Document:

Exhibit 10.11

 

 

 

 

 

 

 

 

 

 

 

 

 

PRESTIGE
GLOBAL ALLOCATION FUND

(the “Company”)

 

 

and

 

PRESTIGE
GLOBAL ASSET MANAGEMENT LIMITED

(the “Manager”)

 

 

MANAGEMENT AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

CONTENTS

 

	1.	Interpretation	1
	2.	Appointment of the Manager	3
	3.	Duties of the Manager	3
	4.	Soft Dollars and Cash Rebates	6
	5.	Representations and Warranties of the Company	6
	6.	Representations and Warranties of the Manager	7
	7.	Obligations of the Company	8
	8.	Restrictions and Requirements	8
	9.	Fees and Expenses	8
	10.	Limitation of Liability	9
	11.	Resignation and Termination	10
	12.	Conflicts of Interest	11
	13.	No Licence	12
	14.	Confidentiality	12
	15.	Regulatory Status	13
	16.	Notices	13
	17.	Assignment	14
	18.	Amendments	15
	19.	Reservation of Rights	15
	20.	Whole Agreement	15
	21.	Severability	15
	22.	Force Majeure	15
	23.	Counterparts	15
	24.	No Partnership	15
	25.	Contracts (Rights of Third Parties) Ordinance	16
	26.	Governing Law	16
	27.	Jurisdiction	16

 

     

     

    

 

THIS AGREEMENT is dated 8th
February 2017 and made

 

BETWEEN:

 

		(1)	PRESTIGE
GLOBAL ALLOCATION FUND (the “Company”) , [an exempted company incorporated in the Cayman Islands
with limited liability, having its registered office at 4th Floor, Harbour Place, 103 South Church Street, PO Box 10240, Grand
Cayman, KY1-1002, Cayman Islands]1;

 

		(2)	PRESTIGE GLOBAL ASSET MANAGEMENT LIMITED, an exempted company incorporated in the Cayman
Islands with limited liability, having its registered office at 4th Floor, Harbour Place, 103 South Church Street, PO Box 10240,
Grand Cayman KY1-1002, Cayman Islands (the “Manager”).

 

BACKGROUND:

 

		(A)	The Company wishes to appoint the Manager to act as manager of the Company and to authorise the
Manager to appoint the Investment Advisor to manage and invest the assets of the Company, on the terms set out in this Agreement,
which appointment the Manager wishes to accept.

 

		(B)	The Manager is exempt from the requirement to be licensed pursuant to the Securities Investment
Business Law of the Cayman Islands (“SIBL”) on the basis that it registered with the Cayman Islands Monetary
Authority (“CIMA”) as an excluded person pursuant to the requirements of SIBL.

 

THE PARTIES AGREE THAT:

 

		1.	Interpretation

 

		1.1	In this Agreement, unless the context otherwise requires, the following words have the following
meanings:

 

“Administrator”
means any such person as persons(s) appointed by the Company (as administrator of the Company from time to time;

 

“Agreement”
means this Agreement

 

“Articles”
means the memorandum and articles of association of the Company as the context requires, as amended from time to time provided
that such amendments are notified to the Manager;

 

“Associate”
in relation to a person means a holding company or subsidiary undertaking of that person or a subsidiary of the holding company
(all as defined in the Companies Ordinance (Cap 622) of the Laws of Hong Kong;

 

“Authorised Officer”
means any person from time to time designated by the Company as authorised to instruct the Manager;

 

“Business Day”
means a day (other than a Saturday or a Sunday) on which banks in Hong Kong are authorised to open for normal banking business
and/or such other day or days as the Directors may determine, either generally or in any particular case, provided that where,
as a result of a Number 8 Typhoon Signal, Black Rainstorm Warning or similar event, the period during which banks in Hong Kong
are open on any day are reduced, such day shall not be a Business Day;

 

 

		1	Details TBC

 

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“Custodian”
means any such person or persons appointed by the Company (as custodian(s) of the assets of the Company and any sub-custodian duly
appointed by it/them;

 

“Directors”
means the members of the board of directors of the Company, as the case may be, for the time being and any duly constituted committee
thereof and any successors to such members as they may be appointed from time to time;

 

“Gross Negligence”
means any act or omission showing so marked a departure from the normal standard of conduct of a professional person exercising
ordinary professional care and skill as to demonstrate reckless or wilful disregard of the consequences of that act or omission;

 

“Investment Advisor”
means Prestige Asset Management Limited, and/or any other person the Manager may appoint as investment advisor (or equivalent)
from time to time to manage and invest all or any part of the Portfolio of the Company pursuant to this Agreement;

 

“Investment Advisory
Agreement” means the agreement dated on or around the date of this Agreement pursuant to which the Manager will appoint
the Investment Advisor to manage and invest all or any part of the Portfolio of the Company on a discretionary basis;

 

“Investments”
means any investment or other asset of any description, the making or acquisition of which is authorised by the Articles, and the
Private Placement Memorandum (as defined below);

 

“Management Fee”
means the Net Asset Value based fee payable to the Manager as described in Appendix B hereto;

 

“Net Asset Value”
means the net asset value of the Company, as the case may be, determined in accordance with the Articles and the Private Placement
Memorandum;

 

“Notifying Party”
has the meaning given to it in Clause 11.1;

 

“Participating Shares”
means redeemable participating shares in the Company as issued by the Company from time to time in accordance with the Articles;

 

“Participating Shareholder”
means the holder of Participating Shares from time to time;

 

“Performance Fee”
means the aggregate performance fee payable to the Manager in respect of the performance of each Participating Share as described
in Appendix C;

 

“Portfolio”
means all the assets and Investments of the Company, including, for the avoidance of doubt, any uninvested cash;

 

“SFC” means
the Securities and Futures Commission of Hong Kong.

 

		1.2	Clause headings shall not affect the interpretation of this Agreement.

 

		1.3	A person includes a natural person, corporate or unincorporated body (whether or not having
separate legal personality).

 

		1.4	Unless the context otherwise requires, words in the singular shall include the plural and in the
plural shall include the singular.

 

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		1.5	Unless the context otherwise requires, a reference to one gender shall include a reference to the
other genders.

 

		1.6	A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted
from time to time.

 

		1.7	A reference to writing or written includes faxes and e-mail.

 

		1.8	Any obligation on a party not to do something includes an obligation not to allow that thing to
be done.

 

		1.9	References to Clauses are to the clauses of this Agreement.

 

		1.10	Any words following the terms including, include, in particular, for example
or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition,
phrase or term preceding those terms.

 

		1.11	Unless the context otherwise requires or except as expressly provided to be the contrary herein,
words and expressions contained in this Agreement shall bear the same meaning as in the Articles.

 

		1.12	References herein to a party are to any party or together the parties to this Agreement.

 

		2.	Appointment of the Manager

 

		2.1	The Company hereby appoints the Manager:

 

		(a)	to act as the manager in respect of the Company subject to the overall control and supervision
of the Directors; and

 

		(b)	to appoint the Investment Advisor as investment advisor in respect of the Portfolio to manage and
invest the Portfolio, on a discretionary basis, in pursuit of the Articles and the private placement memorandum (“Private
Placement Memorandum”) of the Company and subject to the terms of the Investment Advisory Agreement or as otherwise stipulated
by the Directors, from time to time, until such appointment shall be terminated as hereinafter provided.

 

		2.2	The Manager accepts such appointment and agrees to assume the obligations set forth herein.

 

		2.3	This Agreement shall come into force upon its due execution by the parties hereto with effect from
the date written at the head of page 1.

 

		2.4	Except as expressly provided in this Agreement, or as the Manager may be otherwise authorised,
the Manager has no authority to act for or represent the Company and the Manager shall not be deemed an agent of the Company.

 

		3.	Duties of the Manager

 

		3.1	Subject to the overall control and supervision of the Directors, the Manager shall act as manager
of the Company in accordance with the provisions of this Agreement. The Manager shall perform such duties as are customarily performed
by a manager of Investments, or as may be agreed from time to time between the parties and may, subject to compliance with the
provisions of the Private Placement Memorandum, and the Articles:

 

		(a)	borrow or raise monies for the account of the Company, and, from time to time without limitation
as to amount or manner and time of repayment, issue, accept, endorse and execute promissory notes, drafts, bills of exchange, bonds,
debentures and other negotiable or non-negotiable instruments and evidences of indebtedness;

 

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		(b)	open, maintain and close bank accounts, brokerage accounts and custody accounts in the name of
the Company and, subject to compliance with applicable laws and regulations, give instructions with respect to such accounts;

 

		(c)	do any and all acts on behalf of the Company and exercise all rights of the Company with respect
to its interest in any person, firm, corporation or other entity, including, without limitation, the voting of shares, participation
in arrangements with creditors, the institution and settlement or compromise of suits and administrative proceedings and other
like or similar matters;

 

		(d)	lend, with or without security, any of the investments, funds or other property of the Company;

 

		(e)	organize one or more corporations formed to hold record title, as nominee for the Company, to investments
or funds attributable to the Company;

 

		(f)	engage personnel (whether part-time or full-time), lawyers and independent accountants, analysts,
traders, or such other persons with respect to the Company as the Investment Manager may deem necessary or advisable;

 

		(g)	select brokers and accept soft dollars from such brokers in accordance with applicable laws regulations
and codes of conduct;

 

		(h)	to do such other acts as the Manager may deem necessary or advisable in connection with the maintenance
and administration of the Company, including without limitation, communicating with investors and potential investors in the Company,
preparing or causing to be prepared reports, financial statements and other communications with investors;

 

		(i)	permit, where the Manager deems appropriate, the acceptance of late subscription requests and funds;
and

 

		(j)	authorize any employee or other agent of the Manager or agent or employee of the Company to act
for and on behalf of the Company in all matters incidental to the foregoing.

