Document:

abio-ex101_6.htm

Exhibit 10.1

 

AMENDMENT NO. 8 TO Capital on DemandTM SALES AGREEMENT

July 14, 2020

 

JonesTrading Institutional Services LLC

757 Third Avenue, 23rd Floor

New York, NY 10017

 

Ladies and Gentlemen:

 

ARCA biopharma, Inc., a Delaware corporation (the “Company”), and JonesTrading Institutional Services LLC (the “Agent”), are parties to that certain Capital on DemandTM Sales Agreement dated January 11, 2017, as amended on August 21, 2017, January 25, 2019, March 11, 2019, May 9, 2019, May 20, 2019, June 28, 2019 and July 2, 2020 (together, the “Original Agreement”). All capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement.  The parties, intending to be legally bound, hereby amend the Original Agreement pursuant to the terms of this amendment No. 8 to the Original Agreement (this “Amendment No. 8”) as follows:

1.The first paragraph of Section 1 of the Original Agreement is hereby deleted in its entirety and replaced with the following:

 

“Issuance and Sale of Shares.  The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, it may issue and sell through or to the Agent, as sales agent or principal, shares (the “Placement Shares”) of common stock of the Company, $0.001 par value per share (the “Common Stock”) having an aggregate offering price of up to $32,434,325, provided, however, that in no event shall the Company issue or sell through Agent such number of Placement Shares that (a) exceeds the number or dollar amount of shares of Common Stock that may be sold pursuant to the Registration Statement (as defined below), or (b) exceeds the number of authorized but unissued shares of Common Stock of the Company (the “Maximum Amount”). Pursuant to this Agreement, shares of Common Stock were previously sold for $24,999,905 in aggregate gross proceeds under a prior prospectus and prior prospectus supplements. Under this Agreement, as amended by Amendment No. 1 to Capital on DemandTM Sales Agreement, dated August 21, 2017, Amendment No. 2 to Capital on DemandTM Sales Agreement, dated January 25, 2019, Amendment No. 3 to Capital on DemandTM Sales Agreement, dated March 11, 2019, Amendment No. 4 to the Capital on DemandTM Sales Agreement, dated May 9, 2019, Amendment No. 5 to the Capital on DemandTM Sales Agreement, dated May 20, 2019, Amendment No. 6 to the Capital on DemandTM Sales Agreement, dated June 28, 2019, Amendment No. 7 to the Capital on DemandTM Sales Agreement, dated July 2, 2020 and Amendment No. 8 to the Capital on DemandTM Sales Agreement, dated July 14, 2020, the Company, through the Agent, may offer and sell further shares of Common Stock having an aggregate offering price of up to $7,274,000 pursuant to the Prospectus (as 

 

 

defined below).  Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section 1 on the amount of Placement Shares issued and sold under this Agreement shall be the sole responsibility of the Company and that Agent shall have no obligation in connection with such compliance. The issuance and sale of Placement Shares through Agent will be effected pursuant to the Registration Statement (as defined below) filed by the Company and at no earlier time than such time as the Registration Statement shall have been declared effective by the Securities and Exchange Commission (the “Commission”), although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to issue Placement Shares.”

 

2.Section 6(s) of the Original Agreement is hereby deleted in its entirety and replaced with the following:

 

“Market Capitalization.  The aggregate market value of the outstanding voting and non-voting common equity (as defined in Securities Act Rule 405) of the Company held by persons other than affiliates of the Company (pursuant to Securities Act Rule 144, those that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company)  (the “Non-Affiliate Shares”), was equal to $65,205,540 (calculated by multiplying (x) the highest price at which the common equity of the Company closed on the Exchange within 60 days of the date of Amendment No. 8 to Capital on DemandTM Sales Agreement times (y) the number of Non-Affiliate Shares).  The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least 12 calendar months previously and if it has been a shell company at any time previously, has filed current Form 10 information (as defined in Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months previously reflecting its status as an entity that is not a shell company.”

