Exhibit 10.1


 


Execution Version


 


Pareteum
Corporation


 


Senior Second Lien Secured Convertible
Note due 2025


 


THE ISSUANCE AND SALE OF NEITHER THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UfNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION AND PROSPECTUS-DELIVERY REQUIREMENTS
OF THE SECURITIES ACT.


 


THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS
EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH HEREIN AND IN THE INTERCREDITOR AGREEMENT, DATED AS
OF FEBRUARY 22, 2021 (THE “INTERCREDITOR AGREEMENT”), BY AND AMONG PARETEUM CORPORATION, A DELAWARE CORPORATION,
B.M.F. DE KROES-BRINKERS (TOGETHER WITH ITS SUCCESSORS AND ASSIGNS), IN ITS CAPACITY AS “SUBORDINATED AGENT”
UNDER AND AS DEFINED THEREIN, HIGH TRAIL INVESTMENTS SA LLC (TOGETHER WITH ITS SUCCESSORS AND ASSIGNS), IN ITS CAPACITY AS
 “SENIOR AGENT” UNDER AND AS DEFINED THEREIN. THE HOLDER(S) OF THIS INSTRUMENT, BY ITS (THEIR) ACCEPTANCE HEREOF, IRREVOCABLY
AND UNCONDITIONALLY AGREE(S) TO BE BOUND BY THE PROVISIONS OF THE INTRECREDITOR AGREEMENT.


 






     


     


    

 


Pareteum
Corporation


 


Senior Second Lien Secured Convertible
Note due 2025


 


Certificate
No. A-1


 


Pareteum Corporation,
a Delaware corporation, for value received, promises to pay to B.M.F. De Kroes-Brinkers (the “Initial Holder”),
or its registered assigns, the principal sum of two million four hundred thousand dollars ($2,400,000) (such principal sum, the
 “Principal Amount”) on October 1, 2025, and to pay interest thereon, as provided in this Note, in each
case as provided in and subject to the other provisions of this Note, including the earlier redemption, repurchase or conversion
of this Note.


 


Additional provisions
of this Note are set forth on the other side of this Note.


 


[The Remainder of This Page Intentionally
Left Blank; Signature Page Follows]


 






     


     


    

 


IN
WITNESS WHEREOF, Pareteum Corporation has caused this instrument to be duly executed as of the date set forth below.


 


	 	Pareteum
    Corporation
	 	 
	Date:     February 22,
    2021	By:	/s/ Alexander Korff
	 	 	Name: Alexander Korff
	 	 	Title: Corporate Secretary/Authorized
    Signatory




 


[Signature Page to
Senior Second Lien Secured Convertible Note due 2025, Certificate No. A-1]


 






     


     


    

  


Pareteum
Corporation


 


Senior Second Lien Secured Convertible
Note due 2025


 


This Note (this “Note”
and, collectively with any Note issued in exchange therefor or in substitution thereof, the “Notes”) is issued
by Pareteum Corporation, a Delaware corporation (the “Company”), and designated as its “Senior Second
Lien Secured Convertible Notes due 2025.”


 


Section 1.     Definitions.


 


“Affiliate”
has the meaning set forth in Rule 144.


 


“Approved
Stock Plan” means any employee benefit plan which has been approved by the Board of Directors of the Company prior to
or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase Common Stock may be
issued to any employee, officer, director or consultant for services provided to the Company in their capacity as such.


 


“Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds,
feeder funds or managed accounts, currently, or from time to time after the Issue Date, directly or indirectly managed or advised
by the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the
Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a “group” (within
the meaning of Section 13(d)(3) of the Exchange Act) together with the Holder or any of the foregoing and (iv) any
other Persons whose beneficial ownership of the Common Stock would or could be aggregated with the Holder’s and the other
Attribution Parties for purposes of Section 13(d) of the Exchange Act. For clarity, the purpose of the foregoing is
to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.


 


“Authorized
Denomination” means, with respect to the Notes, a Principal Amount thereof equal to $1,000 or any integral multiple
of $1,000 in excess thereof.


 


“Bankruptcy
Law” means Title 11, United States Code, or any similar U.S. federal or state or non-U.S. law for the relief of debtors.


 


“Board of
Directors” means the board of directors of the Company or a committee of such board duly authorized to act on behalf
of such board.


 


“Business
Combination Event” has the meaning set forth in Section 10.


 


“Business
Day” means any day other than a Saturday, a Sunday or any day on which commercial banks in The City of New York are
authorized or required by law or executive order to close or be closed; provided, however, for clarification,
commercial banks in The City of New York shall not be deemed to be authorized or required by law or executive order to close or
be closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any other
similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority
so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are
open for use by customers on such day.


 






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“Capital
Lease” means, with respect to any Person, any leasing or similar arrangement conveying the right to use any property,
whether real or personal property, or a combination thereof, by that Person as lessee that, in conformity with GAAP, is required
to be accounted for as a capital lease on the balance sheet of such Person.


 


“Capital
Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a Capital
Lease that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the stated
maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date
upon which such lease may be prepaid by the lessee without payment of a penalty.


 


“Capital
Stock” of any Person means any and all shares of, interests in, rights to purchase, warrants or options for, participations
in, or other equivalents of, in each case however designated, the equity of such Person, but excluding any debt securities convertible
into such equity.


 


“Cash”
means all cash and liquid funds.


 


“Cash Equivalents”
means, as of any date of determination, any of the following: (A) marketable securities (i) issued or directly and
unconditionally guaranteed as to interest and principal by the United States Government, or (ii) issued by any agency of
the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing
within one (1) year after such date; (B) marketable direct obligations issued by any state of the United States of America
or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one (1) year
after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from Standard & Poor’s
Corporation or at least P-1 from Moody’s Investors Service; (C) commercial paper maturing no more than one (1) year
from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from Standard &
Poor’s Corporation or at least P-1 from Moody’s Investors Service; (D) certificates of deposit or bankers’
acceptances maturing within one (1) year after such date and issued or accepted by any commercial bank organized under the
laws of the United States of America or any State thereof or the District of Columbia that (i) is at least “adequately
capitalized” (as defined in the regulations of its primary federal banking regulator), and (ii) has Tier 1 capital
(as defined in such regulations) of not less than $100,000,000; and (E) shares of any money market mutual fund that (i) has
substantially all of its assets invested continuously in the types of investments referred to in clauses (A) and (B) above,
(ii) has net assets of not less than $500,000,000, and (iii) has the highest rating obtainable from either Standard &
Poor’s Corporation or Moody’s Investors Service.


 


“Close of
Business” means 5:00 p.m., New York City time.


 






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“Collateral”
has the meaning set forth in the Security Agreement


 


“Collateral
Agent” means the Initial Holder, in its capacity as collateral agent for the Holder and each Other Holder, together
with any successor thereto in such capacity.


 


“Commission”
means the U.S. Securities and Exchange Commission.


 


“Common Stock”
means the common stock, $0.001 par value per share, of the Company, subject to Section 8(I).


 


“Common Stock
Change Event” has the meaning set forth in Section 8(I).


 


“Contingent
Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person
with respect to (A) any Indebtedness or other obligations of another Person, including any such obligation directly or indirectly
guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise
directly or indirectly liable; (B) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant
services issued for the account of that Person; and (C) all obligations arising under any interest rate, currency or commodity
swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect
a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however,
that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course
of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount
of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however,
that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement


 


“Conversion
Consideration” has the meaning set forth in Section 8(D)(i).


 


“Conversion
Date” means, with respect to a Note, the first Business Day on which the requirements set forth in Section 8(C)(i) to
convert such Note are satisfied.


 


“Conversion
Price” means, as of any time, an amount equal to (A) one thousand dollars ($1,000) divided by (B) the
Conversion Rate in effect at such time.


 


“Conversion
Rate” initially means 1666.6667 shares of Common Stock per $1,000 Principal Amount of Notes; Notwithstanding anything
to the contrary herein, the Conversion Rate is subject to adjustment pursuant to Section 8 at all times, and whenever
this Note refers to the Conversion Rate as of a particular date without setting forth a particular time on such date, such reference
will be deemed to be to the Conversion Rate immediately after the Close of Business on such date.


 


“Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances,
directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire,
any shares of Common Stock.


 






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“Copyright
License” means any written agreement granting any right to use any Copyright or Copyright registration, now owned or
hereafter acquired by the Company or in which the Company now holds or hereafter acquires any interest.


 


“Copyrights”
means all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State
thereof, or of any other country.


 


“Covering
Price” has the meaning set forth in Section 8(D)(v)(1).


 


“Daily VWAP”
means, for any VWAP Trading Day, the per share volume-weighted average price of the Common Stock as displayed under the heading
 “Bloomberg VWAP” on Bloomberg page “TEUM <EQUITY> VAP” (or, if such page is not available,
its equivalent successor page) in respect of the period from the scheduled open of trading until the scheduled close of trading
of the primary trading session on such VWAP Trading Day (or, if such volume-weighted average price is unavailable, the market
value of one share of Common Stock on such VWAP Trading Day, determined, using a volume-weighted average price method, by a nationally
recognized independent investment banking firm selected by the Company). The Daily VWAP will be determined without regard to after-hours
trading or any other trading outside of the regular trading session.


 


“Default”
means any event that is (or, after notice, passage of time or both, would be) an Event of Default.


 


“Default
Interest” has the meaning set forth in Section 4(B).


 


“Defaulted
Amount” has the meaning set forth in Section 4(B).


 


“Defaulted
Shares” has the meaning set forth in Section 8(D)(v).


 


“Disqualified
Stock” means, with respect to any Person, any Capital Stock that by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable at the option of the holder) or upon the happening of any event:


 


(A)      matures
or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise;


 


(B)      is convertible
or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock convertible or exchangeable solely at the option
of the issuer or a Subsidiary; provided that any such conversion or exchange will be deemed an incurrence of Indebtedness
or Disqualified Stock, as applicable); or


 


(C)       is redeemable
at the option of the holder thereof, in whole or in part,


 


in the case of each of clauses (A),
(B) and (C), at any point prior to the one hundred eighty-first (181st) day after the Maturity Date.


 






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“DTC”
means The Depository Trust Company.


 


“Equipment”
means all “equipment” as defined in the UCC with such additions to such term as may hereafter be made, and
includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest
in any of the foregoing.


 


“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.


 


“Event of
Default” has the meaning set forth in Section 11(A).


 


“Event of
Default Acceleration Amount” means, with respect to the delivery of a notice pursuant to Section 11(B)(ii) declaring
this Note to be due and payable immediately on account of an Event of Default, a cash amount equal to the greater of (A) one
hundred twenty percent (120%) of the then outstanding Principal Amount of this Note plus accrued and unpaid interest on this Note;
and (B) one hundred twenty percent (120%) of the product of (i) the Conversion Rate in effect as of the Trading Day
immediately preceding the date such notice is so delivered; (ii) the total then outstanding principal portion of the Principal
Amount (expressed in thousands) of this Note plus accrued and unpaid interest on this Note; and (iii) the greater of (x) the
highest Daily VWAP per share of Common Stock occurring during the thirty (30) consecutive VWAP Trading Days ending on, and including,
the VWAP Trading Day immediately before the date such notice is so delivered and (y) the highest Daily VWAP per share of
Common Stock occurring during the thirty (30) consecutive VWAP Trading Days ending on, and including, the VWAP Trading Day immediately
before the date the applicable Event of Default occurred.


 


“Event of
Default Additional Shares” means, with respect to the conversion of this Note (or any portion of this Note), an amount
equal to the excess, if any, of (A) the Event of Default Conversion Rate applicable to such conversion over (B) the
Conversion Rate that would otherwise apply to such conversion without giving effect to Section 8(H). For the avoidance
of doubt, the Event of Default Additional Shares cannot be a negative number.


