 Act) of the Common
Stock which establishes a net short position with respect to the Common Stock.

 

j.
Disclosure of Transactions and Other Material Information. By 9:00 a.m., New York time, following the date this
Agreement has been fully executed, the Company shall file a Current Report on Form 8-K (if required) describing the terms of the transactions
contemplated by this Agreement in the form required by the 1934 Act and attaching this Agreement, the form of Note (the “8-K Filing”).
From and after the filing of the 8-K Filing with the SEC, the Buyer shall not be in possession of any material, nonpublic information
received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents that is not disclosed
in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective
officers, directors, affiliates, employees or agents, on the one hand, and the Buyer or any of its affiliates, on the other hand, shall
terminate.

 

k.
Legal Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible (at
its cost) for promptly supplying to the Company’s transfer agent and the Buyer a customary legal opinion letter of its counsel (the
“Legal Counsel Opinion”) to the effect that the resale of the Conversion Shares and/or Exercise Shares by the Buyer or its
affiliates, successors and assigns is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided the requirements
of Rule 144 are satisfied and provided the Conversion Shares and/or Exercise Shares are not then registered under the 1933 Act for resale
pursuant to an effective registration statement) or other applicable exemption (provided the requirements of such other applicable exemption
are satisfied). In addition, the Buyer may (at the Company’s cost) at any time secure its own legal counsel to issue the Legal Counsel
Opinion, and the Company will instruct its transfer agent to accept such opinion. The Company hereby agrees that it may never take the
position that it is a “shell company” in connection with its obligations under this Agreement or otherwise.

 

l.
Piggyback Registration Rights. The Company hereby grants to the Buyer the piggy-back registration rights set forth
on Exhibit B hereto.

 

 

m.
[Intentionally Omitted].

 

    	12 

    	 

    

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

 

o.
[Intentionally Omitted].

 

5.
Transfer Agent Instructions. The Company shall issue irrevocable instructions to the Company’s transfer agent
to issue certificates and/or issue shares electronically at the Buyer’s option, registered in the name of the Buyer or its nominee,
upon conversion of the Note, the Conversion Shares in such amounts as specified from time to time by the Buyer to the Company in accordance
with the terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that the Company proposes to replace
its transfer agent, the Company shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer
Agent Instructions in a form as initially delivered pursuant to this Agreement (including but not limited to the provision to irrevocably
reserved shares of Common Stock in the Reserved Amount (as defined in the Note)) signed by the successor transfer agent to the Company
and the Company. Prior to registration of the Conversion Shares and/or Exercise Shares under the 1933 Act or the date on which the Conversion
Shares and/or Exercise Shares may be sold pursuant to Rule 144, Rule 144A, Regulation S, or other applicable exemption without any restriction
as to the number of Securities as of a particular date that can then be immediately sold, all such certificates or book entry shares shall
bear the restrictive legend specified in Section 2(g) of this Agreement. The Company warrants that: (i) no instruction other than the
Irrevocable Transfer Agent Instructions referred to in this Section 5 will be given by the Company to its transfer agent and that the
Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement
and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring
(or issuing)(electronically or in certificated form) any certificate for Securities to be issued to the Buyer upon conversion of or otherwise
pursuant to the Note as and when required by the Note and this Agreement; (iii) it will not fail to remove (or directs its transfer agent
not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer
instructions in respect thereof) on any certificate for any Securities issued to the Buyer upon conversion of or otherwise pursuant to
the Note as and when required by the Note and/or this Agreement and (iv) it will provide any required corporate resolutions and issuance
approvals to its transfer agent within 6 hours of each conversion of the Note. Nothing in this Section shall affect in any way the Buyer’s
obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus delivery requirements, if any, upon
re-sale of the Securities. If the Buyer provides the Company, at the cost of the Company, with (i) an opinion of counsel in form, substance
and scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made
without registration under the 1933 Act and such sale or transfer is effected or (ii) the Buyer provides reasonable assurances that the
Securities can be sold pursuant to 144, Rule 144A, Regulation S, or other applicable exemption, the Company shall permit the transfer,
and, in the case of the Securities, promptly instruct its transfer agent to issue one or more certificates, free from restrictive legend,
in such name and in such denominations as specified by the Buyer. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the
Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 may be inadequate and agrees, in the
event of a breach or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition
to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing
economic loss and without any bond or other security being required.

 

    	13 

    	 

    

6.
Conditions to the Company’s Obligation to Sell. The obligation of the Company hereunder to

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

 

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

 

		b.	The Buyer shall have delivered the Purchase Price in accordance with Section
                                                                                                                                           1(b) above.

 

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

 

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

 

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

 

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

 

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

 

c.
The Company shall have delivered to the Buyer the Note.

 

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

 

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

 

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

 

    	14 

    	 

    

 

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

 

h.
Trading in the Common Stock on the Principal Market shall not have been suspended by the SEC, FINRA or the Principal Market.

 

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

 

8. Governing
Law; Miscellaneous.

 

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

 

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

 

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

 

    	15 

    	 

    

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

 

e.
Entire Agreement; Amendments. This Agreement, the Note, and the instruments referenced herein contain the entire
understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement or any agreement or instrument contemplated hereby may be waived or amended other than by an instrument in writing
signed by the Buyer.

 

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

 

 

If
to the Company, to:

 

CANNABIS
GLOBAL, INC. 

520
S. Grand Avenue, Suite 320

Los
Angeles, CA 90071 Attention: Arman Tabatabaei

e-mail:
info@cannabisglobalinc.com

 

If
to the Buyer:

 

SUGARMADE,
INC. 

750 Royal Oaks
Drive 108

Monrovia CA
91016

Email:
Attention Jimmy Chan: Jimmy@sugarmade.com

 

    	16 

    	 

    

g. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. The
Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer. The
Buyer may assign its rights hereunder to any “accredited investor” (as defined in Rule 501(a) of the 1933 Act) in a
private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without
the consent of the Company.

 

h. Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

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

 

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

 

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

 

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

 

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

 

    	17 

    	 

    

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

 

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

 

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

 

 

[Signature
Page Follows]

 

 

    	18 

    	 

    

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

 

CANNABIS
GLOBAL, INC. 

/s/ Arman Tabatabaei   

Name: ARMAN TABATABAEI

Title:
CHIEF EXECUTIVE OFFICER

 

 

 

SUGARMADE, INC. &
ITS WHOLLY OWNED SUBSIDIARY, LEMON GLOW COMPANY, INC. 

 

 

By: Jimmy Chan   

Name: Jimmy
Chan

Title: ChiEf
Executive Officer

 

 

    	19 

    	 

    

 

 

EXHIBIT
A

FORM
OF NOTE 

[attached
hereto]Exhibit 10.3

 

 

CONVERTIBLE
PROMISSORY NOTE 

 

THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS, AND
MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF AN OPINION OF
COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE COMPANY THAT THIS NOTE MAY BE SOLD, TRANSFERRED, OR OTHERWISE
DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS. 

 

 

CANNABIS
GLOBAL, INC.