 

		3.2	The Manager will ensure that the Investment Advisor performs its duties, functions and obligations
in accordance with the Investment Advisory Agreement.

 

		3.3	Without limiting the generality of the foregoing, the Manager is hereby authorised to appoint the
Investment Advisor to manage the Portfolio on a discretionary basis subject to the Articles, the Private Placement Memorandum,
and the Investment Advisory Agreement or as otherwise stipulated by the Directors, from time to time.

 

		3.4	For the avoidance of doubt, to the extent that this Agreement provides that the Manager can, will
or is required to procure that the Investment Advisor can, will or is required to carry out a particular function pursuant to the
Investment Advisory Agreement, the Manager is hereby authorised by the Company to carry out such functions to the extent that such
functions are not delegated to the Investment Advisor pursuant to the Investment Advisory Agreement.

 

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		3.5	The Manager is hereby authorised to delegate to the Investment Advisor complete discretion for
management of the Portfolio (and without prior reference to the Company or the Manager) to buy, sell (including without limitation
short sales), retain, convert, execute, exchange or otherwise deal in Investments, borrow securities, incur indebtedness, make
deposits, subscribe to issues and offers for sale of, and accept placings, underwritings and sub-underwritings, of any Investments,
effect transactions whether or not on any recognised market or exchange and whether or not frequently traded on any such market
or exchange (including, without limitation, derivatives, transactions, repurchase and reverse repurchase transactions, and securities
lending transactions), negotiate, settle and sign for the account of the Company any documentation required to be so negotiated,
settled or signed in connection with the execution of transactions in relation to the Portfolio by the Investment Advisor and otherwise
act as the Investment Advisor judges appropriate in relation to the management and investment of the Portfolio subject to the terms
of the Investment Advisory Agreement.

 

		3.6	In carrying out its duties under this Agreement, the Manager may appoint agents and/or delegates
(other than the Investment Advisor, in respect of which the authority to appoint is granted to the Manager by Clause 2.1(b)).

 

		3.7	The Manager will procure that the Investment Advisor, in carrying out its duties under the Investment
Advisory Agreement, will only appoint agents and/or delegates subject to the prior written agreement of the Manager.

 

		3.8	The Manager will procure that the Investment Advisor will, provide the reports outlined in the
Investment Advisory Agreement (and any other reports as may be reasonably required by the Company from time to time) to the Manager,
the Company and the Administrator in accordance with the time lines set out in relation thereto (or any other time lines reasonably
determined by the Company from time to time). All reports will be provided in either an excel spreadsheet or other format as agreed
between the Company, the Manager and the Investment Advisor or in such other format as may be reasonably determined by the Company
from time to time.

 

The Manager shall procure that
the required reports to be provided by the Investment Advisor in accordance with the Investment Advisory Agreement and this Clause
3.8 shall be generated from the internal systems of the Investment Advisor and not from reports provided by the broker(s).

 

		3.9	The Manager acknowledges that additional cash may be added to the Portfolio with prior notice to
the Manager and subject to the subscription procedure as prescribed in the Private Placement Memorandum and cash or other assets
may be withdrawn from the Portfolio to enable the Company to meet redemptions of Participating Shares and other outgoings as prescribed
in the Private Placement Memorandum with prior written notice to the Manager before the month-end date on which such redemption
shall be effected.

 

		3.10	The Manager may give instructions to any Custodian to transfer cash or Investments held by them
for the account of the Company in connection with the settlement of transactions or for collateral or cash margin management purposes.

 

		3.11	Notwithstanding Clause 3.10, the Manager is expressly prohibited from taking or receiving possession
of any of the Investments. The Manager is not permitted to make payments or transfer Investments from an account with any Custodian
to another account which is not maintained in the name of the Company.

 

		3.12	The Manager will, or will procure that the Investment Advisor will, retain, for a period of at
least 6 years, or longer as required by any applicable law, such books, records and statements as may be necessary to give to the
Company a complete record of all transactions carried out by the Manager and the Investment Advisor for the account of the Company,
copies of any documents generated or received by the Manager and the Investment Advisor in the ordinary course of business pertaining
to the Company or the Portfolio or the compensation payable to the Manager and the Investment Advisor.

 

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		3.13	The Manager and the Investment Advisor are authorised to give the Custodian, the Administrator,
dealers or counterparties (including central clearing counterparties) any instructions for the account of the Company, as the case
may be, which may be necessary or desirable for the proper performance of the their duties under this Agreement and the Investment
Advisory Agreement and the Company will confirm such authority to such parties on request.

 

		3.14	The Company may enter into agreements which require the consent from relevant parties to the recording and retention of telephone
conversations with respect to matters pertinent to the management of the Portfolio. The Manager, its directors, officers, employees
and agents each consent, and will procure that the Investment Advisor, its directors, officers, employees and agents each consent,
to the recording and retention of such conversations and that such conversations may be recorded without notice.

 

		4.	Soft Dollars and Cash Rebates

 

		4.1	The Manager may, and the Company acknowledges and agrees that the Manager may, in the provision
of its services in respect of the Company under this Agreement receive goods or services (“soft dollars”) from a broker
or a dealer in consideration of directing transaction business on behalf of the Company to such broker or dealer provided that:
(i) the goods or services are of demonstrable benefit to the Company; (ii) the transaction execution is consistent with best execution
standards and the brokerage rates paid are not in excess of customary full-service brokerage rates; and (iii) such acceptance would
be in compliance with all applicable requirements of any codes and guidelines issued by the SFC from time to time.

 

		4.2	The goods and services referred to in Clause 4.4(a) shall not include (i) travel, (ii) accommodation,
(iii) entertainment, (iv) general administrative goods or services (v) general office equipment or premises, (vi) membership fees,
(vii) employee salaries, (viii) direct money payments, or (ix) any other goods and services as may be prescribed from time to time
in any code or guideline issued by the SFC.

 

		4.3	The Manager may, and the Company acknowledges and agrees that the Manager may, in the provision
of its services in respect of the Company under this Agreement receive and retain cash or money rebates from any broker or dealer
provided that the brokerage rates paid are not in excess of customary full service brokerage rates save where prohibited from doing
so by applicable laws or regulations.

 

		4.4	The Manager shall provide to the Company:

 

		(a)	on an annual basis, a statement describing its soft dollar practices, including a description of
the goods and services received by the Manager; and

 

		(b)	at least twice annually, a quantification of the value of any rebates received.

 

		5.	Representations
                                         and Warranties of the Company

 

		5.1	The Company represents and warrants to the Manager that:

 

		(a)	it is validly existing and is duly empowered and authorised to execute, deliver and perform this
Agreement and to give effect to the transactions contemplated hereby;

 

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		(b)	this Agreement is binding upon it and enforceable in accordance with its terms except insofar as
enforcement may be limited by bankruptcy, insolvency or other laws relating to or affecting enforcement of creditors’ rights
or general principles of equity; and

 

		(c)	it has complied with and will continue to comply with all laws, rules and regulations or court
and governmental orders by which it is bound or to which it is subject, in each case, in connection with the execution and performance
of this Agreement.

 

		6.	Representations and Warranties of the Manager

 

		6.1	The Manager hereby represents, warrants, covenants and agrees to and with the Company, as of the
date hereof and on an ongoing basis, that:

 

		(a)	the Investment Advisory Agreement will not be amended without the prior written consent of the
Company;

 

		(b)	information, provided in writing and orally, in respect of the Manager its affiliates, controlling
persons, officers, directors, shareholders and employees as provided by the Manager to the Company during the cause of the Company’s
due diligence on the Manager and for inclusion or in relation to the Private Placement Memorandum is accurate in all material respects,
and does not omit any information relevant to appointment of the Manager or the management of the Portfolio;

 

		(c)	it is an entity duly organized and validly existing under the laws of the Cayman Islands and is
qualified to do business and is in good standing in each other jurisdiction in which the nature or conduct of its business requires
such qualification and in which the failure to so qualify would materially adversely affect its ability to conduct its business
activities or those of the Company;

 

		(d)	it has full power and authority to perform its obligations under this Agreement;

 

		(e)	this Agreement has been duly and validly authorized, executed and delivered on behalf of the Manager
and is a valid and binding agreement of the Manager enforceable against the Manager in accordance with its terms;

 

		(f)	none of the execution and delivery of this Agreement, the incurring of the obligations set forth
in this Agreement and the performance of such obligations will violate, or constitute a breach of or default under, the constitutive
documents of the Manager or any agreement or instrument by which it is bound or any order or rule, law or regulation applicable
to the Manager of any court or any governmental body or administrative agency or self-regulatory authority having jurisdiction
over the Manager;

 

		(g)	there is not pending, or, to the best of the Manager’s knowledge, threatened, any action,
suit or proceeding before or by any court or other governmental or self-regulatory authority to which the Manager is a party which
might reasonably be expected to result in any material adverse change in the condition, financial or otherwise, or regulatory status,
of the Manager and the Manager is not currently subject to nor has there been threatened against the Manager any investigations
by any competent regulatory authority;

 

		(h)	the Manager has complied and will continue to comply with all of its legal and regulatory obligations
vis-à-vis all laws and regulations or court and governmental orders by which it is bound or to which it is subject;

 

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		(i)	it will promptly, where not prohibited by law from doing so, notify the Company of any material
changes in the representations, warranties, covenants and agreements;

 

		(j)	it is, and will continue to be, during its appointment hereunder and the continuance of this Agreement,
the holder of all licences, permissions, authorisations and consents required under the laws of any jurisdiction where it is operating,
as appropriate, to enable it to perform its duties pursuant to this Agreement; and

 

		(k)	all information and documentation it has provided to the Company, in contemplation of this Agreement
is accurate in all material respects and the Manager has not failed or omitted to make disclosure to the Company, of any matter
that might reasonably be considered relevant to the Manager’s obligations hereunder or which would be reasonably likely to
impact the Company decision to appoint the Manager hereunder or which could reasonably be expected to impact the competence and
probity of the Manager.