 


“Event of
Default Conversion Period” means, with respect to an Event of Default, the period beginning on, and including, the date
such Event of Default occurs and ending on later of (A) the twentieth (20th) Trading Day after the Holder’s receipt
of an Event of Default Notice and (B) five (5) Trading Days after the date the Holder receives notice from the Company
that such Event of Default has been cured.


 


“Event of
Default Conversion Price” means, with respect to the conversion of this Note (or any portion of this Note), the lesser
of (i) the Conversion Price that would be in effect immediately after the Close of Business on the Conversion Date for such
conversion, without giving effect to Section 8(H); and (ii) seventy five percent (75%) of the lowest Daily VWAP
per share of Common Stock during the ten (10) consecutive VWAP Trading Days ending on, and including, such Conversion Date
(or, if such Conversion Date is not a VWAP Trading Day, the immediately preceding VWAP Trading Day).


 






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“Event of
Default Conversion Rate” means, with respect to the conversion of this Note (or any portion of this Note), an amount
(rounded to the nearest 1/10,000th of a share of Common Stock (with 5/100,000ths rounded upward)) equal to (A) one thousand
dollars ($1,000) divided by (B) the Event of Default Conversion Price applicable to such conversion.


 


“Event of
Default Notice” has the meaning set forth in Section 11(C).


 


“Ex-Dividend
Date” means, with respect to an issuance, dividend or distribution on the Common Stock, the first date on which shares
of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such issuance,
dividend or distribution (including pursuant to due bills or similar arrangements required by the relevant stock exchange). For
the avoidance of doubt, any alternative trading convention on the applicable exchange or market in respect of the Common Stock
under a separate ticker symbol or CUSIP number will not be considered “regular way” for this purpose.


 


“Excess Shares”
has the meaning set forth in Section 8(J)(i).


 


“Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended.


 


“Expiration
Time” has the meaning set forth in Section 8(F)(i)(5).


 


“First Lien
Documents” has the meaning set forth in the Security Agreement.


 


“First Lien
Intercreditor Agreement” has the meaning provided in the Security Agreement.


 


“First Lien
Obligations” has the meaning set forth in the Security Agreement.


 


“First Lien
Security Documents” has the meaning set forth in the Security Agreement.


 


“Freely Tradable”
means, with respect to any shares of Common Stock issued or issuable upon conversion of this Note, that such shares would be eligible
to be offered, sold or otherwise transferred by the Holder pursuant to Rule 144, without any requirements as to volume, manner
of sale, availability of current public information (whether or not then satisfied) or notice under the Securities Act and without
any requirement for registration under any state securities or “blue sky” laws..


 


“Fundamental
Change” means any of the following events:


 


(A)           a
 “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), other than
the Company or its Wholly Owned Subsidiaries, or the employee benefit plans of the Company or its Wholly Owned Subsidiaries, files
any report with the Commission indicating that such person or group has become the direct or indirect “beneficial owner”
(as defined below) of shares of the Company’s common equity representing more than fifty percent (50%) of the voting power
of all of the Company’s then-outstanding common equity;


 






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(B)           the
consummation of (i) any sale, lease or other transfer, in one transaction or a series of transactions, of all or substantially
all of the assets of the Company and its Subsidiaries, taken as a whole, to any Person (other than solely to one or more of the
Company’s Wholly Owned Subsidiaries); or (ii) any transaction or series of related transactions in connection with
which (whether by means of merger, consolidation, share exchange, combination, reclassification, recapitalization, acquisition,
liquidation or otherwise) all of the Common Stock is exchanged for, converted into, acquired for, or constitutes solely the right
to receive, other securities, cash or other property (other than a subdivision or combination, or solely a change in par value,
of the Common Stock); provided, however, that any merger, consolidation, share exchange or combination
of the Company pursuant to which the Persons that directly or indirectly “beneficially owned” (as defined below) all
classes of the Company’s common equity immediately before such transaction directly or indirectly “beneficially own,”
immediately after such transaction, more than fifty percent (50%) of all classes of common equity of the surviving, continuing
or acquiring company or other transferee, as applicable, or the parent thereof, in substantially the same proportions vis-à-vis
each other as immediately before such transaction will be deemed not to be a Fundamental Change pursuant to this clause (B);
or


 


(C)           the
Company’s stockholders approve any plan or proposal for the liquidation or dissolution of the Company.


 


For the purposes of
this definition, (x) any transaction or event described in both clause (A) and in clause (B)(i) or
(ii) above (without regard to the proviso in clause (B)) will be deemed to occur solely pursuant to clause
(B) above (subject to such proviso); and (y) whether a Person is a “beneficial owner” and whether
shares are “beneficially owned” will be determined in accordance with Rule 13d-3 under the Exchange Act.


 


“Fundamental
Change Base Repurchase Price” means, with respect to this Note (or any portion of this Note to be repurchased) upon
a Repurchase Upon Fundamental Change, a cash amount equal to of the greater of (i) one hundred twenty percent (120%) of the
then outstanding Principal Amount of this Note (or portion thereof) and (ii) one hundred twenty percent (120%) of the product
of (A) the Conversion Rate in effect as of the Trading Day immediately preceding the effective date of such Fundamental Change;
(B) the Principal Amount of this Note to be repurchased upon a Repurchase Upon Fundamental Change divided by $1,000;
and (C) the Fundamental Change Stock Price for such Fundamental Change.


 


“Fundamental
Change Notice” has the meaning set forth in Section 6(C).


 


“Fundamental
Change Repurchase Date” means the date as of which this Note must be repurchased for cash in connection with a Fundamental
Change, as provided in Section 6(B).


 


“Fundamental
Change Repurchase Price” means the cash price payable by the Company to repurchase this Note (or any portion of this
Note) upon its Repurchase Upon Fundamental Change, calculated pursuant to Section 6(D).


 






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“Fundamental
Change Stock Price” means, with respect to any Fundamental Change, the highest Daily VWAP per share of Common Stock
occurring during the thirty (30) consecutive VWAP Trading Days ending on, and including, the VWAP Trading Day immediately before
the effective date of such Fundamental Change.


 


“GAAP”
means generally accepted accounting principles in the United States of America, as in effect from time to time; provided
the definitions set forth in this Note and any financial calculations required by thereby shall be computed to exclude
any change to lease accounting rules from those in effect pursuant to Financial Accounting Standards Board Accounting Standards
Codification 840 (Leases) and other related lease accounting guidance as in effect on the date hereof.


 


“Holder”
means the person in whose name this Note is registered on the books of the Company, which initially is the Initial Holder.


 


The term “including”
means “including without limitation,” unless the context provides otherwise.


 


“Indebtedness”
means, indebtedness of any kind, including, without duplication (A) all indebtedness for borrowed money or the deferred purchase
price of property or services, including reimbursement and other obligations with respect to surety bonds and letters of credit,
(B) all obligations evidenced by notes, bonds, debentures or similar instruments, (C) all Capital Lease Obligations,
(D) all Contingent Obligations, and (E) Disqualified Stock.


 


“Initial
Holder” has the meaning set forth in the cover page of this Note.


 


“Interest
Cash Payment Notice” has the meaning set forth in Section 5(B).


 


“Interest
Payment Date” means, with respect to a Note, (A) the first calendar day of each month commencing with the first
such day more than 31 days after the Issue Date; and (B) if not otherwise included in clause (A), the Maturity Date.


 


“Interest
Stock Payment Date” has the meaning set forth in Section 5(B).


 


“Interest
Stock Payment Period” has the meaning set forth in Section 5(B).


 


“Intellectual
Property” means all of the Company’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions;
mask works; the Company’s applications therefor and reissues, extensions, or renewals thereof; and the Company’s goodwill
associated with any of the foregoing, together with the Company’s rights to sue for past, present and future infringement
of Intellectual Property and the goodwill associated therewith.


 


“Investment”
means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any Person,
or any loan, advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of another
Person or the purchase of any assets of another Person for greater than the fair market value of such assets to solely the extent
of the amount in excess of the fair market value.


 






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“Issue Date”
means February 22, 2021.


 


“Last Reported
Sale Price” of the Common Stock for any Trading Day means the closing sale price per share (or, if no closing sale price
is reported, the average of the last bid price and the last ask price per share or, if more than one in either case, the average
of the average last bid prices and the average last ask prices per share) of Common Stock on such Trading Day as reported in composite
transactions for the principal U.S. national or regional securities exchange on which the Common Stock is then listed. If the
Common Stock is not listed on a U.S. national or regional securities exchange on such Trading Day, then the Last Reported Sale
Price will be the last quoted bid price per share of Common Stock on such Trading Day in the over-the-counter market as reported
by OTC Markets Group Inc. or a similar organization. If the Common Stock is not so quoted on such Trading Day, then the Last Reported
Sale Price will be the average of the mid-point of the last bid price and the last ask price per share of Common Stock on such
Trading Day from a nationally recognized independent investment banking firm selected by the Company.


 


“License”
means any Copyright License, Patent License, Trademark License or other license of rights or interests.


 


“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance,
levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property,
any conditional sale or other title retention agreement, and any lease in the nature of a security interest; provided,
that for the avoidance of doubt, licenses, strain escrows and similar provisions in collaboration agreements, research and development
agreements that do not create or purport to create a security interest, encumbrance, levy, lien or charge of any kind shall not
be deemed to be Liens for purposes of this Note.


 


“Market Disruption
Event” means, with respect to any date, the occurrence or existence, during the one-half hour period ending at the scheduled
close of trading on such date on the principal U.S. national or regional securities exchange or other market on which the Common
Stock is listed for trading or trades, of any material suspension or limitation imposed on trading (by reason of movements in
price exceeding limits permitted by the relevant exchange or otherwise) in the Common Stock or in any options contracts or futures
contracts relating to the Common Stock.


 


“Market Stock
Payment Price” means, with respect to any Interest Payment Date or Optional Redemption Stock Payment Date, an amount
equal to eighty-five percent (85%) of the lowest Daily VWAP during the ten (10) VWAP Trading Day period ending on the VWAP
Trading Day immediately prior to such Interest Payment Date or Optional Redemption Stock Payment Date, as applicable.


 


“Maturity
Date” means October 1, 2025.


 






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“Maximum
Percentage” has the meaning set forth in Section 8(J)(i).


 


“Open of
Business” means 9:00 a.m., New York City time.


 


“Optional
Redemption Cash Payment Notice” has the meaning set forth in Section 5(C).


 


“Optional
Redemption Date” means, with respect to a Note, (A) any Business Day date elected by the Company by not less than
10 Business Day advance written notice to the Holder and (B) the Maturity Date.


 


“Optional
Redemption Payment” means, with respect to each Optional Redemption Date for any Note, up to the then outstanding Principal
Amount of such Note, as determined by the Company in its sole discretion.


 


“Optional
Redemption Stock Payment Date” has the meaning set forth in Section 5(C).


 


“Optional
Redemption Stock Payment Period” has the meaning set forth in Section 5(C).


 


The term “or”
is not exclusive, unless the context expressly provides otherwise.


 


“Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.


 


“Other Holder”
means any person in whose name any Other Note is registered on the books of the Company.


 


“Other Notes”
means any Notes that are of the same class of this Note and that are represented by one or more certificates other than the certificate
representing this Note.


 


“Pareteum
Europe” means Pareteum Europe B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid),
having its corporate seat at Amsterdam.


 


“Pareteum
Europe Pledge Agreement” means a Deed of Pledge over Registered Shares, to be among the Company, the Collateral Agent
and Pareteum Europe in substantially the form of the Pareteum Europe Pledge Agreement (as defined in the First Lien Documents)
and, in any case, subject to the First Lien Intercreditor Agreement.


 


“Pareteum
Europe Security Agreement ” means a security agreement under the laws of the Netherlands in substantially the
form of the Pareteum Europe Security Agreement (as defined in the First Lien Documents) and otherwise reasonably acceptable to
the Holder in its sole discretion, pursuant to which Pareteum Europe will grant a security interest in favor of the Collateral
Agent in substantially all of its assets (other than leased real property and rights as to which the grant of a security interest
would violate or invalidate any such contract or other document or give any other party to such contract, instrument, license
or other document the right to terminate its obligations thereunder), and in any case, subject to the First Lien Intercreditor
Agreement.


