Document:

Exhibit 10.12

    

    
      

      

      Atlantic Street Acquisition Corp

      2200 Atlantic Avenue

      Stamford, CT 06902

       

      [●], 2020

      MC Credit Partners LP

      2200 Atlantic Avenue

      Stamford, CT 06902

       

      
        	
                Re:

              	
                Administrative Services Agreement

              

      

       

      Ladies and Gentlemen:

       

      This letter agreement by and between Atlantic Street Acquisition Corp  (the “Company”) and MC Credit Partners LP (“MC Credit Partners”), an affiliate
        of our sponsor, Atlantic Street Partners LLC, dated as of the date hereof, will confirm our agreement that, commencing on the date the securities of the Company are first listed on the New York Stock Exchange (the “Listing Date”), pursuant to a
        Registration Statement on Form S-1 and prospectus filed with the Securities and Exchange Commission (the “Registration Statement”) and continuing until the earlier of the consummation by the Company of an initial business combination or the
        Company’s liquidation (in each case as described in the Registration Statement) (such earlier date hereinafter referred to as the “Termination Date”):

       

      (i) MC Credit Partners shall make available to the Company, at 2200 Atlantic Avenue, Stamford, CT 06902 (or any successor location), certain office
        space, utilities and secretarial and administrative support as may be reasonably required by the Company. In exchange therefor, the Company shall pay MC Credit Partners the sum of $10,000 per month on the Listing Date and continuing monthly
        thereafter until the Termination Date; and

       

      (ii) MC Credit Partners hereby irrevocably waives any and all right, title, interest, causes of action and claims of any kind as a result of, or
        arising out of, this letter agreement (each, a “Claim”) in or to, and any and all right to seek payment of any amounts due to it out of, the trust account established for the benefit of the public stockholders of the Company and into which
        substantially all of the proceeds of the Company’s initial public offering will be deposited (the “Trust Account”), and hereby irrevocably waives any Claim it may have in the future, which Claim would reduce, encumber or otherwise adversely affect
        the Trust Account or any monies or other assets in the Trust Account, and further agrees not to seek recourse, reimbursement, payment or satisfaction of any Claim against the Trust Account or any monies or other assets in the Trust Account for any
        reason whatsoever.

       

      This letter agreement constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes all
        prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby.

       

      This letter agreement may not be amended, modified or waived as to any particular provision, except by a written instrument executed by the parties
        hereto.

       

      No party hereto may assign either this letter agreement or any of its rights, interests, or obligations hereunder without the prior written approval of
        the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee.

       

      

      
        
          

      

      This letter agreement constitutes the entire relationship of the parties hereto, and any litigation between the parties (whether grounded in contract,
        tort, statute, law or equity) shall be governed by, construed in accordance with, and interpreted pursuant to the laws of the State of New York, without giving effect to its choice of laws principles.

       

      [Signature Page Follows]

      

      

      
        
          

      

      	 	
              Very truly yours,

            
	 	 
	 	
              ATLANTIC STREET ACQUISITION CORP

            
	 	 

      	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

      

      

      	
              AGREED TO AND ACCEPTED BY:

            	 
	 	 
	
              MC CREDIT PARTNERS LP

            	 
	 	 

      	
              By:

            	 	 
	
              Name:

            	 	 
	
              Title:

            	 	 

       

      [Signature Page to Admin. Services Agreement]Exhibit 4.1

 

NEITHER THIS SECURITY OR THE SECURITIES
INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, NONE OF THEM MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES
ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY
SUCH SECURITIES.

 

10%
SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

DUE
APRIL 7, 2021

	
         

        Original Issue Date: September 8, 2020
	
         

        Principal Amount: $1,111,111.11

	 	 

Purchase Price: $1,000,000.00

 

This Senior Secured
Convertible Promissory Note is a duly authorized and validly issued 10% Senior Secured Convertible Note of KBL Merger Corp.
IV, a Delaware corporation (the “Company”), designated as its 10% Senior Secured Convertible Promissory Note
due April 7, 2021 (this “Note”), issued and sold by the Company pursuant to the Securities Purchase Agreement,
dated as of September 8, 2020, between the Company and, among others, Alpha Capital Anstalt (together with its successors and registered
assigns, the “Holder”), a company organized and existing under the laws of the State of Connecticut (the “Purchase
Agreement”).

 

FOR VALUE RECEIVED,
the Company promises to pay to the order of the Holder the principal amount of $1,111,111.11 on April 7, 2021 (the “Maturity
Date”) in full in cash or on such earlier date as this Note is required or permitted to be repaid as provided hereunder,
in each case together with all accrued but unpaid interest thereon (including any Minimum Interest Amount remaining on such principal
amount as of such date), and otherwise to pay interest to the Holder on the aggregate unconverted and then outstanding principal
amount of this Note and other amounts owing under any Transaction Document in accordance with the provisions hereof. Amounts repaid
may not be reborrowed. The Holder may set off and deduct pursuant to and in accordance with the Transaction Documents amounts due
to the Holder or the Purchaser Parties.

 

This Note is subject
to the following additional provisions:

 

Section
1. Definitions

 

For the purposes hereof, in addition to
the terms defined elsewhere in this Note or the Purchase Agreement, the following terms shall have the following meanings:

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(e).

 

“Base
Share Price” shall have the meaning set forth in Section 5(c).

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

“Buy-In”
shall have the meaning set forth in Section 4(c)(v).

 

“Capital
Lease” means, as applied to any Person, any lease of, or other arrangement conveying the right to use, any property (whether
real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease
on the balance sheet of that Person.

 

     

     

    

 

“Capital
Stock” means any share, participation or other equivalent (however designated) of the capital stock of a corporation,
any equivalent ownership interest in any other Person, including partnership interests and membership interests, and any warrant,
right or option to purchase or other arrangement (including through a conversion or exchange of any other property) to acquire
or subscribe for any item otherwise satisfying the definition of “Capital Stock,” whether or not presently convertible,
exchangeable or exercisable.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an Person or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty
percent (50%) of the voting Capital Stock (or Stock Equivalents) of the Company (other than by means of conversion of the Notes
and the Conversion Shares issued together with the Notes); (b) the Company merges into or consolidates with any other Person, or
any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company
immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power of the Company or the successor
entity of such transaction; (c) the Company sells or transfers all or substantially all of its assets to another Person and the
stockholders of the Company immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power
of the acquiring entity immediately after the transaction; (d) during any period of twelve consecutive calendar months, individuals
who at the beginning of such period constituted the board of directors of the Company (together with any new directors whose election
by the board of directors of the Company or whose nomination for election by the stockholders of the Company was approved by a
vote of a majority of the directors then still in office who either were directors at the beginning of such period or whose elections
or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority
of the directors then in office; or (e) the execution by the Company of an agreement to which the Company is a party or by which
it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

“Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the 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 such security prior to 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security 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 such security in the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by
the Company and the Holder. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock
combinations, recapitalizations or other similar transactions during such period.

 

“Common
Stock” means the Common Stock of the Company, par value $0.0001 per share, and any Capital Stock into which such shares
of Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Schedule” means the Conversion Schedule in the form of Schedule 1.

 

    	 	2	 

     

    

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the
terms hereof, including shares of Common Stock issued upon conversion, redemption or amortization of this Note, and shares of Common
Stock issued and issuable in lieu of the cash payment of interest on this Note in accordance with the terms of this Note.

 

“Customary
Permitted Liens” means all of the following:

 

(i) Liens
securing the payment of taxes, assessments or other charges or levies imposed by any Governmental Authority which are either not
yet overdue or the validity of which are being contested in good faith by appropriate proceedings diligently pursued and with respect
to which adequate reserves have been set aside on its books;

 

(ii) non-consensual
statutory Liens (other than Liens securing the payment of taxes) arising in the ordinary course of business to the extent (A) such
Liens secure Indebtedness that is not overdue for a period of more than 30 days or (B) such Liens secure Indebtedness relating
to claims or liabilities that are fully insured and being defended at the sole cost and expense and at the sole risk of the insurer
or being contested in good faith by appropriate proceedings diligently pursued, in each case prior to the commencement of foreclosure
or other similar proceedings and with respect to which adequate reserves have been set aside on its books;

 

(iii) zoning,
building and land use restrictions, easements, servitudes, encumbrances, licenses, covenants and other restrictions affecting the
use of real property or minor defects or irregularities in title thereto that do not interfere in any material respect with the
use of such real property or the ordinary conduct of the business of the Company and its Subsidiaries as presently conducted thereon
or materially impair the value of the real property that may be subject thereto;

 

(iv) pledges
and deposits of cash in the ordinary course of business in connection with workers’ compensation, unemployment insurance
and other types of social security benefits consistent with current practices as in effect on the date hereof;

 

(v) undetermined
or inchoate Liens and charges arising or potentially arising under statutory provisions which have not at the time been filed or
registered in accordance with applicable Law or of which written notice has not been duly given in accordance with applicable Regulation
or which although filed or registered, relate to obligations not due or delinquent, including without limitation statutory Liens
incurred, or pledges or deposits made, under worker’s compensation, employment insurance and other social security legislation;

 

(vi) Liens
or deposits to secure the performance of bids, tenders, expropriation proceedings, trade contracts, leases, statutory obligations,
surety and performance bonds and other obligations of a like nature (other than for borrowed money), and deposits to secure equipment
contracts, in each case incurred in the ordinary course of business;

 

(vii) appeal
bonds;

 

(viii) landlord
Liens for rent not yet due and payable;

 

(ix) Liens
arising from operating leases and the precautionary UCC financing statement filings in respect thereof;

 

(x) judgments
and other similar Liens arising in connection with court proceedings that do not constitute an Event of Default; provided,
that, (A) such Liens are being contested in good faith and by appropriate proceedings diligently pursued, (B) adequate reserves
or other appropriate provision, if any, as are required by GAAP have been made therefor and (C) a stay of enforcement of any such
Liens is in effect; and

 

    	 	3	 

     

    

 

(xiii) customary
rights of set-off or combination of accounts in favour of a financial institution with respect to deposits maintained by it. “Derivative”
means (a) any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedging
agreement or other similar agreement or arrangement, (b) any foreign exchange contract, currency swap agreement, futures contract,
option contract, synthetic cap or other similar agreement or arrangement, (d) any futures or forward contract, spot transaction,
commodity swap, purchase or option agreement, other commodity price hedging arrangement, cap, floor or collar transaction, any
credit default or total return swap, and (e) any other derivative instrument, any other similar speculative transaction and any
other similar agreement or arrangement designed to alter the risks of any Person arising from fluctuations in any underlying variable,
including interest rates, currency values, insurance, catastrophic losses, climatic or geological conditions or the price or value
of any other derivative instrument. For the purposes of this definition, “derivative instrument” means “any derivative
instrument” as defined in Statement of Financial Accounting Standards No. 133 (Accounting for Derivative Instruments and
Hedging Activities) of the United States Financial Accounting Standards Board, and any defined with a term similar effect in any
successor statement or any supplement to, or replacement of, any such statement.

 

“Dilutive
Issuance” shall have the meaning set forth in Section 5(c).

 

“Dilutive
Issuance Notice” shall have the meaning set forth in Section 5(c).

 

“DTC”
means the Depository Trust Company.

 

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

 

“DWAC
Eligible” means that (a) the Common Stock is eligible at DTC for full services pursuant to DTC’s Operational Arrangements,
including transfer through DTC’s DWAC system, (b) the Company has been approved (without revocation) by the DTC’s underwriting
department, (c) the Transfer Agent is approved as an agent in the DTC/FAST Program, (d) the Conversion Shares are otherwise eligible
for delivery via DWAC, and (e) the Transfer Agent does not have a policy prohibiting or limiting delivery of the Conversion Shares
via DWAC.

 

“Equity
Conditions” means, during the period in question, (a) no Event of Default shall have occurred, (b) the Company has timely
filed (or obtained extensions in respect thereof and filed within the applicable grace period) all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act and the Company has met the current public information requirements
of Rule 144(c) under the Securities Act as of the end of the period in question, (c) the average daily dollar volume of the Common
Stock for the previous fifteen (15) trading days must be greater than $25,000, (d) the Company shares of common stock must be DWAC
Eligible and not subject to a “DTC chill,” (e) on any date that the Company desires to make a payment of interest and/or
principal in shares of Common Stock instead of cash, the Common Stock has closed at or above $0.005 per share on the Trading Market
with respect to the Trading Day immediately prior to any date on which interest or principal is to be paid, and (f) this Note and/or
the Conversion Shares are registered under the Securities Act or the Conversion Shares may be resold freely under the Securities
Act or an exemption thereto.

 

“Equity
Line of Credit” shall have the meaning set forth in Section 5(h).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exchange
Cap” shall have the meaning set forth in Section 4(d).

 

“Exchange
Cap Allocation” shall have the meaning set forth in Section 4(d).

 

“Exchange
Cap Shares” shall have the meaning set forth in Section 4(d).

 

    	 	4	 

     

    

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors, advisors or
independent contractors of the Company; provided, that such issuance is approved by a majority of the board of directors
of the Company; and provided, further that such issuance shall not exceed in the aggregate 15% of the outstanding
shares of Common Stock without the prior approval of the Purchaser, (b) shares of Common Stock, warrants or options to advisors
or independent contractors of the Company for compensatory purposes, (c) Securities issued upon the exercise or exchange of or
conversion of any Notes issued pursuant to the Purchase Agreement and/or other securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date hereof; provided, that such Securities have not been amended
since the date hereof to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities, (d) securities issuable pursuant to any contractual anti-dilution obligations of the Company in effect
as of the date hereof; provided, that such obligations have not been materially amended since the date of hereof, and (e)
securities issued pursuant to acquisitions or any other strategic transactions, including, without limitation, the Business Combination,
approved by a majority of the disinterested members of the Board of Directors provided, that any such issuance shall not
include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose
primary business is investing in securities.

 

“Event
of Default” shall have the meaning set forth in Section 6(a).

 

“Fixed
Conversion Price” shall have the meaning set forth in Section 4(b).

 

“Fundamental
Transaction” means that (i) the Company, directly or indirectly, in one or more related transactions effects any merger
or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or more than 10% of its assets in one or a series of related
transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other
Securities, cash or property and has been accepted by the holders of fifty percent (50%) or more of the outstanding Common Stock,
(iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other Securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions consummates
a stock or share purchase agreement or other business combination (including a reorganization, recapitalization, spin-off or scheme
of arrangement) with another Person whereby such other Person acquires more than fifty percent (50%) of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination).

 

“Late
Fees” shall have the meaning set forth in Section 2(e).

 

“Make
Whole Amount” means each of the Mandatory Default Amount, the Mandatory Prepayment Amount and the Minimum Interest Amount.

 

“Mandatory
Default Amount” means, at any time, the sum of (a) one hundred thirty percent (130%) of the sum of the outstanding principal
amount of this Note at such time and all accrued interest hereon unpaid at such time (including any Minimum Interest Amount remaining
outstanding on such principal amount as of such time) and (b) all other amounts, costs, fees (including Late Fees), expenses, indemnification
and liquidated and other damages and other amounts due to the Holder or any other Purchaser Party in respect of this Note or any
other Transaction Document.

 

“Mandatory
Prepayment Amount” means, at any time with respect to any principal amount, the sum of (a) such outstanding principal
amount at such time and all accrued interest hereon unpaid at such time, including any Minimum Interest Amount remaining outstanding
with respect to such principal amount as of such time, and (b) all other amounts, costs, fees (including Late Fees), expenses,
indemnification and liquidated and other damages and other amounts due to the Holder or any other Purchaser Party in respect of
this Note or any other Transaction Document.

 

    	 	5	 

     

    

 

“Minimum
Interest Amount” or “Make Whole Amount” means, on any date and with respect to any principal amount
owing under this Note, the difference between (a) 10% of such principal amount, representing a full year of interest payments hereunder
and (b) any payment of interest made prior to such date with respect to such principal amount. To be free from doubt, the Minimum
Interest Amount is only applicable for the initial 12 month period from the Issue Date.

 

“Note
Register” shall have the meaning set forth in Section 2(f).

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a).

 

“Obligations”
means all amounts, indebtedness, obligations, liabilities, covenants and duties of every type and description owing by any Company
Party from time to time to the Holder or its Purchaser Parties under this Note or any other Transaction Document, whether direct
or indirect, joint or several, absolute or contingent, due or to become due, liquidated or unliquidated, secured or unsecured,
now existing or hereafter arising and however acquired (regardless of whether acquired by assignment), whether or not evidenced
by any note or other instrument or for the payment of money, including, without duplication, (i) the principal amount of the Note
owing by the Company or any other Company Party, (ii) all other amounts, fees (including all Late Fees), interest (including any
increase upon an Event of Default), liquidated damages, commissions, charges, costs, expenses, attorneys’ fees and disbursements,
indemnities (including Losses and other amounts for which any Company Party is required to indemnify the Holder or any of its Purchaser
Parties under the Purchase Agreement), reimbursement of amounts paid and other sums chargeable to any Company Party under any Transaction
Document or otherwise arising under any Transaction Document and (iii) all interest on any item otherwise qualifying as “Obligation”
hereunder, whether or not accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization
or similar proceeding, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding.

 

“Original
Issue Date” means the date of the first issuance of this Note, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Permitted
Debt” means all of the following: (i) Indebtedness owing to any Secured Party under any Transaction Document; (ii) unsecured
intercompany Indebtedness between the Company and its Subsidiaries in the ordinary course of business; (iii) unsecured Indebtedness
of the Company or any of its Subsidiaries to trade creditors (including overdue amounts on invoices) incurred on customary terms
in the ordinary course of business; (v) existing Indebtedness existing on the Closing Date and disclosed on the Disclosure Schedule
(provided, that no such Indebtedness may be re-borrowed if repaid or otherwise modified or increased, no additional Lien
may be granted on such Indebtedness, no document with respect to such Indebtedness may be modified without the consent of the Holder,
all Indebtedness to Kingsbrook shall be covered by and subject to the Collateral Agency Agreement and all Indebtedness to holders
of secured debt that purport to be party to a Subordination and Intercreditor Agreement shall be covered by such Subordination
and Intercreditor Agreement); (vi) Indebtedness of the Company or any Subsidiary under Capital Leases for equipment or Indebtedness
of the Company or any Subsidiary secured by a Purchase Money Lien, which Indebtedness shall not at any time exceed $50,000 in the
aggregate for the Company and its Subsidiaries; (vii) Indebtedness of the Company or any of its Subsidiaries under leases for facilities
that are treated as Capital Leases under GAAP; and (ix) any other Indebtedness incurred with the prior written consent of the Holder.

 

“Permitted
Liens” means (i) the security interests of the Secured Parties as provided for in any Transaction Document; (ii) Customary
Permitted Liens; (iii) Purchase Money Liens granted to or held by Purchase Money Lien lenders in connection with the purchase,
leasing or acquisition of capital equipment in the ordinary course of business and without resulting in a contravention of any
applicable provisions of this Agreement; (iv) Liens on assets of the Company and its Subsidiaries existing on the Closing Date
and disclosed in the Disclosure Certificate, provided, that such Liens shall secure only those obligations that they secure
on the Closing Date and extension, renewals and replacements thereof permitted hereunder; (v) Liens on assets of the Target and
its Subsidiaries by Kingsbrook existing on Closing Date and disclosed in the Disclosure Certificate, provided, that such
Liens shall secure only those obligations that they secure on the Closing Date; are subject to the terms of the Collateral Agency
Agreement (as such term is defined in the Purchase Agreement) and extension, renewals and replacements thereof permitted under
the Collateral Agency Agreement; and (vi) any other Lien granted with the prior written consent of the Holder.

 

    	 	6	 

     

    

 

“Principal
Market” means the NASDAQ Capital Market.

 

“Purchase
Money Lien” means any Lien securing Indebtedness (i) upon or in any equipment acquired or held by the Company or any
of its Subsidiaries to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing
the acquisition or lease of such equipment or (ii) existing on such equipment at the time of its acquisition, in each case provided,
that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment.

 

“Required
Minimum Reserve” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially
issuable in the future pursuant to this Note, including any Conversion Shares issuable upon conversion in full of this Note, ignoring
any conversion limits set forth therein, which shall initially be: ________ shares (subject to proportionate adjustment for any
reverse stock split or similar reclassification of the Common Stock).

 

“Required
Reserve” shall have the meaning set forth in Section 4(c)(vi).

 

“Securities”
means any Capital Stock, voting trust certificates, certificates of interest or participation in any profit sharing Contractual
Obligation or arrangement, loans, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible,
subordinated or otherwise, any other item commonly known as “security,” any other item treated as “security”
under the Securities Act, the Investment Company Act of 1940, the Investment Advisers Act of 1940 or any other Regulation of the
United States, any State, province or any political subdivision of either of them and any certificate of interest, share or participation
in temporary or interim certificates for the purchase or acquisition of, or any option, warrant, right to subscribe to, purchase
or acquire, or any Derivative valued by reference to, any item otherwise qualifying as Security hereunder.

 

“Secured
Parties” means the Holder and each other Holder of the Notes, and each beneficiary of any indemnification or reimbursement
obligation by any Company Party under the Purchase Agreement.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 

“Successor
Entity” shall have the meaning set forth in Section 5(e).

 

“Variable
Priced Equity Linked Instruments” shall have the meaning set forth in Section 5(h).

 

“Variable
Rate Transaction” shall have the meaning set forth in Section 5(h).

 

“VWAP”
means, for or as of any date for any Security, the dollar volume-weighted average price for such Security on the Trading Market
(or, if the Trading Market is not the Principal Market for such Security, then on the principal securities exchange or securities
market on which such Security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00
p.m., New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing
does not apply, the dollar volume-weighted average price of such Security in the over-the-counter market on the electronic bulletin
board for such Security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such Security by Bloomberg for such hours,
the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such Security as
reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated
for such Security on such date on any of the foregoing bases, the VWAP of such Security on such date shall be the fair market value
as mutually determined by the Company and the Holder. All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, recapitalization or other similar transaction during such period.

 

    	 	7	 

     

    

 

Section
2. REPAYMENT

 

a) Amortization
of Principal. Except as expressly set forth in this Note, there is no requirement to amortize or otherwise repay the principal
amount of this Note prior to the Maturity Date.

 

b) Reserved.

 

c) Voluntary
Prepayments. So long as no Event of Default exists, at any time upon ten (10) days’ prior written notice to the Holder
(which notice shall be a Transaction Document and constitute an irrevocable agreement to pay such amount on the date set forth
on such notice) stating the proposed date and proposed principal amount of such prepayment, but subject to the Holder’s conversion
rights set forth herein, the Company may prepay any portion of the principal amount of this Note, any accrued and unpaid interest,
and any other amounts due under this Note. If the Company exercises its right to prepay any principal amount under the Note, the
Company shall pay to the Holder in cash an amount equal to the Mandatory Prepayment Amount. The Holder may continue to convert
the principal amount of the Note to be prepared after the date notice of the prepayment is given until the date it receives such
prepayment.

 

d) Interest.
The Company shall pay interest to the Holder on the aggregate then outstanding principal amount of this Note and any other Obligation
owing that does not expressly provide for any other rate of interest at the rate of ten percent (10%) per annum from the date this
Note is issued (or in the case of any other Obligation, from the date such obligation becomes due and payable) until all such principal
amounts and other Obligations are paid in full in cash, in immediately available Dollars. Provided, however, in the event
this Note is not satisfied in full on or before the Maturity Date, then the rate of interest of this Note set forth in the previous
sentence (ten percent (10%) per annum), shall for all purposes of this Note (including the calculation of the Minimum Interest
Amount) shall be retroactively reset to fifteen percent (15%) per annum from the date this Note is issued (or in the case of any
other Obligation, from the date such obligation becomes due and payable) until all such principal amounts and other Obligations
are paid in full in cash, in immediately available Dollars. All interest payments hereunder will be payable in cash, in immediately
available Dollars. Accrued and unpaid interest shall be due and payable on each Conversion Date, prepayment date, and on the Maturity
Date, or as otherwise set forth herein. All payments of interest shall reduce the Minimum Interest Amount, and any remaining Minimum
Interest Amount shall be due and payable as provided hereunder regardless of whether the Note remains outstanding for twelve months.
Upon an Event of Default, the interest rate set forth hereunder shall increase as provided in Section 6(b) of this Note.

 

e) Late
Fee. The Company shall pay a late fee (the “Late Fees”) on any amount required to be paid under any Transaction
Document and not paid when due, at a rate equal to the lesser of an additional 10% percent of such amount or the maximum rate permitted
by applicable law which shall be due and owing daily from the date such amount is due hereunder through the date of actual payment
in full of such amount in cash. These Late Fees are to cover the extra internal expenses and inconvenience involved in handling
delinquent payments and is not to be construed to cover or be applied against any indemnity or any out-of-pocket fees, costs or
expenses incurred in any action to collect any Obligation or to foreclose any Lien securing the same. This provision shall not
affect or limit the holder’s rights or remedies with respect to any Event of Default.

 

    	 	8	 

     

    

 

f) Interest
and Fee Calculations and Payment Provisions. All payments made under any Transaction Document, except as otherwise expressly
provided in such Transaction Document, shall be made in cash, in immediately available Dollars without set off or counterclaim.
Interest and fees shall be calculated on the basis of a 360-day year, consisting of twelve (12) thirty (30) calendar day periods,
for the actual number of days (including the first day but excluding the last day) occurring in the applicable period and shall
accrue daily; provided, that the Minimum Interest Amount shall be deemed to be fully earned and accrued on the Original
Issue Date, and payable as provided in this Agreement. Interest hereunder will be paid to the initial Holder or, if the Company
has received notice of any transfer thereof signed by the initial Holder or any successive Holders, to the Person in whose name
this Note is registered on the records of the Company regarding registration and transfers of this Note (the “Note Register”).
No prepayment may be made hereunder without the notice required hereunder or without payment of the Mandatory Prepayment Amount.
The Holder shall have the option to refuse or accept, in its sole discretion, any attempted prepayment made without the notice
required hereunder or any attempted prepayment that does not appear to include the full Mandatory Prepayment Amount when required.
In addition, regardless of the intended characterization of the Company of any payment, the Holder shall have the option, in its
sole discretion, to recharacterize or apply any portion of such prepayment, including recharacterizing a payment as a smaller prepayment
of principal together with payment of the remainder of the Mandatory Prepayment Amount to account for a payment of the Mandatory
Prepayment Amount. The Holder may apply any payment made under any Transaction Document to any outstanding Obligation, in its sole
discretion. The Company hereby irrevocably waives the right to direct the application of any payment in respect to any amount due
under the Transaction Documents or, after any Event of Default, any proceeds of Collateral thereunder. Whenever any payment hereunder
shall be stated to be due on a day other than a Business Day, the due date for such payment shall be extended to the next succeeding
Business Day, and such extension of time shall in such case be included in the computation of payment of interest or fees, as the
case may be. Each determination by the Holder of an amount of interest or fee due hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

Section
3. Registration of Transfers and Exchanges

 

a) Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

b) Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder and may be
transferred or exchanged only in compliance with applicable federal and state securities Regulations.

 

c) Reliance
on Note Register. The initial Holder is listed herein. Prior to due presentment for transfer to the Company of this Note, the
Company and any agent of the Company may treat the Person in whose name this Note is duly registered, upon receipt of appropriate
signed notice from the Person previously listed on the Note Register as owner hereof, on the Note Register as the owner hereof
for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither
the Company nor any such agent shall be affected by notice to the contrary.

 

Section
4. Conversion

 

a) Voluntary
Conversion. At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall be convertible,
in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the
conversion limitations set forth in Section 4(d)). The Holder shall effect conversions by delivering to the Company a Notice of
Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying
therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such date, the
“Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall
be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire
principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall
have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The
Holder and the Company shall maintain a Conversion Schedule, containing at a minimum the information shown on Schedule 1,
and showing historically, among other things, the principal amounts converted and the date of such conversions. The Company may
deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the event
of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error.

 

    	 	9	 

     

    

 

b) Conversion
Price. The conversion price in effect on any Conversion Date shall be equal to $5.28 (the “Fixed Conversion Price”).
In addition to any other adjustments described in this Section 4(b), the Fixed Conversion Price shall be subject to adjustment
as follows: after ninety (90) days following the Company’s completion of its contemplated business combination as initially
reported in the Company’s Current Report on Form 8-K filed with the Commission on July 23, 2019, the Conversion Price shall
equal the lowest VWAP of the Company’s Common Stock during the five (5) Trading Day period ending on the Trading Day immediately
prior to the Conversion Date. All such foregoing determinations will be appropriately adjusted for any stock dividend, stock split,
stock combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock during
such measuring period. The Fixed Conversion Price shall be rounded down to the nearest $0.01 and in no event lower than $2.00.
Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 6
and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including a decree of
specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce
damages pursuant to any other Section hereof or under applicable law.

 

c) Mechanics
of Conversion.

 

i. Conversion
Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion hereunder shall
be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted and any accrued
and unpaid interest, including interest, to be converted by (y) the Fixed Conversion Price.

 

ii. Delivery
of Certificate Upon Conversion. Not later than two (2) Trading Days after each Conversion Date (the “Share Delivery
Date”), the Company shall deliver, or cause to be delivered, to the Holder a certificate or certificates representing
the Conversion Shares which, on or after the date on which such Conversion Shares are eligible to be sold under Rule 144 without
the need for current public information and the Company has received an opinion of counsel to such effect, which such opinion must
be acceptable to the Holder in its sole and absolute discretion (which opinion the Company shall be responsible for obtaining at
its sole cost and expense) shall be free of restrictive legends and trading restrictions, representing the number of Conversion
Shares being acquired upon the conversion of this Note. All certificate or certificates required to be delivered by the Company
under this Section 4(c) shall be delivered electronically through the Depository Trust Company or another established clearing
corporation performing similar functions. If the Conversion Date is prior to the date on which such Conversion Shares are eligible
to be sold under Rule 144 without the need for current public information, or there is no registration statement in effect covering
the Conversion Shares, the Conversion Shares shall bear a restrictive legend in the following form, as appropriate:

 

“THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL
SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	 	10	 

     

    

 

Notwithstanding
the foregoing, commencing on such date that the Conversion Shares are eligible for sale under Rule 144 subject to current public
information requirements, the Company, upon request and at the sole cost and expense of the Company, shall obtain a legal opinion
that is acceptable to the Holder in its sole and absolute discretion, to allow for such sales under Rule 144.

 

iii. Failure
to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to
or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to
the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event
the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return
to the Company the Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice.

 

iv. Obligation
Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares upon conversion
of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the
Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of Regulations
by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the
Company to the Holder in connection with the issuance of such Conversion Shares; provided, that such delivery shall not
operate as a waiver by the Company of any such action the Company may have against the Holder. In the event the Holder of this
Note shall elect to convert any or all of the outstanding principal or interest amount hereof, the Company may not refuse conversion
based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of Regulation,
Contractual Obligation or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining
conversion of all or part of this Note shall have been sought. If the injunction is not granted, the Company shall promptly comply
with all conversion obligations herein. If the injunction is obtained, the Company must post a surety bond for the benefit of the
Holder in the amount of one hundred percent (100%) of the outstanding principal amount of this Note, which is subject to the injunction,
which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of
which shall be payable to the Holder to the extent it obtains judgment. In the absence of seeking such injunction, the Company
shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. If the Company fails for any reason
to deliver to the Holder such certificate or certificates pursuant to Section 4(c)(ii) by the Share Delivery Date, the Company
shall pay to the Holder, in cash, as liquidated damages and not as a penalty, $1,000 per Trading Day for each Trading Day after
such Share Delivery Date until such certificates are delivered or Holder rescinds such conversion. Nothing herein shall limit a
Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 6 for the Company’s failure
to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies available
to it hereunder, at law or in equity including a decree of specific performance and/or injunctive relief. The exercise of any such
rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable Regulation.

 

v. Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Holder,
if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion relating
to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number
of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of the
attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares of
Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(c)(ii).
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including a decree
of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

    	 	11	 

     

    

 

vi. Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its authorized
and unissued shares of Common Stock a number of shares of Common Stock at least equal to one hundred percent (100%) of the Required
Minimum Reserve (the “Reserve Amount”) for the sole purpose of issuance upon conversion of this Note and payment
of interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of
Persons other than the Holder (and the other holders of the Notes). The Company covenants that all shares of Common Stock that
shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable. The Company shall calculate
and readjust the minimum share reserve on the first Business Day of each month so long as this Note is outstanding; provided,
however, in no event shall such minimum share reserve be reduced below 250%.

 

vii. Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to
any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its
election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Fixed Conversion Price or round up to the next whole share.

 

viii. Transfer
Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without
charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery
of such certificates, provided, that the Company shall not be required to pay any tax that may be payable in respect of
any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder
of this Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the Person
or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day processing
of any Notice of Conversion.

 

d) Holder’s
Conversion Limitations. The Company shall not effect any conversion of principal or interest of this Note, and a Holder shall
not have the right to convert any principal or interest of this Note, to the extent that after giving effect to the conversion
set forth on the applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting
as a group together with the Holder or any of the Holder’s Affiliates) (such Persons, “Attribution Parties”)
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties or Attribution
Parties shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining,
unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates or Attribution Parties and
(ii) exercise or conversion of the unexercised or unconverted portion of any other Securities of the Company subject to a limitation
on conversion or exercise analogous to the limitation contained herein (including any other Notes) beneficially owned by the Holder
or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 4(d),
beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. To the extent that the limitation contained in this Section 4(d) applies, the determination of whether this Note is
convertible (in relation to other Securities owned by the Holder together with any Affiliates or Attribution Parties) and of which
principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion
shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation to other Securities owned
by the Holder together with any Affiliates or Attribution Parties) and which principal amount of this Note is convertible, in each
case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent
to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set
forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition,
a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. For purposes of this Section 4(d), in determining the number of outstanding
shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of
the following: (i) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (ii)
a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company’s transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company
shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of Securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
of this Note held by the Holder. The Holder, upon not less than sixty-one (61) days’ prior notice to the Company, may increase
or decrease the Beneficial Ownership Limitation provisions of this Section 4(d); provided, that the Beneficial Ownership
Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to
the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation
provisions of this Section 4(d) shall continue to apply. Any such increase or decrease will not be effective until the sixty-first
(61st) day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Note.

 

    	 	12	 

     

    

 

The Company
shall not issue any shares of Common Stock upon conversion of this Note or otherwise pursuant to the terms of this Note if the
issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue
upon conversion of this Note or otherwise pursuant to the terms of this Note without breaching the Company’s obligations
under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules and
regulations, the “Exchange Cap”), except that such limitation shall not apply in the event that the Company
(i) obtains the approval of its stockholders as required by the applicable rules of the Principal Market for issuances of shares
of Common Stock in excess of such amount or (ii) obtains a written opinion from outside counsel to the Company that such approval
is not required, which opinion shall be reasonably satisfactory to the Purchasers. Until such approval or such written opinion
is obtained, no Purchaser (as defined in the Purchase Agreement) shall be issued in the aggregate, upon conversion of this Note
or otherwise pursuant to the terms of this Note, shares of Common Stock in an amount greater than the product of (A) the Exchange
Cap as of the Issuance Date multiplied by (B) the quotient of (1) the aggregate original Principal Amount of this Note issued to
the applicable Purchaser pursuant to the Purchase Agreement on such Closing Date divided by (2) the aggregate original Principal
Amount of the Notes issued to the Purchasers pursuant to the Purchase Agreement on such Closing Date (with respect to each Purchaser,
the “Exchange Cap Allocation”). In the event that any Purchaser shall sell or otherwise transfer any portion
of this Note, the transferee shall be allocated a pro rata portion of such Purchaser’s Exchange Cap Allocation with respect
to such portion of this Note so transferred, and the restrictions of the prior sentence shall apply to such transferee with respect
to the portion of the Exchange Cap Allocation so allocated to such transferee. Upon conversion in full of a holder’s Note,
the difference (if any) between such holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued
to such holder upon such holder’s conversion in full of this Note shall be allocated to the respective Exchange Cap Allocations
of the remaining holders of this Note on a pro rata basis in proportion to the shares of Common Stock underlying this Note hen
held by each such holder of this Note. In the event that the Company is prohibited from issuing any shares of Common Stock pursuant
to this Section 4(d) (the “Exchange Cap Shares”) to a Holder, the Company shall pay cash to such Holder in exchange
for the redemption of such portion of this Note held by the Holder that are not convertible into such Exchange Cap Shares at a
price equal to the sum of (A) the product of (1) such number of Exchange Cap Shares and (2) the Closing Sale Price on the Trading
Day immediately preceding the date such Holder delivers the applicable Conversion Notice with respect to such Exchange Cap Shares
to the Company, and (B) to the extent such Holder purchases (in an open market transaction or otherwise) shares of Common Stock
to deliver in satisfaction of a sale by such Holder of Exchange Cap Shares, brokerage commissions, if any, of such Holder incurred
in connection therewith.

 

Section
5. Certain Adjustments

 

a) Stock
Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise
makes a Restricted Payment payable in shares of Common Stock on shares of Common Stock or any Stock Equivalents (which, for avoidance
of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment of interest on, this
Note), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a
reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification
of shares of the Common Stock, any shares of capital stock of the Company, then the Fixed Conversion Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company)
outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to this Section 5(a) shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or re-classification.

 

b) Lower
Priced Transaction. So long as this Note remains outstanding, other than in respect of an Exempt Issuance, the Company shall
not enter into any financing transaction pursuant to which the Company sells its Securities at a price lower than the Fixed Conversion
Price (subject to adjustment in accordance with Section 4(b) and Section 5(a)) without the written consent of the Holder.

 

    	 	13	 

     

    

 

c) Most
Favored Nation Status. If the Company or any Subsidiary thereof, as applicable, at any time while this Note is outstanding,
shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce
any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Stock Equivalents, at an effective price
per share less than the Fixed Conversion Price then in effect other than in respect of an Exempt Issuance (such lower price, the
“Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood
and agreed that if the holder of the Common Stock or Stock Equivalents so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled to receive Common Stock at an effective price
per share that is less than the Fixed Conversion Price, such issuance shall be deemed to have occurred for less than the Fixed
Conversion Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation of each
Dilutive Issuance the Fixed Conversion Price shall be reduced and only reduced to equal the Base Share Price. Such adjustment shall
be made whenever such Common Stock or Stock Equivalents are issued. The Company shall notify the Holder, in writing, no later than
the Trading Day following the issuance or deemed issuance of any Common Stock or Stock Equivalents subject to this Section 5(c),
indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 5(c), upon the occurrence of any Dilutive Issuance, the Holder is
entitled to receive a number of Conversion Shares based upon the Base Share Price regardless of whether the Holder accurately refers
to the Base Share Price in the Notice of Conversion. If the Company enters into a Variable Rate Transaction, despite the prohibition
thereon in the Purchase Agreement, the Company shall be deemed to have issued Common Stock or Stock Equivalents at the lowest possible
conversion or exercise price at which such Securities may be converted or exercised.

 

d) Pro
Rata Distributions. While this Note is outstanding, the Company shall not declare or make any Restricted Payment (or rights
to receive Restricted Payments). In the event that the Note is repaid at the time of such Restricted Payment, the Holder shall
not be entitled to participate in such Restricted Payment. If the Holder and the Company mutually agree, and the Note is not repaid
at the time of such Restricted Payment, then the Holder shall be entitled to participate in such Restricted Payment 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 exercise of this Note (without regard to any limitations on exercise hereof, including the Beneficial Ownership Limitation)
immediately before the date of which a record is taken for such Restricted Payment, 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 Restricted Payment (provided,
that to the extent that the Holder's right to participate in any such Restricted Payment would result in the Holder exceeding
the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Restricted Payment to such extent
(or in the beneficial ownership of any shares of Common Stock as a result of such Restricted Payment to such extent) and the portion
of such Restricted Payment shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

e) Fundamental
Transaction. Upon the occurrence of any Fundamental Transaction, the Holder, upon any subsequent conversion of this Note, shall
have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the
occurrence of such Fundamental Transaction (without regard to any limitation in Section 4(c) on the conversion of this Note), the
number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental
Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior to such Fundamental
Transaction (without regard to any limitation in Section 4(c) on the conversion of this Note). For purposes of any such conversion,
the determination of the Fixed Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based
on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Fixed Conversion Price among the Alternate Consideration in a reasonable manner reflecting
the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice
as to the Securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice
as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. The Company
shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the Obligations of the Company, in accordance with the provisions of this Section
5(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Holder
in exchange for this Note a Security of the Successor Entity evidenced by a written instrument substantially similar in form and
substance to this Note which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or
its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard
to any limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies
the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common
Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
Obligations of the Company with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	14	 

     

    

 

f) Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

 

g) Notice
to the Holder.

 

i. Adjustment
to Fixed Conversion Price. Whenever the Fixed Conversion Price is adjusted pursuant to any provision of Section 5, the Company
shall promptly deliver to each Holder a notice setting forth the Fixed Conversion Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment. Notwithstanding anything in this Section 5 to the contrary, no adjustment
pursuant to this Section 5 shall increase the Fixed Conversion Price (other than proportional increases upon the occurrence of
a reverse stock split in accordance with Section 5(a) above).

 

ii. Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution or other Restricted Payment
in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of
the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe
for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company
shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company
is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other Securities, cash or property or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at
each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its
last address as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distribution, Restricted Payment, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares
of the Common Stock for Securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided, that the failure to deliver such notice or any defect therein or in the delivery thereof
shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided
hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company
shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to convert this Note during the 20-day period commencing on the date of such notice through the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

 

    	 	15	 

     

    

 

h) Variable
Rate Transaction. So long as this Note remains outstanding, the Company shall not directly or indirectly (i)(A) consummate
any exchange of any Indebtedness and/or Securities of the Company for any other Securities and/or Indebtedness of the Company,
(B) cooperate with any person to effect any exchange of Securities and/or Indebtedness of the Company in connection with a proposed
sale of such Securities from an existing holder of such Securities to any other unrelated Person), and/or (C) reduce and/or otherwise
change the exercise price, conversion price and/or exchange price of any Stock Equivalent of the Company and/or amend any non-convertible
Indebtedness of the Company to make it convertible into Securities of the Company, (ii) issue or sell any of its Securities either
(A) at a conversion, exercise or exchange rate or price that is based upon and/or varies with the trading prices of, or quotations
for, Common Stock, and/or (B) with a conversion, exercise or exchange rate and/or price that is subject to being reset on one or
more occasions either (1) at some future date after the initial issuance of such Securities or (2) upon the occurrence of specified
or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, and/or (iii)
enter into any agreement (including an “equity line of credit” or an “at-the-market offering”) whereby
the Company may sell Securities at a future determined price. Any transaction contemplated in this Section 5(h), shall be referred
to as a “Variable Rate Transaction”. The Holder shall be entitled to obtain injunctive relief against the Company
to preclude any Variable Rate Transaction (without the need for the posting of any bond or similar item, which the Company hereby
expressly and irrevocably waives the requirement for), which remedy shall be in addition to any right of the Holder to collect
damages. A “Variable Rate Transaction” shall also mean, collectively, an “Equity Line of Credit” or similar
agreement, or a Variable Priced Equity Linked Instrument. For purposes hereof, “Equity Line of Credit” means
any transaction involving a written agreement between the Company and an investor or underwriter whereby the Company has the right
to “put” its Securities to the investor or underwriter over an agreed period of time and at future determined price
or price formula (other than customary “preemptive” or “participation” rights or “weighted average”
or “full-ratchet” anti-dilution provisions or in connection with fixed-price rights offerings and similar transactions
that are not Variable Priced Equity Linked Instruments), and “Variable Priced Equity Linked Instruments” means:
(A) any Stock Equivalent convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of
Common Stock either (1) at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading
prices of or quotations for Common Stock at any time after the initial issuance of such Stock Equivalent, or (2) with a conversion,
exercise or exchange price that is subject to being reset on more than one occasion at some future date at any time after the initial
issuance of such debt or equity security due to a change in the market price of the Company’s Common Stock since date of
initial issuance (other than customary “preemptive” or “participation” rights or “weighted average”
or “full-ratchet” anti-dilution provisions or in connection with fixed-price rights offerings and similar transactions),
and (B) any amortizing convertible Stock Equivalent which amortizes prior to its maturity date, where the Company is required or
has the option to (or any investor in such transaction has the option to require the Company to) make such amortization payments
in shares of Common Stock which are valued at a price that is based upon and/or varies with the trading prices of or quotations
for Common Stock at any time after the initial issuance of such Stock Equivalent (whether or not such payments in stock are subject
to certain equity conditions). Notwithstanding the foregoing, the Company may engage in an “at-the-market” transaction
on customary terms.

 

Section
6. Events of Default

 

a) “Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether
such event shall be voluntary or involuntary or effected by Regulation or pursuant to any judgment, decree or order of any court,
or any order, rule or Regulation of any Governmental Authority):

 

i. any default
in the payment of (A) the principal amount of this Note or any Make Whole Amount or (B) interest, fees, liquidated damages or any
other amount owing to a Holder on this Note or by any Company Party under any Transaction Document, as and when the same shall
become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration or otherwise);

 

    	 	16	 

     

    

 

ii. any Company
Party shall fail for any reason to comply with Section 4.8 of the Purchase Agreement or Section 2(e), Section
4(c) (including Section 4(c)(vi)), Section 7 or Section 8(m) of this Note or any other Section of this
Note or any Transaction Document that provides for an action after a notice period or that provides a specific period of time for
the Company Parties to comply with;

 

iii. any representation
or warranty made by any Company Party in this Note, any other Transaction Document, any other Contractual Obligation with, or any
other report, financial statement, document, written statement or certificate made or delivered to, the Holder or any other Holder
shall be untrue or incorrect in any material respect as of the date when made or deemed made;

 

iv. any Company
Party shall provide at any time notice to the Holder, including by way of public announcement, of such Company Party’s intention
to not honor any provision of this Note or any other Transaction Document (including requests for conversions of this Note in accordance
with the terms hereof);

 

v. any Company
Party shall fail to observe or perform any other covenant, provision, or agreement contained in this Note or any other Transaction
Document which failure is not cured, if possible to cure, within the earlier to occur of (A) seven (7) Trading Days after notice
of such failure sent by the Holder or by any other Holder to the Company and (B) seven (7) Trading Days after any Company Party
has become or should have become aware of such failure;

 

vi. (a) a breach,
default or event of default (without regard for any cure period therefor provided therein) shall have occurred under any single
Indebtedness of any Company Party in a maximum principal amount or commitment greater than One Hundred Thousand Dollars ($100,000)
(or multiple Indebtedness aggregating in maximum principal amounts or commitments greater than Two Hundred Fifty Thousand Dollars
($250,000), or (b) any such Indebtedness shall become or be declared due and payable prior to the date on which it would otherwise
become due and payable;

 

vii. A breach,
default or event of default (without regard to any subsequent waiver of such event of default or any grace or cure period provided
in the applicable agreement, document or instrument) shall have occurred under any other Contractual Obligation to which any Company
Party is obligated;

 

viii. (A) any
Company Party or any Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) of any Company Party commences a case
or other Proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency,
winding up, reorganization, arrangement, adjustment, protection, relief or composition of debts or liquidation or similar Regulation
of any jurisdiction relating to the Company or any Subsidiary thereof or any Proceeding seeking the entry of an order for relief
or the appointment of a custodian, receiver, trustee, liquidator or other similar official for it or for any of its assets, (B)
any such case or other Proceeding is commenced against the Company or any Subsidiary thereof by any other Person and such case
or other Proceeding is not dismissed within forty-five (45) days after commencement, (C) the Company or any Subsidiary thereof
is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or other Proceeding is entered,
(D) the Company or any Subsidiary thereof shall generally not pay its debts as such debts become due, shall admit in writing its
inability to pay its debts as they mature or shall make a general assignment for the benefit of creditors, (E) the Company or any
Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its
debts or (F) the Company or any Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval
of or acquiescence in any of the foregoing or takes any corporate or other action to authorize or otherwise for the purpose of
effecting any of the foregoing;

 

    	 	17	 

     

    

 

ix. any monetary
judgment, writ or similar final process shall be entered or filed against any Company Party, any Subsidiary of any Company Party
or any of their assets for more than One Hundred Thousand Dollars ($100,000) (or multiple monetary judgments, writs or similar
final process, and such judgments, writs or similar final process aggregating more than Two Hundred Fifty Thousand Dollars ($250,000)
shall remain unvacated, unbonded or unstayed for a period of forty-five (45) calendar days;

 

x. the occurrence
of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any asset of any Company Party or any Subsidiary
of any Company Party having an aggregate fair value or repair cost (as the case may be) in excess of One Hundred Thousand Dollars
($100,000) individually or more than Two Hundred Fifty Thousand ($250,000) in the aggregate, and any such levy, seizure or attachment
shall not be set aside, bonded or discharged within thirty (30) days after the date thereof;

 

xi. the Common
Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume listing
or quotation for trading thereon within five (5) Trading Days or the transfer of shares of Common Stock through the Depository
Trust Company System is no longer available or “chilled”;

 

xii. the Company
does not meet the current public information requirements under Rule 144, which failure is not cured, if possible to cure, within
two (2) Trading Days after the expiration of the applicable grace period permitted under Rule 12b-25 of the Exchange Act; unless
the Company files a Form 12b-25 for the relevant report required to meet the current public information requirements under
Rule 144;

 

xiii. the Company
fails to file with the Commission any required reports under Section 13 or 15(d) of the Exchange Act such that it is not in compliance
with Rule 144(c)(1) (or Rule 144(i)(2), if applicable), which failure is not cured, if possible to cure, within two (2) Trading
Days after the expiration of the applicable grace period permitted under Rule 12b-25 of the Exchange Act; unless the Company
files a Form 12b-25 for such report;

 

xiv. the Company
fails to consummate the Business Combination on or prior to November 9, 2020; or

 

xv. the Company
sells or otherwise disposes of any of its assets outside of the ordinary course of its business.

 

The clauses in the definition of Event
of Default above operate independently, so that any action or event that falls within any such clause shall constitute an Event
of Default regardless of, whether because of a grace period or threshold or otherwise, it falls outside the language of any other
clause.

 

    	 	18	 

     

    

 

b) Remedies
Upon Event of Default. Subject to the Beneficial Ownership Limitation as and to the extent set forth in Section 4(d), if any
Event of Default occurs, then the outstanding principal amount of this Note, plus accrued but unpaid interest (including all interest,
whether or not accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or
similar proceeding, all of which shall continue to accrue whether or not a claim for post-filing or post-petition interest is allowed
in such proceeding), fees, liquidated damages and any other amounts owing by any Company Party in respect thereof or under any
Transaction Document through the date of acceleration, shall become, at the Holder’s election in its sole discretion, in
whole or in part, immediately due and payable, in cash or in shares of Common Stock (at the Holder’s option in its sole discretion),
at the greater of (i) the Mandatory Default Amount, and (ii) (a) the outstanding principal amount of this Note and accrued and
unpaid interest hereon (including any outstanding Minimum Interest Amount), in addition to the payment of all other amounts, costs,
expenses and liquidated damages due in respect of this Note, divided by the Fixed Conversion Price, multiplied by (b) the highest
closing price for the Common Stock on the Trading Market (as defined in the Purchase Agreement) during the period beginning on
the date of first occurrence of the Event of Default and ending one day prior to the mandatory prepayment date as set forth in
Section 2 (f). Immediately on and after the occurrence of any Event of Default, without need for notice or demand all of
which are waived, interest on this Note shall accrue and be owed daily at an increased interest rate equal to the lesser of two
percent (2.0%) per month (twenty-four percent (24.0%) per annum) or the maximum rate permitted under applicable law. Upon the payment
in full of the Mandatory Default Amount in cash or in shares of Common Stock, the Holder shall promptly surrender this Note to
or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company
hereby waives, any presentment, demand, protest or other notice of any kind (other than the Holder’s election to declare
such acceleration), and the Holder 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 Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time,
if any, as the Holder receives full payment pursuant to this Section 6(b). No such rescission or annulment shall affect any subsequent
Event of Default or impair any right consequent thereon. The Company shall provide all information and documentation to the Holder
that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of
this Note and the other Transaction Documents and to enforce its rights hereunder and thereunder.

 

Section
7. NEGATIVE COVENANTS

 

a) As long
as any portion of this Note or any other Obligation is not paid in full in cash, the Company shall not, and shall not permit any
of its Subsidiaries to, directly or indirectly, do any of the following: other than Permitted Debt, enter into, create, incur,
assume, enter into Guaranty Obligations with respect to, or suffer to exist any Indebtedness or repay the principal amount of,
redeem, purchase or otherwise acquire or offer to repay the principal amount of, redeem, repurchase or otherwise acquire any Indebtedness
whether or not extant on the Original Issue Date (other than the Notes (as defined in the Purchase Agreement) on a pro rata basis
based on the principal amounts outstanding);

 

b) except
with the prior written approval of Holder, create, permit, incur or suffer to exist any Lien on any assets other than the Liens
securing the Obligations created pursuant to the Transactions Documents or subject to the Collateral Agency Agreement and Permitted
Liens;

 

c) except
in the ordinary course of its business, sell or otherwise dispose of any of its assets;

 

d) except
with the prior written approval of the Holder, and other than Permitted Liens, create, permit, incur, assume or suffer to exist
any Liens of any kind, on or with respect to any of its assets now owned or hereafter acquired or any interest therein or any income
or profits therefrom;

 

e) amend
its charter documents, including, its certificate of incorporation and bylaws, in any manner that materially and adversely affects
any rights of the Holder;

 

f) make,
approve, or offer to make any Restricted Payment any shares of Capital Stock other than with respect to the Commitment Shares and
the Conversion Shares and then only as permitted or required under the Transaction Documents;

 

g) enter
into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with the Commission,
unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested directors
of the Company (even if less than a quorum otherwise required for board approval);

 

    	 	19	 

     

    

 

h) consummate
a Fundamental Transaction other than the Business Combination and then only on terms and conditions, and using documentation, acceptable
to the Holder;

 

i) enter
into any agreement with respect to any of the foregoing;

 

j) change
the nature of the Company’s business from the business conducted by the Company and its Subsidiaries on the date hereof (and,
after the consummation of the Business Combination, the business conducted by the Target on the date hereof);

 

k) fail to
use the proceeds of the Note as provided for in the Transaction Documents, including being engaged in operations involving the
financing of any investments or activities in, or any payments to, any Sanctioned Person;

 

l) directly
or indirectly (including through agents, contractors, trustees, representatives or advisors) (a) be in violation of any Sanctions
Law or engage in, or conspire or attempt to engage in, any transaction evading or avoiding any prohibition in any Sanction Law,
(b) be a Sanctioned Person or derive revenues from investments in, or transactions with Sanctioned Persons, (c) have any assets
located in Sanctioned Jurisdictions, (d) deal in, or otherwise engage in any transactions relating to, any property or interest
in property blocked pursuant to any Regulation administered or enforced by OFAC or (e) fail to comply with any material Regulations
or Contractual Obligations applicable to it or fail to obtain or comply with any material Permits.

 

Section
8. Miscellaneous

 

a) Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including any Notice of Conversion,
shall be in writing and delivered as set forth in the Purchase Agreement or, alternatively, delivered personally, by email or facsimile,
or sent by a nationally recognized overnight courier service, addressed to the Company as set forth in the signature pages hereof,
or such other contact information as the Company may specify for such purposes by notice to the Holder delivered in accordance
with this Section 8(a). All notices and other communications delivered hereunder shall be effective as provided in the Purchase
Agreement.

 

b) Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note,
without set off or counterclaim, at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct
debt obligation of the Company. This Note ranks pari passu with all other Notes now or hereafter issued under the terms
set forth herein and is at least pari passu with all Indebtedness and other obligations of the Company, and is not subordinated
to any such Indebtedness or other obligation.

 

c) Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

 

d) Governing
Law. This Note is governed by, and shall be construed and enforced in accordance with, the laws of the State of New York.

 

e) Characterizations.
The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation
thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any
other obligation of the Company (or the performance thereof).

 

    	 	20	 

     

    

 

f) Payments
on Next Business Day. Whenever any payment Obligation shall be due on a day other than a Business Day, such payment shall be
due instead on the next succeeding Business Day.

 

g) Payment
of Collection, Enforcement and Other Costs. In addition to, and not in substitution for and not to limit (but without duplication),
any other right to reimbursement under this Note or any other Transaction Document, (i) this Note is placed in the hands of an
attorney for collection or enforcement or is collected or enforced through any Proceeding or the Holder otherwise takes action
to collect amounts due under this Note or to enforce the provisions of this Note or (ii) there occurs any bankruptcy, reorganization,
receivership of the Company or other Proceedings affecting Company creditors' rights and involving a claim under this Note, then
the Company shall pay all out-of-pocket costs incurred by the Holder for such collection, enforcement or action or in connection
with such bankruptcy, reorganization, receivership or other Proceeding, including, but not limited to, attorneys' fees and disbursements.

 

h) Security
Interest. The Obligations of the Company Parties under this Note and the other Transaction Documents are secured by the Security
Agreement, the Intellectual Property Security Agreement, as well as other Transaction Documents.

 

i) Use
of Proceeds. All gross proceeds of the funding to the Company related to this Note shall be used as provided in the Purchase
Agreement.

 

j) Securities
Laws Disclosure; Publicity. The Company shall file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such Current Report on
Form 8-K, the Company represents to the Holder that it shall have publicly disclosed all material, non-public information delivered
to any of the Holder by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents
in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such
Current Report on Form 8-K, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any
agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors,
agents, employees or Affiliates on the one hand, and the Holder or any of its Affiliates on the other hand, shall terminate. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of the Holder, or include the name of the Holder in any filing
with the Commission or any regulatory agency or Trading Market, without the prior written consent of the Holder, except (i) as
required by federal securities Regulation in connection with the filing of final Transaction Documents with the Commission and
(ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the
Holder with prior notice of such disclosure permitted under this clause (iii).

 

k) Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
which shall be disclosed pursuant to Section 7(j), the Company covenants and agrees that neither it, nor any other Person acting
on its behalf has provided nor will provide the Holder or its agents or counsel with any information that constitutes, or the Company
reasonably believes constitutes, material non-public information, unless prior thereto the Holder shall have consented to the receipt
of such information and agreed with the Company to keep such information confidential. The Company understands and confirms that
the Holder will be relying on the foregoing covenant in effecting transactions in Securities of the Company. Any non-disclosure
agreement (including “click through” agreements and confidentiality clauses incorporated in larger agreements) entered
into with the Holder and any Company Party is hereby terminated. The Holder does not have any duty of confidentiality (or a duty
not to trade on the basis of material non-public information) to any Company Party or any of their Affiliates, or any of their
respective officers, directors, agents, members, stockholders, managers, employees and is governed only by application Regulations.
To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information
regarding the Company or any Subsidiaries, the Company shall, within two (2) Trading Days, file such notice with the Commission
pursuant to a Current Report on Form 8-K. The Company understands and confirms that the Holder shall be relying on all of the foregoing
covenants in trading Securities of the Company.

 

    	 	21	 

     

    

 

l) Interpretation.
This Note is a Transaction Document and as such is subject to various interpretative, amendment and third party beneficiary
and other miscellaneous provisions set forth in the Purchase Agreement that expressly apply to Transaction Documents, located principally
in Article V thereof. In particular, without limitation, none of the terms or provisions of this Note may be waived, amended,
supplemented or otherwise modified except in accordance with Section 5.3(b) (Amendments) of the Purchase Agreement. In addition,
unless otherwise expressly provided in any Transaction Document, “outstanding” when referring in any Transaction
Document to the principal amount owing under this Note shall mean “outstanding and unconverted.”

 

m) Successors
and Assigns. This Note shall be binding upon the successors and assigns of the Company and shall inure to the benefit of the
Holder, each Purchaser Party and their successors and assigns; provided, that the Company may not assign, transfer or delegate
any of its rights or obligations under this Note except as authorized in the Purchase Agreement.

 

n) Counterparts.
This Note may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature
pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature
page of this Note by facsimile transmission or by e-mail shall be as effective as delivery of a manually executed counterpart hereof.

 

o) Severability.
Any provision of this Note being held illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision
not held illegal, invalid or unenforceable, any other provision of this Note or any part of such provision in any other jurisdiction.

 

p) Waiver
of Jury Trial. Each party hereto hereby irrevocably waives trial by jury in any Proceeding with respect to, or directly or indirectly
arising out of, under or in connection with, this Note or any other Transaction Document or the transactions contemplated therein
or related thereto (whether founded in contract, tort or any other theory). Each party hereto (A) certifies that no other party,
no Purchaser Party and no Affiliate or representative of any such other party or Affiliate has represented, expressly or otherwise,
that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (B) acknowledges that it
and the other parties hereto have been induced to enter into this Note by the mutual waivers and certifications in this Section
8(p).

 

[Signature
Pages Follow]

 

    	 	22	 

     

    

  

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

	 	KBL MERGER CORP. IV
	 	 
	 	
        

        By:
	/s/ Marlene Krauss
	 	 	Name: Marlene Krauss
	 	 	Title: CEO
	 	 	 
	 	
        

        Address:

	 	 
	 	Email Address for delivery of Notices: 

 

     

     

    

  

ANNEX A

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal under the 10% Senior Secured Convertible Promissory Note, due April 7, 2021, of KBL Merger Corp. IV.,
a Delaware (the “Company”), into shares of common stock, $0.0001 par value per share (the “Common Stock”),
of the Company according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in
the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is
delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will
be charged to the holder for any conversion, except for such transfer taxes, if any.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts specified under Section 4 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock.

 

Conversion calculations:

 

	 	Date to Effect Conversion:
	 	 
	 	Principal Amount of Note to be Converted:
	 	 
	 	Payment of Interest in Common Stock __ yes __ no
	 	 
	 	If yes, $_____ of Interest Accrued on Account of Conversion at Issue.
	 	 
	 	Number of shares of Common Stock to be issued:
	 	 
	 	Signature:
	 	 
	 	Name:
	 	 
	 	Delivery Instructions:

 

     

     

    

  

Schedule
1

 

CONVERSION SCHEDULE

 

This Conversion Schedule is part of, and
reflects conversions made under Section 4 of, the 10% Senior Secured Convertible Promissory Note, due on April 7, 2021, in the
original principal amount of $1,111,111.11 is issued by KBL Merger Corp. IV, a Delaware corporation.

 

Dated:

	
         

        Date of Conversion

        (or for first entry, Original Issue Date)
	 	Amount of Conversion	 	Aggregate Principal Amount Remaining Subsequent to Conversion

(or original Principal Amount)	 	Company Attest

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00314-of-00352.parquet"}]]