 

		7.	Obligations
                                         of the Company

 

		7.1	The Company will supply or procure the supply to the Manager of such
information as the Manager shall reasonably require to enable it to perform its duties hereunder, including, without limitation,
details of the Portfolio.

 

		8.	Restrictions and Requirements

 

		8.1	In carrying out its duties hereunder, the Manager will, and procure that the Investment Advisor
will, comply with all instructions of the Company to the extent that such instructions are not inconsistent with applicable law.
Such instructions may be given by letter, by fax or by email, in each case, signed by an Authorised Officer or by telephone provided
that telephone instructions shall be confirmed in writing by an Authorised Officer. The Manager shall not be required to acknowledge
the instructions of the Directors, however such instructions may be received as aforementioned.

 

		8.2	Any instruction or stipulation given to the Manager or the Investment Advisor seeking to amend
or vary either the terms of this Agreement or the terms of the Investment Advisory Agreement, being an amendment which requires
the prior agreement of the relevant parties, shall be disregarded by the Manager and the Investment Advisor unless the requisite
prior agreement of the relevant parties has been provided.

 

		9.	Fees and Expenses

 

		9.1	The Company shall pay the Manager by way of remuneration for its services hereunder, the relevant
management fee calculated and payable in the manner described in Appendix B hereto.

 

		9.2	In addition to the Management Fees referred to in Clause 9.1, the Manager shall be entitled to
receive a Performance Fee in respect of the Portfolio calculated and payable in the manner described in Appendix C hereto.

 

		9.3	The Company shall reimburse the Manager such other expenses as are agreed in advance between the
Company and the Manager before such expenses are incurred, but the Manager agrees that it will be solely responsible for its expenses
under this Agreement and incurred in negotiating this Agreement and for the fees and expenses of the Investment Advisor, any agents
the Manager may appoint pursuant to Clause 3.6, any employees and/or any of its legal, compliance, tax, accounting or other advisers,
and any tax liability in relation to its management and Performance Fee income accrued or received under this Agreement. All brokerage
and floor commissions and fees, option premiums, and other transaction costs and expenses incurred in connection with transactions
by and for the Portfolio by the Manager or the Investment Advisor shall be for the account of the Company.

 

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		9.4	The Company shall direct the Administrator to provide the Investment Advisor (as a delegate of
the Manager) within fifteen (15) Business Days of the end of each month the basis for the calculation of the respective fees. The
Manager will procure the Investment Advisor to confirm (on behalf of the Manager) whether the calculation is correct and notify
the Administrator accordingly. Once the Administrator has received the necessary confirmation from the Investment Advisor (on behalf
of the Manager), the Management Fee will generally be paid within five (5) Business Days. This section shall apply mutatis mutandis
for Performance Fee payments at the end of the relevant financial year.

 

		9.5	If this Agreement is terminated on a date other than at the end of a month, the Management Fee
shall be calculated pro rata (on the basis of a 365-day year or 366-day year if a leap year) to the date of termination, and the
Performance Fee shall be calculated as if the date of termination is the end of a financial year.

 

		9.6	If a Management Fee or Performance Fee is later determined independently by the Company’s
auditors to be incorrect:

 

		(i)	any overpayment to the Manager shall be repaid by the Manager to the Company within fifteen (15)
Business Days from the date upon which the overpayment to the Manager is notified to the Manager; the Administrator shall be entitled
to set-off such payment against any future fees due to the Manager if such overpayment is not paid within this period;

 

		(ii)	any underpayment to the Manager shall be due and payable to the Manager from the Company within
fifteen (15) Business Days from the date upon which the underpayment to the Manager is notified to the Company.

 

		9.7	The Manager may, in its absolute discretion, from time to time waive or rebate all or any part
of its fees hereunder to any third party.

 

		10.	Limitation of Liability

 

		10.1	No Indemnified Person or Manager Indemnified Person (as defined below) shall be liable in respect
of the negligence, wilful misfeasance, bad faith, reckless disregard, willful default or fraud of any person, firm or company through
which transactions in Investments are effected for the Portfolio, of the Custodians or any other party having custody or possession
of the Portfolio from time to time, or of any clearance or settlement system.

 

		10.2	The Manager will not be liable for any loss howsoever arising except to the extent that such loss
is due to the Manager’s Gross Negligence, willful default or fraud in connection with this Agreement. No warranty is given
by the Manager or any Manager Indemnified Person as to the performance or profitability of any Portfolio or any part of any Portfolio.
Any claim brought pursuant to this Agreement shall be brought only against the Manager and no claims shall be brought personally
against any other persons involved in the performance of this Agreement, whether actual or deemed agents of the Manager or not.

 

		10.3	The Company indemnifies and keeps indemnified the Manager and the directors, officers and employees
of the Manager, the Investment Advisor and the members, officers and employees of the Investment Advisor (each a “Manager
Indemnified Person”) from and against any and all liabilities, obligations, losses, damages, suits and expenses which
may be incurred by or asserted against the Manager in its capacity as Manager Company, the Investment Advisor in its capacity as
Investment Advisor of the Portfolio and against any other Manager Indemnified Person in connection therewith other than those resulting
directly or indirectly from a Manager Indemnified Person’s Gross Negligence, willful default or fraud.

 

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		10.4	The Manager indemnifies and keeps indemnified the Company and the directors and officers of the
Company (each an “Indemnified Person”) from and against any and all liabilities, obligations, losses, damages,
suits and expenses which may be incurred by or asserted against the Company or the directors and officers of the Company arising
directly from the Gross Negligence, willful default or fraud of the Manager in connection with this Agreement and/or the Gross
Negligence, wilful default or fraud of any of the directors, officers, employees, agents, consultants or affiliates of the Manager
in connection with this Agreement.

 

		10.5	An Indemnified Person shall promptly send to the Manager all notices of any claim, summons or writ
which it receives from third parties with respect to any matter that may be covered by the indemnity granted by the Manager under
Clause 10.4 above and no liability of any sort shall be admitted and no undertaking given nor shall any offer, promise or payment
be made or legal expenses incurred by an Indemnified Person in relation to any such claim, summons or writ without the written
consent of the Manager who shall be entitled if it so desires to take over and conduct the defence of any action or to prosecute
any claim for indemnity or damages or otherwise against any third party.

 

		10.6	Notwithstanding the provisions of this Clause 10, in no case shall the Manager be liable for indirect,
special or consequential loss or damage incurred by any Indemnified Person or indemnify in respect of: (A) indirect, special or
consequential loss or damage incurred by an Indemnified Person; or (B) any action taken, omitted or suffered by it to be taken
or omitted which was taken (or omitted) in accordance with specific instructions, advice or directions of, or on behalf of, the
Company.

 

		10.7	The Manager is liable for the acts and omissions of the Investment Advisor in connection with this
Agreement and any other entity to which it has delegated any of its duties and/or functions hereunder (subject to the prior written
approval of the Company) as if such acts or omissions were its own, including, for the avoidance of doubt, breach of the terms
of the Investment Advisory Agreement and any other agreement entered into by the Manager in respect of the Company.

 

		11.	Resignation and Termination

 

		11.1	This Agreement shall continue and remain in force unless and until terminated by a party giving
to all other parties not less than ninety 90 days’ written notice PROVIDED THAT this Agreement may be terminated forthwith
by notice in writing by a party (the “Notifying Party”), if the Manager (where the Notifying Party is not the
Manager) or any of the other parties (where the Notifying Party is the Manager) shall:

 

		(a)	commit any material breach of its obligations under this Agreement and if such breach is capable
of being made good, shall fail to make good such breach within 30 days of receipt of written notice from the Notifying Party requiring
it so to do; or

 

		(b)	be liquidated or dissolved (except a voluntary liquidation or a voluntary dissolution for the purposes
of reconstruction or amalgamation upon terms previously approved in writing by the Notifying Party) or be unable to pay its debts
as they fall due or commit any act of bankruptcy under the laws of any jurisdiction to which that party may be subject or if a
receiver is appointed over any of its assets.

 

		11.2	As soon as a written notice has been served by a Notifying Party pursuant to Clause 11.1 (excluding
(a) and (b) of that clause), the Company and the Manager will cooperate to ensure the orderly transfer, liquidation or closing
out of all outstanding Investments at the date of such notice during the 90 day period.

 

    10

     

    

 

		11.3	Notwithstanding the foregoing provisions of this Clause, this Agreement will terminate automatically:
(i) if the Manager ceases to be able, permitted or authorised to fulfill its obligations under this Agreement as a result of any
change in any applicable laws or regulations (ii) on the date on which the Manager ceases to be registered as an excluded person
with CIMA for the purposes of SIBL; (iii) the date on which the Securities and Futures Commission (the “SFC”)
suspends the Investment Advisor’s licence to carry on type 4 (advising on securities) and 9 (asset management) regulated
activities licensed by the SFC under the Securities and Futures Ordinance of Hong Kong (the “Licence”); or (iv)
the date on which the Investment Advisor ceases to hold the Licence.

 

		11.4	Termination of this Agreement shall be without prejudice to the completion of transactions already
initiated. Such transactions will be completed by the Manager as soon as practicable.

 

		11.5	Upon termination in accordance with this Clause, the rights and obligations of the parties under
this Agreement shall terminate and be of no future effect, except that Clauses 1, 10, 14, 25, 26 and 27 shall remain in full force
and effect.

 

		12.	Conflicts of Interest

 

		12.1	The services of the Manager hereunder are not to be deemed exclusive. The Company acknowledge that
the Manager and its directors, officers, employees or Associates may from time to time act as investment advisor, manager, investment
manager, director or dealer in relation to, or be otherwise involved in, funds or accounts other than the Company which have similar
or different objectives to those of the Company and (including investment funds and other vehicles which may invest, directly or
indirectly, in the Company and/or in which the Company may invest, directly or indirectly). It is, therefore, possible that any
of them may, in the course of business, have potential conflicts of interest with the Company. Each will, at all times, have regard
in such event to its obligations to the Company and will endeavour to ensure that such conflicts are resolved fairly. The Manager
or any of its Associates or any person connected with the Manager may invest in, directly or indirectly, or manage or advise other
investment funds or accounts which invest in assets which may also be purchased or sold by the Company. None of the Manager, any
of its Associates or any person connected with them shall be under any obligation to offer investment opportunities of which any
of them becomes aware to the Company or to account to the Company in respect of (or share with the Company or inform the Company
of) any such transaction or any benefit received by any of them from any such transaction, but will allocate such opportunities
on an equitable basis between the Company and other clients.

 

		12.2	When the Manager has or may have a conflict of interest with the Company, it shall take reasonable
steps to ensure fair treatment for the Company, the steps which it takes being in the absolute discretion of the Manager.

 

		12.3	The Manager will not, and will procure that any Associate of the Manager will not, deal as principal
or agent with the Company except where dealings are carried out as if effected on normal commercial terms negotiated on an arm’s
length basis and provided also that:

 

		(a)	the Manager and any Associate may buy, hold and deal in any Investments upon its individual account
notwithstanding that similar Investments may be held by the Company and without prior reference to the Company; and

 

		(b)	nothing herein contained shall prevent the Manager or any Associate, whether as principal or agent
without prior reference to the Company from contracting or entering into any financial or other transaction with the Company, with
any partner or member thereof or with any company or body any of whose shares or securities are held by or on behalf of the Company
or from being interested in any such contract or transaction.

 

    11

     

    

 

		12.4	For the avoidance of doubt, the Manager and any of its directors, employees or their related entities
may invest in the Company through the direct or indirect acquisition of Shares.

 

		12.5	The parties hereto acknowledge that:

 

		(a)	directors, members, officers, agents and shareholders of the Company are or may be interested in
the Manager as directors, members, officers, shareholders or otherwise, and that directors, officers, members, shareholders and
agents of the Manager and its Associates are or may be interested in the Company as directors, officers, members, shareholders
or otherwise

 

		(b)	no person so interested shall be liable to account for any benefit to the other parties by reason
solely of such interest; and

 

		(c)	the services being supplied by the Manager or any of its Associates to the Company under this Agreement
or otherwise may at the option of the Manager or such Associate be supplied through directors, officers, members, shareholders
or agents who are so interested.

 

		13.	No Licence

 

		13.1	The Company and the Manager each acknowledges for the benefit of each of the others that:

 

		(a)	no provision of this Agreement grants any of them any rights, except as contained herein, in any
intellectual property belonging to or developed by any of the parties; and

 

		(b)	this Agreement does not constitute a licence in respect of any such intellectual property.

 

		14.	Confidentiality

 

		14.1	The parties shall at all times respect and protect the confidentiality of information acquired
in consequence of this Agreement except pursuant to any right or obligation by which the relevant party may be entitled or bound
to disclose information under compulsion of law or pursuant to the requirements of competent regulatory authorities.

 

		14.2	Nothing in this Clause 14 shall prevent the disclosure of information by any party to its auditors
or legal or other professional advisers in the proper performance of their duties.

 

		14.3	None of the parties hereto shall do or commit any act, matter or thing which would or might prejudice
or bring into disrepute in any manner the business or reputation of another party or any director or partner of such party.

 

		14.4	Save as otherwise required by order of any court having lawful jurisdiction or permitted by this
Agreement, no party shall disclose or divulge any information received during the performance of this Agreement relating to the
business of the others.

 

		14.5	Clause 14 shall not prevent the disclosure of information by any party to its auditors or legal
or other professional advisers where reasonably required for the proper performance of their duties, or where required by compulsion
of law or pursuant to the requirements of any competent regulatory, tax or other governmental authority. Clause 14.1 shall not
apply to information which is in the public domain otherwise than due to a breach of this Clause 14.

 

    12

     

    

 

		14.6	The Manager acknowledges that the Company, in conducting its activities, will be required to disclose
certain information (including portfolio information and documentation) to certain advisors and third parties including:

 

		(i)	the Administrator;

 

		(ii)	the Participating Shareholders; and

 

		(iii)	the potential investors of the Company to the extent that the information to be disclosed pertains
to the gross and net exposure numbers, liquidity and risk profiles and past performance of the Company.

 

The Company agrees that no
information pertaining to individual investment positions shall be disclosed without the prior consent by the Investment Advisor.

 

In relation to the above, the
Company will take all reasonable measures necessary to ensure that such information remains confidential between the parties concerned
and that no such information is used for activities competing with the trading activities of the Manager or the Investment Advisor.

 

		14.7	Neither the Manager nor any of their principals, employees, affiliates or agents shall use, publish,
circulate or distribute any material in relation to the Company nor shall any of the foregoing parties engage in any marketing,
sales or promotional activities in connection with the offering of shares in the Company, except as may be agreed in writing between
the Company and the Manager.

 

		15.	Regulatory Status

 

		15.1	The Company confirms that it has submitted an application for registration as a regulated mutual
fund to the CIMA under Section 4(3) of the Mutual Funds Law of the Cayman Islands and therefore will be a sophisticated person
for the purposes of the SIBL. The Company shall notify the Manger immediately if such application is accepted or rejected and,
if accepted, if the Company ceases to be a sophisticated person for the purposes of SIBL.

 

		15.2	The Manger falls within the definition of excluded persons for the purposes of SIBL and does not require any form of license
to provide its services under this Agreement.

 

		16.	Notices

 

		16.1	Subject to Clause 16.3, any notice given hereunder shall
be in writing and may be delivered by hand, or sent by fax, email or by pre-paid airmail, courier or first class post (or analogous
service provided by a licensed postal operator) as appropriate to the registered office or principal place of business, fax number
or email address provided by the party to whom it is addressed or to such other address, fax number or email address as may from
time to time be notified to each other party to this Agreement.

 

Notices
given by pre-paid airmail, courier or post as appropriate shall be deemed to have been given seven days after sending or delivery
to the courier, as appropriate. Evidence that the notice was properly addressed, stamped and put in the post shall be conclusive
evidence that the notice has been sent by post or pre-paid airmail. Evidence that the fax was duly dispatched to the current fax
number of the addressee shall be conclusive evidence that the notice has been delivered. Evidence that a notice sent by courier
was properly addressed and delivered to the courier shall be conclusive evidence that the notice has been sent. Notices given by
hand or fax shall be deemed to have been given when delivered. Notices given by email shall be deemed to have been given when actually
received in readable form.

 

    13

     

    

 

		16.2	For the purposes of notices provided under this Agreement, the parties shall use the following
details unless notified to the contrary:

 

If to the Company:

 

Prestige Global Allocation Fund

4th Floor, Harbour Place

103 South Church Street

PO Box 10240

Grand Cayman

KY1-1002, Cayman Islands

Phone:    +1 345 949 8599

Fax:         +1 345 949 4451

 

Email:      fund.admin@prestigefh.com

 

If to the Manager:

 

Prestige Global Asset Management
Limited

4th Floor, Harbour Place

103 South Church Street

PO Box 10240

Grand Cayman

KY1-1002, Cayman Islands

Phone:    +1 345 949 8599

Fax:         +1 345 949 4451

 

Email:      fund.admin@prestigefh.com

 

If to the Administrator:

 

Equinoxe Alternative Investment
Services (Asia) Pte. Limited

112 Robinson Road

#12-02

Singapore 068902

Phone:    +65 6800 9701

Fax:         + 65 6222 8407

 

Email:      prestige@equinoxeais.com

 

		16.3	This Clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any
arbitration or other method of dispute resolution.

 

		17.	Assignment

 

		17.1	None of the parties shall assign all or any of its rights or benefits under this Agreement without
the prior written consent of the other parties.

 

    14

     

    

 

		18.	Amendments

 

		18.1	No variation of this Agreement shall be effective unless made in writing and signed by the parties
hereto.

 

		19.	Reservation of Rights

 

		19.1	The rights, powers, privileges and remedies provided in this Agreement are cumulative and are not
exclusive of any rights, powers, privileges or remedies provided by law or otherwise.

 

		19.2	No failure to exercise nor any delay in exercising by any party to this Agreement of any right,
power, privilege or remedy under this Agreement shall impair or operate as a waiver thereof in whole or in part.

 

		19.3	No single or partial exercise of any right, power, privilege or remedy under this Agreement shall
prevent any further or other exercise thereof or the exercise of any other right, power, privilege or remedy.

 

		20.	Whole Agreement

 

		20.1	This Agreement, together with any documents referred to in it, constitutes the whole agreement
between the parties relating to its subject matter and supersedes and extinguishes any prior drafts, agreements, undertakings,
representations, warranties and arrangements of any nature, whether in writing or oral, relating to such subject matter.

 

		21.	Severability

 

		21.1	If any provision of this Agreement shall be held to be illegal, void, invalid or unenforceable
under the laws of any jurisdiction, such provision shall be deemed to be deleted from this Agreement as if it had not originally
been contained in this Agreement and the legality, validity and enforceability of the remainder of this Agreement in that jurisdiction
shall not be affected, and the legality, validity and enforceability of the whole of this Agreement in any other jurisdiction shall
not be affected. Notwithstanding the foregoing in the event of such deletion the parties shall negotiate in good faith in order
to agree the terms of a mutually acceptable and satisfactory alternative provision in place of the provision so deleted.

 

		22.	Force Majeure

 

		22.1	No party shall be responsible for any failure to perform its duties hereunder if and for so long
as such failure shall be caused by or directly or indirectly due to war, enemy action, the act or regulation of any government
or other competent authority, riot, civil commotion, terrorism, rebellion, storm, tempest, accident, act of God, fire, lock-out,
strike or other cause whether similar or not beyond the control of the relevant party, provided that the relevant party shall use
all reasonable efforts to minimise the effects of the same.

 

		23.	Counterparts

 

		23.1	This Agreement may be executed in any number of counterparts, which shall together constitute one
agreement. A party may enter into this Agreement by signing any such counterpart.

 

		24.	No Partnership

 

		24.1	Nothing in this Agreement shall constitute or be deemed to constitute a partnership, joint venture
or similar relationship between the parties and/or any other person.

 

    15

     

    

 

		25.	Contracts (Rights of Third Parties) Ordinance

 

		25.1	No person other than the parties to this Agreement and the Indemnified Persons solely for the purposes
of Clause 10 shall have any rights under the Contracts (Rights of Third Parties) Ordinance (Cap. 623) to enforce or copy the benefit
of any provision of this Agreement.

 

		26.	Governing Law

 

		26.1	This Agreement and any non-contractual obligations arising from or connected with it shall be governed
by Hong Kong law and this Agreement shall be construed in accordance with Hong Kong law.

 

		27.	Jurisdiction

 

		27.1	In relation to any legal action or proceedings arising
out of or in connection with this Agreement (whether arising out of or in connection with contractual or non- contractual obligations)
(“Proceedings”), each of the parties irrevocably submits to the non-exclusive jurisdiction of the Hong Kong
courts and waives any objection to Proceedings in such courts on the grounds of venue or on the grounds that Proceedings have
been brought in an inappropriate forum.

 

[remainder of page left intentionally
blank]

 

    16

     

    

 

IN WITNESS, whereof the parties hereto
have caused this Investment Management Agreement to be signed as of the day and year first above written

 

	                       /s/
    Shi Hongtao	)
	SIGNED BY Shi Hongtao	)
	for and on behalf of	)
	 	 
	PRESTIGE GLOBAL ALLOCATION FUND	)
	 

                                                           /s/
                                    Leung Ka Yee Andrew
	

)
	SIGNED BY Leung Ka Yee Andrew	)
	for and on behalf of	)
	PRESTIGE GLOBAL ASSET MANAGEMENT LIMITED	)Exhibit 4.1

 

EXHIBIT A

 

NEITHER THIS SECURITY NOR 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, MAY NOT 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. 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.

 

Original Issue Date: October 24, 2022

Original Conversion Price (subject to adjustment
herein): $0.20

 

$1,666,650

 

ORIGINAL
ISSUE DISCOUNT SENIOR CONVERTIBLE DEBENTURE

DUE
April 24, 2023

 

THIS ORIGINAL ISSUE DISCOUNT
SENIOR CONVERTIBLE DEBENTURE is one of a series of duly authorized and validly issued Original Issue Discount Senior Convertible Debentures
of Creatd, Inc., a Nevada corporation (the “Company”), having its principal place of business at 419 Lafayette Street,
6th Floor, New York, New York 10003, designated as its Original Issue Discount Senior Convertible Debenture due April 24, 2023 (this debenture,
the “Debenture” and, collectively with the other debentures of such series, the “Debentures”).

 

FOR VALUE RECEIVED, the Company
promises to pay to Dorado Goose, LLC or its registered assigns (the “Holder”), or shall have paid pursuant to the terms
hereunder, the principal sum of $1,666,650 on April 24, 2023 (the “Maturity Date”), which Maturity Date may be extended
by the Company pursuant to Section 2(b), or such earlier date as this Debenture is required or permitted to be repaid as provided hereunder,
and to pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Debenture in accordance with
the provisions hereof, if applicable. This Debenture is subject to the following additional provisions:

 

     

     

    

 

Section 1. Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Debenture, (a) capitalized terms not otherwise defined
herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following
meanings:

 

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

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w)
of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Significant
Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such case or proceeding that
is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof is adjudicated insolvent or
bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Company or any Significant Subsidiary
thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or
stayed within 60 calendar days after such appointment, (e) the Company or any Significant Subsidiary thereof makes a general assignment
for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging
a composition, adjustment or restructuring of its debts, (g) the Company or any Significant Subsidiary thereof admits in writing that
it is generally unable to pay its debts as they become due, or (h) the Company or any Significant 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
for the purpose of effecting any of the foregoing.

 

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

 

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

 

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

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an
individual or legal entity 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 33% of the voting
securities of the Company (other than by means of conversion or exercise of the Debentures and the Securities issued together with the
Debentures), (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 66%
of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company (and all of its Subsidiaries,
taken as a whole) 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 66% of the aggregate voting power of the acquiring entity immediately after the transaction, (d)
a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors which is not approved
by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are
serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the
members of the Board of Directors who are members on the date hereof), 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.

 

    2

     

    

 

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

 

“Conversion
Price Adjustment Event” means (i) the Company publicly announces, via a widely disseminated press release or a filing with the
Commission or any other customary manner, that the Company has terminated the Rights Offering or postponed the Rights Offering for an
unspecified period of time or (ii) prior to the Company’s public announcement of the final pricing of the Units, Series A Warrants
and Series B Warrants in the Rights Offering, the Company publicly announces, via a widely disseminated press release or a filing with
the Commission or any other customary manner, that the Company has issued, entered into any agreement to issue or announced the issuance
or proposed issuance of securities of the Company in a Subsequent Financing which Subsequent Financing has terms that are more favorable
to the investors in such Subsequent Financing than the terms to the investors pursuant to the Transaction Documents.

 

“Conversion
Schedule” means the Conversion Schedule in the form of w attached hereto.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Debenture in accordance with the terms
hereof.

 

“Debenture
Register” shall have the meaning set forth in Section 2(c).

 

“Effectiveness
Period” shall have the meaning set forth in the Registration Rights Agreement.

 

    3

     

    

 

“Equity
Conditions” means, during the period in question, (a) the Company shall have duly honored all conversions and redemptions scheduled
to occur or occurring by virtue of one or more Notices of Conversion of the Holder, if any, (b) (i) there is an effective Registration
Statement pursuant to which the Holder is permitted to utilize the prospectus thereunder to resell all of the shares of Common Stock issuable
pursuant to the Transaction Documents (and the Company believes, in good faith, that such effectiveness will continue uninterrupted for
the foreseeable future) or (ii) all of the Conversion Shares issuable pursuant to the Transaction Documents (and shares issuable in lieu
of cash payments of interest) may be resold pursuant to Rule 144 without volume or manner-of-sale restrictions or current public information
requirements as determined by the counsel to the Company as set forth in a written opinion letter to such effect, addressed and acceptable
to the Transfer Agent and the Holder, and (c) there is no existing Event of Default and no existing event which, with the passage of time
or the giving of notice, would constitute an Event of Default.

 

“Equity
Conditions Period” shall have the meaning set forth in Section 2(b).

 

“Event
of Default” shall have the meaning set forth in Section 8(a).

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(d).

 

“Mandatory
Default Amount” means the sum of (a) the greater of (i) the outstanding principal amount of this Debenture, plus all accrued
and unpaid interest hereon, divided by the Conversion Price on the date the Mandatory Default Amount is either (A) demanded (if demand
or notice is required to create an Event of Default) or otherwise due or (B) paid in full, whichever has a lower Conversion Price, multiplied
by the VWAP on the date the Mandatory Default Amount is either (x) demanded or otherwise due or (y) paid in full, whichever has a higher
VWAP, or (ii) 110% of the outstanding principal amount of this Debenture, plus 100% of accrued and unpaid interest hereon, and (b) all
other amounts, costs, expenses and liquidated damages due in respect of this Debenture.

 

“Maturity
Date Extension” shall have the meaning set forth in Section 2(b).

 

“Maturity
Date Extension Notice” shall have the meaning set forth in Section 2(b).

 

“Maturity
Date Extension Notice Date” shall have the meaning set forth in Section 2(b).

 

“Maturity
Date Extension Period” shall have the meaning set forth in Section 2(b).

 

“Monthly
Redemption” means the redemption of this Debenture pursuant to Section 6(a) hereof.

 

    4

     

    

 

“Monthly
Redemption Amount” means, as to a Monthly Redemption, the sum of (i) an amount equal to 1/6 of the outstanding principal amount
of this Debenture held by the Holder, as determined on the day immediately prior to the commencement of the Maturity Date Extension Period
and (ii) accrued but unpaid interest, liquidated damages and any other amounts then owing to the Holder in respect of this Debenture as
of the date in question.

 

“Monthly
Redemption Date” means, following a Maturity Date Extension, the last day of each calendar month during the Maturity Date Extension
Period, and terminating upon the full redemption of this Debenture.

 

“New Maturity
Date” shall have the meaning set forth in Section 2(b).

 

“New York
Courts” shall have the meaning set forth in Section 9(d).

 

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

 

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

 

“Permitted
Indebtedness” means (a) the indebtedness evidenced by the Debentures, (b) the Indebtedness existing on the Original Issue Date
and set forth on Schedule 3.1(bb) attached to the Purchase Agreement, (c) lease obligations and purchase money indebtedness of
up to $250,000, in the aggregate, incurred in connection with the acquisition of capital assets and lease obligations with respect to
newly acquired or leased assets, and (d) indebtedness that (i) is expressly subordinate to the Debentures pursuant to a written subordination
agreement with the Purchasers that is acceptable to each Purchaser in its sole and absolute discretion and (ii) matures at a date later
than the 91st day following the Maturity Date (as such date may be extended hereunder).

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good faith and
by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established
in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Company’s business, such as
carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens arising in
the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate materially detract from the
value of such property or assets or materially impair the use thereof in the operation of the business of the Company and its consolidated
Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for
the foreseeable future the forfeiture or sale of the property or asset subject to such Lien, (c) Liens incurred in connection with Permitted
Indebtedness under clauses (a) and (b) thereunder, and (d) Liens incurred in connection with Permitted Indebtedness under clause (c) thereunder,
provided that such Liens are not secured by assets of the Company or its Subsidiaries other than the assets so acquired or leased.

 

    5

     

    

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of October ___, 2022 among the Company and the original Holders,
as amended, modified or supplemented from time to time in accordance with its terms.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated as of the date of the Purchase Agreement, among the Company
and the original Holders, in the form of Exhibit B attached to the Purchase Agreement.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering
the resale of the Underlying Shares by each Holder as provided for in the Registration Rights Agreement.

 

“Rights
Offering” means the Company’s offering of subscription rights to purchase units of the Company (“Units”),
each Unit comprised of shares of Common Stock, Series A common stock purchase warrants (the “Series A Warrants”) and
Series B common stock purchase warrants (the “Series B Warrants”) (and/or any other securities included in the Units)
of the Company, pursuant to the registration statement on Form S-1 (File No. 333-265251).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

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

 

“Subsequent
Financing” means any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents for cash
consideration, Indebtedness or a combination of units thereof.

 

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

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange, the Pink Open Market, OTCQB or the OTCQX (or any successors to any of the foregoing).

 

Section 2. No
Regular Interest Payments; Extension of Maturity Date.

 

a)
The parties acknowledge that this Debenture was issued at an original issue discount and there are no regularly scheduled interest payments
on this Debenture.

 

    6

     

    

 

b)
Extension of Maturity Date. Subject to the provisions of this Section 2(b), at any time prior to the date that is ten (10) Trading
Days prior to the Maturity Date, the Company may deliver a written notice to the Holder (a “Maturity Date Extension Notice”
and the date on which such notice is deemed delivered hereunder, the “Maturity Date Extension Notice Date”) of its
irrevocable election to extend the term of this Debenture until the date that is six (6) months following the Maturity Date (such date,
the “New Maturity Date” and such extension of the term, the “Maturity Date Extension” and such additional
six (6) month period, the “Maturity Date Extension Period”). The Maturity Date Extension shall be effective on the
Maturity Extension Notice Date and, as of such date, the term “Maturity Date” herein shall mean the New Maturity Date. The
Company may only effect a Maturity Date Extension if, unless waived in writing by the Holder, all of the Equity Conditions are satisfied
on the ten (10) Trading Days prior to the Maturity Extension Notice Date through and including ____, 20231 (such period,
the “Equity Conditions Period”). If any of the Equity Conditions shall cease to be satisfied at any time during the
Equity Conditions Period, then a Holder may elect to nullify the Maturity Date Extension Notice as to such Holder by notice to the Company
within 3 Trading Days after the first day on which any such Equity Condition has not been met (provided that if, by a provision of the
Transaction Documents, the Corporation is obligated to notify the Holders of the non-existence of an Equity Condition, such notice period
shall be extended to the third Trading Day after proper notice from the Corporation) in which case the Maturity Date Extension Notice
shall be null and void, ab initio. A Maturity Extension shall not alter or amend any provision in this Debenture, other than the
extension of the term of the Debenture as described herein.

 

c)
Prepayment. Except as otherwise set forth in this Debenture, the Company may not prepay any portion of the principal amount of
this Debenture without the prior written consent of the Holder.

 

Section 3.Registration
of Transfers and Exchanges.

 

a)
Different Denominations. This Debenture is exchangeable for an equal aggregate principal amount of Debentures 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 Debenture has been issued subject to certain investment representations of the original Holder
set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable
federal and state securities laws and regulations.

 

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

 

		1 Original Maturity Date	

 

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Section 4.  Conversion.

 

a)
Voluntary Conversion. At any time after the Original Issue Date until this Debenture is no longer outstanding, this Debenture 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) hereof). 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 Debenture 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 Debenture to the Company unless the entire principal amount of this Debenture,
plus all accrued and unpaid interest thereon, has been so converted in which case the Holder shall surrender this Debenture as promptly
as is reasonably practicable after such conversion without delaying the Company’s obligation to deliver the shares on the Share
Delivery Date. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Debenture in an amount
equal to the applicable conversion. The Holder and the Company shall maintain records showing the principal amount(s) converted and the
date of such conversion(s). 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. The Holder, and any assignee by acceptance of this Debenture, acknowledge and agree that, by reason
of the provisions of this paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount
of this Debenture may be less than the amount stated on the face hereof.

 

b)
Conversion Price. The conversion price in effect on any Conversion Date shall be equal to $0.20, subject to adjustment herein
(the “Conversion Price”).

 

 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 Debenture to be converted by (y)
the Conversion Price.

 

    8

     

    

 

ii.
Delivery of Conversion Shares Upon Conversion. Not later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading
Days comprising the Standard Settlement Period (as defined below) after each Conversion Date (the “Share Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder (A) the Conversion Shares which, on or after the earlier of (i) the
six month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading restrictions
(other than those which may then be required by the Purchase Agreement) representing the number of Conversion Shares being acquired upon
the conversion of this Debenture (including, if the Company has given continuous notice pursuant to Section 2(b) for payment of interest
in shares of Common Stock at least 20 Trading Days prior to the date on which the Notice of Conversion is delivered to the Company, shares
of Common Stock representing the payment of accrued interest otherwise determined pursuant to Section 2(a) but assuming that the Interest
Notice Period is the 20 Trading Days period immediately prior to the date on which the Notice of Conversion is delivered to the Company
and excluding for such issuance the condition that the Company deliver Interest Conversion Shares as to such interest payment prior to
the commencement of the Interest Notice Period) and (B) a bank check in the amount of accrued and unpaid interest (if the Company has
elected or is required to pay accrued interest in cash). On or after the earlier of (i) the six month anniversary of the Original Issue
Date or (ii) the Effective Date, the Company shall deliver any Conversion Shares required to be delivered by the Company under this Section
4(c) electronically through the Depository Trust Company or another established clearing corporation performing similar functions. As
used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days,
on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Conversion.

 

iii.
Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares 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 Conversion Shares, to rescind such Conversion, in which event the Company shall promptly
return to the Holder any original Debenture delivered to the Company and the Holder shall promptly return to the Company the Conversion
Shares issued to such Holder pursuant to the rescinded Conversion Notice.

 

    9

     

    

 

iv.
Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares upon
conversion of this Debenture 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 law 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, however, 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 Debenture shall elect
to convert any or all of the outstanding principal 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 law, agreement 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 Debenture shall have been
sought and obtained, and the Company posts a surety bond for the benefit of the Holder in the amount of 150% of the outstanding principal
amount of this Debenture, 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
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 Conversion Shares 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, for each $1,000 of principal amount being converted, $10
per Trading Day (increasing to $20 per Trading Day on the fifth (5th) Trading Day after such liquidated damages begin to accrue)
for each Trading Day after such Share Delivery Date until such Conversion Shares 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 8 hereof 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, without limitation, 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.

 

    10

     

    

 

v.
Compensation for Buy-In on Failure to Timely Deliver Conversion Shares 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 Conversion Shares 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 Debenture
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 Debenture 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, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver Conversion
Shares upon conversion of this Debenture as required pursuant to the terms hereof.

 

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 for the sole purpose of issuance upon conversion of this Debenture and payment of
interest on this Debenture, 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 Debentures), not less than such aggregate number of shares of the Common Stock as
shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments and restrictions
of Section 5) upon the conversion of the then outstanding principal amount of this Debenture and payment of interest hereunder. 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 and, if the Registration Statement is then effective under the Securities Act, shall be registered for public resale
in accordance with such Registration Statement (subject to such Holder’s compliance with its obligations under the Registration
Rights Agreement).

 

    11

     

    

 

vii.
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Debenture.
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 Conversion
Price or round up to the next whole share.

 

viii.
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Debenture 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 Conversion
Shares, 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 Conversion Shares upon conversion in a name other than that of the Holder of this Debenture so converted
and the Company shall not be required to issue or deliver such Conversion Shares 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 and
all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day
electronic delivery of the Conversion Shares.

 

    12

     

    

 

d)
Holder’s Conversion Limitations. The Company shall not effect any conversion of this Debenture, and a Holder shall not have
the right to convert any portion of this Debenture, 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 other 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 shall include the number of shares of Common Stock issuable
upon conversion of this Debenture with respect to which such determination is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (i) conversion of the remaining, unconverted principal amount of this Debenture 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, without limitation, any other Debentures or the Warrants) 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 Debenture is convertible (in relation to other securities owned
by the Holder together with any Affiliates and Attribution Parties) and of which principal amount of this Debenture 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 Debenture 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 Debenture is convertible, in each case subject to the Beneficial Ownership Limitation, 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 reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company, or (C) 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 one Trading Day 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 Debenture, 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%] [9.99%]
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 Debenture. The Holder, upon 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 Debenture
held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the 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 Debenture.

 

Section 5. Certain Adjustments.

 

a)
Stock Dividends and Stock Splits. If the Company, at any time while this Debenture is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common 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, the Debentures), (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 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 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.

 

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b)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had
held the number of shares of Common Stock acquirable upon complete conversion of this Debenture (without regard to any limitations on
exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, 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 grant, issue or sale of such Purchase Rights (provided, however, that, to the
extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such
shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance
for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c)
Pro Rata Distributions. During such time as this Debenture is outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or
otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend,
spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Debenture, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete conversion of this Debenture (without regard to any limitations on conversion hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is
taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, that, to the extent that the Holder’s right to participate in any such Distribution would result in
the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to
such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion
of such Distribution 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).

 

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d)
Fundamental Transaction. If, at any time while this Debenture is outstanding, (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 (and all of
its Subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all 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
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, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 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) (each a “Fundamental Transaction”), then, upon any subsequent
conversion of this Debenture, the Holder 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(d)
on the conversion of this Debenture), 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 Debenture is convertible immediately
prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this Debenture). For purposes
of any such conversion, the determination of the 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 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 Debenture 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 under this Debenture and the other Transaction Documents (as defined in the Purchase Agreement)
in accordance with the provisions of this Section 5(d) 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 Debenture, deliver to the Holder in exchange for this Debenture a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Debenture 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 Debenture (without regard to any limitations on the conversion of this Debenture) 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 Debenture 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 Debenture 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 under this Debenture and the other Transaction Documents with the same effect as if such Successor
Entity had been named as the Company herein.

 

e)
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.

 

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f)
Notice to the Holder.

 

(i)
Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the Company
shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

(ii)
Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution 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(and all of its Subsidiaries, taken as a whole)
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 Debenture, and shall cause to be delivered to the Holder at its last address as it shall
appear upon the Debenture 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, distributions,
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 Debenture 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.

 

    16

     

    

 

g)
Subsequent Equity Sales. If, at any time while this Debenture is outstanding, the Company or any Subsidiary, as applicable, sells
or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant
or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of
Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price, the “Base Conversion
Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common 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 shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed
to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then simultaneously with the consummation
(or, if earlier, the announcement) of each Dilutive Issuance the Conversion Price shall be reduced to equal the Base Conversion Price
(subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions following the date of the Purchase
Agreement). Notwithstanding the foregoing, no adjustment will be made under this Section 5(g) in respect of an Exempt Issuance. If the
Company enters into a Variable Rate Transaction, despite the prohibition set forth in the Purchase Agreement, the Company shall be deemed
to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion price at which such securities may be converted
or exercised. The Company shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock
or Common Stock Equivalents subject to this Section 5(g), 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(g), upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive
Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.

 

Section 6. Redemption.

 

a)
Monthly Redemption. On each Monthly Redemption Date, the Company shall redeem the Monthly Redemption Amount (the “Monthly
Redemption”). The Monthly Redemption Amount payable on each Monthly Redemption Date shall be paid in cash. The Holder may convert,
pursuant to Section 4(a), any principal amount of this Debenture subject to a Monthly Redemption at any time prior to the date that the
Monthly Redemption Amount, plus accrued but unpaid interest, liquidated damages and any other amounts then owing to the Holder are due
and paid in full. The Company covenants and agrees that it will honor all Notices of Conversion tendered up until such amounts are paid
in full.

 

b)
Redemption Procedure. The payment of cash pursuant to a Monthly Redemption shall be payable on the Monthly Redemption Date.
If any portion of the payment pursuant to a Monthly Redemption shall not be paid by the Company by the applicable due date, interest shall
accrue thereon at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law until such amount
is paid in full. Notwithstanding anything herein contained to the contrary, if any portion of the Monthly Redemption Amount remains unpaid
after such date, the Holder may elect, by written notice to the Company given at any time thereafter, to invalidate such Monthly
Redemption, ab initio. The Holder may elect to convert the outstanding principal amount of the Debenture pursuant to Section 4
prior to actual payment in cash for any redemption under this Section 6 by the delivery of a Notice of Conversion to the Company.

 

    17

     

    

 

c)
Mandatory Redemption at Election by Holder. Subject to the provisions of this Section 6, at any time while this Debenture
is outstanding, in the event of a Subsequent Financing, the Holder shall have the right to require the Company to use up to 30% (as such
percentage is determined by the Holder and set forth in the applicable notice) of the aggregate gross proceeds to the Company in cash
to repay the then outstanding principal amount, plus any interest or other amounts payable pursuant to this Debenture (any such proceeds,
the “Holder Mandatory Redemption Proceeds”, and any such redemption, a “Mandatory Redemption”).
Not less than three (3) Business Days prior to the closing of a Subsequent Financing, the Company shall deliver to each Holder of the
Debentures a written notice of such Subsequent Financing (“Subsequent Financing Notice”). At any time following the
Subsequent Financing Notice, each Holder shall notify the Company in writing that it either wishes to immediately exercise its right to
require a Mandatory Redemption at the closing of the Subsequent Financing or defer its right to exercise its right to require a Mandatory
Redemption at a later date selected by the Holder in its sole discretion (“Mandatory Redemption Exercise Notice”).
If no Mandatory Redemption Exercise Notice is delivered to the Company prior to the later of the three (3) Business Days following delivery
of the Subsequent Financing Notice and the date of closing of the Subsequent Financing, the Holder shall be deemed to not have elected
to receive the Mandatory Redemption at such closing. The Company shall effect the Mandatory Redemption and pay the Holder the Holder Mandatory
Redemption Proceeds reflected in the Mandatory Redemption Exercise Notice (such amount, the “Holder Elected Amount”)
on the closing of such Subsequent Financing or, if the Holder elects to defer the Mandatory Redemption to after the closing, within five
Business Days following delivery to the Company of a subsequent Mandatory Redemption Exercise Notice specifying such date after closing
(“Mandatory Redemption Date”). The Company’s payment of the Holder Mandatory Redemption Proceeds shall be paid
to each Holder participating pursuant to this Section 6 in accordance with the Holder’s Mandatory Redemption Exercise Notice. Notwithstanding
anything herein to the contrary, any proceeds from a Subsequent Financing in excess of the Holder Mandatory Redemption Proceeds payable
to all holders of Debentures shall be deposited into an account of the Company. The Company’s payment of the Mandatory Redemption
Proceeds shall be applied ratably to all of the holders of the then outstanding Debentures which exercise the right to require a Mandatory
Redemption on the basis of their (or their predecessor’s) initial purchases of Debentures pursuant to the Purchase Agreement. Notwithstanding
the foregoing, this Section 6 shall not apply with respect to an Exempt Issuance, except that no Variable Rate Transaction shall be an
Exempt Issuance.

 

    18

     

    

 

d)
Mandatory Redemption Procedure. The payment of cash pursuant to a Mandatory Redemption shall be payable in full on or before
the Mandatory Redemption Date. If any portion of the payment pursuant to a Mandatory Redemption shall not be paid by the Company by the
applicable due date, interest shall accrue thereon at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted
by applicable law until such amount is paid in full. Notwithstanding anything to the contrary in this Section 6, the Holder Mandatory
Redemption Proceeds shall be applied ratably among the Holders of Debentures if more than one Holder shall deliver a Mandatory Redemption
Exercise Notice, in accordance with Holder Elected Amounts of the Holders of Debentures.

 

Section 7. Negative
Covenants. As long as any portion of this Debenture remains outstanding, unless the holders of at least 67% in principal amount of
the then outstanding Debentures shall have otherwise given prior written consent, the Company shall not, and shall not permit any of the
Subsidiaries to, directly or indirectly:

 

a)
other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits therefrom;

 

b)
other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of its
property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

c)
amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

d)
repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock
or Common Stock Equivalents other than as to (i) the Conversion Shares or Warrant Shares as permitted or required under the Transaction
Documents and (ii) repurchases of Common Stock or Common Stock Equivalents of departing officers and directors of the Company, provided
that such repurchases shall not exceed an aggregate of $100,000 for all officers and directors during the term of this Debenture;

 

e)
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Debentures if on a pro-rata basis,
other than regularly scheduled principal and interest payments as such terms are in effect as of the Original Issue Date, provided that
such payments shall not be permitted if, at such time, or after giving effect to such payment, any Event of Default exists or occurs;

 

    19

     

    

 

f)
pay cash dividends or distributions on any equity securities of the Company;

 

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); or

 

h)
enter into any agreement with respect to any of the foregoing.

 

Section 8. 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 operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental body):

 

i.
any default in the payment of (A) the principal amount of any Debenture or (B) interest, liquidated damages and other amounts owing
to a Holder on any Debenture, as and when the same shall become due and payable (whether on a Conversion Date, the Maturity Date, a Mandatory
Redemption Date or a Monthly Redemption Date or by acceleration or otherwise) which default is not cured within 3 Trading Days;

 

ii.
the Company shall fail to observe or perform any other covenant or agreement contained in the Debentures (other than a breach by
the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (xi)
below) or in any Transaction Document, which failure is not cured, if possible to cure, within the earlier to occur of (A) 5 Trading Days
after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 10 Trading Days after the Company has become
or should have become aware of such failure;

 

iii.
a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents or (B) any other material agreement, lease, document or instrument to which the
Company or any Subsidiary is obligated (and not covered by clause (vi) below), which default or event of default, with respect to clause
(B) herein, is not cured, if possible to cure, within the earlier to occur of (A) 5 Trading Days after notice of such failure sent by
the Holder or by any other Holder to the Company and (B) 10 Trading Days after the Company has become or should have become aware of such
default;

 

    20

     

    

 

iv.
any representation or warranty made in this Debenture, any other Transaction Documents, any written statement pursuant hereto or
thereto or any other report, financial 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, which breach is not cured, if possible to cure, within the
earlier to occur of (A) 5 Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 10
Trading Days after the Company has become or should have become aware of such breach;

 

v.
the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event;

 

vi.
the Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any
indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater
than $250,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or being
declared due and payable prior to the date on which it would otherwise become due and payable;

 

vii.
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 Trading Days;

 

viii.
the Company (and all of its Subsidiaries, taken as a whole) shall be a party to any Change of Control Transaction or Fundamental
Transaction or shall agree to sell or dispose of all or in excess of 33% of its assets in one transaction or a series of related transactions
(whether or not such sale would constitute a Change of Control Transaction);

 

ix.
the Initial Registration Statement (as defined in the Registration Rights Agreement) shall not have been declared effective by
the Commission on or prior to the 120th calendar day after the Closing Date or the Company does not meet the current public
information requirements under Rule 144 in respect of the Registrable Securities (as defined in the Registration Rights Agreement);

 

x.
if, during the Effectiveness Period (as defined in the Registration Rights Agreement), either (a) the effectiveness of the Registration
Statement lapses for any reason or (b) the Holder shall not be permitted to resell Registrable Securities (as defined in the Registration
Rights Agreement) under the Registration Statement for a period of more than 20 consecutive Trading Days or 30 non-consecutive Trading
Days during any 12 month period; provided, however, that if the Company is negotiating a merger, consolidation, acquisition
or sale of all or substantially all of its assets or a similar transaction and, in the written opinion of counsel to the Company, the
Registration Statement would be required to be amended to include information concerning such pending transaction(s) or the parties thereto
which information is not available or may not be publicly disclosed at the time, the Company shall be permitted an additional 10 consecutive
Trading Days during any 12 month period pursuant to this Section 8(a)(x);

 

    21

     

    

 

xi.
the Company shall fail for any reason to deliver Conversion Shares to a Holder prior to the fifth Trading Day after a Conversion
Date pursuant to Section 4(c) or the Company shall provide at any time notice to the Holder, including by way of public announcement,
of the Company’s intention to not honor requests for conversions of any Debentures in accordance with the terms hereof;

 

xii.
the electronic transfer by the Company of shares of Common Stock through the Depository Trust Company or another established clearing
corporation is no longer available or is subject to a “chill”;

 

xiii.
any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their
respective property or other assets for more than $100,000, and such judgment, writ or similar final process shall remain unvacated, unbonded
or unstayed for a period of 60 calendar days; or

 

xiv.
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that the Equity Conditions
are satisfied or that there has been no Equity Conditions Failure or as to whether any Event of Default has occurred.

 

b)
Remedies Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Debenture, plus accrued
but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at
the Holder’s election, immediately due and payable in cash at the Mandatory Default Amount. Commencing 5 days after the occurrence
of any Event of Default that results in the eventual acceleration of this Debenture, the interest rate on this Debenture shall accrue
at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law. Upon the payment in full
of the Mandatory Default Amount, the Holder shall promptly surrender this Debenture 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, 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 Debenture until such time, if any, as the Holder
receives full payment pursuant to this Section 8(b). No such rescission or annulment shall affect any subsequent Event of Default or impair
any right consequent thereon.

 

    22

     

    

 

Section 9. Miscellaneous.

 

a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by email attachment, or sent by a nationally recognized overnight
courier service, addressed to the Company, at the address set forth above, or such other email address, or address as the Company may
specify for such purposes by notice to the Holder delivered in accordance with this Section 9(a). Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by email attachment, or sent by a
nationally recognized overnight courier service addressed to each Holder at the email address or address of the Holder appearing on the
books of the Company, or if no such email attachment or address appears on the books of the Company, at the principal place of business
of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed
given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via email attachment
to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next
Trading Day after the date of transmission, if such notice or communication is delivered via email attachment to the email address set
forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv)
upon actual receipt by the party to whom such notice is required to be given.

 

b)
Absolute Obligation. Except as expressly provided herein, no provision of this Debenture 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 Debenture at the time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation
of the Company. This Debenture ranks pari passu with all other Debentures now or hereafter issued under the terms set forth herein.

 

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

 

    23

     

    

 

d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Debenture shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers,
shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan
(the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York
Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts,
or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Debenture and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to this Debenture or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any
provisions of this Debenture, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

e)
Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Company
or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver
or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture on any
other occasion. Any waiver by the Company or the Holder must be in writing.

 

f)
Severability. If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain
in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit
or forgive the Company from paying all or any portion of the principal of or interest on this Debenture as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Debenture, and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not,
by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit
the execution of every such as though no such law has been enacted.

 

    24

     

    

 

g)
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Debenture shall
be cumulative and in addition to all other remedies available under this Debenture and any of the other Transaction Documents at law or
in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Debenture. 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). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to
the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any
such breach or any such threatened breach, without the necessity of showing economic loss and without any bond or other security being
required. 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 Debenture.

 

h)
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

i)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Debenture and shall not be deemed
to limit or affect any of the provisions hereof.

 

Section 10. Disclosure. Upon
receipt or delivery by the Company of any notice in accordance with the terms of this Debenture, unless the Company has in good faith
determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries,
the Company shall within two (2) Business Days after such receipt or delivery publicly disclose such material, nonpublic information on
a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material, non-public information
relating to the Company or its Subsidiaries, the Company so shall indicate to the Holder contemporaneously with delivery of such notice,
and in the absence of any such indication, the Holder shall be allowed to presume that all matters relating to such notice do not constitute
material, nonpublic information relating to the Company or its Subsidiaries.

 

*********************

 

(Signature Page Follows)

 

    25

     

    

 

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

 

	 	Creatd, Inc.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    26

     

    

 

ANNEX
A

 

NOTICE OF CONVERSION

 

The undersigned hereby elects
to convert principal under the Original Issue Discount Senior Convertible Debenture due ________, 2023 of Creatd, Inc., a Nevada corporation
(the “Company”), into shares of common stock (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 Debenture, 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 Debenture to be Converted:
	 	 
	 	Number of shares of Common Stock to be issued:
	 	 
	 	Signature:
	 	 
	 	Name:
	 	 
	 	Address for Delivery of Common Stock Certificates:
	 	 
	 	Or
	 	 
	 	DWAC Instructions:
	 	 
	 	Broker No:	 
	 	Account No:	 

 

    27

     

    

 

Schedule 1

 

CONVERSION SCHEDULE

 

The Original Issue Discount Senior Convertible
Debentures due on ________, 2023 in the aggregate principal amount of $____________ are issued by Creatd, Inc., a Nevada corporation.
This Conversion Schedule reflects conversions made under Section 4 of the above referenced Debenture.

 

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
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    28

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