 






    - 10 - 


     


    

 


“Patents”
means all letters patent of, or rights corresponding thereto, in the United States or in any other country, all registrations
and recordings thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States or any
other country.


 


“Patent License”
means any written agreement granting any right with respect to any invention on which a Patent is in existence or a Patent application
is pending, in which agreement the Company now holds or hereafter acquires any interest.


 


“Permitted
Intellectual Property Licenses” means Intellectual Property (A) licenses in existence at the Issue Date
and (B) non-perpetual licenses granted in the ordinary course of business on arm’s length terms consisting of the licensing
of technology, the development of technology or the providing of technical support which may include licenses with unlimited renewal
options solely to the extent such options require mutual consent for renewal or are subject to financial or other conditions as
to the ability of licensee to perform under the license; provided such license was not entered into during continuance
of a Default or an Event of Default.


 


“Permitted
Investment” means: (A) Investments as in effect as of the Issue Date; (B) (i) marketable direct
obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within
one year from the date of acquisition thereof, (ii) commercial paper maturing no more than one year from the date of creation
thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s
Investors Service, (iii) certificates of deposit issued by any bank headquartered in the United States maturing no more than
one year from the date of investment therein, and (iv) money market accounts; (C) Investments accepted in connection
with Permitted Transfers; (D) Investments (including debt obligations) received in connection with the bankruptcy or reorganization
of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising
in the ordinary course of the Company’s business; (E) Investments consisting of notes receivable of, or prepaid royalties
and other credit extensions, to customers and suppliers in the ordinary course of business and consistent with past practice;
(F) Investments consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash proceeds
to employees, officers or directors relating to the purchase of capital stock of the Company pursuant to an Approved Stock Plan;
(G) Investments consisting of travel advances in the ordinary course of business; (H) Investments in Subsidiaries; (I) Permitted
Intellectual Property Licenses; and (J) additional Investments that do not exceed two hundred fifty thousand dollars ($250,000)
in the aggregate in any twelve (12) month period.


 


“Permitted
Liens” means any and all of the following: (A) Liens in favor of Holder or the Collateral Agent; (B) Liens
as in effect as of the Issue Date, including the Liens under the First Lien Security Documents; (C) Liens for taxes, fees,
assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings;
provided, that the Company maintains adequate reserves therefor in accordance with GAAP; (D) Liens securing
claims or demands of materialmen, artisans, mechanics, carriers, warehousemen, landlords and other like Persons arising in the
ordinary course of business; provided, that the payment thereof is not yet required; (E) Liens arising from
judgments, decrees or attachments in circumstances which do not constitute a Default or an Event of Default hereunder; (F) the
following deposits, to the extent made in the ordinary course of business: deposits under workers’ compensation, unemployment
insurance, social security and other similar laws, or to secure the performance of bids, tenders or contracts (other than for
the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders
or contracts (other than for the repayment of borrowed money) or to secure statutory obligations (other than Liens arising under
ERISA or environmental Liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds; (G) Liens
on Equipment or software or other intellectual property constituting purchase money Liens and Liens in connection with Capital
Leases; (H) leasehold interests in leases or subleases and licenses granted in the ordinary course of the Company’s
business and not interfering in any material respect with the business of the licensor; (I) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payment of custom duties that are promptly paid on or before the date
they become due; (J) Liens on insurance proceeds securing the payment of financed insurance premiums that are promptly paid
on or before the date they become due (provided that such Liens extend only to such insurance proceeds and not to any other property
or assets); (K) statutory and common law rights of set-off and other similar rights as to deposits of cash and securities
in favor of banks, other depository institutions and brokerage firms; (L) easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary course of business so long as they do not materially
impair the value or marketability of the related property; and (M) Liens on Cash or Cash Equivalents securing obligations
in respect of (1) advances of payroll amounts and (2) indebtedness resulting from certain unsecured loans made or to
be made to the Company under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security
Act.


 






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“Permitted
Transfers” means (A) dispositions of inventory sold, and Permitted Intellectual Property Licenses entered
into, in each case, in the ordinary course of business, (B) dispositions of worn-out, obsolete or surplus property at fair
market value in the ordinary course of business; (C) dispositions of accounts or payment intangibles (each as defined in
the UCC) resulting from the compromise or settlement thereof in the ordinary course of business for less than the full amount
thereof; (D) Permitted Investments; (E) other transfers of assets to any Person other than to a joint venture and which
have a fair market value of not more than two hundred fifty thousand dollars ($250,000) in the aggregate in any twelve (12) month
period, (F) a restructuring, recapitalization, sale or other transfer of all or substantially all of the equity securities
or assets of iPass India Private Limited, including following commencement of any proceedings under Bankruptcy Law or otherwise
with respect to any such Subsidiary, and (G) Permitted Liens and any dispositions pursuant to foreclosure of any Permitted
Liens.


 


“Person”
or “person” means any individual, sole proprietorship, partnership, limited liability company, joint venture,
company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock
company, estate, entity or government agency.


 


“Principal
Amount” has the meaning set forth in the cover page of this Note; provided, however,
that the Principal Amount of this Note will be subject to reduction (A) pursuant to Section 6, Section 7,
and Section 8 and (B) by an amount equal to (i) the sum of all Optional Redemption Payments made prior to
date of determination of the Principal Amount of the Note then outstanding.


 






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“Reference
Property” has the meaning set forth in Section 8(I)(i).


 


“Reference
Property Unit” has the meaning set forth in Section 8(I)(i).


 


“Related
Party” has the meaning set forth in Section 22(B).


 


“Reported
Outstanding Share Number” has the meaning set forth in Section 8(J)(i).


 


“Repurchase
Upon Fundamental Change” means the repurchase of any Note by the Company pursuant to Section 6.


 


“Rule 144”
means Rule 144 under the Securities Act.


 


“Scheduled
Trading Day” means any day that is scheduled to be a Trading Day on the principal U.S. national or regional securities
exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or regional
securities exchange, on the principal other market on which the Common Stock is then traded. If the Common Stock is not so listed
or traded, then “Scheduled Trading day” means a Business Day.


 


“Securities
Act” means the U.S. Securities Act of 1933, as amended.


 


“Securities
Purchase Agreement” means that certain Securities Purchase Agreement, dated on or about the date hereof, between the
Company and the Initial Holder providing for the issuance of this Note.


 


“Security
Agreement” means that certain Security Agreement, dated on or about the date hereof, among the Company, certain of its
Subsidiaries and the Collateral Agent.


 


“Security
Document” has the meaning set forth in the Security Agreement.


 


“Series C
Preferred Stock” means an aggregate of 148 shares of the Company’s 8% Series C Redeemable Preferred Stock,
with the rights, powers and preferences described in the Certificate of Designation, Preferences, and Rights of such Series C
Preferred Stock filed by the Company on December 10, 2019, as in effect on the date hereof.


 


“Significant
Subsidiary” means, with respect to any Person, any Subsidiary of such Person that constitutes a “significant subsidiary”
(as defined in Rule 1-02(w) of Regulation S-X under the Exchange Act) of such Person.


 


“Stated Interest
Rate” means, as of any date, a rate per annum equal to 8.00%.


 






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“Subordinated
Indebtedness” means Indebtedness subordinated to the Notes in amounts and on terms and conditions satisfactory to the
Holder in its sole discretion.


 


“Subsidiary”
means, with respect to any Person, (A) any corporation, association or other business entity (other than a partnership or
limited liability company) of which more than fifty percent (50%) of the total voting power of the Capital Stock entitled (without
regard to the occurrence of any contingency, but after giving effect to any voting agreement or stockholders’ agreement
that effectively transfers voting power) to vote in the election of directors, managers or trustees, as applicable, of such corporation,
association or other business entity is owned or controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person; and (B) any partnership or limited liability company where (i) more than fifty percent
(50%) of the capital accounts, distribution rights, equity and voting interests, or of the general and limited partnership interests,
as applicable, of such partnership or limited liability company are owned or controlled, directly or indirectly, by such Person
or one or more of the other Subsidiaries of such Person, whether in the form of membership, general, special or limited partnership
or limited liability company interests or otherwise; and (ii) such Person or any one or more of the other Subsidiaries of
such Person is a controlling general partner of, or otherwise controls, such partnership or limited liability company.


 


“Subsidiary
Grantor” means a Grantor (as defined in the Security Agreement) that is a Wholly Owned Subsidiary of the Company
and, at any time that the Pareteum Europe Security Agreemnt is in effect, Pareteum Europe.


 


“Successor
Corporation” has the meaning set forth in Section 10(A).


 


“Successor
Person” has the meaning set forth in Section 8(I)(i).


 


“Trademark
License” means any written agreement granting any right to use any Trademark or Trademark registration, now owned
or hereafter acquired by the Company or in which the Company now holds or hereafter acquires any interest.


 


“Trademarks”
means all trademarks (registered, common law or otherwise) and any applications in connection therewith, including
registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency
of the United States, any State thereof or any other country or any political subdivision thereof.


 


“Trading
Day” means any day on which (A) trading in the Common Stock generally occurs on the principal U.S. national
or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S.
national or regional securities exchange, on the principal other market on which the Common Stock is then traded; and (B) there
is no Market Disruption Event. If the Common Stock is not so listed or traded, then “Trading Day” means a Business
Day.


 


“Transaction
Documents” has the meaning set forth in the Securities Purchase Agreement.


 






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“UCC”
means the Uniform Commercial Code as the same is, from time to time, in effect in the State of New York.


 


“VWAP
Market Disruption Event” means, with respect to any date, (A) the failure by the principal U.S. national
or regional securities exchange on which the Common Stock is then listed, or, if the Common Stock is not then listed on a U.S.
national or regional securities exchange, the principal other market on which the Common Stock is then traded, to open for trading
during its regular trading session on such date; or (B) the occurrence or existence, for more than one half hour period in
the aggregate, of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted
by the relevant exchange or otherwise) in the Common Stock or in any options contracts or futures contracts relating to the Common
Stock, and such suspension or limitation occurs or exists at any time before 1:00 p.m., New York City time, on such date.


 


“VWAP
Trading Day” means a day on which (A) there is no VWAP Market Disruption Event; provided that the
Holder, by notice to the Company, may waive any such VWAP Market Disruption Event; and (B) trading in the Common Stock generally
occurs on the principal U.S. national or regional securities exchange on which the Common Stock is then listed or, if the
Common Stock is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the
Common Stock is then traded. If the Common Stock is not so listed or traded, then “VWAP Trading Day” means a Business
Day.


 


“Wholly Owned
Subsidiary” of a Person means any Subsidiary of such Person all of the outstanding Capital Stock or other ownership
interests of which (other than directors’ qualifying shares) are owned by such Person or one or more Wholly Owned Subsidiaries
of such Person.


 


Section 2.      Persons
Deemed Owners.


 


The Holder of this
Note will be treated as the owner of this Note for all purposes.


 


Section 3.      Registered
Form.


 


This Note, and any
Note issued in exchange therefor or in substitution thereof, will be in registered form, without coupons.


 


Section 4.      Accrual
of Interest; Defaulted Amounts.


 


(A)           Accrual
of Stated Interest. This Note will accrue interest (the “Stated Interest”) at a rate per annum equal to
the Stated Interest Rate. Stated Interest on this Note will (i) accrue on the Principal Amount of this Note; (ii) accrue
from, and including, the most recent date to which Stated Interest has been paid or duly provided for (or, if no Stated Interest
has theretofore been paid or duly provided for, the Issue Date) to, but excluding, the date of payment of such Stated Interest;
(iii) be payable in arrears on each Interest Payment Date, each Optional Redemption Date and each Optional Redemption Stock
Payment Date, as applicable; and (iv) be computed on the basis of a 360-day year comprised of twelve 30-day months.


