Exhibit
4.1


 


SECURED
PROMISSORY NOTE


 


	Effective
    Date: August 17, 2022 	U.S.
    $5,443,333.33 


 


FOR
VALUE RECEIVED, NATURALSHRIMP INCORPORATED, a Nevada corporation (“Borrower”), promises to pay to STREETERVILLE CAPITAL,
LLC, a Utah limited liability company, or its successors or assigns (“Lender”), $5,443,333.33 and any interest, fees,
charges, and late fees accrued hereunder on the date that is nine (9) months after the Purchase Price Date (the “Maturity Date”)
in accordance with the terms set forth herein and to pay interest on the Outstanding Balance at the rate of twelve percent (12%) per
annum from the Purchase Price Date until the same is paid in full. All interest calculations hereunder shall be computed on the basis
of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily and shall be payable in accordance with the terms
of this Note. This Secured Promissory Note (this “Note”) is issued and made effective as of the date set forth above
(the “Effective Date”). This Note is issued pursuant to that certain Securities Purchase Agreement dated August 17,
2022, as the same may be amended from time to time, by and between Borrower and Lender (the “Purchase Agreement”).


 


This
Note carries an OID of $433,333.33. In addition, Borrower agrees to pay $10,000.00 to Lender to cover Lender’s legal fees, accounting
costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this Note (the “Transaction
Expense Amount”), all of which amount is fully earned and included in the initial principal balance of this Note. The purchase
price for this Note shall be $5,000,000.00 (the “Purchase Price”), computed as follows: $5,443,333.33 original principal
balance, less the OID, less the Transaction Expense Amount. The Purchase Price shall be payable by Lender by wire transfer of immediately
available funds.


 


1.
Payment; Prepayment.


 


1.1.
Payment. All payments owing hereunder shall be in lawful money of the United States of America and delivered to Lender at the
address or bank account furnished to Borrower for that purpose. All payments shall be applied first to (a) costs of collection, if any,
then to (b) fees and charges, if any, then to (c) accrued and unpaid interest, and thereafter, to (d) principal. All payments by Borrower
hereunder (including repayment of this Note at maturity, if applicable) shall be subject to an exit fee of 15% of the portion of the
Outstanding Balance being paid (the “Exit Fee”). For purposes of clarity, Borrower shall make all payments to Lender
in an amount equal to 115% multiplied by the portion of the Outstanding Balance being paid. Notwithstanding the foregoing, in the event
that Borrower elects, in its sole discretion, not to receive the principal amount of the Purchase Price (or any portion thereof) being
held in escrow pursuant to the terms and conditions of the Escrow Agreement (as defined in the Purchase Agreement), and such amount is
returned to the Purchaser pursuant to the terms and conditions of the Escrow Agreement, no Exit Fee shall be due and owing on such amount
(or any portion thereof).


 


1.2.
Prepayment. Notwithstanding the foregoing, Borrower shall have the right to prepay all or any portion of the Outstanding Balance.
If Borrower exercises its right to prepay this Note, Borrower shall include in such payment the Exit Fee.


 


1.3.
Uplist. As soon as reasonably possible, Borrower will cause the Common Stock to be listed or quoted for trading on either of (a)
NYSE, or (b) NASDAQ (in either event, an “Uplist”). In the event Borrower has not effectuated the Uplist by November
15, 2022, then the then-current Outstanding Balance will be increased by ten percent (10%). For the avoidance of doubt, the foregoing
failure to effectuate the Uplist will not be considered a Trigger Event hereunder.


 




    	 



     


    




 


1.4.
Mandatory Prepayment. While the Note is outstanding and following an Uplist, Borrower will make a payment on this Note equal to
the greater of $3,000,000.00 and thirty-three percent (33%) of the gross proceeds Borrower receives from the sale of any of its Common
Stock or preferred stock (a “Mandatory Prepayment”), within ten (10) days of receiving such amount. For the avoidance
of doubt, any Mandatory Prepayment made pursuant to this Section 1.4 shall be subject to the Exit Fee.


 


2.
Security. This Note is secured by the Security Agreement (as defined in the Purchase Agreement), executed by Borrower in favor
of Lender encumbering the collateral set forth therein, as more specifically set forth in the Security Agreement, all the terms and conditions
of which are hereby incorporated into and made a part of this Note.