 

Convertible Promissory Note due April 28, 2023

 

	Dated: April
28, 2022	USD $400,000.00

 

For value received,
Cannabis Global, Inc., a Nevada corporation (the “Company”), with an address of 520 South Grand Avenue, Ste.
320, Los Angeles, CA 90071, hereby promises to pay to the order of Sugarmade, Inc., a Delaware corporation, for the benefit of Lemon
Glow Company, Inc., a California corporation, with an address of 750 Royal Oaks Drive 108, Monrovia CA 91016 (together with its successors,
representatives, and permitted assigns, the “Holder”), in accordance with the terms hereinafter provided, $400,000.00
(four hundred thousand dollars) (the “Principal Amount”), in connection with that certain Cultivation and Supply Agreement
executed April 28, 2022, and 8% interest. The Principal Amount outstanding shall be due and payable on the date that is 12 months from
the issuance date, i.e., April 28, 2023.

 

The due dates of
any outstanding Principal Amount and interest are referred to herein as the “Maturity Date”, respectively.

 

All payments
under or pursuant to this Note refer to and shall be made in United States Dollars in immediately available funds to the Holder at the
address of the Holder first set forth above or at such other place as the Holder may designate from time to time in writing to the Company
or by wire transfer of funds to the Holder’s account.

ARTICLE
I 

Section 1.1 Cultivation
Agreement. This Note has been executed and delivered pursuant to a Cultivation and Supply Agreement executed April 28, 2022. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth for such terms in the Cultivation and Supply Agreement.

 

Section
1.2 Interest. Beginning on the issuance date of this Note (the “Issuance Date”), the outstanding principal balance
of this Note shall bear interest in arrears at a rate per annum equal to 8 percent accruing on a 12 month basis commencing on the Issuance
Date, which shall consist of the prepaid interest referred to above, which, at the option of the Holder, may be converted to shares of
the Company’s common stock, par value $0.001 per share (the “Common Stock”) on the same terms as the Note.

 

    	1 

    	 

    

 

Section 1.3 Payment on
Non-Business Days. Whenever any payment to be made shall be due on a Saturday, Sunday, or a public holiday under the laws of the
State of Nevada, such payment may be due on the next succeeding business day and such next succeeding day shall be included in the calculation
of the amount of accrued interest payable on such date.

 

Section 1.4 Transfer.
This Note may be transferred or sold, subject to the provisions of Section 4.8 of this Note, or pledged, hypothecated, or otherwise granted
as security by the Holder.

 

Section
1.5 Replacement. Upon receipt of a duly executed, notarized and unsecured written statement from the Holder with respect to
the loss, theft, or destruction of this Note (or any replacement hereof), and without requiring an indemnity bond or other security,
or, in the case of a mutilation of this Note, upon surrender and cancellation of such Note, the Company shall issue a new Note, of like
tenor and amount, in lieu of such lost, stolen, destroyed or mutilated Note.

ARTICLE
II 

EVENTS OF DEFAULT;
REMEDIES

Section
2.1 Events of Default. The occurrence of any of the following events shall be an “Event of Default” under this
Note:

(a)
the Company shall fail to make the payment of any amount of principal outstanding on the date such payment is due hereunder;

(b)
the Company shall fail to make any payment of interest in shares of Common Stock for a period of three (3) days after the
date such interest is due;

(c)
the suspension from listing, without subsequent listing, or the failure of the Common Stock to be listed on at least one
of the OTC Markets, Nasdaq SmallCap Market, Nasdaq National Market, American Stock Exchange or The New York Stock Exchange, Inc. for a
period of five (5) consecutive Trading Days;

(d)
the Company’s notice to the Holder, including by way of public announcement, at any time, of its inability to comply
or its intention not to comply with proper requests for conversion of this

Note into
shares of Common Stock;

(e)
the Company shall fail to (i) timely deliver the shares of Common Stock upon conversion of the Note or any accrued and unpaid
interest, or (ii) make the payment of any fees and/or liquidated damages under this Note or the Purchase Agreement, which failure in the
case of items (i) and (ii) of this

Section
2.1(e) is not remedied within three (3) business days after the incurrence thereof;

(f)
default shall be made in the performance or observance of (i) any material covenant, condition or agreement contained in
this Note (other than as set forth in clause (e) of this Section 2.1) and such default is not fully cured within five (5) business days
after the occurrence thereof or (ii) any material covenant, condition or agreement contained in the Purchase Agreement or any other Transaction
Document which is not covered by any other provisions of this Section 2.1 and such default is not fully cured within five (5) business
days after the occurrence thereof;

 

    	2 

    	 

    

(g)
any material representation or warranty made by the Company herein or any other Transaction Document shall prove to have
been false or incorrect or breached in a material respect on the date as of which made;

(h)
the Company shall (A) default in any payment of any amount or amounts of principal of or interest on any Indebtedness (other
than the Indebtedness hereunder) the aggregate principal amount of which Indebtedness is in excess of $100,000 or (B) default in the observance
or performance of any other agreement or condition relating to any Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition
is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Indebtedness to cause with the giving of notice
if required, such Indebtedness to become due prior to its stated maturity;

(i)
the Company shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian,
trustee or liquidator of itself or of all or a substantial part of its property or assets, (ii) make a general assignment for the benefit
of its creditors, (iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic), (iv) file a petition seeking to take advantage of any bankruptcy, insolvency,
moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights generally, (v) acquiesce in writing
to any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic), (vi) issue a notice of bankruptcy or winding down of its operations or issue
a press release regarding same, or (vii) take any action under the laws of any jurisdiction (foreign or domestic) analogous to any of
the foregoing;

(j)
a proceeding or case shall be commenced in respect of the Company, without its application or consent, in any court of competent
jurisdiction, seeking (i) the liquidation, reorganization, moratorium, dissolution, winding up, or composition or readjustment of its
debts, (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any substantial part of its assets
in connection with the liquidation or dissolution of the Company or (iii) similar relief in respect of it under any law providing for
the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and
in effect, for a period of sixty (60) days or any order for relief shall be entered in an involuntary case under United States Bankruptcy
Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic) against the Company or action
under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect to the Company
and shall continue undismissed, or unstayed and in effect for a period of sixty (60) days; or

(k)
the failure of the Company to instruct its transfer agent to remove any legends from shares of Common Stock eligible to
be sold under Rule 144 of the Securities Act and issue such unlegended certificates to the Holder within five (5) business days of the
Holder’s request so long as the Holder has provided reasonable assurances and opinions of counsel to the Company that such shares
of Common Stock can be resold pursuant to Rule 144; or

(l)
the failure of the Company to pay any amounts due to the Holder herein within three (3) business days of receipt of notice
to the Company.

    	3 

    	 

    

Section 2.2
Remedies Upon An Event of Default. If an Event of Default shall have occurred and shall be continuing, the Holder of this Note
may at any time at its option, (a) declare the entire unpaid principal balance of this Note, together with all interest accrued hereon,
due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest, or notice,
all of which are hereby expressly unconditionally and irrevocably waived by the Company; provided, however, that upon the occurrence of
an Event of Default described in (i) Sections 2.1 (k) or (l), the outstanding principal balance and interest hereunder shall be automatically
due and payable and (ii) Sections 2.1 (a)-(j) and 2.1(m)-(n), demand the prepayment of this Note pursuant to Section 3.6 hereof, (b) subject
to Section 3.4 hereof, demand that the principal amount of this Note then outstanding shall be converted into shares of Common Stock at
a Conversion Price (as defined in Section 3.2(a) hereof) per share calculated pursuant to Section 3.1 hereof assuming that the date that
the Event of Default occurs is the Conversion Date and demand that all accrued and unpaid interest under this Note shall be converted
into shares of Common Stock in accordance with Section 1.2 hereof, or (c) exercise or otherwise enforce any one or more of the Holder’s
rights, powers, privileges, remedies and interests under this Note, the Purchase Agreement, other Transaction Document or applicable law.
No course of delay on the part of the Holder shall operate as a waiver thereof or otherwise prejudice the right of the Holder. No remedy
conferred hereby shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity, by statute
or otherwise.