 






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(B)           Defaulted
Amounts. If an Event of Default occurs and the Holder delivers written notice thereof to the Company (the Principal Amount
outstanding as of such notice, a “Defaulted Amount”), then in each case, to the extent lawful and provided
in such notice, interest (“Default Interest”) will accrue on such Defaulted Amount at a rate per annum equal
to eighteen percent (18.0%), from, and including, the date of such notice to, but excluding, the date such Event of Default is
cured and all outstanding Default Interest under this Note has been paid.


 


Section 5.     Method
of Payment; When Payment Date is Not a Business Day.


 


(A)           Method
of Payment. Except as set forth in Section 5(B) or Section 5(C), the Company will pay all cash amounts
due under this Note by wire transfer of immediately available funds to the account or accounts specified by the Holder by written
notice in advance of the date such amount is due, by wire transfer of immediately available funds to such account or address set
forth in such written notice, as applicable.


 


(B)           Company’s
Election to Pay Stated Interest in Cash or Common Stock. At least ten (10) Trading Days (but no more than twenty (20)
Trading Days) prior to an Interest Payment Date, the Company, if it desires to elect to make a payment of Stated Interest with
respect to such Interest Payment Date, entirely or partially, in cash, shall deliver to the Holder a written notice of such election
stating which portion thereof the Company has elected to pay in cash (a “Interest Cash Payment Notice”), and
such amount shall be paid on the applicable Interest Payment Date in cash pursuant to Section 5(A) (and such
election shall be irrevocable as to such payment of Stated Interest (or portion thereof)). Failure to timely deliver such written
notice to the Holder shall be deemed an election by the Company to pay the Stated Interest (or applicable portion thereof) with
respect to such Interest Payment Date in shares of Common Stock, subject to the terms hereof. With respect to any Interest Payment
Date for which the Company has made a deemed election to pay Stated Interest (or any applicable portion thereof) in shares of
Common Stock in accordance with this Section 5(B), (i) the Holder shall have the right to allocate all or any
portion of the applicable payment of Stated Interest (or applicable portion thereof) to one or more Scheduled Trading Days (any
such date, an “Interest Stock Payment Date”) during the period beginning on, and including, the applicable
Interest Payment Date and ending on, and including, the Scheduled Trading Day immediately before the subsequent Interest Payment
Date (the “Interest Stock Payment Period”) or defer such payment of Stated Interest (or applicable portion
thereof) to any future Interest Payment Date selected by the Holder; and (ii) the Company shall issue to the Holder a number
of validly issued, fully paid and Freely Tradable shares of Common Stock equal to the quotient (rounded up to the closest whole
number) obtained by dividing such payment of Stated Interest (or any applicable portion thereof) by the Market Stock Payment Price
as of such Interest Stock Payment Date. The Holder must provide notice to the Company of its election of any Interest Stock Payment
Date and the applicable portion of Stated Interest it is electing to receive on each such Interest Stock Payment Date no later
than 4:30 p.m. New York Time on such Interest Stock Payment Date. The Company shall not pay any portion of a payment of Stated
Interest in shares of Common Stock unless the Holder has designated an Interest Stock Payment Date for such portion. Any portion
of a payment of Stated Interest not paid in shares of Common Stock because the Holder did not allocate such payment of Stated
Interest (or applicable portion thereof) to a Scheduled Trading Day during the applicable Interest Stock Payment Period or because
the Holder elected to defer the receipt of such payment of Stated Interest (or portion thereof) during the applicable Interest
Stock Payment Period will be automatically deferred to the next Interest Payment Date or such future Interest Payment Date as
was elected by the Holder, as applicable. Any such shares of Common Stock will be delivered by the Company to the Holder on or
before the second (2nd) Business Day following the applicable Interest Stock Payment Date.


 






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(C)           Company’s
Election to Pay Optional Redemption Payments in Cash or Common Stock. At least ten (10) Trading Days (but no more than
twenty (20) Trading Days) prior to an Optional Redemption Date, the Company, if it desires to elect to make an Optional Redemption
Payment with respect to such Optional Redemption Date, entirely or partially, in cash, shall deliver to the Holder a written notice
of such election stating which portion thereof the Company has elected to pay in cash (an “Optional Redemption Cash Payment
Notice”) (and such election shall be irrevocable as to such Optional Redemption Date). Failure to timely deliver such
written notice to the Holder shall be deemed an election by the Company to pay the Optional Redemption Payment (or applicable
portion thereof) with respect to such Optional Redemption Date in shares of Common Stock, subject to the terms hereof. With respect
to any Optional Redemption Date for which the Company has made a deemed election to make an Optional Redemption Payment (or any
applicable portion thereof) in shares of Common Stock in accordance with this Section 5(C), (i) the Holder shall
have the right to allocate all or any portion of the applicable Optional Redemption Payment (or applicable portion thereof) to
one or more Scheduled Trading Days (any such date, an “Optional Redemption Stock Payment Date”) during the
period beginning on, and including, the applicable Optional Redemption Date and ending on, and including, the Scheduled Trading
Day immediately before the subsequent Optional Redemption Date (the “Optional Redemption Stock Payment Period”)
or defer such Optional Redemption Payment (or applicable portion thereof) to any future Optional Redemption Date selected by the
Holder; and (ii) the Company shall issue to the Holder, a number of validly issued, fully paid and Freely Tradable shares
of Common Stock equal to the quotient (rounded up to the closest whole number) obtained by dividing such Optional Redemption Payment
(or any applicable portion thereof) by the Market Stock Payment Price as of such Optional Redemption Stock Payment Date. The Holder
must provide notice to the Company of its election of any Optional Redemption Stock Payment Date and the applicable portion of
the Optional Redemption Payment it is electing to receive on each such Optional Redemption Stock Payment Date no later than 4:30
p.m. New York Time on such Optional Redemption Stock Payment Date. The Company shall not pay any portion of the Optional
Redemption Payment in shares of Common Stock unless the Holder has designated an Optional Redemption Stock Payment Date for such
portion. Any portion of the Optional Redemption Payment not paid in shares of Common Stock because the Holder did not allocate
such Optional Redemption Payment (or applicable portion thereof) to a Scheduled Trading Day during the applicable Optional Redemption
Stock Payment Period or because the Holder elected to defer the receipt of such Optional Redemption Payment (or portion thereof)
during the applicable Optional Redemption Stock Payment Period will be automatically deferred to the next Optional Redemption
Date or such future Optional Redemption Date as was elected by the Holder, as applicable. Any such shares of Common Stock will
be delivered by the Company to the Holder on or before the second (2nd) Business Day following the applicable Optional Redemption
Stock Payment Date.


 


(D)           Delay
of Payment when Payment Date is Not a Business Day. If the due date for a payment on this Note as provided in this Note is
not a Business Day, then, notwithstanding anything to the contrary in this Note, such payment may be made on the immediately following
Business Day and no interest will accrue on such payment as a result of the related delay.


 






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Section 6.     Repurchase
of Note upon a Fundamental Change.


 


(A)           Repurchase
Upon Fundamental Change. Subject to the other terms of this Section 6, if a Fundamental Change occurs, then (i) the
Holder will have the right to require the Company to repurchase this Note (or any portion of this Note in an Authorized Denomination)
and (ii) the Company will have the right to repurchase this Note, in each case on the Fundamental Change Repurchase Date
for such Fundamental Change for a cash purchase price equal to the Fundamental Change Repurchase Price.


 


(B)           Fundamental
Change Repurchase Date. The Fundamental Change Repurchase Date for any Fundamental Change will be a Business Day of the Holder’s
choosing that is no more than twenty (20) Business Days after the later of (x) the date the Company delivers to the Holder
the related Fundamental Change Notice pursuant to Section 6(C); and (y) the effective date of such Fundamental
Change.


 


(C)           Fundamental
Change Notice. No later than the fifth (5th) Business Day before the occurrence of any Fundamental Change, the Company will
send to the Holder a written notice (the “Fundamental Change Notice”) thereof, stating the expected date such
Fundamental Change will occur and, if applicable, the Company’s election to repurchase this Note pursuant to Section 6(A).


 


(D)           Fundamental
Change Repurchase Price. The Fundamental Change Repurchase Price for this Note (or any portion of this Note to be repurchased)
upon a Repurchase Upon Fundamental Change following a Fundamental Change is an amount in cash equal to the Fundamental Change
Base Repurchase Price for such Fundamental Change plus accrued and unpaid interest on this Note (or such portion of this Note)
to, but excluding, the Fundamental Change Repurchase Date for such Fundamental Change. For the avoidance of doubt, if such Fundamental
Change Repurchase Date is on an Interest Payment Date, then the interest otherwise payable on this Note (or such portion of this
Note) on such Interest Payment Date will be paid as part of the Fundamental Change Repurchase Price, in satisfaction of the Company’s
obligation to pay such interest on such Interest Payment Date.


 


(E)           Effect
of Repurchase. If this Note (or any portion of this Note) is to be repurchased upon a Repurchase Upon Fundamental Change,
then, from and after the date the related Fundamental Change Repurchase Price is paid in full, this Note (or such portion) will
cease to be outstanding and interest will cease to accrue on this Note (or such portion).


 


Section 7.      Optional
Redemption Payments; Holder Optional Redemption.


 


(A)           Optional
Redemption Payments. At the Company’s election, in its sole discretion, the Company may redeem all or a portion of this
Note equal to the applicable Optional Redemption Payment on each Optional Redemption Date. The Company shall deliver to the Holder
a written notice of any such election under this Section 7(A) at least fifteen (15) Trading Days prior to the
applicable Optional Redemption Date in order to make an effective election; provided, however, that
the Company may, in its sole discretion, defer any such Optional Redemption Payment (or any portion thereof) to any subsequent
Optional Redemption Date by further written notice at any time prior to the applicable Optional Redemption Date.


 






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(B)           Effect
of Optional Redemption Payment. If this Note (or any portion of this Note) is redeemed pursuant to Section 7(A),
then, from and after the date the related Optional Redemption Payment is paid in full, this Note (or such portion) will cease
to be outstanding and interest will cease to accrue on this Note (or such portion).


 


Section 8.Conversion.


 


(A)          Right
to Convert.


 


(i)            Generally.
Subject to the provisions of this Section 8, the Holder may, at its option, convert this Note, including any portion
constituting an Optional Redemption Payment, as applicable, or any deferred Optional Redemption Payment, into Conversion Consideration.


 


(ii)            Conversions
in Part. Subject to the terms of this Section 8, this Note may be converted in part, but only in an Authorized
Denomination. Provisions of this Section 8 applying to the conversion of this Note in whole will equally apply to
conversions of any permitted portion of this Note.


 


(B)           When
this Note May Be Converted.


 


(i)            Generally.
The Holder may convert this Note at any time until the Close of Business on the second (2nd) Scheduled Trading Day immediately
before the Maturity Date; provided that, with respect to the conversion of any Optional Redemption Payment, the
Holder must provide notice of such conversion no later than the Close of Business on the second (2nd) Scheduled Trading Day immediately
preceding the date such Optional Redemption Payment is due in accordance with the terms of this Note, and any such conversion
will not reduce the amount of future Optional Redemption Payments. For the avoidance of doubt, the Holder’s right to convert
this Note shall not be impacted by a prior notice or election to defer any Optional Redemption Payment pursuant to Section 7(A) hereof.


 


(ii)            Limitations
and Closed Periods. Notwithstanding anything to the contrary in this Section 8, if this Note (or any portion of
this Note) is to be repurchased upon a Repurchase Upon Fundamental Change pursuant to Section 6, then this Note (or
such portion) may not be converted after the Close of Business on the Scheduled Trading Day immediately before the related Fundamental
Change Repurchase Date; provided, that this Section 8(B) shall no longer apply to this Note (or
such applicable portion) if the applicable Fundamental Change Repurchase Price is not delivered on the Fundamental Change Repurchase
Date in accordance with Section 6.


 


(C)           Conversion
Procedures.