 


3.
Trigger Events, Defaults and Remedies.


 


3.1.
Trigger Events. The following are trigger events under this Note (each, a “Trigger Event”): (a) Borrower fails
to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; (b) a receiver, trustee or other similar
official shall be appointed over Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20)
days or shall not be dismissed or discharged within sixty (60) days; (c) Borrower becomes insolvent or generally fails to pay, or admits
in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; (d) Borrower makes a general
assignment for the benefit of creditors; (e) Borrower files a petition for relief under any bankruptcy, insolvency or similar law (domestic
or foreign); (f) an involuntary bankruptcy proceeding is commenced or filed against Borrower; (g) Borrower or any pledgor, trustor, or
guarantor of this Note defaults or otherwise fails to observe or perform any covenant, obligation, condition or agreement of Borrower
or such pledgor, trustor, or guarantor contained herein or in any other Transaction Document (as defined in the Purchase Agreement) in
any material respect, other than those specifically set forth in this Section 4.1 and Section 4 of the Purchase Agreement; (h) any representation,
warranty or other statement made or furnished by or on behalf of Borrower to Lender herein, in any Transaction Document, or otherwise
in connection with the issuance of this Note is false, incorrect, incomplete or misleading in any material respect when made or furnished;
(i) the occurrence of a Fundamental Transaction without Lender’s prior written consent unless this Note is paid in full in connection
with such Fundamental Transaction, in which case no consent will be required; (j) Borrower effectuates a reverse split of its Common
Stock without twenty (20) Trading Days prior written notice to Lender unless the reverse split is required to maintain compliance with
the minimum bid price requirements of the principal market; (k) any money judgment, writ or similar process is entered or filed against
Borrower or any subsidiary of Borrower or any of its property or other assets for more than $500,000.00, and shall remain unvacated,
unbonded or unstayed for a period of twenty (20) calendar days unless otherwise consented to by Lender; (l) Borrower fails to be DWAC
Eligible; (m) Borrower fails to observe or perform any covenant set forth in Section 4 of the Purchase Agreement and such failure to
observe or perform is not cured within five (5) Trading Days of the occurrence thereof; and (n) Borrower or any subsidiary of Borrower,
breaches any covenant or other term or condition contained in any Other Agreements in any material respect.


 


3.2.
Trigger Event Remedies. At any time following the occurrence of any Trigger Event, Lender may, at its option, increase the Outstanding
Balance by applying the Trigger Effect (subject to the limitation set forth below).


 


3.3.
Defaults. At any time following the occurrence of a Trigger Event, Lender may, at its option, send written notice to Borrower
demanding that Borrower cure the Trigger Event within five (5) Trading Days, which such written notice shall be in addition to the cure
periods otherwise provided herein. If Borrower fails to cure the Trigger Event within the required five (5) Trading Day cure period,
the Trigger Event will automatically become an event of default hereunder (each, an “Event of Default”).


 




    	 



     


    

 





3.4.
Default Remedies. At any time and from time to time following the occurrence of any Event of Default, Lender may accelerate this
Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and payable in cash at the Mandatory Default
Amount. Notwithstanding the foregoing, upon the occurrence of any Trigger Event described in clauses (c), (d), (e), (f) or (g) of Section
4.1, an Event of Default will be deemed to have occurred and the Outstanding Balance as of the date of the occurrence of such Trigger
Event shall become immediately and automatically due and payable in cash at the Mandatory Default Amount, without any written notice
required by Lender for the Trigger Event to become an Event of Default. At any time following the occurrence of any Event of Default,
upon written notice given by Lender to Borrower, interest shall accrue on the Outstanding Balance beginning on the date the applicable
Event of Default occurred at an interest rate equal to the lesser of eighteen percent (18%) per annum or the maximum rate permitted under
applicable law (“Default Interest”). In connection with acceleration described herein, Lender need not provide, and
Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and Lender may immediately and without expiration
of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable
law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and Lender shall have all rights
as a holder of the Note until such time, if any, as Lender receives full payment pursuant to this Section 3.4. No such rescission or
annulment shall affect any subsequent Trigger Event or Event of Default or impair any right consequent thereon. Nothing herein shall
limit Lender’s right to pursue any other remedies available to it at law or in equity.


 


4.
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable
obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset it now
has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments called for herein in accordance
with the terms of this Note. Notwithstanding the foregoing, Borrower and Lender agree that in the event the $3,900,000.00 portion of
the Purchase Price held in escrow (the “Escrow Amount”) pursuant to the Escrow Agreement (as defined in the Purchase Agreement)
is released to Lender (or any portion thereof), the Escrow Amount (or portion thereof), along with the pro rata portion of the OID attributable
to the Escrow Amount (or portion thereof), shall automatically be offset against the Outstanding Balance.