 

3.All references to “January 11, 2017 (as amended by Amendment No. 1 to Capital on DemandTM Sales Agreement, dated August 21, 2017 and as further amended by Amendment No. 2 to Capital on DemandTM Sales Agreement, dated January 25, 2019, Amendment No. 3 to Capital on DemandTM Sales Agreement, dated March 11, 2019, Amendment No. 4 to Capital on DemandTM Sales Agreement, dated May 9, 2019, Amendment No. 5 to Capital on DemandTM Sales Agreement, dated May 20, 2019, Amendment No. 6 to Capital on DemandTM Sales Agreement, dated June 28, 2019 and Amendment No. 7 to Capital on DemandTM Sales Agreement, dated July 2, 2020)” set forth in Schedule I and Exhibit 7(l) of the Original Agreement are revised to read “January 11, 2017 (as amended by Amendment No. 1 to Capital on DemandTM Sales Agreement, dated August 21, 2017, Amendment No. 2 to Capital on DemandTM Sales Agreement, dated January 25, 2019, Amendment No. 3 to Capital on DemandTM Sales Agreement, dated March 11, 2019, Amendment No. 4 to Capital on DemandTM Sales Agreement, dated May 9, 2019, Amendment No. 5 to Capital on DemandTM Sales Agreement, dated May 20, 2019, Amendment No. 6 to Capital on DemandTM Sales Agreement, dated June 28, 2019, Amendment No. 7 to Capital on DemandTM Sales Agreement, dated July 2, 2020 and Amendment No. 8 to Capital on DemandTM Sales Agreement, dated July 14, 2020)”.

2

 

 

 

4.Except as specifically set forth herein, all other provisions of the Original Agreement shall remain in full force and effect.

 

5.Notwithstanding anything to the contrary contained in the Agreement, in addition to the requirements under Section 5 of the Original Agreement, the Company agrees to pay the reasonable fees and disbursements of JonesTrading’s counsel in an amount not to exceed $4,000 in connection with this Amendment No. 8 to Sales Agreement.

 

6.This Amendment No. 8 together with the Original Agreement (including all schedules and exhibits attached hereto and thereto and Placement Notices issued pursuant hereto and thereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. All references in the Original Agreement to the “Agreement” shall mean the Original Agreement as amended by this Amendment No. 8; provided, however, that all references to “date of this Agreement” in the Original Agreement shall continue to refer to the date of the Original Agreement.

 

7.This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the principles of conflicts of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return receipt requested) to such party at the address in effect for notices to it under this Amendment 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 manner permitted by law.

 

8.The Company and the Agent each hereby irrevocably waives any right it may have to a trial by jury in respect of any claim based upon or arising out of this Amendment or any transaction contemplated hereby.

 

9.This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed amendment by one party to the other may be made by facsimile transmission.

 

 

[Remainder of Page Intentionally Blank]

 

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If the foregoing correctly sets forth the understanding among the Company and the Agent, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding amendment to the Agreement between the Company and the Agent.  

Very truly yours,

 

JONESTRADING INSTITUTIONAL SERVICES LLC

 

 

By:      _/s/ Burke Cook_____________

Name:  Burke Cook

Title:  General Counsel

 

 

ACCEPTED as of the date

first-above written:

 

ARCA BIOPHARMA, INC.

 

 

By:    _/s/ Brian Selby______________

Name:  Brian Selby

Title:  Vice President, Finance

 

[Signature Page to Amendment No. 8]Exhibit
10.1

 

SUBSCRIPTION
AGREEMENT

 

Healthcare
Integrated Technologies Inc.

1462
Rudder Lane

Knoxville,
Tn 37919

 

Ladies
and Gentlemen:

 

Subject
to the terms and conditions of this Subscription Agreement (the “Agreement”), undersigned subscriber
(hereinafter, the “Purchaser”) hereby irrevocably subscribes for and agrees to purchase the number of
shares of common stock, par value $0.001 per share (the “Shares”), of Healthcare Integrated Technologies
Inc., a Nevada corporation (the “Company”), on the signature page hereof at a purchase price of $.10
per Share (the “Purchase Price”).

 

1.
Subscription. Contemporaneously with the execution of this Agreement by the Purchaser, the Purchaser tenders a check
or wire transfer in the amount of the Purchase Price to the Company.

 

2.
Acceptance of Subscription. The Purchaser acknowledges that the Company has the right (in its sole discretion) to
accept or reject this subscription, in whole or in part, for any reason, and that this subscription shall be deemed to be accepted
by the Company only when it is signed on its behalf. The Agreement either will be accepted or rejected, in whole or in part, as
promptly as practical after receipt. Upon rejection of this Agreement for any reason, all items received with this Agreement shall
be returned to the Purchaser without deduction for any fee, commission or expense and without accrued interest with respect to
any money received, and this Agreement shall be deemed to be null and void and of no further force or effect.

 

3.
Representations, Warranties and Covenants of the Purchaser. The Purchaser hereby represents, warrants to, and covenants
with the Company as follows:

 

(a)
The Shares offered hereby are not registered under the Securities Act of 1933, as amended (the “Securities Act”),
or any state securities laws. The Purchaser understands that the offering and sale of the Shares contemplated hereby is intended
to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof, based, in part, upon the representations,
warranties and agreements of the Purchaser contained in this Agreement.

 

(b)
The Purchaser has not been provided any offering materials in connection with the sale of the Shares other than this Agreement.
All documents, records, and books pertaining to the investment in the Shares been made available for inspection by the Purchaser
and the Purchaser’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, the “Advisors”),
if any. The Purchaser and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from
a person or persons acting on behalf of the Company concerning the offering of the Shares and the business, financial condition,
and results of operations of the Company, and all such questions have been answered by representatives of the Company to the full
satisfaction of the Purchaser and its Advisors, if any. In evaluating the suitability of an investment in the Company, the Purchaser
has not relied upon any representation or other information (oral or written) other than as stated herein or as contained in documents
so furnished to the Purchaser or its Advisors, if any, by the Company

 

(c)
Neither the Securities and Exchange Commission (the “SEC”) nor any state securities commission or other
regulatory body has approved the Shares, or passed upon or endorsed the merits of this offering or confirmed the accuracy or determined
the adequacy of this Agreement. Any representation to the contrary is a criminal offense. This Agreement has not been reviewed
by any federal, state or other regulatory authority. The Shares are subject to restrictions on transferability and resale and
may not be transferred or resold except as permitted under the Securities Act, and the applicable state securities laws, pursuant
to registration or exemption therefrom.

 

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(d)
The Purchaser is unaware of, is in no way relying on, and did not become aware of the offering of the Shares directly or indirectly
through or as a result of, any form of general solicitation or general advertising including, without limitation, any press release,
article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over
television, radio or the internet (including without limitation, internet “blogs,” bulletin boards, discussion groups
or social networking sites) in connection with the offering and sale of the Shares and is not subscribing for the Shares and did
not become aware of the offering of the Shares through or as a result of any seminar or meeting to which the Purchaser was invited
by, or any solicitation of a subscription by, a person not previously known to the Purchaser in connection with investments in
securities generally.

 

(e)
The Purchaser is not aware of any person and has been advised that no person, will receive from the Company any compensation as
a broker, finder, adviser or in any other capacity in connection with the purchase of the Shares.

 

(f)
The Purchaser, either alone or together with its Advisors, if any, has such knowledge and experience in financial, tax, and business
matters, and, in particular, investments in securities, so as to enable him to utilize the information made available to him in
connection with the offering of the Shares, to evaluate the merits and risks of an investment in the Shares and the Company and
to make an informed investment decision with respect thereto.

 

(g)
The Purchaser acknowledges that (i) the Company is not “current” in its reporting obligations with the SEC, and (ii)
that the Shares will not be available for resale under the provisions of Rule 144 of the Securities Act after the requisite holding
period set forth in such rule until such time, if ever, that the Company files all delinquent reports and other information with
the SEC and is considered “current” in its filing obligations. As a result, the Purchaser may be required to hold
the Shares indefinitely.

 

(h)
The Purchaser is not relying on the Company or any of its employees or agents with respect to the legal, tax, economic and related
considerations of an investment in the Shares, and the Purchaser has relied on the advice of, or has consulted with, only its
own Advisors, if any.

 

(i)
The Purchaser represents that the Shares are being purchased for the Purchaser’s own account, for investment purposes only
and not with a view for distribution or resale to others. The Purchaser agrees that the Purchaser will not sell or otherwise transfer
the Shares unless the Shares are registered under the Securities Act or unless in the opinion of counsel satisfactory to the Company
an exemption from such registration is available. The Purchaser understands that the Shares have not been registered under the
Securities Act by reason of a claimed exemption under the provisions of the Securities Act which depends, in part, upon the Purchaser’s
investment intention. In this connection, the Purchaser understands that it is the position of the SEC that the statutory basis
for such exemption would not be present if the Purchaser’s representation merely meant that the Purchaser’s present
intention was to hold such Shares for a short period, such as the capital gains period of tax statutes, for a deferred sale or
for any other fixed period. The Purchaser realizes that the SEC might regard a purchase with an intent inconsistent with the Purchaser’s
representation to the Company, and a sale or disposition thereof, as a deferred sale to which the exemption is not available.

 

(j)
The purchase of the Shares represents a high risk capital investment and the Purchaser is able to afford an investment in a speculative
venture having the risks and objectives of the Company. The Purchaser must bear the substantial economic risks of the investment
in the Shares indefinitely because the Shares may be sold, hypothecated or otherwise disposed of unless subsequently registered
under the Securities Act and applicable state securities laws or an exemption from such registration is available. A legend will
be placed on the certificate representing the Shares to the effect that the Shares have not been registered under the Securities
Act or applicable state securities laws and appropriate notations thereof will be made in the Company’s books. Stop transfer
instructions will be placed with the transfer agent of the Shares.

 

(k)
The Purchaser meets the requirements of at least one of the suitability standards for an “accredited investor” as
that term is defined in Regulation D under the Securities Act. The Purchaser satisfies any special suitability or other applicable
requirements of his state of residence and/or the state in which the transaction by which the Shares are purchased occurs.

 

(l)
The Purchaser represents that the Purchaser has reached the age of 21 and has full power and authority to execute and deliver
this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and the execution
and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement or controlling
document to which the Purchaser is a party or by which he is bound.

 

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(m)
Any information which the Purchaser has heretofore furnished or is furnishing herewith to the Company is complete and accurate
and may be relied upon by the Company in determining the availability of an exemption from registration under Federal and state
securities laws in connection with the offering and sale of the Shares. The Purchaser further represents and warrants that it
will notify and supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior
to the Company’s issuance of the certificates representing the Shares.

 

(n)
The Purchaser has significant prior investment experience, including investments in non-registered securities. The Purchaser has
a sufficient net worth to sustain a loss of its entire investment in the Company in the event such a loss should occur. The Purchaser’s
overall commitment to investments which are not readily marketable is not excessive in view of the Purchaser’s net worth
and financial circumstances and the purchase of the Shares will not cause such commitment to become excessive. The investment
is a suitable one for the Purchaser.

 

(o)
Within five (5) days after receipt of a request from the Company, the Purchaser will provide such information and deliver such
documents as may reasonably be necessary to comply with any and all laws and ordinances to which the Company is subject.

 

(p)
The Purchaser understands and agrees that all the certificate representing the Shares will contain the following restrictive legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO HEALTHCARE
INTEGRATED TECHNOLOGIES INC. THAT AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS IS AVAILABLE.

 

(q)
The Purchaser should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Purchaser represents that the amounts invested by him in the Company in this
offering were not and are not directly or indirectly derived from activities that contravene federal, state or international laws
and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by
OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries,
territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found
on the OFAC website at <http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC
Programs”) prohibit dealing with individuals1 or entities in certain countries regardless of whether
such individuals or entities appear on the OFAC lists.

 

(r)
The Purchaser is not an individual named on an OFAC list, or a person prohibited under the OFAC Programs. Please be advised that
the Company may not accept any amounts from a prospective investor if such prospective investor cannot make the representations
set forth in the preceding paragraph. The Purchaser agrees to promptly notify the Company should the Purchaser become aware of
any change in the information set forth in these representations. The Purchaser understands and acknowledges that, by law, the
Company may be obligated to “freeze the account” of the Purchaser, either by prohibiting additional subscriptions
from the Purchaser, declining any redemption requests and/or segregating the assets in the account in compliance with governmental
regulations. The Purchaser further acknowledges that the Company may, by written notice to the Purchaser, suspend the redemption
rights, if any, of the Purchaser if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations
applicable to the Company or any of the Company’s other service providers. These individuals include specially designated
nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs.

 

 

 

1
These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject
to OFAC sanctions and embargo programs.

 

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(s)
The Purchaser is not senior foreign political figure2, or any immediate family3 member or close associate4
of a senior foreign political figure, as such terms are defined in the footnotes below.

 

(t)
The Purchaser is not subject to any “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the
Securities Act (a “Disqualifying Event”), except for a Disqualifying Event covered by Rule 506(d)(2)
or (d)(3).

 

(u)
The Purchaser acknowledges and agrees that the Common Stock is publicly QUOTED on the
otcpINK TIER OF THE OTC MARKETS and that by accepting the Offering Documents the purchaser agrees with the company to maintain
in strict confidence all non-public information, including, but not limited to, the existence of the offering and any other non-public
information regarding the company obtained from the company. The company has caused these materials to be delivered to the purchaser
in reliance upon such agreement AND UPON RULE 100(b)(2)(II) OF REGULATION FD AS PROMULGATED BY THE SEC.

 

The
foregoing representations and warranties are true and accurate as of the date hereof, shall be true and accurate as of the date
of delivery of this Agreement and accompanying documents to the Company and shall survive such delivery. If, in any respect, those
representations and warranties shall not be true and accurate prior to delivery of the payment pursuant to paragraph 1, the undersigned
shall immediately give written notice to the Company specifying which representations and warranties are not true and accurate
and the reason therefor. In addition, the Purchaser agrees to notify the Company immediately in writing if the Purchaser ceases
to be an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act. Until the
Purchaser provides a notice described in the preceding two sentences, the Company may rely on the representations, warranties,
covenants and agreements contained herein in connection with any matter related to the Company. Without limiting the generality
of the preceding sentence, the Company may assume that all such representations and warranties are correct in all respects as
of the date hereof and may rely on such representations and warranties in determining whether (i) the Purchaser is suitable as
a purchaser of the Shares, (ii) the Shares may be sold to the Purchaser without first registering the Shares under the Securities
Act or any other applicable securities laws, and (iii) the conditions to the acceptance of subscriptions for Shares have been
satisfied.

 

4.
Representations, Warranties and Covenants of the Company. The Company hereby represents, warrants to and covenants
with the Purchaser as follows:

 

(a)
The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of Nevada.

 

(b)
The Company has all power and authority to enter into and perform its obligations under this Agreement and to issue, sell and
deliver the Shares. The execution and delivery of each of the Agreement and the issuance, sale and delivery of the Shares has
been duly authorized by all necessary corporate action. This Agreement has been duly executed and when delivered will constitute
upon due execution and delivery, will constitute, valid and binding obligations of the Company, enforceable against the Company
in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally, including the effect
of statutory and other laws regarding fraudulent conveyances and preferential transfers, and except that no representation is
made herein regarding the enforceability of the Company’s obligations to provide indemnification and contribution remedies
under the securities laws and subject to the limitations imposed by general equitable principles (regardless of whether such enforceability
is considered in a proceeding at law or in equity).

 

 

 

2
                                         A “senior foreign political figure” is defined as a senior official
                                         in the executive, legislative, administrative, military or judicial branches of a foreign
                                         government (whether elected or not), a senior official of a major foreign political party,
                                         or a senior executive of a foreign government owned corporation. In addition, a “senior
                                         foreign political figure” includes any corporation, business or other entity that
                                         has been formed by, or for the benefit of, a senior foreign political figure.

 

3
“Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings,
spouse, children and in-laws.

 

4
A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain
an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the senior foreign political figure.

 

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(c)
The Shares will be duly and validly issued, fully paid and non-assessable, and free from all taxes or liens with respect to the
issue thereof and shall not be subject to preemptive rights, rights of first refusal and/or other similar rights of stockholders
of the Company and/or any other person.

 

5.
Indemnification. The Purchaser acknowledges that the Purchaser understands the meaning and legal consequences of
the representations, warranties and covenants in Section 3 hereof and that the Company has relied upon such representations,
warranties and covenants, and the Purchaser hereby agrees to indemnify and hold harmless the Company and its officers, directors,
controlling persons, agents and employees, from and against any and all losses, damages or liabilities due to or arising out of
a breach of any representation, warranty or covenant made by the Purchaser herein. Notwithstanding the foregoing, however, no
representation, warranty, covenant, acknowledgment or agreement made herein by the Purchaser shall in any manner be deemed to
constitute a waiver of any rights granted to the Purchaser under Federal or state securities laws. All representations, warranties
and covenants contained in this Agreement and the indemnification contained in this Section 5 shall survive the acceptance
of this subscription.

 

6.
Irrevocability; Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is
irrevocable by the Purchaser, except as required by applicable law, and that this Agreement shall survive the death or disability
of the Purchaser and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives, and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser
hereunder shall be joint and several and the agreements, representations, warranties, and acknowledgments herein shall be deemed
to be made by and be binding upon each such person and such person’s heirs, executors, administrators, successors, legal
representatives, and permitted assigns.

 

7.
Modification. Neither this Agreement nor any provision hereof shall be waived, modified, changed, discharged or
terminated except by an instrument in writing signed by the party against whom any waiver, modification, change, discharge or
termination is sought.

 

8.
Notices. All notices, requests, consents and other communications hereunder shall be in writing and shall be deemed
to have been duly made when delivered, or mailed by registered or certified mail, return receipt requested:

 

(a)
If to the Purchaser, to the address set forth on the signature page of this Agreement, or at such other address as the Purchaser
may hereafter have advised the Company by written notification.

 

(b)
If to the Company, to the address set forth on the first page of this Agreement, or at such other address as the Company may hereafter
have advised the Purchaser by written notification.

 

9.
Survival of Representations and Warranties. Each party hereto covenants and agrees that the representations and
warranties of such party contained in this Agreement shall survive the Closing.

 

10.
Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the matters set forth
herein and supersede all prior oral or written agreements and understandings, if any, relating to the subject matter hereof.

 

11.
Assignability. This Agreement is not transferable or assignable by the undersigned or any successor thereto.

 

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12.
Governing Law; Venue; Waiver Of Jury Trial, Etc. This Agreement shall be governed by and construed solely and exclusively
under and pursuant to the laws of the State of Nevada as applied to agreements among Nevada residents entered into and to be performed
entirely within Nevada. Each of the parties hereto expressly and irrevocably (1) agree that any legal suit, action or proceeding
arising out of or relating to this Agreement will be instituted exclusively in the United States District Court for the Eastern
District of Tennessee, (2) waive any objection they may have now or hereafter to the venue of any such suit, action or proceeding,
and (3) consent to the in personam jurisdiction of the United States District Court for the Eastern District of Tennessee in any
such suit, action or proceeding. Each of the parties hereto further agrees to accept and acknowledge service of any and all process
which may be served in any such suit, action or proceeding in the United States District Court for the Eastern District of Tennessee
and agree that service of process upon it mailed by certified mail to its address will be deemed in every respect effective service
of process upon it, in any such suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.
THE PARTY PREVAILING THEREIN SHALL BE ENTITLED TO PAYMENT FROM THE OTHER PARTY HERETO OF ALL OF ITS REASONABLE COUNSEL FEES AND
DISBURSEMENTS.

 

13.
Further Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts
and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably
may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

14.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original, and all of which shall constitute one and the same document. In the event that any signature (including a financing
signature page) is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “pdf” signature page were an original thereof.

 

15.
Use of Pronouns and Defined Terms. All pronouns and any variations thereof used herein shall be deemed to refer
to the masculine, feminine, neuter, singular or plural as the identity of the person or persons referred to may require. All terms
not otherwise defined herein shall have the same meaning as in the Offering Documents.

 

16.
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable
law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders
any provision hereof prohibited or unenforceable in any respect.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	6

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Agreement on the date his signature has been subscribed and sworn to below.

 

	No.
    of Shares: ______________________________	 	Purchase
    Price: $  _________________________________
	 	 	 	(No.
    of Shares x $.10 per Share)
	 	 	 	 
	The
    Shares are to be issued in 	 	
	(check
    one box):	 	Print
    Name of Purchaser
	 	 	 	 
	[  ]	individual
    name	 	
	 	 	 	Print
    Name of Joint Purchaser (if applicable)
	[  ]	joint
    tenants with rights of survivorship	 	 
	 	 	 	
	[  ]	tenants
    in entirety	 	Signature
    of Purchaser
	 	 	 	 
	[  ]	corporation
    (an officer must sign)	 	
	 	 	 	Signature
    of Joint Purchaser
	[  ]	partnership
    (all general partners must sign)	 	 
	 	 	 	 
	[  ]	Trust	 	 
	 	 	 	 
	[  ]	limited
    liability company	 	
	 	 	 	Print
    Name of Trust, Corporation, Partnership, LLC or other Institutional Purchaser

 

	email
    address:	 	 	 	 
	 	 	 	 	
	fax
    number:		 	 	 
	 	 	 	By:	        
	Subscriber(s)
    address:	 	 	 
		 	Title:	
		 	 	 
	 	 	 	 
	Taxpayer
    ID No.: 	 	 	Name
    of natural person with voting and dispositive control over the Shares being subscribed for

 

Accepted
as of this _____________ day of__________________________________, 2020

 

HEALTHCARE
INTEGRATED TECHNOLOGIES INC.

 

	By:
    	       	 
	Scott
    M. Boruff, Chief Executive Officer	 

 

    	7

    	 

    

 

Annex
1

 

“Bad
Actor” Disqualification

Rules
506(d)(1) and (2) of the Securities Act of 1933

 

(d)
“Bad Actor” disqualification. (1) No exemption under this section shall be available for a sale of securities
if the issuer; any predecessor of the issuer; any affiliated issuer; any director, executive officer, other officer participating
in the Offering, general partner or managing member of the issuer; any beneficial owner of 20% or more of the issuer’s outstanding
voting equity securities, calculated on the basis of voting power; any promoter connected with the issuer in any capacity at the
time of such sale; any investment manager of an issuer that is a pooled investment fund; any person that has been or will be paid
(directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities; any general partner
or managing member of any such investment manager or solicitor; or any director, executive officer or other officer participating
in the Offering of any such investment manager or solicitor or general partner or managing member of such investment manager or
solicitor:

 

(i)
Has been convicted, within ten years before such sale (or five years, in the case of issuers, their predecessors and affiliated
issuers), of any felony or misdemeanor:

 

	 	(A)	In
    connection with the purchase or sale of any security;
	 	 	 
	 	(B)	Involving
    the making of any false filing with the Commission; or
	 	 	 
	 	(C)	Arising
    out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid
    solicitor of purchasers of securities;

 

(ii)
Is subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before such sale,
that, at the time of such sale, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

 

	 	(A)	In
    connection with the purchase or sale of any security;
	 	 	 
	 	(B)	Involving
    the making of any false filing with the Commission; or
	 	 	 
	 	(C)	Arising
    out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid
    solicitor of purchasers of securities;

 

(iii)
Is subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a
state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an
agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading
Commission; or the National Credit Union Administration that:

 

	 	(A)	At
    the time of such sale, bars the person from:

 

	 	(1)	Association
    with an entity regulated by such commission, authority, agency, or officer;
	 	 	 
	 	(2)	Engaging
    in the business of securities, insurance or banking; or
	 	 	 
	 	(3)	Engaging
    in savings association or credit union activities; or

 

	 	(B)	Constitutes
    a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct
    entered within ten years before such sale;

 

(iv)
Is subject to an order of the Commission entered pursuant to section 15(b) or 15B(c) of the Securities Exchange Act of 1934 (15
U.S.C. 78 o (b) or 78 o -4(c)) or section 203(e) or (f) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(e)
or (f)) that, at the time of such sale:

 

    	 

     

    

 

	 	(A)	Suspends
    or revokes such person’s registration as a broker, dealer, municipal securities dealer or investment adviser;
	 	 	 
	 	(B)	Places
    limitations on the activities, functions or operations of such person; or
	 	 	 
	 	(C)	Bars
    such person from being associated with any entity or from participating in the Offering of any penny stock;

 

(v)
Is subject to any order of the Commission entered within five years before such sale that, at the time of such sale, orders the
person to cease and desist from committing or causing a violation or future violation of:

 

	 	(A)	Any
    scienter-based anti-fraud provision of the federal securities laws, including without limitation section 17(a)(1) of the Securities
    Act of 1933 (15 U.S.C. 77q(a)(1)), section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) and 17 CFR 240.10b-5,
    section 15(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78 o (c)(1)) and section 206(1) of the Investment
    Advisers Act of 1940 (15 U.S.C. 80b-6(1)), or any other rule or regulation thereunder; or
	 	 	 
	 	(B)	Section
    5 of the Securities Act of 1933 (15 U.S.C. 77e).

 

(vi)
Is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities
exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent
with just and equitable principles of trade;

 

(vii)
Has filed (as a registrant or issuer), or was or was named as an underwriter in, any registration statement or Regulation A offering
statement filed with the Commission that, within five years before such sale, was the subject of a refusal order, stop order,
or order suspending the Regulation A exemption, or is, at the time of such sale, the subject of an investigation or proceeding
to determine whether a stop order or suspension order should be issued; or

 

(viii)
Is subject to a United States Postal Service false representation order entered within five years before such sale, or is, at
the time of such sale, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the
United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false
representations.

 

(2)
Paragraph (d)(1) of this section shall not apply:

 

(i)
With respect to any conviction, order, judgment, decree, suspension, expulsion or bar that occurred or was issued before September
23, 2013;

 

(ii)
Upon a showing of good cause and without prejudice to any other action by the Commission, if the Commission determines that it
is not necessary under the circumstances that an exemption be denied;

 

(iii)
If, before the relevant sale, the court or regulatory authority that entered the relevant order, judgment or decree advises in
writing (whether contained in the relevant judgment, order or decree or separately to the Commission or its staff) that disqualification
under paragraph (d)(1) of this section should not arise as a consequence of such order, judgment or decree; or

 

(iv)
If the issuer establishes that it did not know and, in the exercise of reasonable care, could not have known that a disqualification
existed under paragraph (d)(1) of this section.

 

(3)
For purposes of paragraph (d)(1) of this section, events relating to any affiliated issuer that occurred before the affiliation
arose will be not considered disqualifying if the affiliated entity is not:

 

(i)
In control of the issuer; or

 

(ii)
Under common control with the issuer by a third party that was in control of the affiliated entity at the time of such events.

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