 


(i)            Generally.
To convert this Note, the Holder must (1) complete, manually sign and deliver to the Company the conversion notice attached
to this Note or a facsimile or portable document format (.pdf) version of such conversion notice (at which time such conversion
will become irrevocable); and (2) pay any amounts due pursuant to Section 8(C)(iii). For the avoidance of doubt,
the conversion notice may be delivered by e-mail in accordance with Section 14. If the Company fails to deliver, by
the related Conversion Settlement Date, any shares of Common Stock forming part of the Conversion Consideration of the conversion
of this Note, the Holder, by notice to the Company, may rescind all or any portion of the corresponding conversion notice at any
time until such Defaulted Shares are delivered.


 






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(ii)            Holder
of Record of Conversion Shares. The person in whose name any shares of Common Stock is issuable upon conversion of this Note
will be deemed to become the holder of record of such shares as of the Close of Business on the Conversion Date for such conversion,
conferring, as of such time, upon such person, without limitation, all voting and other rights appurtenant to such shares.


 


(iii)           Taxes
and Duties. If the Holder converts a Note, the Company will pay any documentary, stamp or similar issue or transfer tax or
duty due on the issue of any shares of Common Stock upon such conversion; provided, however, that
if any tax or duty is due because such Holder requested such shares to be issued in a name other than that of such Holder, then
such Holder will pay such tax or duty and, until having received a sum sufficient to pay such tax or duty, the Company may refuse
to deliver any such shares to be issued in a name other than that of such Holder.


 


(D)           Settlement
upon Conversion.


 


(i)            Generally.
The consideration (the “Conversion Consideration”) due in respect of each $1,000 Principal Amount of this Note,
including any portion constituting an Optional Redemption Payment or any deferred Optional Redemption Payment, to be converted
will consist of the following:


 


(1)            subject
to Section 8(D)(ii), a number of shares of Common Stock equal to the Conversion Rate in effect on the Conversion Date
for such conversion; and


 


(2)            cash
in an amount equal to the aggregate accrued and unpaid interest on this Note to, but excluding, the Conversion Settlement Date
for such conversion.


 


(ii)            Fractional
Shares. The total number of shares of Common Stock due in respect of any conversion of this Note, including any portion constituting
an Optional Redemption Payment or any deferred Optional Redemption Payment, will be determined on the basis of the total Principal
Amount of this Note to be converted with the same Conversion Date; provided, however, that if such
number of shares of Common Stock is not a whole number, then such number will be rounded up to the nearest whole number.


 


(iii)           Delivery
of the Conversion Consideration. The Company will pay or deliver, as applicable, the Conversion Consideration due upon the
conversion of this Note, including any portion constituting an Optional Redemption Payment required to be paid by the Company
on the next Optional Redemption Date or Optional Redemption Stock Payment Date, as applicable, or any outstanding deferred Optional
Redemption Payment, to the Holder on or before the second (2nd) Business Day (or, if earlier, the standard settlement period for
the primary national securities exchange, if any, on which the Common Stock is traded) immediately after the Conversion Date for
such conversion (the “Conversion Settlement Date”).


 






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(iv)           Effect
of Conversion. If this Note is converted, then, from and after the date the Conversion Consideration therefor is issued or
delivered in settlement of such conversion, this Note will cease to be outstanding and interest will cease to accrue on this Note.


 


(v)           Conversion
Settlement Defaults. If (x) the Company fails to deliver, by the related Conversion Settlement Date, any shares of Common
Stock (the “Defaulted Shares”) forming part of the Conversion Consideration of the conversion of this Note,
including any portion constituting an Optional Redemption Payment or any deferred Optional Redemption Payment; and (y) the
Holder (whether directly or indirectly, including by any broker acting on the Holder’s behalf or acting with respect to
such Defaulted Shares) purchases any shares of Common Stock (whether in the open market or otherwise) to cover any such Defaulted
Shares (whether to satisfy any settlement obligations with respect thereto of the Holder or otherwise), then, without limiting
the Holder’s right to pursue any other remedy available to it (whether hereunder, under applicable law or otherwise), the
Holder will have the right, exercisable by notice to the Company, to cause the Company to either:


 


(1)            pay,
on or before the second (2nd) Business Day after the date such notice is delivered, cash to the Holder in an amount equal to the
aggregate purchase price (including any brokerage commissions and other out-of-pocket costs) incurred to purchase such shares
(such aggregate purchase price, the “Covering Price”); or


 


(2)            promptly
deliver, to the Holder, such Defaulted Shares in accordance with this Note, together with cash in an amount equal to the excess,
if any, of the Covering Price over the product of (x) the number of such Defaulted Shares; and (y) the Daily VWAP per
share of Common Stock on the Conversion Date relating to such conversion.


 


To exercise such right, the
Holder must deliver notice of such exercise to the Company, specifying whether the Holder has elected clause (1) or
(2) above to apply. If the Holder has elected clause (1) to apply, then the Company’s obligation
to deliver the Defaulted Shares in accordance with this Note will be deemed to have been satisfied and discharged to the extent
the Company has paid the Covering Price in accordance with clause (1).


 


(E)           Reserve
and Status of Common Stock Issued upon Conversion.


 


(i)            Stock
Reserve. At all times when this Note is outstanding, the Company will reserve, out of its authorized but unissued and unreserved
shares of Common Stock, a number of shares of Common Stock equal to (1) the then-outstanding Principal Amount of this Note
plus accrued and unpaid interest on this Note; divided by (2) the then-applicable Conversion Price.


 






    - 21 - 


     


    

 


(ii)            Status
of Conversion Shares; Listing. Each share of Common Stock delivered upon conversion of this Note will be a newly issued or
treasury share and will be duly and validly issued, fully paid, non-assessable, free from preemptive rights and free of any lien
or adverse claim (except to the extent of any lien or adverse claim created by the action or inaction of the Holder or the Person
to whom such share will be delivered). If the Common Stock is then listed on any securities exchange, or quoted on any inter-dealer
quotation system, then the Company will cause each share of Common Stock issued upon conversion of this Note, when delivered upon
such conversion, to be admitted for listing on such exchange or quotation on such system.


 


(iii)           Book-Entry
Shares. Any shares of Common Stock issued upon conversion of this Note will be issued in the form of book-entries at the facilities
of DTC, with or without restrictive legends, as appropriate.


 


(F)           Stock
Dividends, Splits and Combinations. If the Company issues solely shares of Common Stock as a dividend or distribution on all
or substantially all shares of the Common Stock, or if the Company effects a stock split or a stock combination of the Common
Stock (in each case excluding an issuance solely pursuant to a Common Stock Change Event, as to which Section 8(I) will
apply), then the Conversion Rate will be adjusted based on the following formula:


 


 


 


where:


 


	 	CR0	=	the Conversion
    Rate in effect immediately before the Open of Business on the Ex-Dividend Date for such dividend or distribution, or immediately
    before the Open of Business on the effective date of such stock split or stock combination, as applicable;
	 	 	 	 
	 	CR1	=	the Conversion Rate in
    effect immediately after the Open of Business on such Ex-Dividend Date or the Open of Business on such effective date, as
    applicable;
	 	 	 	 
	 	OS0	=	the number of shares
    of Common Stock outstanding immediately before the Open of Business on such Ex-Dividend Date or effective date, as applicable,
    without giving effect to such dividend, distribution, stock split or stock combination; and
	 	 	 	 
	 	OS1	=	the number of shares
    of Common Stock outstanding immediately after giving effect to such dividend, distribution, stock split or stock combination.




 


If any dividend, distribution,
stock split or stock combination of the type described in this Section 8(F)(i)(1) is declared or announced, but
not so paid or made, then the Conversion Rate will be readjusted, effective as of the date the Board of Directors determines not
to pay such dividend or distribution or to effect such stock split or stock combination, to the Conversion Rate that would then
be in effect had such dividend, distribution, stock split or stock combination not been declared or announced.


 






    - 22 - 


     


    

 


(G)           Rights
Upon Distribution of Assets. In addition to any adjustments pursuant to Section 8(F) above, if,
on or after the Issue Date and on or prior to the Maturity Date, the Company shall declare or make any dividend or other distribution
of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property, options, evidence of indebtedness
or any other assets by way of a dividend, spin-off, reclassification, corporate rearrangement, scheme of arrangement or other
similar transaction) (a “Distribution”), at any time after the issuance of this Note, then, in each such case,
the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein
if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to
any limitations or restrictions on exercise of this Note, including without limitation, the Maximum Percentage) immediately before
the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders
of shares of Common Stock are to be determined for the participation in such Distribution (provided, however,
that to the extent that the Holder’s right to participate in any such Distribution would result in the Holder and the other
Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution
to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution
(and beneficial ownership) to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the
Holder until such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or
made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there
had been no such limitation)


 


(H)           Adjustments
Not Yet Effective. Notwithstanding anything to the contrary in this Note, if:


 


(i)            this
Note is to be converted;


 


(ii)           the
record date, effective date or Expiration Time for any event that requires an adjustment to the Conversion Rate pursuant to Section 8(F)(i) or
Section 8(F)(ii) has occurred on or before the Conversion Date for such conversion, but an adjustment to the
Conversion Rate for such event has not yet become effective as of such Conversion Date;


 


(iii)           the
Conversion Consideration due upon such conversion includes any whole shares of Common Stock; and


 


(iv)          such
shares are not entitled to participate in such event (because they were not held on the related record date or otherwise),


 


then, solely for purposes of
such conversion, the Company will, without duplication, give effect to such adjustment on such Conversion Date. In such case,
if the date on which the Company is otherwise required to deliver the consideration due upon such conversion is before the first
date on which the amount of such adjustment can be determined, then the Company will delay the settlement of such conversion until
the second (2nd) Business Day after such first date.


 






    - 23 - 


     


    

 


(I)            Equitable
Adjustments to Prices. Whenever any provision of this Note requires the Company to calculate the average of the Last Reported
Sale Prices, or any function thereof, over a period of multiple days (including to calculate an adjustment to the Conversion Rate),
the Company will make proportionate adjustments, if any, to such calculations to account for any adjustment to the Conversion
Rate pursuant to Section 8(F)(i) or Section 8(F)(ii) that becomes effective, or any event requiring
such an adjustment to the Conversion Rate where the Ex-Dividend Date or effective date, as applicable, of such event occurs, at
any time during such period.


 


(J)            Calculation
of Number of Outstanding Shares of Common Stock. For purposes of this Section 8(F), the number of shares of Common
Stock outstanding at any time will (i) include shares issuable in respect of scrip certificates issued in lieu of fractions
of shares of Common Stock; and (ii) exclude shares of Common Stock held in the Company’s treasury (unless the Company
pays any dividend or makes any distribution on shares of Common Stock held in its treasury).


 


(K)          Calculations.
All calculations with respect to the Conversion Rate and adjustments thereto will be made to the nearest 1/10,000th of a share
of Common Stock (with 5/100,000ths rounded upward).


 


(L)           Voluntary
Adjustments.


 


(i)            Generally.
To the extent permitted by law and applicable stock exchange rules, the Company, from time to time, may (but is not required to)
increase the Conversion Rate by any amount if (i) the Board of Directors determines in good faith that such increase is either
(x) in the best interest of the Company; or (y) advisable to avoid or diminish any income tax imposed on holders of
Common Stock or rights to purchase Common Stock as a result of any dividend or distribution of shares (or rights to acquire shares)
of Common Stock or any similar event; and (ii) such increase is irrevocable. The Company and the Holder agree that any such
voluntary adjustment to the Conversion Rate and any conversion of any portion of the Note based upon any such voluntary adjustment
shall not constitute material non-public information with respect to the Company.


 


(ii)            Notice
of Voluntary Increases. If the Board of Directors determines to increase the Conversion Rate pursuant to Section 8(L)(i),
then, no later than the first Business Day following such determination, the Company will send notice to the Holder of such increase,
the amount thereof and the period during which such increase will be in effect.