 


5.
Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by the party granting
the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or consent
to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent or commit
a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.


 


6.
Restriction on Equity Sales. If at any time after the date that is six (6) months from the Purchase Price Date, Borrower is unable
to issue Common Stock to Lender as result of any lock-up or other agreement or restriction prohibiting the issuance of Common Stock for
a certain period of time, then the Outstanding Balance will automatically be increased by one and a half percent (1.5%) (the “Lockup
Fee”) for each thirty (30) day period that Borrower is prohibited from issuing Common Stock (which increase shall be pro-rated
for any partial period). For the avoidance of doubt, such increase to the Outstanding Balance shall be in addition to all other rights
and remedies available to Lender under this Note and the other Transaction Documents and shall not be in lieu of, nor deemed to be a
waiver of any other rights or remedies available to Lender under this Note or any of the other Transaction Documents. Lender agrees to
sign one lockup agreement for the issuance of Common Stock to Lender under this Note entered into in connection with a public offering
not to exceed ninety (90) days in a customary form upon request of Borrower. For the avoidance of doubt, either Lender or Borrower entering
into a lockup agreement shall not affect Lender’s ability to charge the Lockup Fee pursuant to this Section 6.


 


7.
Payment of Collection Costs. If this Note is placed in the hands of an attorney for collection or enforcement prior to commencing
arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender otherwise takes
action to collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay the reasonable costs
incurred by Lender for such collection, enforcement or action including, without limitation, attorneys’ fees and disbursements.


 




    	 



     


    

 





8.
Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase Agreement to determine
the proper venue for any disputes are incorporated herein by this reference.


 


9.
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given
in accordance with the subsection of the Purchase Agreement titled “Notices.”


 


10.
Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions of
this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’
inability to predict future interest rates, future share prices, future trading volumes and other relevant factors. Accordingly, Lender
and Borrower agree that any fees, balance adjustments, Default Interest or other charges assessed under this Note are not penalties but
instead are intended by the parties to be, and shall be deemed, liquidated damages (under Lender’s and Borrower’s expectations
that any such liquidated damages will tack back to the Purchase Price Date for purposes of determining the holding period under Rule
144).


 


11.
Waiver of Jury Trial. EACH OF LENDER AND BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED
BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW,
RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT
TO DEMAND TRIAL BY JURY.


 


12.
Voluntary Agreement. Borrower has carefully read this Note and has asked any questions needed for Borrower to understand the terms,
consequences and binding effect of this Note and fully understand them. Borrower has had the opportunity to seek the advice of an attorney
of Borrower’s choosing, or has waived the right to do so, and is executing this Note voluntarily and without any duress or undue
influence by Lender or anyone else.


 


13.
Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the
objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect.


 


14.
Definitions. For purposes of this Note, the following terms shall have the following meanings:


 




    	 



     


    




 


“Closing
Bid Price” and “Closing Trade Price” means the last closing bid price and last closing trade price, respectively,
for the Common Stock on its principal market, as reported by Bloomberg, or, if its principal market begins to operate on an extended
hours basis and does not designate the closing bid price or the closing trade price (as the case may be) then the last bid price or last
trade price, respectively, of the Common Stock prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if its principal market
is not the principal securities exchange or trading market for the Common Stock, the last closing bid price or last trade price, respectively,
of the Common Stock on the principal securities exchange or trading market where the Common Stock is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of the Common Stock in the
over-the-counter market on the electronic bulletin board for the Common Stock as reported by Bloomberg, or, if no closing bid price or
last trade price, respectively, is reported for the Common Stock by Bloomberg, the average of the bid prices, or the ask prices, respectively,
of any market makers for the Common Stock as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Bid Price
or the Closing Trade Price cannot be calculated for the Common Stock on a particular date on any of the foregoing bases, the Closing
Bid Price or the Closing Trade Price (as the case may be) of the Common Stock on such date shall be the fair market value as mutually
determined by Lender and Borrower. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock
combination or other similar transaction during such period.


 


“DTC”
means the Depository Trust Company or any successor thereto.


 


“DTC/FAST
Program” means the DTC’s Fast Automated Securities Transfer program.


 


“DWAC”
means the DTC’s Deposit/Withdrawal at Custodian system.


 


“DWAC
Eligible” means that (a) Borrower’s Common Stock is eligible at DTC for full services pursuant to DTC’s operational
arrangements, including without limitation transfer through DTC’s DWAC system; (b) Borrower has been approved (without revocation)
by DTC’s underwriting department; and (c) Borrower’s transfer agent is approved as an agent in the DTC/FAST Program.


 


“Fundamental
Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions,
consolidate or merge with or into (whether or not Borrower or any of its subsidiaries is the surviving corporation) any other person
or entity, or (ii) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, sell, lease,
license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other
person or entity, or (iii) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, allow
any other person or entity to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding
shares of voting stock of Borrower (not including any shares of voting stock of Borrower held by the person or persons making or party
to, or associated or affiliated with the persons or entities making or party to, such purchase, tender or exchange offer), or (iv) Borrower
or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with any other person or entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock
of Borrower (not including any shares of voting stock of Borrower held by the other persons or entities making or party to, or associated
or affiliated with the other persons or entities making or party to, such stock or share purchase agreement or other business combination),
or (v) Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize
or reclassify the Common Stock, other than an increase in the number of authorized shares of Borrower’s Common Stock, or (b) any
“person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the
rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the
1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of
Borrower.


 


“Major
Trigger Event” means any Trigger Event occurring under Sections 3.1(a) – (f), (i) and (m).


 


“Mandatory
Default Amount” means the Outstanding Balance following the application of the Trigger Effect.




    	 



     


    




 


“Market
Capitalization” means a number equal to (a) the average VWAP of the Common Stock for the immediately preceding fifteen (15)
Trading Days, multiplied by (b) the aggregate number of outstanding Common Stock as reported on Borrower’s most recently filed
Form 10-Q or Form 10-K.


 


“Minor
Trigger Event” means any Trigger Event that is not a Major Trigger Event.


 


“OID”
means an original issue discount.


 


“Other
Agreements” means, collectively, all existing and future agreements and instruments between, among or by Borrower (or it subsidiary),
on the one hand, and Lender (or an affiliate), on the other hand.


 


“Outstanding
Balance” means as of any date of determination, the Purchase Price, as reduced or increased, as the case may be, pursuant to
the terms hereof for payment, offset, or otherwise, plus the OID, the Transaction Expense Amount, accrued but unpaid interest, collection
and enforcements costs (including attorneys’ fees) incurred by Lender, transfer, stamp, issuance and similar taxes, and any other
fees or charges incurred under this Note.


 


“Purchase
Price Date” means the date the Purchase Price is delivered by Lender to Borrower.


 


“Trading
Day” means any day on which Borrower’s principal market is open for trading.


 


“Trigger
Effect” means multiplying the Outstanding Balance as of the date the applicable Trigger Event occurred by (a) fifteen percent
(15%) for each occurrence of any Major Trigger Event, or (b) five percent (5%) for each occurrence of any Minor Trigger Event, and then
adding the resulting product to the Outstanding Balance as of the date the applicable Trigger Event occurred, with the sum of the foregoing
then becoming the Outstanding Balance under this Note as of the date the applicable Trigger Event occurred; provided that the Trigger
Effect may only be applied two (2) times hereunder with respect to Major Trigger Events and two (2) times hereunder with respect to Minor
Trigger Events.


 


“VWAP”
means the volume weighted average price of the Common Stock on the principal market for a particular Trading Day or set of Trading Days,
as the case may be, as reported by Bloomberg.


 


15.
Resolution of Disputes. By its issuance or acceptance of this Note, each party agrees to be bound by the Arbitration Provisions
(as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement. Notwithstanding the Arbitration Provisions,
in the case of a dispute as to any Calculation (as defined in the Purchase Agreement), such dispute will be resolved in the manner set
forth in the Purchase Agreement.


 


16.
Cancellation. After repayment or conversion of the entire Outstanding Balance, this Note shall be deemed paid in full, shall automatically
be deemed canceled, and shall not be reissued.


 


17.
Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this Note.


 


18.
Assignments. Borrower may not assign this Note without the prior written consent of Lender. This Note and any Common Stock issued
upon conversion of this Note may be offered, sold, assigned or transferred by Lender without the consent of Borrower.


 


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IN
WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the Effective Date.


 


	 	BORROWER:
	 	 	 
	 	NaturalShrimp
    Incorporated
	 	 	 
	 	By:
    	 
	 	 	Gerald
    Easterling, Chief Executive Officer








 


	ACKNOWLEDGED,
    ACCEPTED AND AGREED:	 
	 	 	 
	LENDER:	 
	 	 	 
	Streeterville
    Capital, LLC	 
	 	 	 
	By:	 	 
	 	John
    M. Fife, President	 


 


[Signature
Page to Promissory Note]