ARTICLE
III 

 

CONVERSION;
ANTIDILUTION; PREPAYMENT

Section 3.1 Conversion Option.

(a)
At any time after the Issuance Date, this Note shall be convertible (in whole or in part), at the option of the Holder (the
“Conversion Option”), into such number of fully paid and non-assessable shares of Common Stock (the “Conversion
Rate”) as is determined by dividing that portion of the outstanding principal balance under this Note as of such date that the
Holder elects to convert by the Conversion Price (as defined in Section 3.2(a) hereof) then in effect on the date on which the Holder
faxes a notice of conversion (the “Conversion Notice”), duly executed, to the Company (the “Voluntary Conversion
Date”), provided, however, that the Conversion Price shall be subject to adjustment as described in Section 3.5 below. The Holder
shall deliver this Note to the Company at the address designated in the Purchase Agreement at such time that this Note is fully converted.
With respect to partial conversions of this Note, the Company shall keep written records of the amount of this Note converted as of each
Conversion Date.

(b)
On any Voluntary Conversion Date, the Holder may cause the outstanding Principal Amount of this Note plus all accrued and
unpaid interest to convert into a number of fully paid and nonassessable shares of Common Stock equal to the quotient of the elected outstanding
principal amount of this Note plus all accrued interest on the elected outstanding on the Voluntary Conversion Date (as described in this
Section below) divided by the Conversion Price as described in Section 3.2(a) below.

 

Furthermore, upon
the occurrence of an Event of Default (as defined in Section 2.1 hereof), then to the extent permitted by law, the Company will pay interest
to the Holder, payable on demand, on the outstanding principal balance of the Note from the date of the Event of Default until such Event
of Default is cured at the rate of the lesser of fifteen percent (15%) and the maximum applicable legal rate per annum.

 

    	4 

    	 

    

(c)
Conversion Limitations; Holder’s Restriction on Conversion. The Company shall not affect any conversion
of this Note, and the Holder shall not have the right to convert any portion of this Note, to the extent that after giving effect to such
conversion, the Holder (together with the Holder’s affiliates), as set forth on the applicable Conversion Notice, would beneficially
own in excess of 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to such conversion. For
purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include
the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination of such sentence is
being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted
portion of this Note beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, any other Notes or the Warrants) subject to a limitation
on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except
as set forth in the preceding sentence, for purposes of this Section, beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act. To the extent that the limitation contained in this section applies, the determination of whether this Note
is convertible (in relation to other securities owned by the Holder) and of which a portion of this Note is convertible shall be in the
sole discretion of such Holder. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each
time it delivers a Conversion Notice that such Conversion Notice has not violated the restrictions set forth in this paragraph and the
Company shall have no obligation to verify or confirm the accuracy of such determination. For purposes of this Section, in determining
the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Form 10-Q or Form 10-K (or such related form), as the case may be, (y) a more recent public announcement
by the Company or (z) any other notice by the Company or the Company’s Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of the Holder, the Company shall within two Trading Days confirm orally and in writing
to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its
affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The provisions of this Section may
be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the Company, and the provisions
of this Section shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such
notice of waiver).

 

Section 3.2 Conversion Price. 

The term
“Conversion Price” shall mean 75% of the average closing price of Cannabis Global common shares during the ten (10)
trading days prior to conversion.

Section 3.3 Mechanics
of Conversion.

 

(a) Not
later than three (3) Trading Days after any Conversion Date, the Company, or its designated transfer agent, as applicable, shall
issue and deliver to the Depository Trust Company (“DTC”) account on the Holder’s behalf via the Deposit
Withdrawal Agent Commission System (“DWAC”) as specified in the Conversion Notice, registered in the name of the
Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled. In the alternative, not
later than three (3) Trading Days after any Conversion Date, the Company shall deliver to the applicable Holder by express courier a
certificate or certificates which shall be free of restrictive legends and trading restrictions (other than those required by
Section 5.1 of the Purchase Agreement) representing the number of shares of Common Stock being acquired upon the conversion of this
Note (the “Delivery Date”). Notwithstanding the foregoing to the contrary, the Company or its transfer agent
shall only be obligated to issue and deliver the shares to the DTC on the Holder’s behalf via DWAC (or certificates free of
restrictive legends) if such conversion is in connection with a sale and the Holder has complied with the applicable prospectus
delivery requirements. If in the case of any Conversion Notice such certificate or certificates are not delivered to or as directed
by the applicable Holder by the Delivery Date, the Holder shall be entitled by written notice to the Company at any time on or
before its receipt of such certificate or certificates thereafter, to rescind such conversion, in which event the Company shall
immediately return this Note if tendered for conversion, whereupon the Company and the Holder shall each be restored to their
respective positions immediately prior to the delivery of such notice of revocation, except that any amounts described in Sections
3.3(b) and (c) shall be payable through the date notice of rescission is given to the Company.

    	5 

    	 

    

(b)
The Company understands that a delay in the delivery of the shares of Common Stock upon conversion of this Note beyond the
Delivery Date could result in economic loss to the Holder. If the Company fails to deliver to the Holder such shares via DWAC or a certificate
or certificates pursuant to this Section hereunder by the Delivery Date, the Company shall pay to such Holder, in cash, an amount per
Trading Day for each Trading Day until such shares are delivered via DWAC or certificates are delivered, together with interest on such
amount at a rate of 10% per annum, accruing until such amount and any accrued interest thereon is paid in full, equal to the greater of
(A) (i) 1% of the aggregate principal amount of the Note requested to be converted for the first five (5) Trading Days after the Delivery
Date and (ii) 2% of the aggregate principal amount of the Note requested to be converted for each Trading Day thereafter and (B) $2,000
per day (which amount shall be paid as liquidated damages and not as a penalty). Nothing herein shall limit a Holder’s right to
pursue actual damages for the Company’s failure to deliver certificates representing shares of Common Stock upon conversion within
the period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity (including,
without limitation, a decree of specific performance and/or injunctive relief). Notwithstanding anything to the contrary contained herein,
the Holder shall be entitled to withdraw a Conversion Notice, and upon such withdrawal the Company shall only be obligated to pay the
liquidated damages accrued in accordance with this Section 3.3(b) through the date the Conversion Notice is withdrawn.

 

Section 3.4 Ownership Cap and Certain Conversion Restrictions.

 

Notwithstanding
anything to the contrary set forth in Section 3 of this Note, at no time may the Holder convert all or a portion of this Note if the
number of shares of Common Stock to be issued pursuant to such conversion would exceed, when aggregated with all other shares of
Common Stock owned by the Holder at such time, the number of shares of Common Stock which would result in the Holder beneficially
owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) more than 9.9% of all of the
Common Stock outstanding at such time; provided, however, that upon the Holder providing the Company with sixty-one (61) days notice
(pursuant to Section 4.1 hereof) (the “Waiver Notice”) that the Holder would like to waive this Section 3.4 with regard
to any or all shares of Common Stock issuable upon conversion of this Note, this Section 3.4 will be of no force or effect with
regard to all or a portion of the Note referenced in the Waiver Notice; provided, further, that this provision shall be of no
further force or effect during the sixty-one (61) days immediately preceding the Maturity Date.

 

 Section3.55 Adjustment
of Conversion Price.

 

(a)
The Conversion Price shall be subject to adjustment from time to time as follows:

 

(i)
Adjustments for Stock Splits and Combinations. If the Company shall at any time or from time to time after the Issuance
Date, effect a stock split of the outstanding Common Stock, the applicable Conversion Price in effect immediately prior to the stock
split shall be proportionately decreased. If the Company shall at any time or from time to time after the Issuance Date, combine the
outstanding shares of Common Stock, the applicable Conversion Price in effect immediately prior to the combination shall be proportionately
increased. Any adjustments under this Section 3.5(a)(i) shall be effective at the close of business on the date the stock split or combination
occurs.

 

(ii)
Adjustments for Certain Dividends and Distributions. If the Company shall at any time or from time to time after
the Issuance Date, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in shares of Common Stock, then, and in each event, the applicable Conversion Price in effect immediately
prior to such event shall be decreased as of the time of such issuance or, in the event such record date shall have been fixed, as of
the close of business on such record date, by multiplying, the applicable Conversion Price then in effect by a fraction:

 

(1)
the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the
time of such issuance or the close of business on such record date; and

(2)
the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to
the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution.

(iii)
Adjustment for Other Dividends and Distributions. If the Company shall at any time or from time to time after the
Issuance Date, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or
other distribution payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the applicable Conversion
Price shall be made and provision shall be made (by adjustments of the Conversion Price or otherwise) so that the holders of this Note
shall receive upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon, the number of securities
of the Company which they would have received had this Note been converted into Common Stock on the date of such event and had thereafter,
during the period from the date of such event to and including the Conversion Date, retained such securities (together with any distributions
payable thereon during such period), giving application to all adjustments called for during such period under this Section 3.5(a)(iii)
with respect to the rights of the holders of this Note; provided, however, that if such record date shall have been fixed
and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall
be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions.

(iv)
Adjustments for Reclassification, Exchange, or Substitution. If the Common Stock issuable upon conversion of this
Note at any time or from time to time after the Issuance Date shall be changed to the same or different number of shares of any class
or classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination
of shares or stock dividends provided for in Sections 3.5(a)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale of
assets provided for in Section 3.5(a)(v)), then, and in each event, an appropriate revision to the Conversion Price shall be made and
provisions shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder shall have the right thereafter to convert
this Note into the kind and amount of shares of stock and other securities receivable upon reclassification, exchange, substitution or
other change, by holders of the number of shares of Common Stock into which such Note might have been converted immediately prior to such
reclassification, exchange, substitution or other change, all subject to further adjustment as provided herein.

    	6 

    	 

    

(v)
Adjustments for Reorganization, Merger, Consolidation or Sales of Assets. If at any time or from time to time after
the Issuance Date there shall be a capital reorganization of the Company (other than by way of a stock split or combination of shares
or stock dividends or distributions provided for in Section 3.5(a)(i), (ii) and (iii), or a reclassification, exchange or substitution
of shares provided for in Section 3.5(a)(iv)), or a merger or consolidation of the Company with or into another corporation where the
holders of outstanding voting securities prior to such merger or consolidation do not own over fifty percent (50%) of the outstanding
voting securities of the merged or consolidated entity, immediately after such merger or consolidation, or the sale of all or substantially
all of the Company’s properties or assets to any other person (an “Organic Change”), then as a part of such Organic
Change an appropriate revision to the Conversion Price shall be made and provision shall be made (by adjustments of the Conversion Price
or otherwise) so that the Holder shall have the right thereafter to convert such Note into the kind and amount of shares of stock and
other securities or property of the Company or any successor corporation resulting from Organic Change. In any such case, appropriate
adjustment shall be made in the application of the provisions of this Section 3.5(a)(v) with respect to the rights of the Holder after
the Organic Change to the end that the provisions of this Section 3.5(a)(v) (including any adjustment in the applicable Conversion Price
then in effect and the number of shares of stock or other securities deliverable upon conversion of this Note) shall be applied after
that event in as nearly an equivalent manner as may be practicable.

(vi)
Consideration for Stock. In case any shares of Common Stock or any Common Stock Equivalents shall be issued or sold:

(1)
in connection with any merger or consolidation in which the Company is the surviving corporation (other than any consolidation
or merger in which the previously outstanding shares of Common Stock of the Company shall be changed to or exchanged for the stock or
other securities of another corporation), the amount of consideration therefor shall be, deemed to be the fair value, as determined reasonably
and in good faith by the Board of Directors of the Company, of such portion of the assets and business of the nonsurviving corporation
as such Board may determine to be attributable to such shares of Common Stock, Convertible Securities, rights or warrants or options,
as the case may be; or

(2)
in the event of any consolidation or merger of the Company in which the Company is not the surviving corporation or in
which the previously outstanding shares of Common Stock of the Company shall be changed into or exchanged for the stock or other securities
of another corporation, or in the event of any sale of all or substantially all of the assets of the Company for stock or other securities
of any corporation, the Company shall be deemed to have issued a number of shares of its Common Stock for stock or securities or other
property of the other corporation computed on the basis of the actual exchange ratio on which the transaction was predicated, and for
a consideration equal to the fair market value on the date of such transaction of all such stock or securities or other property of the
other corporation. If any such calculation results in adjustment of the applicable Conversion Price, or the number of shares of Common
Stock issuable upon conversion of the Note, the determination of the applicable Conversion Price or the number of shares of Common Stock
issuable upon conversion of the Note immediately prior to such merger, consolidation, or sale, shall be made after giving effect to such
adjustment of the number of shares of Common Stock issuable upon conversion of the Note. In the event Common Stock is issued with other
shares or securities or other assets of the Company for consideration which covers both, the consideration computed as provided in this
Section 3.5(viii) shall be allocated among such securities and assets as determined in good faith by the Board of Directors of the Company.

    	7 

    	 

    

(b)
Record Date. In case the Company shall take record of the holders of its Common Stock for the purpose of entitling
them to subscribe for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of Common Stock
shall be deemed to be such record date.

(c)
Certain Issues Excepted. Anything herein to the contrary notwithstanding, the Company shall not be required to make
any adjustment to the Conversion Price in connection with (i) securities issued (other than for cash) in connection with a merger, acquisition,
or consolidation, (ii) securities issued pursuant to a bona fide firm underwritten public offering of the Company’s securities,
(iii) securities issued pursuant to the conversion or exercise of convertible or excercisable securities issued or outstanding on or
prior to the date hereof or issued pursuant to the Purchase Agreement, (iv) the shares of Common Stock issuable upon the exercise of
Warrants, (v) securities issued in connection with strategic license agreements or other partnering arrangements so long as such issuances
are not for the purpose of raising capital, (vi) Common Stock issued or options to purchase Common Stock granted or issued pursuant to
the Company’s stock option plans and employee stock purchase plans as they now exist and (vii) the payment of any accrued interest
in shares of Common Stock pursuant to this Note.

(d)
No Impairment. The Company shall not, by amendment of its Certificate of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good
faith, assist in the carrying out of all the provisions of this Section 3.5 and in the taking of all such action as may be necessary
or appropriate in order to protect the Conversion Rights of the Holder against impairment. In the event a Holder shall elect to convert
any Note as provided herein, the Company cannot refuse conversion based on any claim that such Holder or any one associated or affiliated
with such Holder has been engaged in any violation of law, violation of an agreement to which such Holder is a party or for any reason
whatsoever, unless, an injunction from a court, or notice, restraining and or adjoining conversion of all or of said Note shall have
issued and the Company posts a surety bond for the benefit of such Holder in an amount equal to one hundred thirty percent (130%) of
the amount of the Note the Holder has elected to convert, which bond shall remain in effect until the completion of arbitration/litigation
of the dispute and the proceeds of which shall be payable to such Holder in the event it obtains judgment.

(e)
Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of
shares of Common Stock issuable upon conversion of this Note pursuant to this Section 3.5, the Company at its expense shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such
adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon
written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth such adjustments
and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common Stock and the amount, if
any, of other securities or property which at the time would be received upon the conversion of this Note. Notwithstanding the foregoing,
the Company shall not be obligated to deliver a certificate unless such certificate would reflect an increase or decrease of at least
one percent (1%) of such adjusted amount.

    	8 

    	 

    

(f)
Issue Taxes. The Company shall pay any and all issue and other taxes, excluding federal, state, or local income taxes,
that may be payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided,
however, that the Company shall not be obligated to pay any transfer taxes resulting from any transfer requested by the Holder
in connection with any such conversion.

(g)
Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of
any fractional shares to which the Holder would otherwise be entitled, the Company shall pay cash equal to the product of such fraction
multiplied by the average of the Closing Bid Prices of the Common Stock for the five (5) consecutive Trading Days immediately preceding
the Conversion Date.

(h)
Reservation of Common Stock. The Company shall at all times when this Note shall be outstanding, reserve and keep available
out of its authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to time be sufficient to effect
the conversion of this Note and all interest accrued thereon; provided that the number of shares of Common Stock so reserved shall
at no time be less than one hundred twenty percent (120%) of the number of shares of Common Stock for which this Note and all interest
accrued thereon are at any time convertible. The Company shall, from time to time in accordance with Nevada corporate law, increase the
authorized number of shares of Common Stock if at any time the unissued number of authorized shares shall not be sufficient to satisfy
the Company’s obligations under this Section 3.5(h)

(i)
Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note or
any interest accrued thereon require registration or listing with or approval of any governmental authority, stock exchange or other
regulatory body under any federal or state law or regulation or otherwise before such shares may be validly issued or delivered upon
conversion, the Company shall, at its sole cost and expense, in good faith and as expeditiously as possible, endeavor to secure such
registration, listing or approval, as the case may be.

Section
3.6 Prepayment.

 

(a)
Prepayment Upon an Event of Default. Notwithstanding anything to the contrary contained herein, upon the occurrence
of an Event of Default described in Sections 2.1(a)-(j) and 2.1(m)(o) hereof, the Holder shall have the right, at such Holder’s
option, to require the Company to prepay in cash all or a portion of this Note plus all accrued and unpaid interest applicable at the
time of such request (the “Event of Default Prepayment Price”). Nothing in this Section 3.6(a) shall limit the Holder’s
rights under Section 2.2 hereof.

 

(b)
Prepayment Option Upon Major Transaction. In addition to all other rights of the Holder contained herein, simultaneous
with the occurrence of a Major Transaction (as defined in Section 3.6(d) hereof), the Holder shall have the right, at the Holder’s
option, to require the Company to prepay all or a portion of the Holder’s Note at a price equal to one hundred thirty percent (130%)
of the aggregate principal amount of this Note plus all accrued and unpaid interest (the “Major Transaction Prepayment Price”).

 

(c)
Prepayment Option Upon Triggering Event. In addition to all other rights of the Holder contained herein, after a
Triggering Event (as defined below), the Holder shall have the right, at the Holder’s option, to require the Company to prepay
all or a portion of this Note in cash at a price equal to the sum of (i) the greater of (A) one hundred thirty percent (130%) of the
aggregate principal amount of this Note plus all accrued and unpaid interest and (B) in the event at such time the Holder is unable to
obtain the benefit of its conversion rights through the conversion of this Note and resale of the shares of Common Stock issuable upon
conversion hereof in accordance with the terms of this Note and the other Transaction Documents, the aggregate principal amount of this
Note plus all accrued but unpaid interest hereon, divided by the Conversion Price on (x) the date the Prepayment Price (as defined below)
is demanded or otherwise due or (y) the date the Prepayment Price is paid in full, whichever is less, multiplied by the VWAP on (x) the
date the Prepayment Price is demanded or otherwise due, and (y) the date the Prepayment Price is paid in full, whichever is greater,
and (ii) all other amounts, costs, expenses and liquidated damages due in respect of this Note and the other Transaction Documents (the
“Triggering Event Prepayment Price,” and, collectively with the “Major Transaction Prepayment Price,” the “Prepayment
Price”).

    	9 

    	 

    

(d)
Major Transaction. A “Major Transaction” shall be deemed to have occurred at

such time
as any of the following events:

(i) the
consolidation, merger or other business combination of the Company with or into another Person (other than (A) pursuant to a
migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company or (B) a
consolidation, merger or other business combination in which holders of the Company’s voting power immediately prior to the
transaction continue after the transaction to hold, directly or indirectly, the voting power of the surviving entity or entities
necessary to elect a majority of the members of the board of directors (or their equivalent if other than a corporation) of such
entity or entities); or

(ii) the
sale or transfer of more than fifty percent (50%) of the Company’s assets (based on the fair market value as determined in
good faith by the Company’s Board of Directors) other than inventory in the ordinary course of business in one or a related
series of transactions; or

(iii)
closing of a purchase, tender or exchange offer made to the holders of more than fifty percent (50%) of the outstanding shares of
Common Stock in which more than fifty percent (50%) of the outstanding shares of Common Stock were tendered and accepted.

(e)
Triggering Event. A “Triggering Event” shall be deemed to have occurred at

such time
as any of the following events:

(i)
the suspension from listing, without subsequent listing on any one of, or the failure of the Common Stock to be listed on at least
one of the OTC Bulletin Board, Nasdaq SmallCap Market, Nasdaq National Market, American Stock Exchange or The New York Stock
Exchange, Inc. for a period of five (5) consecutive Trading Days;

(ii)
the Company’s notice to any holder of the Note, including by way of public announcement, at any time, of its inability to
comply (including for any of the reasons described in Section 3.8) or its intention not to comply with proper requests for
conversion of any Note into shares of Common Stock; or

(iii)
the Company’s failure to comply with a Conversion Notice tendered in accordance with the provisions of this Note within ten
(10) business days after the receipt by the

Company
of the Conversion Notice; or

(iiv)
the Company deregisters its shares of Common Stock and as a result such shares of Common Stock are no longer publicly traded; or

(v)
the Company consummates a “going private” transaction and as a result the Common Stock is no longer registered under
Sections 12(b) or 12(g) of the Exchange Act.

    	10 

    	 

    

(f) Mechanics
of Prepayment at Option of Holder Upon Major Transaction. No sooner than fifteen (15) days nor later than ten (10) days prior to
the consummation of a Major Transaction, but not prior to the public announcement of such Major Transaction, the Company shall
deliver written notice thereof via facsimile and overnight courier (“Notice of Major Transaction”) to the Holder of this
Note. At any time after receipt of a Notice of Major Transaction (or, in the event a Notice of Major Transaction is not delivered at
least ten (10) days prior to a Major Transaction, at any time within ten (10) days prior to a Major Transaction), any holder of the
Notes then outstanding may require the Company to prepay, effective immediately prior to the consummation of such Major Transaction,
all of the holder’s Notes then outstanding by delivering written notice thereof via facsimile and overnight courier
(“Notice of Prepayment at Option of Holder Upon Major Transaction”) to the Company, which Notice of Prepayment at Option
of Holder Upon Major Transaction shall indicate (i) the number of Notes that such holder is electing to prepay and (ii) the
applicable Major Transaction Prepayment Price, as calculated pursuant to Section 3.6(b) above.

 

(g)
Mechanics of Prepayment at Option of Holder Upon Triggering Event. Within one (1) business day after the occurrence
of a Triggering Event, the Company shall deliver written notice thereof via facsimile and overnight courier (“Notice of Triggering
Event”) to each holder of the Notes. At any time after the earlier of a holder’s receipt of a Notice of Triggering Event
and such holder becoming aware of a Triggering Event, any holder of this Note may require the Company to prepay all of the Notes on a
pro rata basis by delivering written notice thereof via facsimile and overnight courier (“Notice of Prepayment at Option of
Holder Upon Triggering Event”) to the Company, which Notice of Prepayment at Option of Holder Upon Triggering Event shall indicate
(i) the amount of the Note that such holder is electing to have prepaid and (ii) the applicable Triggering Event Prepayment Price, as
calculated pursuant to Section 3.6(c) above. A holder shall only be permitted to require the Company to prepay the Note pursuant to Section
3.6 hereof for the greater of a period of ten (10) days after receipt by such holder of a Notice of Triggering Event or for so long as
such Triggering Event is continuing.

(h)
Payment of Prepayment Price. Upon the Company’s receipt of a Notice(s) of Prepayment at Option of Holder Upon
Triggering Event or a Notice(s) of Prepayment at Option of Holder Upon Major Transaction from any holder of the Notes, the Company shall
immediately notify each holder of the Notes by facsimile of the Company’s receipt of such Notice(s) of Prepayment at Option of
Holder Upon Triggering Event or Notice(s) of Prepayment at Option of Holder Upon Major Transaction and each holder which has sent such
a notice shall promptly submit to the Company such holder’s certificates representing the Notes which such holder has elected to
have prepaid. The Company shall deliver the applicable Triggering Event Prepayment Price, in the case of a prepayment pursuant to Section
3.6(i), to such holder within five (5) business days after the Company’s receipt of a Notice of Prepayment at Option of Holder
Upon Triggering Event and, in the case of a prepayment pursuant to Section 3.(f), the Company shall deliver the applicable Major Transaction
Prepayment Price immediately prior to the consummation of the Major Transaction; provided that a holder’s original Note shall have
been so delivered to the Company; provided further that if the Company is unable to prepay all of the Notes to be prepaid, the Company
shall prepay an amount from each holder of the Notes being prepaid equal to such holder’s pro-rata amount (based on the number
of Notes held by such holder relative to the number of Notes outstanding) of all Notes being prepaid. If the Company shall fail to prepay
all of the Notes submitted for prepayment (other than pursuant to a dispute as to the arithmetic calculation of the Prepayment Price),
in addition to any remedy such holder of the Notes may have under this Note and the Purchase Agreement, the applicable Prepayment Price
payable in respect of such Notes not prepaid shall bear interest at the rate of two percent (2%) per month (prorated for partial months)
until paid in full. Until the Company pays such unpaid applicable Prepayment Price in full to a holder of the Notes submitted for prepayment,
such holder shall have the option (the “Void Optional Prepayment Option”) to, in lieu of prepayment, require the Company
to promptly return to such holder(s) all of the Notes that were submitted for prepayment by such holder(s) under this Section 3.6 and
for which the applicable Prepayment Price has not been paid, by sending written notice thereof to the Company via facsimile (the “Void
Optional Prepayment Notice”). Upon the Company’s receipt of such Void Optional Prepayment Notice(s) and prior to payment
of the full applicable Prepayment Price to such holder, (i) the Notice(s) of Prepayment at Option of Holder Upon Triggering Event or
the Notice(s) of Prepayment at Option of Holder Upon Major Transaction, as the case may be, shall be null and void with respect to those
Notes submitted for prepayment and for which the applicable Prepayment Price has not been paid, (ii) the Company shall immediately return
any Notes submitted to the Company by each holder for prepayment under this Section 3.6(h) and for which the applicable Prepayment Price
has not been paid and (iii) the Conversion Price of such returned Notes shall be adjusted to the lesser of (A) the Conversion Price as
in effect on the date on which the Void Optional Prepayment Notice(s) is delivered to the Company and (B) the lowest Closing Bid Price
during the period beginning on the date on which the Notice(s) of Prepayment of Option of Holder Upon Major Transaction or the Notice(s)
of Prepayment at Option of Holder Upon Triggering Event, as the case may be, is delivered to the Company and ending on the date on which
the Void Optional Prepayment Notice(s) is delivered to the Company; provided that no adjustment shall be made if such adjustment would
result in an increase of the Conversion Price then in effect. A holder’s delivery of a Void Optional Prepayment Notice and exercise
of its rights following such notice shall not affect the Company’s obligations to make any payments which have accrued prior to
the date of such notice. Payments provided for in this Section 3.6 shall have priority to payments to other stockholders in connection
with a Major Transaction.

 

    	11 

    	 

    

 

(i)
Company Prepayment Option upon Major Transaction. Upon the consummation

of a Major
Transaction, the Company may prepay in cash all or any portion of the outstanding principal amount of this Note together with all accrued
and unpaid interest thereon upon at least thirty (30) days prior written notice to the Holder (the “Company’s Prepayment
Notice”) at a price equal to one hundred thirty percent (120%) of the aggregate principal amount of this Note plus any accrued
but unpaid interest (the “Company’s Prepayment Price”); provided, however, that if a holder has delivered a Conversion
Notice to the Company or delivers a Conversion Notice within such thirty (30) day period following delivery of the Company’s Prepayment
Notice, the principal amount of the Notes plus any accrued but unpaid interest designated to be converted may not be prepaid by the Company
and shall be converted in accordance with Section 3.3 hereof; provided further that if during the period between delivery of the Company’s
Prepayment Notice and the Company’s Prepayment Date (as defined below), a holder shall become entitled and elects to deliver a Notice
of Prepayment at Option of Holder Upon Major Transaction or Notice of Prepayment at Option of Holder upon Triggering Event, then such
rights of the holders shall take precedence over the previously delivered Company Prepayment Notice if the holder so elects. The Company’s
Prepayment Notice shall state the date of prepayment which date shall be the date of the consummation of the Major Transaction (the “Company’s
Prepayment Date”), the Company’s Prepayment Price and the principal amount of Notes plus any accrued but unpaid interest
to be prepaid by the Company. The Company shall deliver the Company’s Prepayment Price on the Company’s Prepayment Date, provided,
that if the holder(s) delivers a Conversion Notice before the Company’s Prepayment Date, then the portion of the Company’s
Prepayment Price which would be paid to prepay the Notes covered by such Conversion Notice shall be returned to the Company upon delivery
of the Common Stock issuable in connection with such Conversion Notice to the holder(s). On the Company’s Prepayment Date, the Company
shall pay the Company’s Prepayment Price, subject to any adjustment pursuant to the immediately preceding sentence, to the holder(s)
on a pro rata basis. If the Company fails to pay the Company’s Prepayment Price by the third (3rd) business day after the Company’s
Prepayment Date, the prepayment will be declared null and void and the Company shall lose its right to serve a Company’s Prepayment
Notice pursuant to this Section 3.6(i) in the future. Notwithstanding the foregoing to the contrary, the Company may affect a prepayment
pursuant to this Section 3.6(i) only if trading in the Common Stock shall not have been suspended by the Securities and Exchange Commission
or the Nasdaq SmallCap Market (or other exchange or market on which the Common Stock is trading), and the Company is in material compliance
with the terms and conditions of this Note and the other Transaction Documents.

(j)
Prepayment at the Election of the Company. Notwithstanding anything to the

contrary
contained in this Note, at any time during the period beginning on the Issuance Date and ending on the date which is one hundred and eighty
(180) days following the issue date, the Company shall have the right, exercisable on not less than three (3) Trading Days prior written
notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section
3.6(j). Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the
Note at its registered addresses and shall state: (1) that the Company is exercising its right to prepay the Note, and (2) the date of
prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for
prepayment (the “Optional Prepayment Date”), the Company shall make payment of the Optional Prepayment Amount (as defined
below) to or upon the order of the Holder as specified by the Holder in writing to the Company at least one (1) business day prior to
the Optional Prepayment Date. If the Company exercises its right to prepay the Note, the Company shall make payment to the Holder of an
amount in cash (the “Optional Prepayment Amount”) equal to 130%, multiplied by the sum of: (w) the then outstanding principal
amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date.

    	12 

    	 

    

Notwithstanding
anything to the contrary contained in this Note, at any time during the period beginning on the date which is one hundred and eighty one
(181) days following the issue date and ending on the date which is thirty days thereafter, and for each subsequent thirty day period
thereafter, the Company shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of
the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 3.6(j). Any Optional
Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Company is exercising
its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the
Optional Prepayment Notice. On the Optional Prepayment Date, the Company shall make payment of the Subsequent Optional Prepayment Amount
(as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Company at least one (1) business day
prior to the Optional Prepayment Date. If the Company exercises its right to prepay the Note, the Company shall make payment to the Holder
of an amount in cash (the “Subsequent Optional Prepayment Amount”) equal to 135%, multiplied by the sum of: (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment.
For each subsequent thirty-day period, the Subsequent Optional Prepayment amount shall increase by 5% of amount payable.

Section
3.7 Inability to Fully Convert.

(a)
Holder’s Option if Company Cannot Fully Convert. If, upon the Company’s

receipt
of a Conversion Notice, the Company cannot issue shares of Common Stock for any reason, including, without limitation, because the Company
(w) does not have a sufficient number of shares of Common Stock authorized and available, or (x) is otherwise prohibited by applicable
law or by the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction
over the Company or any of its securities from issuing all of the Common Stock which is to be issued to the Holder pursuant to a Conversion
Notice, then the Company shall issue as many shares of Common Stock as it is able to issue in accordance with the Holder’s Conversion
Notice and, with respect to the unconverted portion of this Note, the Holder, solely at Holder’s option, can elect to:

(i)
require the Company to prepay that portion of this Note for which the Company is unable to issue Common Stock in accordance
with the Holder’s Conversion Notice (the

“Mandatory
Prepayment”) at a price per share equal to the Triggering Event Prepayment Price as of such Conversion Date (the “Mandatory
Prepayment Price”);

(ii)
void its Conversion Notice and retain or have returned, as the case may

be, this
Note that was to be converted pursuant to the Conversion Notice (provided that the Holder’s voiding its Conversion Notice shall
not affect the Company’s obligations to make any payments which have accrued prior to the date of such notice).

In the event
a Holder shall elect to convert any portion of its Notes as provided herein, the Company cannot refuse conversion based on any claim that
such Holder or anyone associated or affiliated with such Holder has been engaged in any violation of law, violation of an agreement to
which such Holder is a party or for any reason whatsoever, unless, an injunction from a court, on notice, restraining and or adjoining
conversion of all or of said Notes shall have been issued and the Company posts a surety bond for the benefit of such Holder in an amount
equal to 130% of the principal amount of the Notes the Holder has elected to convert, which bond shall remain in effect until the completion
of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder in the event it obtains judgment.

    	13 

    	 

    

(b)
Mechanics of Fulfilling Holder’s Election. The Company shall immediately send

via facsimile
to the Holder, upon receipt of a facsimile copy of a Conversion Notice from the Holder which cannot be fully satisfied as described in
Section 3.7(a) above, a notice of the Company’s inability to fully satisfy the Conversion Notice (the “Inability to Fully
Convert Notice”). Such Inability to Fully Convert Notice shall indicate (i) the reason why the Company is unable to fully satisfy
such holder’s Conversion Notice, (ii) the amount of this Note which cannot be converted and (iii) the applicable Mandatory Prepayment
Price. The Holder shall notify the Company of its election pursuant to Section 3.7(a) above by delivering written notice via facsimile
to the Company (“Notice in Response to Inability to Convert”).

 

(c)
Payment of Prepayment Price. If the Holder shall elect to have its Notes prepaid

pursuant
to Section 3.7(a)(i) above, the Company shall pay the Mandatory Prepayment Price to the Holder within thirty (30) days of the Company’s
receipt of the Holder’s Notice in Response to Inability to Convert, provided that prior to the Company’s receipt of
the Holder’s Notice in Response to Inability to Convert the Company has not delivered a notice to the Holder stating, to the satisfaction
of the Holder, that the event or condition resulting in the Mandatory Prepayment has been cured and all Conversion Shares issuable to
the Holder can and will be delivered to the Holder in accordance with the terms of this Note. If the Company shall fail to pay the applicable
Mandatory Prepayment Price to the Holder on a timely basis as described in this Section 3.7(c) (other than pursuant to a dispute as to
the determination of the arithmetic calculation of the Prepayment Price), in addition to any remedy the Holder may have under this Note
and the Purchase Agreement, such unpaid amount shall bear interest at the rate of two percent (2%) per month (prorated for partial months)
until paid in full. Until the full Mandatory Prepayment Price is paid in full to the Holder, the Holder may (i) void the Mandatory Prepayment
with respect to that portion of the Note for which the full Mandatory Prepayment Price has not been paid, (ii) receive back such Note,
and (iii) require that the Conversion Price of such returned Note be adjusted to the lesser of (A) the Conversion Price as in effect on
the date on which the Holder voided the Mandatory Prepayment and (B) the lowest Closing Bid Price during the period beginning on the Conversion
Date and ending on the date the Holder voided the Mandatory Prepayment.

(d)
Pro-rata Conversion and Prepayment. In the event the Company receives a Conversion Notice from more than one holder
of the Notes on the same day and the Company can convert and prepay some, but not all, of the Notes pursuant to this Section 3.7, the
Company shall convert and prepay from each holder of the Notes electing to have its Notes converted and prepaid at such time an amount
equal to such holder’s pro-rata amount (based on the principal amount of the Notes held by such holder relative to the principal
amount of the Notes outstanding) of all the Notes being converted and prepaid at such time.

Section
3.8 No Rights as Shareholder. Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the
conversion of this Note, the right to vote or to receive dividends or to consent or to receive notice as a shareholder in respect of
any meeting of shareholders for the election of directors of the Company or of any other matter, or any other rights as a shareholder
of the Company.

 

    	14 

    	 

    

 

ARTICLE
IV

 

MISCELLANEOUS

 

Section
4.1 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall
be in writing and shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy or facsimile at the
address or number designated in the Purchase Agreement (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 Company will give
written notice to the Holder at least ten (10) days prior to the date on which the Company takes a record (x) with respect to any dividend
or distribution upon the Common Stock, (y) with respect to any pro rata subscription offer to holders of Common Stock or (z) for determining
rights to vote with respect to any Organic Change, dissolution, liquidation or winding-up and in no event shall such notice be provided
to such holder prior to such information being made known to the public. The Company will also give written notice to the Holder at least
ten (10) days prior to the date on which any Organic Change, dissolution, liquidation or winding-up will take place and in no event shall
such notice be provided to the Holder prior to such information being made known to the public.

	Address
                         for Holder:
	Lemon
                         Glow Company, Inc.

                         750
                         Royal Oaks Drive 108

                         Monrovia
                         CA 91016

                         Email:
                         Attention Jimmy Chan: 
Jimmy@sugarmade.com
	 
	 	 	 
	Address for Company:	Cannabis Global,
      Inc.

      520 South
      Grand Avenue, Ste. 320

      Los Angeles,
      CA 90071

      Email: Attention
      Arman Tabatabaei:

      arman@cannabisglobalinc.com
	 
	 	 	 

 Section4.2tion
4.2 Governing Law. This Note shall be governed by and construed in accordance with the internal laws of the State of Nevada,
without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another
jurisdiction. This Note shall not be interpreted or construed with any presumption against the party causing this Note to be drafted.

 

Section
4.3 Headings. Article and section headings in this Note are included herein for purposes of convenience of reference only
and shall not constitute a part of this Note for any other purpose.

 

Section 4.4 Remedies,
Characterizations, Other Obligations, Breaches, and Injunctive Relief. The remedies provided in this Note shall
be cumulative and in addition to all other remedies available under this Note, at law or in equity (including, without limitation, a
decree of specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with
the provisions giving rise to such remedy and nothing herein shall limit a holder’s right to pursue actual damages for any failure
by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments, conversion,
and the like (and the computation thereof) shall be the amounts to be received by the holder thereof and shall not, except as expressly
provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable and material harm to the Holder and that the remedy at law for any such breach
may be inadequate. Therefore, the Company agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled,
in addition to all other available rights and remedies, at law or in equity, to seek and obtain such equitable relief, including but
not limited to an injunction restraining any such breach or threatened breach, without the necessity of showing economic loss and without
any bond or other security being required.

 

    	15 

    	 

    

Section
4.5 Enforcement Expenses. The Company agrees to pay all costs and expenses of enforcement of this Note, including, without
limitation, reasonable attorneys’ fees, and expenses.

 

Section 4.6 Binding
Effect. The obligations of the Company and the Holder set forth herein shall be binding upon the successors and assigns of each such
party, whether or not such successors or assigns are permitted by the terms hereof.

 

Section
4.7 Amendments. This Note may not be modified or amended in any manner except in writing executed by the Company and the Holder.

 

Section
4.8 Compliance with Securities Laws. The Holder of this Note acknowledges that this Note is being acquired solely for the
Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder shall not offer, sell, or
otherwise dispose of this Note. This Note and any Note issued in substitution or replacement therefor shall be stamped or imprinted with
a legend in substantially the following form:

 

“THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS,
AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL IN THE FORM,
SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE COMPANY THAT THIS NOTE MAY BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED
OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND 

SUCH
STATE SECURITIES LAWS.”

 

Section
4.9 Consent to Jurisdiction. Each of the Company and the Holder (i) hereby irrevocably submits to the exclusive jurisdiction
of the State of Nevada for the purposes of any suit, action or proceeding arising out of or relating to this Note and (ii) hereby waives,
and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction 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. Each of the Company and the Holder consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under the Purchase Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing in this Section 4.9 shall affect or limit any right to serve process
in any other manner permitted by law. Each of the Company and the Holder hereby agree that the prevailing party in any suit, action or
proceeding arising out of or relating to this Note shall be entitled to reimbursement for reasonable legal fees from the non-prevailing
party.

 

Section
4.10 Parties in Interest. This Note shall be binding upon, inure to the benefit of and be enforceable by the Company, the
Holder and their respective successors and permitted assigns.

 

Section 4.11 Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

 

    	16 

    	 

    

Section 4.12 Company Waivers. Except as otherwise specifically provided
herein, the Company and all others that may become liable for all or any part of the obligations evidenced by this Note, hereby waive
presentment, demand, notice of nonpayment, protest and all other demands’ and notices in connection with the delivery, acceptance,
performance and enforcement of this Note, and do hereby consent to any number of renewals of extensions of the time or payment hereof
and agree that any such renewals or extensions may be made without notice to any such persons and without affecting their liability herein
and do further consent to the release of any person liable hereon, all without affecting the liability of the other persons, firms or
Company liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY JURY.

 

(a)
No delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto,
shall operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights
on any one occasion be deemed a waiver of the same right or rights on any future occasion.

(b)
THE COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT
ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS
SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

SIGNATURE
PAGE FOLLOWS 

 

    	17 

    	 

    

 

 

SIGNATURE
PAGE TO CONVERTIBLE PROMISSORY NOTE 

 

 

 

CANNABIS GLOBAL
INC. 

 

 

 

By:
/s/ Arman Tabatabaei  

Name:
Arman Tabatabaei

Title: Chief Executive Officer

 

 

 

    	18 

    	 

    

 

FORM
OF 

NOTICE
OF CONVERSION 

(To be Executed
by the Registered Holder in order to Convert the Note)

The undersigned
hereby irrevocably elects to convert $ ________________ of the principal amount of the above Note No. ___ into shares of Common Stock
of Cannabis Global, Inc.(the “Company”) according to the conditions hereof, as of the date written below.

Date of Conversion:
___________________________________________

Applicable
Conversion Price: ___________________________________

Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the Date of Conversion:

Signature:                                                          

Print Name:
                                                         

Address:

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