 


(H)           Adjustments
to the Conversion Rate in Connection with an Event of Default. If an Event of Default occurs and the Conversion Date for the
conversion of a Note occurs during the related Event of Default Conversion Period, then, subject to Section 8(J),
the Conversion Rate applicable to such conversion will be increased by a number of shares equal to the Event of Default Additional
Shares.


 






    - 24 - 


     


    

 


(I)            Effect
of Certain Recapitalizations, Reclassifications, Consolidations, Mergers and Sales.


 


(i)            Generally.
If there occurs:


 


(1)            recapitalization,
reclassification or change of the Common Stock (other than (x) changes solely resulting from a subdivision or combination
of the Common Stock, (y) a change only in par value or from par value to no par value or no par value to par value and (z) stock
splits and stock combinations that do not involve the issuance of any other series or class of securities);


 


(2)            consolidation,
merger, combination or binding or statutory share exchange involving the Company;


 


(3)            sale,
lease or other transfer of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, to any
Person; or


 


(4)            other
similar event,


 


and, in each case, as a result
of such occurrence, the Common Stock is converted into, or is exchanged for, or represents solely the right to receive, other
securities or other property (including cash or any combination of the foregoing) (such an event, a “Common Stock Change
Event,” and such other securities or other property, the “Reference Property,” and the amount and
kind of Reference Property that a holder of one (1) share of Common Stock would be entitled to receive on account of such
Common Stock Change Event (without giving effect to any arrangement not to issue fractional shares of securities or other property),
a “Reference Property Unit”), then, notwithstanding anything to the contrary in this Note, at the effective
time of such Common Stock Change Event, (x) the Conversion Consideration due upon conversion of any Note will be determined
in the same manner as if each reference to any number of shares of Common Stock in this Section 8 (or in any related
definitions) were instead a reference to the same number of Reference Property Units; (y) for purposes of Section 8(A),
each reference to any number of shares of Common Stock in such Section (or in any related definitions) will instead be deemed
to be a reference to the same number of Reference Property Units; and (z) for purposes of the definition of “Fundamental
Change,” the term “Common Stock” and “common equity” will be deemed to mean the common equity, if
any, forming part of such Reference Property. For these purposes, (I) the Daily VWAP of any Reference Property Unit or portion
thereof that consists of a class of common equity securities will be determined by reference to the definition of “Daily
VWAP,” substituting, if applicable, the Bloomberg page for such class of securities in such definition; and (II) the
Daily VWAP of any Reference Property Unit or portion thereof that does not consist of a class of common equity securities, and
the Last Reported Sale Price of any Reference Property Unit or portion thereof that does not consist of a class of securities,
will be the fair value of such Reference Property Unit or portion thereof, as applicable, determined in good faith by the Company
(or, in the case of cash denominated in U.S. dollars, the face amount thereof).


 






    - 25 - 


     


    

 


If the Reference Property consists
of more than a single type of consideration to be determined based in part upon any form of stockholder election, then the composition
of the Reference Property Unit will be deemed to be the weighted average of the types and amounts of consideration actually received,
per share of Common Stock, by the holders of Common Stock. The Company will notify the Holder of such weighted average as soon
as practicable after such determination is made.


 


At or before the effective date
of such Common Stock Change Event, the Company and the resulting, surviving or transferee Person (if not the Company) of such
Common Stock Change Event (the “Successor Person”) will execute and deliver such instruments or agreements
that (x) provides for subsequent conversions of this Note in the manner set forth in this Section 8(I); (y) provides
for subsequent adjustments to the Conversion Rate pursuant to Section 8(F), Section 8(G) and Section 8(H) in
a manner consistent with this Section 8(I); and (z) contains such other provisions as the Company reasonably
determines are appropriate to preserve the economic interests of the Holder and to give effect to the provisions of this Section 8(I).
If the Reference Property includes shares of stock or other securities or assets of a Person other than the Successor Person,
then such other Person will also execute such instruments or agreements and such instruments or agreements will contain such additional
provisions the Company reasonably determines are appropriate to preserve the economic interests of the Holder.


 


(ii)            Notice
of Common Stock Change Events. As soon as practicable after learning the anticipated or actual effective date of any Common
Stock Change Event, the Company will provide written notice to the Holder of such Common Stock Change Event, including a brief
description of such Common Stock Change Event, its anticipated effective date and a brief description of the anticipated change
in the conversion right of this Note.


 


(iii)           Compliance
Covenant. The Company will not become a party to any Common Stock Change Event unless its terms are consistent with this Section 8(I).


 






    - 26 - 


     


    

 


(J)            Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained herein, the Company shall not effect the conversion
of any portion of this Note, and the Holder shall not have the right to convert any portion of this Note, pursuant to the terms
and conditions of this Note and any such conversion shall be null and void and treated as if never made, to the extent that after
giving effect to such conversion, the Holder together with the other Attribution Parties collectively would beneficially own in
excess of 4.99% (the “Maximum Percentage”) of the number of shares of Common Stock outstanding immediately
after giving effect to such conversion. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock
beneficially owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by
the Holder and all other Attribution Parties plus 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, unconverted portion of this Note beneficially owned by the Holder
or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other
securities of the Company (including, without limitation, any convertible notes or convertible preferred stock or warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation
contained in this Section 8(J)(i). For purposes of this Section 8(J)(i), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act. For purposes of this Note, in determining the number
of outstanding shares of Common Stock the Holder may acquire upon the conversion of this Note without exceeding the Maximum Percentage,
the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company's most recent Annual
Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the
Commission, as the case may be, (y) a more recent public announcement by the Company or (3) any other written notice
by the Company or the Transfer Agent (as defined in the Securities Purchase Agreement) setting forth the number of shares of Common
Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives a conversion notice from
the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share
Number, the Company shall (i) promptly notify the Holder in writing of the number of shares of Common Stock then outstanding
and, to the extent that such conversion notice would otherwise cause the Holder's beneficial ownership, as determined pursuant
to this Section 8(J)(i), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number
of conversion shares to be issued pursuant to such conversion notice. For any reason at any time, upon the written or oral request
of the Holder, the Company shall within one (1) Trading Day confirm in writing or by electronic mail 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 and any other
Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance
of shares of Common Stock to the Holder upon conversion of this Note results in the Holder and the other Attribution Parties being
deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock
(as determined under Section 13(d) of the Exchange Act), the number of shares so issued by which the Holder's and the
other Attribution Parties' aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”)
shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer
the Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase or decrease the
Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any
such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is
delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties
and not to any other holder of Notes that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common
Stock issuable pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially owned
by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange
Act. No prior inability to convert this Note pursuant to this paragraph shall have any effect on the applicability of the provisions
of this paragraph with respect to any subsequent determination of convertibility. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 8(J)(i) to the
extent necessary to correct this paragraph or any portion of this paragraph which may be defective or inconsistent with the intended
beneficial ownership limitation contained in this Section 8(J)(i) or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived and shall
apply to a successor holder of this Note.


 






    - 27 - 


     


    

 


Section 9.      Affirmative
and Negative Covenants.


 


(A)          Stay,
Extension and Usury Laws. To the extent that it may lawfully do so, the Company (A) agrees that it will not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law (wherever
or whenever enacted or in force) that may affect the covenants or the performance of this Note; and (B) expressly waives
all benefits or advantages of any such law and agrees that it will not, by resort to any such law, hinder, delay or impede the
execution of any power granted to the Holder by this Note, but will suffer and permit the execution of every such power as though
no such law has been enacted.


 


(B)           Corporate
Existence. Subject to Section 9(A) and except for Permitted Investments and Permitted Transfers, the Company
will cause to preserve and keep in full force and effect:


 


(i)            its
corporate existence in accordance with the organizational documents of the Company; and


 


(ii)           the
material rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries;


 


provided,
however, that the Company need not preserve or keep in full force and effect any such license or franchise if the Board
of Directors determines in good faith that (x) the preservation thereof is no longer desirable in the conduct of the business
of the Company and its Subsidiaries, taken as a whole; and (y) the loss thereof is not, individually or in the aggregate,
materially adverse to the Holder.


 


(C)           Ranking.
All payments due under this Note shall rank pari passu with all Other Notes and, except for the First Lien Obligations,
shall rank senior to all other indebtedness of the Company to the extent of the value of the Collateral and any Subordinated Indebtedness.


 


(D)           [Reserved].


 


(E)           [Reserved].


 


(F)           [Reserved].


 


(G)           Distributions.
Except as may be provided pursuant to the First Lien Documents, the Company shall not, and shall not allow any Subsidiary to,
(a) repurchase or redeem any class of stock or other equity interest other than repurchases or redemptions of the Series C
Preferred Stock on the mandatory redemption date for such Series C Preferred Stock or pursuant to employee, director or consultant
repurchase plans or other similar agreements approved by the Board of Directors, provided, however, in each case the repurchase
or redemption price does not exceed the original consideration paid for such stock or equity interest, except that the Company
may exchange shares of Disqualified Stock for shares of Common Stock, or (b) declare or pay any cash dividend or make a cash
distribution on any class of stock or other equity interest other than mandatory dividends or distributions on the Series C
Preferred Stock, except that a Subsidiary may pay dividends or make distributions to the Company or a parent company that is a
Subsidiary of the Company), or (c) lend money to any employees, officers or directors (except as permitted under clauses
(F) or (G) of the definition of Permitted Investment), or guarantee the payment of any such loans granted by a third
party or (d) waive, release or forgive any Indebtedness owed by any employees, officers or directors. Notwithstanding anything
to the contrary herein, the Company shall not, and shall not allow any Subsidiary to, repurchase or redeem any class of stock
or other equity interest (including the Series C Preferred Stock) or (b) declare or pay any cash dividend or make a
cash distribution on any class of stock or other equity interest (including the Series C Preferred Stock) if any Event of
Default has occurred hereunder.


 






    - 28 - 


     


    

 


(H)           Transfers.
Except for Permitted Transfers and Permitted Investments, the Company shall not, and shall not allow any Subsidiary to, voluntarily
or involuntarily transfer, sell, lease, license, lend or in any other manner convey any equitable, beneficial or legal interest
in all, or substantially, all of its assets.


 


(I)            Taxes.
The Company and its Subsidiaries shall pay when due all taxes, fees or other charges of any nature whatsoever (together with any
related interest or penalties) now or hereafter imposed or assessed against the Company and its Subsidiaries or their respective
assets or upon their ownership, possession, use, operation or disposition thereof or upon their rents, receipts or earnings arising
therefrom. The Company and its Subsidiaries shall file on or before the due date therefor all personal property tax returns. Notwithstanding
the foregoing, the Company and its Subsidiaries may contest, in good faith and by appropriate proceedings, taxes for which they
maintain adequate reserves therefor in accordance with GAAP.


 


(J)            [Reserved].


 


(K)          Minimum
Revenue. As of the last day of each fiscal quarter concluding on and after Issue Date, the Company and the Subsidiary Grantors
shall have revenue (determined in accordance with GAAP) of not less than fifty million dollars ($50,000,000) for the preceding
twelve (12) months.


 


(L)           Change
in Nature of Business. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
engage in any material line of business substantially different from those lines of business conducted by or publicly contemplated
to be conducted by the Company and each of its Subsidiaries on the Issue Date or any business substantially related or incidental
thereto. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, modify its
or their corporate structure or purpose.


 


(M)          Maintenance
of Properties, Etc. The Company shall maintain and preserve, and the Company shall cause each of its Subsidiaries to maintain
and preserve, all of its material properties which are necessary or useful (as determined by the Company in good faith) in the
proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply at all times with
the provisions of all material leases to which it is a party as lessee or under which it occupies property, so as to prevent any
loss or forfeiture thereof or thereunder.


 






    - 29 - 


     


    

 


(N)           Maintenance
of Intellectual Property. The Company will take, and the Company shall cause each of its Subsidiaries to maintain, all action
necessary or advisable to maintain all trademarks, trade names, service marks, service mark registrations, service names, original
works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets
and other intellectual property rights and all applications and registrations therefor of the Company or such Subsidiary that
are necessary or material (as determined by the Company in good faith) to the conduct of its business in full force and effect.


 


(O)           Maintenance
of Insurance. The Company shall maintain, and the Company shall cause each of its Subsidiaries to maintain, insurance with
responsible and reputable insurance companies or associations (including, without limitation, comprehensive general liability,
hazard, rent and business interruption insurance) with respect to its properties (including all real properties leased or owned
by it) and business, in such amounts and covering such risks as is required by any governmental authority having jurisdiction
with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses
similarly situated.


 


(P)           Transactions
with Affiliates. Neither the Company nor any of its Subsidiaries shall enter into, renew, extend or be a party to, any transaction
or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property
or assets of any kind or the rendering of services of any kind) with any affiliate (other than any wholly owned Subsidiary), except
transactions for fair consideration and on terms no less favorable to it than would be obtainable in a comparable arm’s
length transaction with a Person that is not an affiliate thereof.


 


(Q)          Restricted
Issuances. The Company shall not, directly or indirectly, without the prior written consent of the holders of a majority in
aggregate principal amount of the Notes then outstanding, (i) issue any Notes (other than as contemplated by the Securities
Purchase Agreement and the Notes) or (ii) except pursuant to the First Lien Documents, issue any other securities or incur
any Indebtedness that would cause a breach or Default under the Notes or that by its terms would prohibit or restrict the performance
of any of the Company’s obligations under the Notes, including without limitation, the payment of interest and principal
thereon.


 


(R)           [Reserved].


 


(S)           [Reserved].


 


(T)           The
Company acknowledges and agrees that the Holder is not a fiduciary or agent of the Company and that the Holder shall have no obligation
to (a) maintain the confidentiality of any information provided by the Company or (b) refrain from trading any securities
while in possession of such information in the absence of a written non-disclosure agreement signed by an officer of the Holder
that explicitly provides for such confidentiality and trading restrictions, unless such trading is otherwise prohibited by law.
In the absence of such an executed, written non-disclosure agreement, the Company acknowledges that the Holder may freely trade
in any securities issued by the Company, may possess and use any information provided by the Company in connection with such trading
activity, and may disclose any such information to any third party.


 






    - 30 - 


     


    

 


(U)           On
and after the date that is six (6) months following the Issue Date, this Note and any shares of Common Stock issuable upon
conversion of this Note shall be eligible to be offered, sold or otherwise transferred by the Holder pursuant to Rule 144,
without any requirements as to volume, manner of sale, availability of current public information (whether or not then satisfied)
or notice under the Securities Act and without any requirement for registration under any state securities or “blue sky”
law.


 


(V)           Following
the occurrence and during the continuance of an Event of Default, at the written request of the Holder the Company shall cause
Pareteum Europe to enter into the Pareteum Europe Security Agreement and to join the Security Agreement, Subsidiary Guaranty (as
defined in the Security Agreement) and each other applicable Security Document, in each case, subject to the First Lien Intercreditor
Agreement.


 


(W)         [Reserved]


 


(X)          Following
the occurrence and during the continuance of an Event of Default, at the written request of the Holder, the Company shall enter
into, and shall cause Pareteum Europe to enter into, the Pareteum Europe Pledge Agreement, subject to the First Lien Intercreditor
Agreement.


 


Section 10.      Successors.


 


The Company will not
consolidate with or merge with or into, or (directly, or indirectly through one or more of its Subsidiaries) sell, lease or otherwise
transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its Subsidiaries,
taken as a whole, to another Person, other than the Holder or any of its Affiliates (a “Business Combination Event”),
unless:


 


(A)          the
resulting, surviving or transferee Person either (x) is the Company or (y) if not the Company, is a corporation (the
 “Successor Corporation”) duly organized and existing under the laws of the United States of America, any State
thereof or the District of Columbia that expressly assumes (by executing and delivering to the Holder, at or before the effective
time of such Business Combination Event, a supplement to this instrument) all of the Company’s obligations under this Note;
and


 


(B)           immediately
after giving effect to such Business Combination Event, no Default or Event of Default will have occurred and be continuing.


 


At the effective time
of any Business Combination Event, the Successor Corporation (if not the Company) will succeed to, and may exercise every right
and power of, the Company under this Note with the same effect as if such Successor Corporation had been named as the Company
in this Note, and, except in the case of a lease, the predecessor Company will be discharged from its obligations under this Note.


 






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Section 11.Defaults
and Remedies


 


(A)          Events
of Default. “Event of Default” means the occurrence of any of the following:


 


(i)            a
default in the payment when due of the Principal Amount or Fundamental Change Repurchase Price of this Note;


 


(ii)           a
default for three (3) Business Days in the payment when due of interest on this Note;


 


(iii)          a
default in the Company’s obligation to convert this Note in accordance with Section 8 upon the exercise of the
conversion right with respect thereto;


 


(iv)          a
default in the Company’s obligation to deliver a Fundamental Change Notice pursuant to Section 6(C), and such
default continues for two (2) Business Days;


 


(v)           a
materially false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether
any Event of Default has occurred;


 


(vi)          a
default in any of the Company’s obligations or agreements under this Note or the Transaction Documents (in each case, other
than a default set forth in clause (i), (ii) or (iii) of this Section 11(A)), or a
breach of any representation or warranty in any material respect (other than representations or warranties subject to material
adverse effect or materiality, which may not be breached in any respect) of any Transaction Document; provided,
however, that if such default or breach can be cured, then such default or breach will not be an Event of Default
unless the Company has failed to cure such default within five (5) days after its occurrence;


 


(vii)         any
provision of any Transaction Document at any time for any reason (other than pursuant to the express terms thereof) ceases to
be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof is contested, directly
or indirectly, by the Company or any of its Subsidiaries, or a proceeding is commenced by the Company or any of its Subsidiaries
or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof;


 


(viii)        [reserved];


 


(ix)           [reserved];


 


(x)            the
Company fails to comply with Section 9(J), Section 9(R) Section 9(V), Section 9(W), or
Section 9(X) of this Note;


 


(xi)           [reserved];


 


(xii)          (A) a
default by the Company or any of its Subsidiaries with respect to any Indebtedness of at least two hundred and fifty thousand
dollars ($250,000) (or its foreign currency equivalent) in the aggregate of the Company or any of its Subsidiaries (other than
any First Lien Obligations), whether such Indebtedness exists as of the Issue Date or is thereafter created, and whether such
default has been waived for any period of time or is subsequently cured; or (B) a default by the Company or any of its Subsidiaries
with respect to the First Lien Obligations and the maturity thereof shall have been accelerated;


 






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(xiii)         one
or more final judgments, orders or awards (or any settlement of any litigation or other proceeding that, if breached, could result
in a judgment, order or award) for the payment of at least five hundred thousand dollars ($500,000) (or its foreign currency equivalent)
in the aggregate (excluding any amounts covered by insurance pursuant to which the insurer has been notified and has not denied
coverage), is rendered against the Company or any of its Subsidiaries and remains unsatisfied and (i) enforcement proceedings
shall have been commenced by any creditor upon any such judgment, order, award or settlement or (ii) there shall be a period
of ten (10) consecutive Trading Days after entry thereof during which (A) a stay of enforcement thereof is not in effect
or (B) the same is not vacated, discharged, stayed or bonded pending appeal;


 


(xiv)         [reserved];


 


(xv)          [reserved];


 


(xvi)         any
Security Document shall for any reason fail or cease to create a separate valid and perfected and, except to the extent permitted
by the terms hereof or thereof, first priority Lien on the Collateral in favor of the Collateral Agent subject only to Permitted
Liens or any material provision of any Security Document shall at any time for any reason cease to be valid and binding on or
enforceable against the Company or the validity or enforceability thereof shall be contested by any party thereto, or a proceeding
shall be commenced by the Company or any governmental authority having jurisdiction over the Company, seeking to establish the
invalidity or unenforceability thereof;


 


(xvii)        any
material damage to, or loss, theft or destruction of, any Collateral, whether or not insured, or any strike, lockout, labor dispute,
embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than fifteen (15) consecutive days,
the cessation or substantial curtailment of revenue producing activities at any facility of the Company or any Subsidiary, if
any such event or circumstance could have a Material Adverse Effect (as defined in the Securities Purchase Agreement);


 


(xviii)       the
Company fails to cause the transfer to a transferee without restriction, unless otherwise then prohibited by applicable federal
securities laws, of any certificate or any shares of Common Stock issued to the Holder upon conversion or exercise (as the case
may be) of any Securities (as defined in the Securities Purchase Agreement) acquired by the Holder under the Securities Purchase
Agreement (including this Note) as and when required by such Securities or the Securities Purchase Agreement under circumstances
where such transferee is entitled to receive such shares without restriction, and any such failure remains uncured for at least
five (5) Trading Days;


 






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(xix)          [reserved];


 


(xx)          the
Company or any of its Significant Subsidiaries (other than, for the avoidance of doubt, iPass India Private Limited, pursuant
to or within the meaning of any Bankruptcy Law, either:


 


(1)           commences
a voluntary case or proceeding;


 


(2)           consents
to the entry of an order for relief against it in an involuntary case or proceeding;


 


(3)           consents
to the appointment of a custodian of it or for any substantial part of its property;


 


(4)           makes
a general assignment for the benefit of its creditors;


 


(5)           takes
any comparable action under any foreign Bankruptcy Law; or


 


(6)           generally
is not paying its debts as they become due; or


 


(xxi)         a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that either:


 


(1)           is
for relief against Company or any of its Significant Subsidiaries in an involuntary case or proceeding;


 


(2)           appoints
a custodian of the Company or any of its Significant Subsidiaries, or for any substantial part of the property of the Company
or any of its Significant Subsidiaries;


 


(3)           orders
the winding up or liquidation of the Company or any of its Significant Subsidiaries; or


 


(4)           grants
any similar relief under any foreign Bankruptcy Law,


 


(in each
case, other than with respect to iPass India Private Limited)


 


and, in each case under this Section 11(A)(xxi),
such order or decree remains unstayed and in effect for at least thirty (30) days.


 


(B)           Acceleration.


 


(i)            Automatic
Acceleration in Certain Circumstances. If an Event of Default set forth in Section 11(A)(xx) or (xxi) occurs
with respect to the Company (and not solely with respect to a Significant Subsidiary of the Company), then the then-outstanding
portion of the Principal Amount of, and all accrued and unpaid interest on, this Note will immediately become due and payable
without any further action or notice by any Person.


 






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(ii)           Optional
Acceleration. If an Event of Default (other than an Event of Default set forth in Section 11(A)(xx) or (xxi) with
respect to the Company and not solely with respect to a Subsidiary of the Company) occurs and is continuing, then the Holder,
by notice to the Company, may declare this Note to become due and payable immediately for cash in an amount equal to the Event
of Default Acceleration Amount.


 


(C)           Notice
of Events of Default. Promptly, but in no event later than two (2) Business Days after an Event of Default, the Company
will provide written notice of such Event of Default (an “Event of Default Notice”) to the Holder, which Event
of Default Notice shall include (i) a reasonable description of the applicable Event of Default, (ii) a certification
as to whether, in the opinion of the Company, such Event of Default is capable of being cured and, if applicable, a reasonable
description of any existing plans of the Company to cure such Event of Default and (iii) a certification as to the date the
Event of Default occurred and, if cured on or prior to the date of such Event of Default Notice, the date of such cure.


 


Section 12.      Ranking.


 


All payments due under
this Note shall rank (i) pari passu with all Other Notes, (ii) effectively senior to all unsecured indebtedness of the
Company to the extent of the value of the Collateral securing the Notes for so long as the Collateral so secures the Notes in
accordance with the terms hereof, (iii) senior to any Subordinated Indebtedness, and (iv) in respect of the First Lien
Obligations, as provided in the First Lien Intercreditor Agreement.


 


Section 13.      Replacement
Notes.


 


If the Holder of this
Note claims that this Note has been mutilated, lost, destroyed or wrongfully taken, then the Company will issue, execute and deliver
a replacement Note upon surrender to the Company of such mutilated Note, or upon delivery to the Company of evidence of such loss,
destruction or wrongful taking reasonably satisfactory to the Company. In the case of a lost, destroyed or wrongfully taken Note,
the Company may require the Holder to provide such security or an indemnity that is reasonably satisfactory to the Company to
protect the Company from any loss that it may suffer if this Note is replaced.


 


Section 14.      Notices.


 


Any
notice or communication to the Company will be deemed to have been duly given if in writing and delivered in person or by first
class mail (registered or certified, return receipt requested), facsimile transmission, electronic transmission (including
e-mail) or other similar means of unsecured electronic communication or overnight air courier guaranteeing next day delivery,
or to the other’s address, which initially is as follows:


 


Pareteum Corporation


1185 Avenue of the Americas,
37th Floor


New York, NY 10036


Attention: Laura Thomas, Interim
Chief Financial Officer


Email address: laura.thomas@pareteum.com


 


The Company, by notice
to the Holder, may designate additional or different addresses for subsequent notices or communications.


 






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Any
notice or communication to the Holder will be by email to its email address, which initially are as set forth in the Securities
Purchase Agreement. The Holder, by notice to the Company, may designate additional or different addresses for subsequent notices
or communications.


 


If a notice or communication
is mailed in the manner provided above within the time prescribed, it will be deemed to have been duly given, whether or not the
addressee receives it.


 


Section 15.     Successors.


 


All agreements of
the Company in this Note will bind its successors.


 


Section 16.     Severability.


 


If any provision of
this Note is invalid, illegal or unenforceable, then the validity, legality and enforceability of the remaining provisions of
this Note will not in any way be affected or impaired thereby.


 


Section 17.     Headings,
Etc.


 


The headings of the
Sections of this Note have been inserted for convenience of reference only, are not to be considered a part of this Note and will
in no way modify or restrict any of the terms or provisions of this Note.


 


Section 18.     Amendments


 


This Note may not
be amended or modified unless in writing by the Company and the Required Holders (as defined in the Securities Purchase Agreement),
and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant
to benefit.


 


Section 19.     Governing
Law; Waiver of Jury Trial.


 


THE
INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS NOTE. THE COMPANY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS NOTE.


 


Section 20.     Submission
to Jurisdiction.


 


The Company (A) agrees
that any suit, action or proceeding against it arising out of or relating to this Note may be instituted in any U.S. federal court
with applicable subject matter jurisdiction or New York State court sitting in The City of New York; (B) waives, to the fullest
extent permitted by applicable law, (i) any objection that it may now or hereafter have to the laying of venue of any such
suit, action or proceeding; and (ii) any claim that it may now or hereafter have that any such suit, action or proceeding
in such a court has been brought in an inconvenient forum; and (C) submits to the nonexclusive jurisdiction of such courts
in any such suit, action or proceeding.


 






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Section 21.     Enforcement
Fees.


 


The prevailing party
shall have the right to collect from the other all costs and expenses incurred by such prevailing party as a result of enforcement
of this Note and the collection of any amounts owed to such prevailing party hereunder (whether in cash, Common Stock or otherwise),
including, without limitation, reasonable attorneys’ fees and expenses.


 


Section 22.      Collateral
Agent.


 


(A)           Appointment;
Authorization.  The Holder hereby irrevocably appoints, designates and authorizes the Initial Holder as collateral agent to
take such action on its behalf under the provisions of this Note and each Security Document and to exercise such powers and perform
such duties as are expressly delegated to it by the terms of each Security Document, together with such powers as are reasonably
incidental thereto. The provisions of this Section 22 are solely for the benefit of the Collateral Agent, and the
Company shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use
of the term “agent” herein or in any Security Document (or any other similar term) with reference to the Collateral
Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any
applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative
relationship between contracting parties. Notwithstanding any provision to the contrary contained elsewhere in this Note, any
Security Document or any other agreement, instrument or document related hereto or thereto, the Collateral Agent shall not have
any duty or responsibility except those expressly set forth herein, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Note, any Security Document or any other agreement, instrument or document
related hereto or thereto or otherwise exist against the Collateral Agent.


 


(E)           Delegation
of Duties. The Collateral Agent may perform any and all of its duties and exercise its rights and powers hereunder or under
any Security Document by or through any one or more sub-agents appointed by the Collateral Agent. The Collateral Agent and any
such sub-agent may perform any and all of its duties and exercise its rights and powers by or through its Affiliates, partners,
directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives, or the partners, directors,
officers, employees, agents, trustees, administrators, managers, advisors and representatives of any of its Affiliates (collectively,
the “Related Parties”). The exculpatory provisions of this Section 22 shall apply to any such sub-agent
and to the Related Parties of the Collateral Agent and any such sub-agent. The Collateral Agent shall not be responsible for the
negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and
nonappealable judgment that the Collateral Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.


 






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(F)           Exculpatory
Provisions.


 


(i)            The
Collateral Agent shall not have any duties or obligations except those expressly set forth in the Security Documents, and its
duties shall be administrative in nature. Without limiting the generality of the foregoing, the Collateral Agent: (i) shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and
is continuing; (ii) shall not have any duty to take any discretionary action or exercise any discretionary powers; and (iii) shall
not, except as expressly set forth in the Security Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Company or any of its Affiliates that is communicated to or obtained by the Collateral
Agent or any of its Affiliates in any capacity.


 


(ii)           The
Collateral Agent shall not be liable for any action taken or not taken by it in the absence of its own gross negligence or willful
misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. The Collateral Agent shall
be deemed not to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of
Default is given to the Collateral Agent in writing by the Company.


 


(iii)          The
Collateral Agent shall not be responsible for or have any duty to ascertain or inquire into (a) any statement, warranty or
representation made in or in connection with this Note, any Security Document or any other agreement, instrument or document related
hereto or thereto, (b) the contents of any certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (c) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or therein or the occurrence of any Default or Event of Default, (d) the validity, enforceability,
effectiveness or genuineness of this Note, any Security Document or any other agreement, instrument or document related hereto
or thereto, or (e) any failure of the Company or any other party to this Note, any Security Agreement or any other agreement,
instrument or document related hereto or thereto to perform its obligations hereunder or thereunder. The Collateral Agent shall
not be under any obligation to ascertain or to inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Note, any Security Document or any other agreement, instrument or document related hereto or thereto,
or to inspect the properties, books or records of the Company or any Affiliate of the Company.


 


(G)           Reliance
by Collateral Agent. The Collateral Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet
or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated
by the proper Person. The Collateral Agent also may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability for relying thereon. The Collateral Agent may consult
with legal counsel, independent accountants and other experts selected by it, and shall not be liable for any action taken or
not taken by it in accordance with the advice of any such counsel, accountants or experts.


 






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(H)          Successor
Agent. The Collateral Agent may resign as the Collateral Agent at any time upon ten (10) days’ prior notice to
the Holder and each Other Holder and the Company. If the Collateral Agent resigns under this Note, the Holder and each Other Holder
shall appoint a successor agent. If no successor agent is appointed prior to the effective date of the resignation of the Collateral
Agent, the Collateral Agent may appoint a successor Collateral Agent on behalf of the Holder and each Other Holder after consulting
with the Holder and each other Holder. Upon the acceptance of its appointment as successor agent hereunder, such successor agent
shall succeed to all the rights, powers and duties of the retiring Collateral Agent and the term “the Collateral Agent”
shall mean such successor agent, and the retiring Agent’s appointment, powers and duties as the Collateral Agent shall be
terminated. After the Collateral Agent’s resignation hereunder as the Collateral Agent, the provisions of this Section 22
shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was the Collateral Agent.
If no successor agent has accepted appointment as the Collateral Agent by the date which is thirty (30) days following a retiring
Collateral Agent’s notice of resignation, a retiring Collateral Agent’s resignation shall nevertheless thereupon become
effective and the Holder, together with each Other Holder, shall perform all of the duties of the Collateral Agent hereunder until
such time as the Holder and each Other Holder shall appoint a successor agent as provided for above.


 


(I)            Non-Reliance
on the Collateral Agent. The Holder acknowledges that it has, independently and without reliance upon the Collateral Agent
or any of its Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Note. The Holder also acknowledges that it will, independently and without reliance upon the Collateral
Agent or any of its Related Parties and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this Note, any Security Document or any
related agreement or any document furnished hereunder or thereunder.


 


(J)            Collateral
Matters. The Holder irrevocably authorizes the Collateral Agent to release any Lien granted to or held by the Collateral Agent
under any Security Document (i) when all Obligations (as defined in the Security Agreement) have been paid in full; (ii) constituting
property sold or to be sold or disposed of as part of or in connection with any sale or other disposition permitted under this
Note and each other agreement, instrument or document related hereto (it being agreed and understood that the Collateral Agent
may conclusively rely without further inquiry on a certificate of an officer of the Company as to the sale or other disposition
of property being made in compliance with this Note and each other agreement, instrument or document related hereto); or (iii) if
approved, authorized or ratified in writing by the Holder and each Other Holder. The Collateral Agent shall have the right, in
accordance with the Security Documents to sell, lease or otherwise dispose of any Collateral (as defined in the Security Agreement)
for cash, credit or any combination thereof, and the Collateral Agent may purchase any Collateral at public or, if permitted by
law, private sale and, in lieu of actual payment of the purchase price, may credit bid and setoff the amount of such price against
the Obligations.


 


(K)           Reimbursement
by Holder and Other Holders.  To the extent that the Company for any reason fails to indefeasibly pay any amount required
under  Sections 4(e) or 9(k) of the Securities Purchase Agreement to be paid by it to the Collateral Agent (or
any sub-agent thereof) or any Related Party of the Collateral Agent (or any sub-agent thereof), the Holder hereby agrees, jointly
and severally with each Other Holder, to pay to the Collateral Agent (or any such sub-agent) or such Related Party of the Collateral
Agent (or any sub-agent thereof), as the case may be, such unpaid amount.


 






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(L)            Marshaling;
Payments Set Aside. Neither the Collateral Agent nor the Holder shall be under any obligation to marshal any assets in favor
of the Company or any other Person or against or in payment of any or all of the Obligations. To the extent that the Company makes
a payment or payments to the Collateral Agent, or the Collateral Agent enforces its Liens or exercises its rights of set-off,
and such payment or payments or the proceeds of such enforcement or set-off or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Collateral
Agent in its discretion) to be repaid to a trustee, receiver or any other party in connection with any bankruptcy, insolvency
or similar proceeding, or otherwise, then (i) to the extent of such recovery, the obligation hereunder 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 set-off had not occurred and (ii) the Holder agrees to pay to the Collateral Agent upon demand its share of
the total amount so recovered from or repaid by the Collateral Agent to the extent paid to the Holder.


 


* * *


 






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CONVERSION NOTICE


 


Pareteum
Corporation


 


Senior Second Lien Secured Convertible
Note due 2025


 


Subject
to the terms of this Note, by executing and delivering this Conversion Notice, the undersigned Holder of this Note directs the
Company to convert the following Principal Amount of this Note: $                                            ,000
in accordance with the following details.


 


	 ̈	Check
                                         if the Conversion Date occurs during an Event of Default Conversion Period.



 


Shares of Common Stock to be delivered:


 


____________________________________


 


Accrued interest amount:


 


____________________________________


 


DTC Participant Number:


 


____________________________________


 


DTC Participant Name:


 


____________________________________


 


 


	Date: ________________	 
	 	(Legal Name of Holder)
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:




 






     


     


    

 


	 ̈	Check
                                         if the Conversion Rate is at a rate other than is otherwise currently applicable (counter
                                         signature by the Company is not required unless a Conversion Rate other than the currently
                                         applicable Conversion Rate is requested).



 


Requested Conversion Rate:


 


____________________________________


 


	Date: ________________	 
	 	Pareteum
Corporation
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title: