Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT
(the “Agreement”) is made as of December 16, 2021, by and among PhoneBrasil International, Inc., a New Jersey corporation
(the “Company”) and the purchasers from time to time party hereto as “Purchasers” (together with their
respective successors and assigns, each, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A. The
Company and the Purchasers are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act (as defined below), and/or Rule 506(b) of Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission under the Securities Act.

 

B. Each
of the Purchasers, wishes to purchase, and the Company wishes to sell at closing, upon the terms and conditions stated in this Agreement,
the Securities (as defined herein), all in the amounts and for the price set forth on Schedule 1 hereto.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company, the Purchasers and the Agent hereby agrees as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1 Defined
Terms. In addition to terms defined elsewhere in this Agreement or in any supplement, amendment or exhibit hereto, when used herein,
the following terms shall have the following meanings:

 

(a) “Action”
has the meaning specified for such term in Section 3.1(z).

 

(b) “Agent”
has the meaning ascribed for such term as set forth in the Security Agreement.

 

(c) “Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 of the Securities Act, including, among others, executive officers,
directors, large stockholders, subsidiaries, parent entities and sister companies.

 

(d) “Balance
Sheet Date” means the balance sheet of Mikab Corporation, a Subsidiary of the Company, at March 31, 2021.

 

(e) “Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day
on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

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(f) “Closing
Date” means a Trading Day on which all of the Transaction Documents have been executed
and delivered by the applicable parties thereto, and all conditions precedent to the parties’
obligations hereunder have been satisfied or waived, including (i) each Purchaser’s obligation to pay the Purchase Price as described
in Section 2.5, and (ii) the Company’s obligations to deliver the Securities. For avoidance of doubt, the Company and Purchasers
may have multiple Closing Dates.

 

(g) “Collateral”
shall have the meaning ascribed to such term as set forth in the Security Agreement.

 

(h) “Common
Stock” means (i) the Company’s common stock, par value $0.000001 per share, and (ii) any capital stock into which such
common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(i) “Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that
is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

(j) “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such
liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or
discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in
whole or in part) against loss with respect thereto.

 

(k) “Conversion
Date” has the meaning set forth in the Notes.

 

(l) “Conversion
Shares” means all shares of Common Stock issuable upon conversion of any portion of any Note (including, at any Purchaser’s
election pursuant to the conditions set forth in the Notes, accrued and unpaid interest thereon), but solely to the extent and subject
to any conditions set forth in the Notes.

 

(m) “Dollar(s)”
and “$” means lawful money of the United States.

 

(n) “Effective
Date” means the date that the initial Registration Statement filed by the Company pursuant to the Registration Rights Agreement
is first declared effective by the Commission.

 

(o) “Event
of Default” shall have the meaning set forth in the Notes.

 

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

 

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(q) 
“Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, consultants,
advisors or directors of the Company in consideration of services to the Company pursuant to any stock or option plan duly adopted for
such purpose by a majority of the members of the Board of Directors or a majority of the members of a committee of directors established
for such purpose, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided
that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the
exercise, exchange or conversion price of such securities, and (c) securities issued in subsequent Closings on the same terms provided
a Closing occurs on or prior to the Termination Date. Notwithstanding the foregoing, the reissuance of Series A Convertible Preferred
Stock upon the reclassification of outstanding preferred stock as described in the Super 8-K shall be construed to be an Exempt Issuance.

 

(r) “FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

(s) “GAAP”
means generally accepted accounting principles in the United States of America as in effect from time to time.

 

(t) “Indebtedness”
means, with respect to any Person at any date, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or services (but excluding trade payables incurred in the ordinary
course of business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all
indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or the purchaser under such agreement in the event of default are limited to
repossession or sale of such property), (e) all capital lease obligations of such Person, (f) all obligations of such Person,
contingent or otherwise, as an account party or applicant under acceptance, letter of credit, surety bond or similar facilities, (g) all
obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any capital stock of such
Person, (h) all obligations for any earn-out consideration, (i) the liquidation value of preferred capital stock of such Person,
(j) all guarantee obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (i) above,
(k) all obligations of the kind referred to in clauses (a) through (i) above secured by (or for which the holder of such obligation
has an existing right, contingent or otherwise, to be secured by) any lien on property (including, without limitation, accounts and contract
rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation and all obligations
of such Person in respect of hedge agreements; and (l) all Contingent Obligations in respect to indebtedness or obligations of any Person
of the kind referred to in clauses (a)-(k) above. The Indebtedness of any Person shall include, without duplication, the Indebtedness
of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness expressly provide that such Person is not liable therefor.

 

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(u) “Investment”
means any investment (including, without limitation, any loan or advance) in or to any Person, whether payment therefor is made in cash
or capital stock or other equity interests or otherwise, and whether such Investment is by acquisition of capital stock or other equity
interests or Indebtedness, or by loan, advance, transfer of property out of the ordinary course of business, capital contribution, equity
or profit sharing interest, extension of credit on terms other than those normal in the ordinary course of business or otherwise.

 

(v) “Liens”
or “liens” means a lien, mortgage, charge pledge, security interest, encumbrance, right of first refusal, preemptive
right or other restriction, or other clouds on title.

 

(w) “Liabilities”
means all direct or indirect liabilities, Indebtedness and obligations of any kind of Company to the Agent and/or the Purchasers, howsoever
created, arising or evidenced, whether now existing or hereafter arising (including those acquired by assignment), absolute or contingent,
due or to become due, primary or secondary, joint or several, whether existing or arising through discount, overdraft, purchase, direct
loan, participation, operation of law, or otherwise, including, but not limited to, pursuant to the Notes, this Agreement and/or any of
the other Transaction Documents, all accrued but unpaid interest on the Notes, the principal, any letter of credit, any standby letter
of credit, and/or outside attorneys’ and paralegals’ fees or charges relating to the preparation of the Transaction Documents
and the enforcement of the Agent’s and/or the Purchasers’ rights, remedies and powers under this Agreement, the Notes, the
Warrants and/or the other Transaction Documents.

 

(x) “Material
Adverse Effect” means any event, occurrence, fact, condition or change that is, or could
reasonably be expected to become, individually or in the aggregate, materially adverse to the (a) the business, assets, property,
operations, or condition (financial or otherwise) of the Company, (b) the validity or enforceability of this Agreement or any of
the other Transaction Documents, (c) the rights or remedies of the Agent or any Purchaser hereunder or thereunder, or (d) the ability
of any Obligor to perform its obligations under any Transaction Document.

 

(y) “Note”
means all of the Convertible Promissory Notes due on the second anniversary of a Closing Date that are owned by the Purchasers, which,
subject to the terms and conditions set forth in this Agreement, shall be purchased from the Company pursuant to this Agreement, and any
and all Note(s) issued in exchange, transfer or replacement of the Note(s), in each case, in form and substance satisfactory to the Agent.

 

(z) “Obligor”
means the Company, each of its Subsidiaries and each Individual Guarantor.

 

(aa) “Permitted
Indebtedness” means (i) the indebtedness evidenced by the Notes, (ii) any indebtedness of the Company outstanding as of the
date of this Agreement that is listed on Schedule 3.1(n), and (iii) purchase money indebtedness incurred in connection with the
acquisition of capital assets and lease obligations with respect to newly acquired or leased assets in the ordinary course of business.

 

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(bb) “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 permitted under clause (iii) of the definition thereof; provided that such Liens (i) attach only to the property so
acquired and (ii) secure only the Indebtedness that was incurred to acquire such property; (d) pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;
(e) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature that are not past due, in each case in the ordinary course of business, but excluding any contract
for the payment of money; and (f) any Liens in favor of the Agent.

 

(cc) “Person”
means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, institution,
entity, party or government (whether national, federal, state, county, city, municipal or otherwise including, without limitation, any
instrumentality, division, agency, body or department thereof).

 

(dd) “Principal
Market” means the principal Trading Market on which the Common Stock is listed or quoted for trading on the date in question.

 

(ee) “Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation,
an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened. 

 

(ff) “Purchase
Price” shall have the meaning as set forth
on Schedule 1 next to the heading “Purchase Price,” in United States Dollars.

 

(gg) “Registration
Rights Agreement” means the Registration Rights Agreement, dated as of a Closing Date, by and between the Company and the Purchasers
as hereinafter amended and/or supplemented altogether with all exhibits, schedules and annexes to such Registration Rights Agreement,
in each case, in form and substance satisfactory to the Agent.

 

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(hh) “Registration
Statement” means a registration statement meeting the requirements set forth in the Registration
Rights Agreement and covering the resale of the Conversion Shares and the Warrant Shares,
each as provided for in the Registration Rights Agreement.

 

(ii) “Reverse
Split” means a 1-for-100 reverse stock split to be effected by the Company upon
clearance by FINRA and compliance with the Exchange Act and the Rules thereunder.

 

(jj) “SEC”
or “Commission” means the United States Securities and Exchange Commission.

 

(kk) “Securities”
means the Notes and the Warrants purchased pursuant to this Agreement, all Conversion Shares, all Warrant Shares and any securities of
the Company issued to the Purchasers in replacement, substitution and/or in connection with any exchange, conversion and/or any other
transaction involving all or any of such securities of the Company.

 

(ll) “Security
Agreement” means the Security Agreement, dated on or about the date hereof, by and among the Company, the Subsidiaries of the
Company, and the Agent, as hereinafter amended and/or supplemented altogether with all exhibits, schedules and annexes to such Security
Agreement, pursuant to which the Liabilities are secured by the Collateral, in form and substance satisfactory to the Agent.

 

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

 

(nn) “Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be
deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

(oo) “Subsidiary”
means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries,
or both, by such Person. All of the Company’s Subsidiaries are set forth on Schedule 3.1(a) hereto.

 

(pp) “Subsidiary
Guaranty Agreement” means each Guaranty Agreement, between a Subsidiary and the Agent, as amended, restated, supplemented
or otherwise modified from time to time, in form and substance satisfactory to the Agent.

 

(qq) “Super
8-K” means the Current Report on Form 8-K filed by the Company with the Commission on August 12, 2021.

 

(rr) “Term
Sheet” means the Confidential Term Sheet, dated as of October 12, 2021 as hereinafter amended and/or supplemented altogether with
all exhibits, schedules and annexes attached thereto.

 

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

 

(tt) “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 MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
any market or quotation service of the OTC Markets Group (including the OTCQX, the OTCQB, the Pink Open Market or any successors to any
of the foregoing).

 

(uu) “Transaction
Documents” means, collectively, this Agreement, the Term Sheet, the Notes, the Registration Rights Agreement, the Warrants,
the Security Agreement, each Subsidiary Guaranty Agreement, and all financing statements (or comparable documents now or hereafter filed
in accordance with the UCC or other comparable or similar laws, rules or regulations) in favor of the Agent perfecting all Liens the Agent
has on the Collateral (which security interests and Liens of the Agent shall be senior to all Indebtedness of the Company and its Subsidiaries)
and such other documents, instruments, certificates, supplements, amendments, exhibits and schedules required and/or attached pursuant
to this Agreement and/or any of the above documents, and/or any other document and/or instrument related to the above agreements, documents
and/or instruments, and the transactions hereunder and/or thereunder and/or any other agreement, documents or instruments required or
contemplated hereunder or thereunder, whether now existing or at any time hereafter arising.

 

(vv) “Transfer
Agent” means Worldwide Stock Transfer, LLC, the current transfer agent of the Company, with a mailing address of One University
Plaza, Hackensack, NJ 07601 and a phone number of 201-820-2008 and any successor transfer
agent of the Company.

 

(ww) “UCC”
means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that, in the
event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to
the Agent’s Liens on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other
than the State of New York, the term “UCC” shall mean the Uniform Commercial code as enacted and in effect in such
other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies.

 

(xx) “Underlying
Shares” means all Conversion Shares and all Warrant Shares.

 

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(yy) “VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted
average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock
is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported by the Pink Open Market
operated by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid
price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and
reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

(zz) “Warrant
Shares” has the meaning assigned to such term in the Warrants.

 

(aaa) “Warrants”
means those certain Common Stock Purchase Warrants, issued by the Company to the Purchasers on the Closing Date and any and all Warrant(s)
issued in exchange, transfer or replacement of the Warrant(s), in each case, in form and substance satisfactory to the Agent.

 

1.2 Other
Definitional Provisions.

 

(a) Use
of Defined Terms. Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used
in the other Transaction Documents or any certificate or other document made or delivered pursuant hereto or thereto.

 

(b) Accounting
Terms. As used herein and in the other Transaction Documents, and any certificate or other document made or delivered pursuant hereto
or thereto, accounting terms relating to the Company not defined in Section 1.1 and accounting terms partly defined in Section 1.1,
to the extent not defined, shall have the respective meanings given to them under GAAP (provided that all terms of an accounting
or financial nature used herein shall be construed, and all computations of amounts referred to herein shall be made without giving effect
to (i) any election under Accounting Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting Standards
159) (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any
Indebtedness or other liabilities of the Company at “fair value”, as defined therein, and (ii) any treatment of Indebtedness
in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification
or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as
described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof).

 

(c) Construction.
The words “hereof”, “herein” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and section, schedule
and exhibit references are to this Agreement unless otherwise specified. The meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.

 

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(d) UCC
Terms. Terms used in this Agreement that are defined in the UCC shall, unless the context indicates otherwise or are otherwise defined
in this Agreement, have the meanings provided for by the UCC.

 

ARTICLE 2

PURCHASE AND SALE

 

2.1 Closing.

 

(a) The
Securities will be offered for sale until the earlier of (i) the date upon which subscriptions for up to $15,000,000 (the “Maximum
Offering”) offered hereunder have been accepted, or (ii) October 31, 2021, unless extended by the Company for an additional thirty
(30) day period without prior notice to the Purchasers, unless terminated at an earlier time by the Company (the “Termination
Date”). Closings with respect to Securities may take place at any time prior to the Termination Date as determined by the Company
with respect to subscriptions accepted prior to the Termination Date (each such closing referred to as a “Closing”). The last
Closing of the Offering, occurring on or prior to the Termination Date, shall be referred to as the “Final Closing”. Any subscription
documents or funds received after the Final Closing will be returned, without interest or deduction. In the event that the any Closing
does not occur prior to the Termination Date, all amounts paid by the Purchaser shall be returned to the Purchaser, without interest or
deduction. The Purchaser may not revoke this subscription or obtain a return of the subscription amount except as may be provided by applicable
state law. Any subscription received after prior to the Termination Date shall be irrevocable. The minimum purchase that may be made by
any prospective Purchaser shall be $25,000. Subscriptions for investment below the minimum investment may be accepted at the discretion
of the Company. The Company reserves the right to reject any subscription made hereby, in whole or in part, in its sole discretion. The
Company’s agreement with each Purchaser is a separate agreement and the sale of the Securities to each Purchaser is a separate sale.

 

(b) On
a Closing Date, time being of the essence, subject to the occurrence of the conditions set forth in Section 2.3, upon the terms
and subject to the conditions set forth herein, the Company agrees to sell, and each Purchaser severally, but not jointly or jointly and
severally, agrees to purchase, the Securities in such amounts as indicated next to its name on Schedule
1 hereto. Each Purchaser shall deliver, via wire transfer, immediately available funds equal to the Purchase Price for its
Securities as set forth in Section 2.4 hereof, and the Company shall deliver to each Purchaser the Note and the Warrant specified
opposite its name on Schedule 1 on the Closing Date, and the Company and the Purchasers shall deliver the other items set forth
in Section 2.2 deliverable on the Closing Date. Upon satisfaction of the covenants and conditions set forth in Sections 2.2
and 2.3, the closing shall occur at the offices of the Company or such other location as the parties shall mutually agree.

 

2.2 Deliveries.

 

(a) On
or prior to a Closing Date, the Company shall deliver or cause to be delivered to the Agent and the Purchasers the following:

 

(i) this
Agreement duly executed by the Company;

 

(ii) a
Note registered in the name of each Purchaser with such principal amount as set forth on Schedule 1, duly executed by the Company;

 

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(iii) a
Warrant, registered in the name of each Purchaser as set forth on Schedule 1, duly executed by the Company;

 

(iv) the
Registration Rights Agreement duly executed by the Company;

 

(v) a
Security Agreement providing the Agent (for the benefit of the Purchasers) with a lien on all of the assets of the Company and its Subsidiaries,
duly executed by the Company and its Subsidiaries;

 

(vi) UCC
financing statements with respect to each Obligor;

 

(vii) a
Subsidiary Guaranty Agreement for each Subsidiary of the Company;

 

(viii) a
certificate, in the form acceptable to the Purchasers and their counsel, executed by the secretary of the Company dated as of the Closing
Date, as to (i) the resolutions as adopted by the Company’s board of directors relating to the transactions contemplated by this
Agreement in a form acceptable to the Purchasers, (ii) Certificate of Incorporation or other similar organizational document of the Company,
and (iii) the Bylaws or other similar organizational document of the Company;

 

(ix) a
certificate for each Subsidiary of the Company, in the form acceptable to the Purchasers and their counsel, executed by the secretary
of such Subsidiary dated as of the Closing Date, as to (i) the resolutions as adopted by the Subsidiary’s board of directors or
other governing body relating to the transactions contemplated by this Agreement in a form acceptable to the Purchasers, (ii) Certificate
of Incorporation or other similar organizational document of such Subsidiary, and (iii) the Bylaws or other similar organizational document
of such Subsidiary, each as in effect on the Closing Date;

 

(x) a
certificate, duly executed by the Chief Executive Officer of the Company, dated as of the Closing Date, confirming compliance with Section
2.3(b)(i) and (ii) below and as to such other matters as may be reasonably requested by the Purchasers and their counsel in the form
acceptable to the Purchasers;

 

(xi) certificates
evidencing the good standing of the Company and each Company Subsidiary in such entity’s jurisdiction of incorporation issued by
the Secretary of State (or comparable office) of such jurisdiction of formation as of a date within five (5) days of the Closing Date;
and

 

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(xii) such
other documents, instruments, opinions or certificates relating to the transactions contemplated by this Agreement as the Purchasers or
their counsel may reasonably request.

 

(b) On
or prior to the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i) this
Agreement duly executed by such Purchaser;

 

(ii) the
Accredited Investor Questionnaire attached as Annex G to the Term Sheet completed and executed by such Purchaser;

 

(iii) the
portion of the Purchase Price specified opposite its name on Schedule 1 hereto, by wire transfer; provided, that it is understood
and agreed that the Purchase Price shall be delivered as set forth in Section 2.4 hereof;

 

(iv) the
Registration Rights Agreement duly executed by such Purchaser;

 

(v) the
Security Agreement duly executed by such Purchaser and the Agent; and

 

(vi) the
Subsidiary Guaranty Agreement duly executed by such Partner.

 

2.3 Conditions
to Purchase the Securities. Subject to the terms and conditions of this Agreement, on the Closing Date, each Purchaser, severally,
but not jointly or jointly and severally, will purchase from the Company the Securities in the amounts and for the Purchase Price as set
forth opposite its name on Schedule 1, provided the following:

 

(a) The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect,
in all respects) when made and on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as
of a specific date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Purchasers required to be performed at or prior to the Closing Date shall have been performed;

 

(iii) the
delivery by the Purchasers of the items set forth in Section 2.2(b) of this Agreement;

 

(iv) there
shall have been no Material Adverse Effect with respect to the Company and its Subsidiaries, taken as a whole, since the Balance Sheet
Date; and

 

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(v) no
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by
any court or other federal, state, local or other governmental authority of competent jurisdiction that prohibits the consummation of
any of the transactions contemplated by the Transaction Documents.

 

(b) The
obligations of each Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect,
in all respects) when made and on the date of the Closing of the representations and warranties of the Company contained herein (unless
as of a specific date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing shall have been performed in
all material respects;

 

(iii) the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv) there
shall have been no Material Adverse Effect with respect to the Company and its Subsidiaries, taken as a whole, since the Balance Sheet
Date;

 

(v) the
Company shall have obtained all governmental, regulatory and third party consents and approvals, if any, necessary for the entry into
the Transaction Documents and the sale of the Securities; and

 

(vi) no
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by
any court or other federal, state, local or other governmental authority of competent jurisdiction that prohibits the consummation of
any of the transactions contemplated by the Transaction Documents.

 

2.4 Purchase
Price and Payment of the Purchase Price for the Securities. The Purchase Price for the Securities to be purchased by each Purchaser
at the Closing shall be as set forth opposite its name on Schedule 1 and shall be paid at a Closing by the Purchasers by wire
transfer of immediately available funds against delivery of the Securities.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES; OTHER ITEMS

 

3.1 Representation
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part
hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section
of the Disclosure Schedules, (the Company represents and warrants to the Agent and the Purchasers on the Closing Date and on each date
on which the representations and warranties are required to be made or remade (unless as of a specific date set forth below) as follows:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company and the locations thereof are set forth on Schedule 3.1(a). The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all
of the issued and outstanding shares of capital stock or other interests of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities. Schedule 3.1(a) sets forth, as of the Closing
Date, the jurisdiction of organization and the location of the Company’s and its subsidiaries’ executive offices and other
places of business.

 

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(b) Organization,
Etc. The Company and each of the Subsidiaries is duly organized, validly existing and in good standing under the laws of the state
of their respective organization and are duly qualified and in good standing or has applied for qualification as a foreign corporation
authorized to do business in each jurisdiction where, because of the nature of its activities or properties, such qualification is required
except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect.

 

(c) Authorization:
No Conflict. The execution, delivery and performance of the Transaction Documents and the transactions contemplated thereby by the
Company and its Subsidiaries (including, but not limited to, (x) the sale and issuance of the Securities for the Purchase Price, (y) subject
to the Reverse Split occurring, the reservation for issuance of the Conversion Shares required to be reserved pursuant to the terms of
the Notes, the reservation for issuance of the Warrant Shares required to be reserved pursuant to the terms of the Warrants, and the reservation
for issuance of the , and (z) subject to the receipt of Shareholder Approval, the issuance of the Warrant Shares, and the Conversion Shares)
(i) are within the corporate powers of the Company and its Subsidiaries, (ii) have been duly authorized by all necessary action by or
on behalf of the Company and its Subsidiaries (and/or their respective stockholders to the extent required by law), (iii) have received
all necessary and/or required governmental, regulatory and other approvals and consents (if any shall be required), (iv) do not and shall
not contravene or conflict in any material respect with any provision of, or require any consents under (1) any law, rule, regulation
or ordinance, (2) the Company’s or any Subsidiary’s organizational documents; and/or (3) any agreement, credit facility, debt
or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, and (v) other than the Liens granted
to the Agent for the benefit of the Purchasers pursuant to the Transaction Documents, do not result in, or require, the creation or imposition
of any Lien and/or encumbrance on any of the Company’s or any Subsidiary’s properties pursuant to any law, rule, regulation
or ordinance or otherwise.

 

(d) Validity
and Binding Nature. The Transaction Documents to which the Company or any of its Subsidiaries is a party are the legal, valid and
binding obligations of the Company and/or such Subsidiary, enforceable against the Company and/or such Subsidiary in accordance with their
respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization and other similar laws of general
application affecting the rights and remedies of creditors and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

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(e) Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good
and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each
case free and clear of all Liens, except for Permitted Liens. Any real property and facilities held under lease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(f) Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or
any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement
or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default
or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority
or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws relating to securities, corporate law, taxes,
environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each
case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(g) Taxes.
Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect,
the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and
franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations
and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the
periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

 

(h) Licenses
and Permits. The Company and each of its Subsidiaries possesses all certificates, authorizations,
consents, approvals, orders, Licenses and permits issued by the appropriate federal, state
or foreign regulatory authorities (collectively, the “Permits”), necessary
to conduct its business as now conducted. All of such Permits are valid and in full force and effect. There is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or investigation that individually or in the aggregate would reasonably be
expected to lead to the revocation, modification, termination, suspension or any other impairment of the rights of the holder of any such
Permit.

 

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(i) Investment
Company. The Company is not (i) an “investment company” or a company “controlled”, whether directly or indirectly,
by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended; or (ii) engaged principally,
or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulation U of the Board of Governors of the Federal Reserve System).

 

(j) Absence
of Defaults and Conflicts. Neither the Company nor any of its Subsidiaries is (i) in violation
of its charter, by-laws or similar incorporation or organizational documents or (ii) in
violation or default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement
or instrument to which the Company or such Subsidiary is a party or by which it may be bound, or to which any of the property or assets
of the Company is subject (collectively, “Agreements and Instruments”).
The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated in this Agreement and
the other Transaction Documents, and compliance by the Company and its Subsidiaries with its obligations under this Agreement and the
other Transaction Documents, do not and will not, whether with or without the giving of notice or passage of time or both, (w) conflict
with or result in a breach of any of the terms and provisions of, or constitute a default or Repayment Event (as defined below) under,
(x) result in the creation or imposition of any lien, charge or encumbrance (other than Permitted Liens) upon any property or assets of
the Company or any Subsidiary pursuant to, the Agreements and Instruments, (y) result in any violation of the provisions of the charter,
by-laws or similar organizational documents of the Company or any Subsidiary, or (z) result
in the violation of any applicable law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality
or court, domestic or foreign, having jurisdiction over the Company, any of its Subsidiaries or any of their respective assets, properties
or operations, except in the case of this clause (z) for such conflicts, violations, breaches or defaults which would not reasonably be
expected to result in a Material Adverse Effect. As used herein, a “Repayment Event” means
any event or condition which gives the holder of any note, debenture or other evidence of indebtedness that is material to the operations
or financial results of the Company (or any person acting on such holder’s behalf) the right to require the repurchase, redemption
or repayment of all or a portion of such indebtedness by the Company.

 

(k) Foreign
Corrupt Practices Act. Neither the Company nor any of its Subsidiaries, nor, to the Company’s
knowledge, any of its affiliates, directors, officers, employees, agents or other person
acting on behalf of the Company or any of its Subsidiaries is aware of or has taken any action, directly or indirectly, that would result
in a material violation by such person of the Foreign Corrupt Practices Act of 1977, as amended, and the
rules and regulations thereunder (the “FCPA”), including, without limitation,
making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise
to pay or authorization of the payment of money, or other property, gift, promise to give, or authorization of the giving of anything
of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof
or any candidate for foreign political office, in contravention of the FCPA and the Company and its Subsidiaries, and, to the Company’s
knowledge, its affiliates have conducted their businesses in material compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

 

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(l) Rule
506(d) Bad Actor Disqualification Representations and Covenants.

 

(i) No
Disqualification Events. Neither the Company, nor any of its predecessors, affiliates, any manager, executive officer, other officer
of the Company or any Subsidiary participating in the offering, any beneficial owner (as that term is defined in Rule 13d-3 under the
Exchange Act) of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor
any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity as of the date
of this Agreement and on the Closing Date (each, a “Company Covered Person” and, together, “Company Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under
the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).
The Company has exercised reasonable care to determine (A) the identity of each person that is a Company Covered Person; and (B) whether
any Company Covered Person is subject to a Disqualification Event. The Company has complied with its disclosure obligations under Rule
506(e).

 

(ii) Other
Covered Persons. The Company is not aware of any person (other than any Company Covered Person) who has been or will be paid (directly
or indirectly) remuneration in connection with the purchase and sale of the Notes and the Warrants who is subject to a Disqualification
Event (each, an “Other Covered Person”).

 

(iii) Reasonable
Notification Procedures. With respect to each Company Covered Person, the Company has established procedures reasonably designed to
ensure that the Company receives notice from each such Company Covered Person of (A) any Disqualification Event relating to that Company
Covered Person, and (B) any event that would, with the passage of time, become a Disqualification Event relating to that Company Covered
Person; in each case occurring up to and including the Closing Date.

 

(iv) Notice
of Disqualification Events. The Company will notify each Purchaser immediately in writing upon becoming aware of (A) any Disqualification
Event relating to any Company Covered Person and (B) any event that would, with the passage of time, become a Disqualification Event relating
to any Company Covered Person and/or Other Covered Person.

 

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(m) Accuracy
of Information, etc. No statement or information contained in this Agreement, any other Transaction Document or any other document,
certificate or statement furnished to the Agent or any Purchaser by or on behalf of any Obligor in writing for use in connection with
the transactions contemplated by this Agreement and/or the other Transaction Documents contained, as of the date such statement, information,
document or certificate was made or furnished, as the case may be, any untrue statement of a material fact or omitted to state a material
fact necessary to make the statements contained herein or therein, taken as a whole, not materially misleading. There is no fact known
to the Company or any of its Subsidiaries that would reasonably be expected to materially affect any Obligor that has not been expressly
disclosed herein, in the other Transaction Documents, or in any other documents, certificates and written statements furnished to the
Agent or any Purchaser for use in connection with the transactions contemplated hereby and by the other Transaction Documents.

 

(n) Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to
the receipt by the Company of the proceeds from the sale of the Securities hereunder: (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of
its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts
as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge
of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization
laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(n) sets
forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(o) Transactions
With Affiliates and Employees. None of the officers or directors of the Company or any Subsidiary
and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with
the Company or any Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real
or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise requiring payments to or
from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000
per year, other than for: (i) payment of salary or consulting fees for services rendered (so long as such salaries and consulting fees
are on customary terms for companies of a similar size and stage of development), (ii) reimbursement for expenses incurred on behalf of
the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.

 

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(p) Intellectual
Property. The Company and each of its Subsidiaries has, or has rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar
rights as described on Schedule 3.1(p) that are material to the conduct of its business (collectively, the “Intellectual
Property Rights”). Neither the Company nor any of its Subsidiaries has received a notice (written or otherwise) that any material
Intellectual Property Right has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned. Neither
the Company nor any of its Subsidiaries has received, since the Balance Sheet Date, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not have or reasonably be expected
to have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company and each of its Subsidiaries has taken
commercially reasonable security measures to protect the secrecy, confidentiality and value of all of its intellectual property.

 

(q) USA
Patriot Act. The Company and each of its Subsidiaries is in compliance, in all material respects, with (i) the Trading with the Enemy
Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter
V, as amended) and any other enabling legislation or executive order relating thereto, and (ii) the USA Patriot Act (Title III of Pub.
L. 107-56, signed into law on October 26, 2001) (the “Act”).

 

(r) Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer, agent,
joint venture employee or affiliate of the Company or any Subsidiary is currently, or in the past 5 years, has been subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(s) Filings,
Consents and Approvals. Neither the Company nor any of its Subsidiaries is required to obtain
any consent, waiver, authorization or order of, give any notice to, or make any filing
or registration with, any court or other federal, state, local or other governmental authority or
other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the
filings required pursuant to the Registration Rights Agreement and the declaration of effectiveness by the SEC of the Registration Statement,
(ii) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the Securities and the listing of
the Conversion Shares and the Warrant Shares for trading thereon in the time and manner required thereby, and (iii) the filing of Form
D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the “Required
Approvals”).

 

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(t) Authorization;
Enforcement. All corporate action on the part of the Company and its Subsidiaries, and their respective officers, directors and stockholders
necessary for the authorization, execution and delivery of the Transaction Documents and the performance of all obligations of the Company
and its Subsidiaries under the Transaction Documents and have been taken on or prior to the date hereof. Each of the Transaction Documents
has been duly executed by the Company and its Subsidiaries and, when delivered in accordance with the terms hereof and thereof, will constitute
the valid and binding obligation of the Company and its Subsidiaries enforceable against the Company and its Subsidiaries in accordance
with its terms, except: (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by general equitable principles regardless of whether such
enforcement is considered in a proceeding in equity or at law, (iii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iv) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

(u) Valid
Issuance of Securities. Each Note has been duly authorized and, when issued and paid for in accordance with this Agreement, will be
duly and validly issued, fully paid and nonassessable, free and clear of all Liens and all restrictions on transfer other than those expressly
imposed by the federal securities laws and vest in the Purchasers full and sole title and power to the Note purchased hereby by such Purchaser,
free and clear of all Liens, and restrictions on transfer other than those imposed by the federal securities laws. Following the Reverse
Split, all Conversion Shares, when issued pursuant to conversion of the Notes, and all Warrant Shares, when issued pursuant to exercise
of the Warrants, will be duly and validly issued, fully paid and nonassessable, will be free and clear of all Liens and vest in the holder
full and sole title and power to such securities. As of the date of the receipt of Shareholder Approval, the Company has reserved from
its duly authorized unissued Common Stock, (i) the Required Minimum (as defined in the Notes), which Required Minimum shall be continuously
determined by the Company to ensure that the Required Minimum is in reserve with the Transfer Agent at all times and (ii) a sufficient
number of shares of Common Stock to provide for the issuance of the Warrant Shares upon the exercise of the Warrants, which number shall
be continuously determined by the Company to ensure that such number is in reserve with the Transfer Agent at all times.

 

(v) Offering.
The offer and sale of the Notes, the Warrants, the Conversion Shares and the Warrant Shares, when issued pursuant to this Agreement (or
the Notes or the Warrants, as applicable), as contemplated by this Agreement, are exempt from the registration requirements of the Securities
Act, and the qualification or registration requirements of state securities laws or other applicable blue sky laws. Neither the Company
nor any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such exemptions.

 

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(w) Capitalization
and Voting Rights. The capitalization of the Company is as set forth on Schedule 3.1(w),
which Schedule 3.1(w) shall also include the number of shares of Common Stock owned
beneficially, and of record, by Affiliates of the Company as of the date hereof. The authorized capital stock of the Company and
all securities of the Company issued and outstanding are set forth on Schedule 3.1(w) as of the dates reflected therein. All of
the outstanding shares of Common Stock and other securities of the Company have been duly authorized and validly issued, and are fully
paid and nonassessable. Except as set forth on Schedule 3.1(w),
no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(w), there are no agreements or arrangements
under which the Company is obligated to register the sale of any of the Company’s securities under the Securities Act. Except as
set forth on Schedule 3.1(w), no shares of Common Stock and/or other securities of the Company are entitled to preemptive rights
and there are no outstanding debt securities and no contracts, commitments, understandings, or arrangements by which the Company is or
may become bound to issue additional shares of the capital stock and/or other securities of the Company or options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable
for, any shares of capital stock of the Company other than those issued or granted in the ordinary course of business pursuant to the
Company’s equity incentive and/or compensatory plans or arrangements. Except for customary transfer restrictions contained in agreements
entered into by the Company to sell restricted securities and/or as set forth on Schedule 3.1(w), the Company is not a party to,
and it has no knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock and/or other securities
of the Company. Except as set forth on Schedule 3.1(w), the offer and sale of all capital stock, convertible or exchangeable securities,
rights, warrants, options and/or any other securities of the Company, when any such securities of the Company were issued, complied in
all material respects with all applicable federal and state securities laws, and no current and/or prior holder of any securities of the
Company has any right of rescission or damages or any “put” or similar right with respect thereto. Except as set forth on
Schedule 3.1(w), there are no securities or instruments of the Company containing anti-dilution or similar provisions that will
be triggered by the issuance and/or sale of the Securities and/or the consummation of the transactions described herein or in any of the
other Transaction Documents.

 

(x) SEC
Reports; Shell Company Status; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material)
(the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus
and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As
of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The Company has been an issuer subject to Rule 144(i) under the Securities Act. The audited financial
statements of the Company as of December 31, 2020 and the unaudited financial statements of the Company as of three month periods ended
March 31, 2021 have been filed with the SEC (the “Financial Statements”). The Financial Statements of the Company included
in the SEC Reports have been prepared in accordance with GAAP, except as may be otherwise specified in such financial statements or the
notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all
material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject to normal, immaterial, year-end audit adjustments. For purposes of this
Section 3.1, March 31, 2021 is referred to as the “Balance Sheet Date”.

 

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(y) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the Balance Sheet Date and except as the result of the Company’s
acquisition of Mikab Corporation: (i) there has been no event, occurrence or development that has had or that could reasonably be expected
to be materially adverse to the Company or any of its Subsidiaries, (ii) neither the Company nor any of its Subsidiaries has incurred
any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice, (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP
or disclosed in filings made with the Commission (if the Company is an issuer required to file periodic reports under the Exchange Act),
and (C) liabilities in respect of the NRJ Acquisition Agreement, (iii) neither the Company nor any of its Subsidiaries has altered its
method of accounting, (iv) neither the Company nor any of its Subsidiaries has declared or made any dividend or distribution of cash or
other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock,
other than pursuant to the Exchange Agreement and (v) neither the Company nor any of its Subsidiaries has issued any equity securities
to any officer, director or Affiliate, except pursuant to existing Company stock option plans, other than pursuant to the Exchange Agreement.
Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(y), no event, liability,
fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company
or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would be required to be
disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly
disclosed at least 1 Trading Day prior to the date that this representation is made.

 

(z) Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened
against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the
Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation
of or liability under federal or state securities laws. There has not been, and to the knowledge of the Company, there is not pending
or contemplated, any investigation by the Commission involving the Company, any of its Subsidiaries or any current or former director
or officer of the Company or any of its Subsidiaries. The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

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(aa) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided any Purchaser or its respective agents or counsel with any information
that constitutes material, non-public information. The Company understands that the Purchasers may rely on the Transaction Documents,
the information included therein, including, but not limited to, the foregoing representation in purchasing the Securities. All of the
disclosure furnished by or on behalf of the Company to the Purchasers in the Transaction Documents regarding, among other matters relating
to the Company, its business and the transactions contemplated in the Transaction Documents, is true and correct in all material respects
as of the date made and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges
and agrees that no Purchaser has made or shall make any representations or warranties with respect to the transactions contemplated in
the Transaction Documents other than those specifically set forth in Section 3.2 hereof.

 

(bb) No Integrated
Offering. Assuming the accuracy of the representations and warranties set forth in Section 3.2, neither the Company, nor
any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security
or solicited any offers to buy any security, under circumstances that would cause the issuance and/or sale of the Securities to be integrated
with prior offerings of securities by the Company for purposes of (i) the Securities Act that would require the registration of any such
Securities and/or any other securities of the Company under the Securities Act, or that would invalidate the exemptions from registration
relied upon by the Company, or (ii) any stockholder-approval provisions of any Trading Market on which any of the securities of the Company
are listed, eligible for quotation and/or designated.

 

(cc) Insurance.
The Company and each of its Subsidiaries is insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the business in which it is engaged; neither the Company
nor any of its Subsidiaries has been refused any coverage sought or applied for; and the Company does not have any reason to believe that
it or any of its Subsidiaries will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business.

 

(dd) Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action
designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale
or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities,
or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

 

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(ee) Registration
Rights. No Person has any right to cause the Company to effect the registration under the Securities
Act of any securities of the Company or any Subsidiaries.

 

(ff) Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect
to any of the employees of the Company or any of its Subsidiaries, which could reasonably be expected to result in a Material Adverse
Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining
agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the
Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any
employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract
or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does
not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its
Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment
practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(gg) Dilutive
Effect. The Company understands and acknowledges that the number of Conversion Shares issuable upon conversion of the Notes and the
number of Warrant Shares issuable upon exercise of the Warrants, in each case, pursuant to the terms thereof, will increase in certain
circumstances. The Company further acknowledges that its obligations to issue (i) Conversion Shares pursuant to the terms of the Notes
in accordance with this Agreement and the Notes and (ii) Warrant Shares pursuant to the terms of the Warrants in accordance with this
Agreement and the Warrants, is absolute and unconditional regardless of the dilutive effect that any such issuances may have on the percentage
ownership interests of other stockholders of the Company.

 

(hh) Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any, in order
to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provisions under the Company’s certificate of incorporation, as amended, or the laws of the jurisdiction
of its formation that are or could become applicable to any Purchaser as a result of the transactions contemplated by this Agreement and/or
the other Transaction Documents, including, without limitation, the Company’s issuance of the Securities and each Purchaser’s
ownership of the Securities. The Company has not adopted a stockholder rights plan or similar arrangement relating to accumulations of
beneficial ownership of Common Stock or a change in control of the Company.

 

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(ii) Manipulation
of Price. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action
designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for soliciting another
to purchase any other securities of the Company.

 

(jj) DTC Eligible.
The Common Stock is DTC eligible and DTC has not placed a “freeze” or a “chill” on the Common Stock and the Company
has no reason to believe that DTC has any intention to make the Common Stock not DTC eligible, or place a “freeze” or “chill”
on the Common Stock.

 

(kk) Listing
and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market
on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance
requirements of such Trading Market. The Common Stock is eligible for quotation on the Principal Market and the Company has no reason
to believe that the Principal Market has any intention of delisting or no longer quoting the Common Stock from the Principal Market. The
issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market. All , Commitment Conversion
Shares and Warrant Shares have been approved, if so required, for listing or quotation on the Trading Market, subject only to notice of
issuance.

 

(ll) No General
Solicitation.  Neither the Company, nor any of its affiliates, nor, to the knowledge of the Company, any Person acting on its
behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with
the offer or sale of the Securities.

 

(mm) Acknowledgment
Regarding Each Purchaser’s Purchase of Securities.  The Company acknowledges and agrees that each Purchaser is acting solely
in the capacity of an arm’s length purchaser with respect to the other Transaction Documents and the transactions contemplated hereby
and thereby and that no Purchaser is (i) an officer or director of the Company, (ii) an Affiliate of the Company or (iii) to
the knowledge of the Company, a “beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes
of Rule 13d-3 of the Exchange Act).  The Company further acknowledges that no Purchaser is acting as a financial advisor or
fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions
contemplated hereby and thereby, and any advice given by any Purchaser or any of its representatives or agents in connection with the
Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Purchaser’s purchase of
the Securities.  The Company further represents to each Purchaser that the decision of the Company and its Subsidiaries to enter
into the Transaction Documents has been based solely on the independent evaluation by the Company, its Subsidiaries and their respective
representatives.

 

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(nn) Off-Balance
Sheet Arrangements.  There is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries
and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and
is not so disclosed.

 

(oo) Certain
Fees. Except the fees payable to the Placement Agent in a separate offering under Rule 506(c) of Regulation D, no brokerage or finder’s
fees or commissions are or will be payable by the Company or any of its Subsidiaries to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. No
Purchaser shall have any obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(pp) Environmental
Laws. The Company and its Subsidiaries, to the best of the Company’s knowledge, (i) are
in compliance with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including
ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases
or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous
Materials”) into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees,
demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued,
entered, promulgated or approved thereunder (“Environmental Laws”); (ii)
have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i),
(ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(qq) Seniority.
As of the Closing Date, (i) all Indebtedness is subordinated to the Notes, and (ii) no Indebtedness or other claim against the Company
is senior to or pari passu with the Notes in right of payment, whether with respect to interest or upon liquidation or dissolution, or
otherwise, other than indebtedness secured by purchase money security interests (which is senior only as to underlying assets covered
thereby) and capital lease obligations (which is senior only as to the property covered thereby).

 

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(rr) Sarbanes-Oxley;
Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are
applicable to it as of the Closing Date. At March 31, 2021, the Company and the Subsidiaries did not maintain a system of internal accounting
controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general
or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. The Company has not established disclosure controls and procedures (as defined in Exchange
Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required
to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the
effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by the Company’s most
recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in
its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no
changes in the Company’s internal control over financial reporting (as such term is defined in the Exchange Act) that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

(ss) Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(tt) Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company
has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.
The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is
or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such
Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements.

 

(uu) Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s certificate of incorporation (or similar charter documents) or the laws of its state
of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations
or exercising their rights under the Transaction Documents, including without limitation as a result of the Company’s issuance of
the Securities and the Purchasers’ ownership of the Securities.

 

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(vv) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information
that it believes constitutes or might constitute material, nonpublic information. The Company understands and confirms that the Purchasers
will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or on behalf
of the Company to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure
Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and
agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other
than those specifically set forth in Section 3.2 hereof.

 

3.2 Representation
and Warranties of the Purchasers. Each Purchaser, severally and not jointly, hereby represents and warrants as of the date hereof
and as of the Closing Date to the Company as follows:

 

(a) Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate,
partnership, limited liability company or similar power and authority to enter into and to
consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction
Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable,
on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered
by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable
against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(b) Own
Account. Such Purchaser understands that the Securities are “restricted securities”
and have not been registered under the Securities Act or any applicable state securities
law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities
or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities
Act or any applicable state securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities
pursuant to an effective registration statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser
is acquiring the Securities hereunder in the ordinary course of its business.

 

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(c) Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof
it is an “accredited investor” as defined in Rule 501(a) under the Securities Act. The Purchaser has executed the Accredited
Investor Questionnaire with respect to such Purchaser’s accredited investor status, substantially in the form attached as Annex
G to the Term Sheet. The information relating to the Purchaser set forth in such Accredited Investor Questionnaire is complete and accurate
and is incorporated herein by reference.

 

(d) Experience
of Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic
risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e) No
General Solicitation; No Advertising. The Purchaser is unaware of, is in no way relying on, and did not become aware of the offering
of the Securities directly or indirectly through or as a result of, any form of general solicitation or general advertising including,
without limitation, any press release, article, notice, advertisement or other communication published in any newspaper, magazine or similar
media or broadcast over television, radio or the Internet (including without limitation, Internet “blogs,” bulletin boards,
discussion groups or social networking sites in connection with the offering and sale of the Securities and is not subscribing for the
Securities and did not become aware of the offering of the Securities through or as a result of any seminar or meeting to which the undersigned
was invited by, or any solicitation of a subscription by, a person not previously known to the Purchaser in connection with investments
in securities generally. The Purchaser further confirms that it has a substantive and pre-existing relationship with the Company or their
respective officers, directors or agents and such Purchaser was not solicited to purchase the Securities through the use of general solicitation
or had established a substantive relationship with the Company prior to the commence of any Rule 506(c) private placement conducted by
the Company.

 

(f) Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction
Documents (including all exhibits and schedules thereto) and has been afforded (i) the opportunity to ask such questions as it has deemed
necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities
and the merits and risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results
of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity
to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary
to make an informed investment decision with respect to the investment. 

 

(g) Certain
Transactions and Confidentiality. Such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant
to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of the securities of the Company during
the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person
representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the
execution hereof. Notwithstanding the foregoing, if such Purchaser is a multi-managed investment vehicle, whereby separate portfolio managers
manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only
apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities
covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s representatives, including, without
limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained
the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

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The Company
acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transaction contemplated hereby.

 

ARTICLE 4

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions.

 

(a) The
Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or
to an Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor
thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form
and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration
of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be
bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

(b) Each
Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following
form:

 

[NEITHER] THIS SECURITY [NOR THE SECURITIES
INTO WHICH THIS SECURITY IS [CONVERTIBLE] HAS [NOT] 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 WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The Company acknowledges
and agrees that each Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or
grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as
defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under
the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge
or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor
shall be required in connection therewith. Further, no notice shall be required of such pledge. At such Purchaser’s expense, the
Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection
with a pledge or transfer of the Securities, including, if the Securities are then registered for resale on a registration statement,
the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable provision
of the Securities Act to appropriately amend the list of selling stockholders thereunder.

 

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(c) Certificates
evidencing the Conversion Shares and/or the Warrant Shares shall not contain any legend (including the legend set forth in Section 4.1(b)
hereof): (i) when they have been sold while a registration statement (including the Registration Statement) covering the resale of such
security is effective under the Securities Act, (ii) following any sale of such the Conversion Shares and/or Warrant Shares pursuant to
Rule 144, (iii) if such Conversion Shares and/or Warrant Shares are eligible for sale under Rule 144 and a sale or transfer will be taking
place prior to the Company’s next periodic report becomes due under the Exchange Act (not including any extension period) or (iv)
if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after
the Effective Date or at such time as such legend is no longer required under this Section 4.1(c) if required by the Transfer Agent to
effect the removal of the legend hereunder, or if requested by any Purchaser. If any portion of any Note is converted or any portion of
any Warrant is exercised at a time when there is an effective registration statement to cover any sale of the Underlying Shares, or if
such Commitment Conversion Shares, Conversion Shares and/or Warrant Shares have been sold under Rule 144 and the Company is then in compliance
with the current public information required under Rule 144, or if the Commitment Conversion Shares, Conversion Shares and/or Warrant
Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information required
under Rule 144 as to such Commitment Conversion Shares, Conversion Shares and/or Warrant Shares and without volume or manner-of-sale restrictions
provided the conditions of Rule 144(i)(2) have been satisfied and a sale of such shares will be taking place prior to the Company’s
next annual or quarterly report becoming due under its reporting obligations under the Exchange Act (not including any extension period)
or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission) then such Conversion Shares and/or Warrant Shares shall be issued free of all legends.
The Company agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it
will, no later than the earlier of (i) three (3) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period
(as defined below) following the delivery by a Purchaser to the Company or the Transfer Agent of certificate(s) representing the Conversion
Shares and/or Warrant Shares, as applicable, issued with a restrictive legend (such date, the “Legend Removal Date”), deliver
or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends.
The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer
set forth in this Section 4. Certificates for Conversion Shares and/or Warrant Shares subject to legend removal hereunder shall be transmitted
by the Transfer Agent to the applicable Purchaser by crediting the account of such Purchaser’s prime broker with the Depository
Trust Company System as directed by such Purchaser. 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 a certificate representing the Conversion Shares and/or Warrant Shares, as applicable, issued with a restrictive
legend.

 

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(d) In
addition to each Purchaser’s other available remedies, the Company shall pay to each Purchaser, in cash, the greater of (i) as partial
liquidated damages and not as a penalty, for each $1,000 of Conversion Shares and/or Warrant Shares (based on the Conversion Price or
the Exercise Price) delivered for removal of the restrictive legend and subject to Section 4.1(c), $5 per Trading Day (increasing to $10
per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until
such certificate is delivered without a legend and (ii) if the Company fails to (x) issue and deliver (or cause to be delivered) to a
Purchaser by the Legend Removal Date a certificate representing the Securities so delivered to the Company by such Purchaser that is free
from all restrictive and other legends or (y) if after the Legend Removal Date such Purchaser purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Purchaser of all or any portion of the number of shares
of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that
such Purchaser anticipated receiving from the Company without any restrictive legend, then, an amount equal to the excess of such Purchaser’s
total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”) over the product of (A) such
number of , Conversion Shares or Warrant Shares, as applicable, that the Company was required to deliver to such Purchaser by the Legend
Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any Trading Day during the period commencing on the
date of the delivery by such Purchaser to the Company of the applicable , Conversion Shares or Warrant Shares (as the case may be) and
ending on the date of such delivery and payment under this clause (ii).

 

4.2 Furnishing
of Information. As long as any Purchaser
owns Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period)
all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any
Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish
to each Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell
the Securities, including without limitation, under Rule 144. The Company further covenants that it will take such further action as any
holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell such Securities without
registration under the Securities Act, including without limitation, within the requirements of the exemption provided by Rule 144.

 

4.3 Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2
of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the Securities for purposes
of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other
transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

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4.4 Securities
Laws Disclosure; Publicity. The Company shall (a) by the 2nd Business Day after a Closing, issue a press release disclosing
the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents
as exhibits thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release,
the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of
the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection
with the transactions contemplated by the Transaction Documents. Provided, however, the obligation to file a press release
shall only relate to the first Closing. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees
that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its
Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers
or any of their Affiliates on the other hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing
any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any
such press release nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release
of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall
not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly
provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall
not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory
agency or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection
with the filing of final Transaction Documents with the Commission including SEC Guidance as defined by the Registration Rights Agreement,
and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers
with prior notice of such disclosure permitted under this clause (b).

 

4.5 Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company,
any other Person, that any Purchaser is an “Acquiring Person” under any
control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser
could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents.

 

4.6 Non-Public
Information. Except with respect to the material terms and conditions
of the transactions contemplated by the Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company
covenants and agrees that neither it, nor any of its Subsidiaries, nor any other Person acting on behalf of any of the foregoing will
provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes,
material non-public information, unless prior thereto such Purchaser shall have consented
to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands and confirms
that each Purchaser shall be relying on the foregoing covenant in effecting transactions
in securities of the Company. To the extent that the Company delivers any material, non-public information
to any Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any
duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or
Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates
not to trade on the basis of, such material, non-public information, provided that
such Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document constitutes,
or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K or if not subject
to the reporting requirements under the Commission, file a press release. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

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4.7 Use
of Proceeds. As set forth on Schedule
4.7 attached hereto, the Company shall use the net proceeds from the sale of the Securities
hereunder (i)to pay related party indebtedness, (ii) to resolve a dispute with an unrelated party, (iii) for acquisitions and (iv) for
general corporate purposes and working capital. Without limiting the foregoing, the Company shall not use any such proceeds: (a) for
the satisfaction of any portion of the Company’s debt, (b) for the redemption of any of its preferred stock, Common Stock or Common
Stock Equivalents, (c) for the settlement of any outstanding litigation or (d) in violation of FCPA, OFAC regulations or Money
Laundering, Anti-Corruption and Anti-Bribery Laws. 

 

4.8 Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company
will indemnify and hold the Agent, each Purchaser and their respective directors, officers, shareholders, members, partners, employees
and agents (and any other Persons with a functionally equivalent role of a Person holding
such titles notwithstanding a lack of such title or any other title), each Person who controls any Purchaser (within the meaning of Section 15
of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners
or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such
title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, as incurred, arising
out of or relating to (i) any untrue or alleged untrue statement of a material fact contained in any registration statement filed
by the Company, any prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any prospectus or supplement thereto, in the light of the circumstances under which they were
made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information
regarding such Purchaser Party furnished in writing to the Company by such Purchaser Party expressly for use therein, or (ii) any
violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation
thereunder in connection therewith. If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to
assume the defense thereof with counsel of its own choosing reasonably acceptable to such Purchaser Party. Any Purchaser Party shall
have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Purchaser Party except to the extent that (x) the employment thereof has been specifically
authorized by the Company in writing, (y) the Company has failed after a reasonable period of time to assume such defense and to
employ counsel or (z) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between
the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable
fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement
(1) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (2) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this
Agreement or in the other Transaction Documents. The indemnification required by this Section 4.8 shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The
indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the
Company or others and any liabilities the Company may be subject to pursuant to law.

 

4.9 Reservation
of Common Stock. Immediately following the Reverse Split, the Company shall reserve and keep
available at all times, free of preemptive rights, a sufficient number of shares of Common Stock equal to the Required Minimum (as defined
in the Notes) for the purpose of enabling the Company to issue the Conversion Shares and any other shares that may be issuable
pursuant to the Notes. If, on any date, the number of authorized but unissued (and otherwise
unreserved) shares of Common Stock is less than the Required Minimum on such date, then the Board of Directors shall use commercially
reasonable efforts to amend the Company’s certificate or articles of incorporation to increase the number of authorized but unissued
shares of Common Stock to at least the Required Minimum at such time, as soon as possible and in any event not later than the 75th day
after such date

 

4.10 Listing
of Common Stock. The Company hereby agrees to use reasonable best efforts to maintain the listing
or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company
shall apply to list or quote all of the Conversion Shares and Warrant Shares on such Trading
Market and promptly secure the listing of all of the Conversion Shares and Warrant Shares on such Trading Market. The Company further
agrees, if the Company applies to have the Common Stock traded on any other Trading Market (including in accordance with Section 4.22),
it will then include in such application all of the Conversion Shares and Warrant Shares, and will take such other action as is necessary
to cause all of the Conversion Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly as possible.
The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on such Trading Market
and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading
Market. The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company
or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company
or such other established clearing corporation in connection with such electronic transfer.

 

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4.11 Certain
Transactions and Confidentiality. Each Purchaser covenants, severally, but not jointly or jointly
and severally, that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases
or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement
and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press
release as described in Section 4.4.  Each Purchaser covenants, severally, but not jointly or jointly and severally,
that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial
press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of
this transaction and the information included in the Disclosure Schedules.  Notwithstanding the foregoing and notwithstanding anything
contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation,
warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the
transactions contemplated by this Agreement are first publicly announced, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4,
(iii) no Purchaser has been asked by the Company to agree, nor has any Purchaser agreed,
to desist from purchasing or selling Securities which have been issued under the terms of this Agreement, any Note, any Warrant or any
other Transaction Document, or “derivative” securities based on securities issued by the Company or to hold the Securities
for any specified term, (iv)  no Purchaser shall be deemed to have any affiliation with or control over any arm’s length counter-party
in any “derivative” transaction, (v) any Purchaser may engage in hedging activities, other than Short Sales at various
times during the period that the Securities are outstanding,  and (vi) no Purchaser shall
have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance
of the initial press release.  Except as contemplated above, Company acknowledges that such aforementioned hedging activities
do not constitute a breach of any of the Transaction Documents.

 

4.12 Conversion
and Exercise Procedures. The form of Notice of Conversion in the Notes sets forth the totality
of the procedures required of the Purchasers in order to convert the Notes, sets forth the totality of the procedures required of the
Purchasers in order to convert the and the form of Notice of Exercise in the Warrants sets forth the totality of the procedures required
of the Purchasers in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required
of any Purchaser to convert the Notes or the exercise the Warrants. Without limiting the preceding sentences, no ink-original Notice
of Conversion, Notice of Exercise or Delivery Notice shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Conversion form, Notice of Exercise form or Delivery Notice form be required in order to covert
the Notes or the or exercise the Warrants. The Company shall honor conversions of the Notes and
exercises of the Warrants, and shall deliver the Conversion Shares, and the Warrant Shares, as applicable, in accordance with the terms,
conditions and time periods set forth in the Transaction Documents.

 

4.13 Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities
with the Commission as required under Regulation D, and with the applicable securities regulators in the states in which the Securities
were sold, and to provide copies thereof, promptly upon request of any Purchaser. The Company
shall take such further action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify
the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of
the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.

 

4.14 Maintenance
of Property. So long as any Note remains outstanding, the Company shall use its commercially reasonable efforts to keep, and cause
each of its Subsidiaries to keep, all of their respective properties, which are necessary or useful to the conduct of their business,
in good working order and condition, ordinary wear and tear excepted.

 

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4.15 Preservation
of Corporate Existence. So long as any Note remains outstanding, the Company shall, and shall cause each of its Subsidiaries to, preserve
and maintain their respective corporate existences, rights, privileges and franchises in their respective jurisdictions of incorporation,
and qualify and remain qualified, as a foreign corporation in each jurisdiction in which such qualification is necessary in view of their
respective businesses and operations and where the failure to qualify or remain qualified would reasonably be expected to have a Material
Adverse Effect.

 

4.16 DTC
Program. At all times that the Securities are outstanding, the Company will employ as the transfer agent for the Common Stock, the
Conversion Shares and the Warrant Shares a participant in the Depository Trust Company Automated Securities Transfer Program and cause
the Common Stock (including the Conversion Shares and the Warrant Shares) to be transferable pursuant to such program.

 

4.17 Subsequent
Equity Sales. So long as any Note remains outstanding, the Company shall be prohibited from effecting or entering into an agreement
to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units
thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction which is not Permitted
Indebtedness and in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable
for, or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate
or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after
the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being
reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into, or effects
a transaction under, any agreement, including, but not limited to, an equity line of credit, whereby the Company may issue securities
at a future determined price. The foregoing restrictions shall not include any agreement for an at-the-market offering. For avoidance
of doubt, the inclusion of a standard price protection adjustment provision in the event the Company sells Common Stock or Common Stock
Equivalents at a future lower price shall not be deemed to be a Variable Rate Transaction. Each Purchaser shall be entitled to obtain
injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

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4.18 Transfer
Agent Instructions. The Company shall issue irrevocable instructions to the Transfer Agent in a form acceptable to the Purchasers
(the “Irrevocable Transfer Agent Instructions”) to issue certificates or credit shares via DWAC or otherwise to the
applicable balance accounts at The Depository Trust Company (“DTC”), registered in the name of the Purchasers and/or
their respective nominee(s), for the Underlying Shares in such amounts as specified from time to time by the Purchasers to the Company
upon conversion of the Notes and/or exercise of the Warrants. The Company represents and warrants that no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section will be given by the Company to its Transfer Agent with respect to the Securities,
and that the Securities shall otherwise be freely transferable on the books and records of the Company, as applicable, to the extent provided
in this Agreement and the other Transaction Documents. In the event that such sale, assignment or transfer involves Conversion Shares
or Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or in compliance with Rule 144, the transfer
agent shall issue such shares to such buyer, assignee or transferee (as the case may be) without any restrictive legend in accordance
with Section 4.1. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Purchasers. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section, that each Purchaser shall
be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate
issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required. The Company
shall cause its counsel to issue the legal opinion referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer
agent from and after the Applicable Date. Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated
with the issuance of such opinion or the removal of any legends on any of the Securities shall be borne by the Company. “Applicable
Date” means the first date on which all of the Underlying Shares are eligible to be resold by the Purchasers pursuant to Rule
144 or an effective registration statement is in effect.

 

4.19 Public
Information. At any time during the period commencing on or after August 12, 2022 and ending at such time that all of the Securities
may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation
pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c)
(a “Public Information Failure”) then, in addition to the Purchasers’ other available remedies, the Company shall
pay to each Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason
of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate
Purchase Price of each Purchaser’s Securities on the day of a Public Information Failure
and on every thirtieth (30th) day (prorated for periods totaling less than thirty days) thereafter until the earlier of (a)
the date such Public Information Failure is cured and (b) such time that such public information is no longer required for the Purchasers
to transfer the Underlying Shares pursuant to Rule 144. The payments to which the Purchasers
shall be entitled pursuant to this Section 4.19 are referred to herein as “Public Information Failure Payments.”
Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information
Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information
Failure Payments is cured. If an Event (as defined in the Registration Rights Agreement) is occurring at the time of a Public Information
Failure, and the Company is (x) then obligated to pay, and (y) timely pays the Purchasers partial liquidated damages under Section
2(d) of the Registration Rights Agreement for the period occurring simultaneous with the applicable Public Information Failure (such
payments, the “Simultaneous Registration Rights Partial Liquidated Damages”) and (z) has timely paid the Purchasers
all previously accrued partial liquidated damages under Section 2(d) of the Registration Rights Agreement, the Company may deduct
the amounts paid in connection with such Simultaneous Registration Rights Partial Liquidated Damages from such Public Information Failure
Payments due for such simultaneous Public Information Failure. In the event the Company fails to make Public Information Failure Payments
in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months)
until paid in full. Nothing herein shall limit any Purchaser’s right to pursue actual damages for the Public Information Failure,
and each Purchaser shall have the right to pursue all remedies available to it at law or
in equity including, without limitation, a decree of specific performance and/or injunctive relief.

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4.20 Litigation
and Other Notices. For as long as any Note remains outstanding, the Company shall promptly, to the extent not prohibited by law, give
each Purchaser notice in writing within three Trading Days following the occurrence thereof, any Default or Event of Default or event
that has had or could reasonably be expected to have a Material Adverse Effect. Any such information provided to any
Purchaser shall comply with the requirements of Section 4.6 above.

 

4.21 Access
to Records. Upon the occurrence of an Event of Default, the Company shall and shall cause each of its Subsidiaries to provide the
Agent and/or any of its respective duly authorized representatives, attorneys or accountants access to any and all bank records at the
premises of the Company or such Subsidiary where such records are kept, such access being afforded without charge, but only during normal
business hours. Any such information provided to the Agent shall comply with the requirements of Section 4.6 above.

 

4.22 OTC
Markets; National Securities Exchange. 

 

(a) Except
as otherwise provided in clause (b) below, the Company shall take all necessary and appropriate actions to ensure that its shares of Common
Stock remain listed and quoted on the Pink Open Market OTCQB or OTCQX (or any successor) at all times.

 

(b) As
soon as reasonably practicable after the Company meets the qualitative and quantitative listing
standards for listing on a national securities exchange, the Company shall use reasonable best efforts to take all necessary and
appropriate actions to list its shares of Common Stock for trading on such national securities exchange.

 

4.23 Future
Financings. As long as the Notes are outstanding, the Company shall not grant any registration rights in connection with the
subsequent equity financing, nor shall the Company register, or cause to be registered, with the SEC or any state securities commission
any equity securities issuable in connection with the subsequent equity financing.

 

ARTICLE 5

MISCELLANEOUS

 

5.1 Fees
and Expenses. Except as expressly set forth below and in the Transaction Documents to the contrary, each party shall pay the reasonable,
documented fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer
Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company
and any exercise notice delivered by any Purchaser), stamp taxes and other taxes and duties
levied in connection with the delivery of any Securities to any Purchaser. Notwithstanding the foregoing, the Company agrees to pay all
direct and indirect costs and expenses of the Agent and the Purchasers related to the negotiation, due diligence, preparation, closing,
and all other items regarding or related to this Agreement and the other Transaction Documents and all of the transactions contemplated
herein and/or therein, including, but not limited to, the legal fees and expenses of the Agent’s legal counsel solely in connection
with the offer and sale of the Securities (collectively, the “Purchaser’s Expenses”), all of which will be deducted
and paid on Closing Date.

 

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5.2 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile
or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m.
(New York City time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered
via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto on a day
that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (c) the second (2nd) Business
Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party
to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages
attached hereto.

 

5.4 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in
the case of an amendment, by the Company and the Purchasers or, in the case of a waiver, by the party against whom enforcement of any
such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right. Any amendment effected in accordance with accordance with this Section 5.4 shall be binding upon the Purchasers
and holders of Securities and the Company and its Subsidiaries.

 

5.5 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchasers.
Each Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any
Securities in compliance with the Transaction Documents, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers,” and provided
further that (i) such transferee is an “accredited investor” within the meaning of Rule 501 under the Securities Act and (ii)
such transferee is not a direct competitor of the Company or any Subsidiary.

 

5.6 No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

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5.7 Governing
Law; Exclusive Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents 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 conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto
or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively
in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in
connection 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 Action or Proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue
for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
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 Agreement 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 law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents,
then, in addition to the obligations of the Company elsewhere in this Agreement, the prevailing party in such Action or Proceeding shall
be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Action or Proceeding.

 

5.8 Survival.
The representations and warranties contained herein shall survive a Closing and the delivery of the Securities at a Closing.

 

5.9 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that
the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original
thereof.

 

5.10 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired, or invalidated, as long as the essential terms and conditions of the Notes for each
party remain valid, binding, and enforceable. The parties shall use their commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.

 

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5.11 Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting
any similar provisions of) any of the other Transaction Documents, whenever the Agent or any Purchaser exercises a right, election, demand
or option under a Transaction Document and the Company does not timely perform its related
obligations within the periods therein provided, then the Agent and/or the Purchasers may rescind or withdraw, in its sole discretion
from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights; provided, however,
that, in the case of a rescission of a conversion of a Note, the applicable Purchasers shall be required to return any shares of Common
Stock subject to any such rescinded conversion or exercise notice concurrently with the return to
such Purchasers of the aggregate exercise price paid to the Company for such shares.

 

5.12 Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in
the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.13 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Agent,
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents
and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at
law would be adequate.

 

5.14 Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant
to any Transaction Document or the Agent or any Purchaser enforces or exercises its rights thereunder, and such payment or payments or
the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, any of its Subsidiaries,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had
not occurred.

 

    -40-

    

    

 

5.15 Usury.
To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will
resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter
in force, in connection with any Action or Proceeding that may be brought by the Agent or any Purchaser in order to enforce any right
or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly
agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall
not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”),
and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with
any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum
Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased
or decreased by statute or any official governmental action subsequent to the date hereof,
the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective
date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess
of the Maximum Rate is paid by the Company to the Purchasers with respect to indebtedness evidenced by the Transaction Documents, such
excess shall be applied by the Purchasers to the unpaid principal balance of any such indebtedness or be refunded to the Company, the
manner of handling such excess to be at the Purchasers’ election.

 

5.16 Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts
owing under the Transaction Documents is a continuing obligation of the Company and shall
not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument
or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

 

5.17 Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted
herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

5.18 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of the Transaction Documents or any amendments thereto.

 

5.19 WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY
WAIVES FOREVER TRIAL BY JURY.

 

(Signature
Pages Follow)

 

    -41-

    

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.

 

	 	PHONEBRASIL INTERNATIONAL, INC.  
	 	 
	 	By:	                                   
	 	Name: P. Kelley Dunne  
	 	Title: Chief Execute Officer  
	 	 
	 	Address for Notice:  
	 	21 Omaha Street  
	 	Dumont, NJ 07628  
	 	 
	 	With a copy to (which shall not constitute notice):  
	 	 
	 	John Jadhon, Esq.  
	 	The Matt Law Firm, PLLC  
	 	1701 Genesee Street  
	 	Utica, NY 13501  
	 	Email: jjadhon@barclaydamon.com  

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASERS FOLLOWS]

 

Signature Page to Securities Purchase Agreement

 

     

    

    

 

PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

 

IN WITNESS WHEREOF, the undersigned
have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

	 	By:	            
	 	Name: 
	 	Title:

 

	 	Address for Notice to Purchasers:
	 	 	 
	 	 	 
	 	 	 
	 	Email:	 
	 	 	 
	 	Address for Delivery of Securities to Purchaser (if

 not same as address for notice):
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

Purchaser Signature Page to Securities Purchase
Agreement

 

     

    

    

 

Schedule 1

 

Purchase Price; Securities Purchased

 

	Name of
 Purchaser	 	Purchase
 Price	 	 	Aggregate 
 Principal
 Amount of 
 Notes being 
 Purchased	 	 	Number of 
 Common 
 Shares into 
 which are
 Convertible
 (subject to
 adjustment)	 	 	Number of 
 Common
 Shares into
 which 
 Warrants are
 Exercisable 
 (subject to
 adjustment)	 
	 	 	 	      	 	 	 	         	 	 	 	         	 	 	 	          	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALExhibit 10.2

 

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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

Original Issue Date: _________, 2021

 

SECURED
CONVERTIBLE PROMISSORY NOTE

 

DUE
____________, 2023

 

THIS SECURED CONVERTIBLE PROMISSORY
NOTE is a duly authorized and validly issued debt obligation of PhoneBrasil International, Inc., a New Jersey corporation (the “Company”
or the “Borrower”), having its principal place of business at 21 Omaha Street, Dumont, NJ 07628, designated as its
Convertible Promissory Note due __________, 2023 (the “Note”).

 

FOR VALUE RECEIVED, the Company
promises to pay to ________________ or its registered assigns (the “Holder”), or shall have paid pursuant to the terms
hereunder, the principal sum of $___________ and any other sums due hereunder on _________, 2023 (the “Maturity Date”),
or such earlier date as this Note 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 Note in accordance with the provisions hereof. This Note is subject
to the following additional provisions:

 

Section 1. Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Note, (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:

 

“Bankruptcy
Event” means any of the following events: (a) any Obligor 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 such Obligor, (b) there is commenced against any Obligor any such case or proceeding that is not dismissed within 60 days after commencement,
(c) any Obligor is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered,
(d) any Obligor 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) any Obligor makes a general assignment for the benefit of creditors, (f)
any Obligor calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts or (g) any
Obligor, 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.

 

    -1-

     

    

 

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

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day
on which the New York Federal Reserve Bank is closed.

 

“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 the following: (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 fifty percent (50%) of the voting securities of the Company (other than by means of conversion or exercise of the Note), (b) the Company
merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect
to such transaction, the stockholders of the Company immediately prior to such transaction own less than fifty-one percent (51%) of the
aggregate voting power of the Company or the successor entity of such transaction, (c) the Company sells or transfers all or substantially
all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than fifty-one
percent (51%) 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.

 

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

 

“Default
Rate” shall have the meaning set forth in Section 6(b).

 

    -2-

     

    

 

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

 

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

 

“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) the Company shall have paid all liquidated
damages and other amounts owing to the Holder in respect of this Note, (c)(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 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 pursuant
to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the Holder, (d) the Common Stock is trading
on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed or quoted for trading on such Trading
Market (and the Company believes, in good faith, that trading of the Common Stock on a Trading Market will continue uninterrupted for
the foreseeable future), (e) there is a sufficient number of authorized but unissued and otherwise unreserved shares of Common Stock for
the issuance of all of the shares issuable pursuant to the Transaction Documents, (f) there is no existing Event of Default or no existing
event which, with the passage of time or the giving of notice, would constitute an Event of Default, (g) the issuance of the shares in
question (or, in the case of an Optional Redemption, the shares issuable upon conversion in full of the Optional Redemption Amount) to
the Holder would not violate the limitations set forth herein, (h) there has been no public announcement of a pending or proposed Fundamental
Transaction or Change of Control Transaction that has not been consummated, and (i) the Company has provided material non-public information
concerning the Company to the Purchaser without such Purchaser’s prior written consent.

 

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

 

“Mandatory
Default Amount” means the payment of 100% of the outstanding principal amount of this Note and accrued and unpaid interest hereon,
in addition to the payment in cash of all other amounts, costs, expenses and liquidated damages due in respect of this Note and the other
Transaction Documents.

 

“New York
Courts” shall have the meaning set forth in Section 8(d).

 

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

 

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

 

“Optional
Redemption” shall have the meaning set forth in Section 2(e).

 

    -3-

     

    

 

“Optional
Redemption Amount” means the sum of (a) 110% of the then outstanding principal amount of the Note, (b) accrued but unpaid interest
and (c) all liquidated damages and other amounts due in respect of the Note.

 

“Optional
Redemption Date” shall have the meaning set forth in Section 2(e).

 

“Optional
Redemption Notice” shall have the meaning set forth in Section 2(e).

 

“Optional
Redemption Notice Date” shall have the meaning set forth in Section 2(e).

 

“Optional
Redemption Period” shall have the meaning set forth in Section 2(e).

 

“Original
Issue Date” means the date of the first issuance of the Note, as set forth on the first page hereof, regardless of any transfers
of any Note and regardless of the number of instruments which may be issued to evidence such Note.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of __________, 2021, by and among the Company, the Holder and the
other Purchasers from time to time party thereto, as amended, modified or supplemented from time to time in accordance with its terms.

 

“Purchase
Rights” shall have the meaning set forth in Section 5(c).

 

“Required
Minimum” means, as of any date after the Reverse Split is effective, the number of shares of Common Stock that equals the aggregate
number of shares of Common Stock as shall be issuable (taking into account the adjustments of Section 5) upon the conversion
of the then outstanding principal amount of the Notes and payment of interest hereunder and thereunder. The initial Required Minimum shall
be equal to 100% of the Conversion Shares issuable under the Note.

 

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

 

Section 2. Interest,
Prepayment, Redemption and Put Provisions.

 

a)
Payment of Interest in Cash.

 

i.
The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at
the rate of eight percent (8%) per annum, payable quarterly on January 1, April 1, July 1 and October 1, beginning on the first such date
after the Original Issue Date, on each Conversion Date (as to that principal amount then being converted), and on the Maturity Date (each
such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment
shall be due on the next succeeding Business Day), in cash. Upon the occurrence of an Event of Default, the Company shall pay interest
to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the Default Rate.

 

    -4-

     

    

 

b)
Notwithstanding anything to the contrary contained in clause (i) above, at the Holder’s election, interest payable on any
Interest Payment Date may be paid in Common Stock of the Company (rather than cash) in an amount equal to (A) the amount of the interest
payment due on such date, divided by (B) the Conversion Price in effect immediately preceding the date of conversion. Notwithstanding
the foregoing, interest at the Default Rate shall not be permitted to be paid in Common Stock of the Company, but shall be paid exclusively
in cash.

 

c)
Interest Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day
periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together with
all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest shall cease
to accrue with respect to any principal amount converted, provided that the Company actually delivers the Conversion Shares within
the time period required by Section 4(c)(ii) herein. Interest hereunder will be paid to the Person in whose name this Note is registered
on the records of the Company regarding registration and transfers of this Note (the “Note Register”).

 

d)
All overdue accrued and unpaid interest to be paid hereunder shall incur a late fee at an interest rate equal to 18% per annum
(the “Late Fees”) which shall accrue daily from the date such interest is due hereunder through and including the date
of actual payment in full.

 

e)
Optional Redemption. Subject to the provisions of this Section, at any time after the twelve (12) month anniversary of the
Original Issue Date, the Company may deliver a written notice to the Holder (an “Optional Redemption Notice” and the
date such notice is deemed delivered hereunder, the “Optional Redemption Notice Date”) of its irrevocable election
to redeem all of the then outstanding principal amount of this Note for cash in an amount equal to the Optional Redemption Amount on the
60th calendar day following the Optional Redemption Notice Date (such date, the “Optional Redemption Date”,
such 60 calendar day period, the “Optional Redemption Period” and such redemption, the “Optional Redemption”).
The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company may only effect an Optional Redemption
if each of the Equity Conditions shall have been met (unless waived in writing by the Holder) on each Trading Day during the period commencing
on the Optional Redemption Notice Date through to the Optional Redemption Date and through and including the date payment of the Optional
Redemption Amount is actually made in full. If any of the Equity Conditions shall cease to be satisfied at any time during the Optional
Redemption Period, then the Holder may elect to nullify the Optional Redemption Notice 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 Company is obligated to notify the Holder of the non-existence of an Equity Condition, such notice period shall be extended to the
third Trading Day after proper notice from the Company) in which case the Optional Redemption Notice shall be null and void, ab initio.
The Company covenants and agrees that it will honor all Notices of Conversion tendered from the time of delivery of the Optional Redemption
Notice through the date all amounts owing thereon are due and paid in full. The Company’s determination to pay an Optional Redemption
in cash shall be applied ratably to all of the holders of the then outstanding Notes based on their (or their predecessor’s) initial
purchases of Notes pursuant to the Purchase Agreement.

 

    -5-

     

    

 

Section 3. Registration
of Transfers and Exchanges.

 

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

 

b)
Investment Representations. This Note has been issued subject to certain investment representations of the original Holder
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 Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent
of the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose
of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any
such agent shall be affected by notice to the contrary. The Company shall update the Note Register to reflect permitted transferees and
assignees of the Note.

 

Section 4. Conversion.

 

a)
At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall be convertible, in whole or
in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the conversion limitations
set forth in Section 4(d) 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 Note, and amount of accrued and unpaid interest (if any), 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. To effect conversions hereunder, the Holder shall
not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued and
unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount
of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain 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 two Business
Days of delivery of such Notice of Conversion, stating the basis of such objection and citing the relevant Section of the Note upon which
such objection is based. In the event of any dispute or discrepancy, the Company and the Holder shall work to resolve such dispute or
discrepancy to the mutual satisfaction of both parties. The Holder, and any assignee by acceptance of this Note, acknowledge and agree
that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal
amount of this Note may be less than the amount stated on the face hereof.

 

    -6-

     

    

 

b)
Conversion Price. Except as expressly set forth herein, the conversion price in effect on any Conversion Date shall be $1.9032
per share, subject to adjustment herein (the “Conversion Price”). The Conversion Price assumes that the Reverse Split
is on a 1-for-100 basis. If the Reverse Split is less than 1-for-100, the Conversion Price shall be reduced proportionately. For avoidance
of doubt, by way of example if the Reverse Split ratio is 1-for-50, the Conversion Price shall be $0.9516. If at any time the Conversion
Price as determined hereunder for any conversion would be less than the par value of the Common Stock, then at the sole discretion of
the Holder, the Conversion Price hereunder may equal such par value for such conversion and the Conversion Price for such conversion may
be increased to include Additional Principal, where “Additional Principal” means such additional amount to be added to the
principal amount of this Note to the extent necessary to cause the number of conversion shares issuable upon such conversion to equal
the same number of conversion shares as would have been issued had the Conversion Price not been adjusted by the Holder to the par value
price. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or
similar transaction that proportionately decreases or increases the Common Stock during such measuring period.

 

		c)	Mechanics of Conversion.

 

i.
Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion
hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted,
and if the Holder elects to be paid the interest in Common Stock, the accrued interest, by (y) the Conversion Price.

 

ii.
Delivery of Shares Upon Conversion. Not later than two Trading Days after each Conversion Date (the “Share Delivery
Date”), the Company shall transmit by facsimile or electronic mail a confirmation of receipt of such Notice of Conversion to
the Holder and the Transfer Agent which confirmation shall constitute an instruction to the Transfer Agent to process such Notice of Conversion
in accordance with the terms herein, and promptly thereafter (A) (1) provided that the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program, credit such Conversion Shares to the Holder’s or its designee’s balance account with
DTC through its Deposit/Withdrawal at Custodian system, or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, upon the request of the Holder, deliver, or cause to be delivered, to the Holder (via reputable overnight courier) to
the address as specified in the Conversion Notice, a certificate or certificates representing the Conversion Shares representing the number
of Conversion Shares being acquired upon the conversion of this Note and (B) deliver or cause to be delivered to the Holder a bank check
in the amount of accrued and unpaid interest (unless the Holder has elected to receive Conversion Shares for the accrued and unpaid interest).

 

    -7-

     

    

 

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

 

iv.
Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares
upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction
by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of 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. If the Company fails for any reason to deliver to the
Holder such certificate or certificates pursuant to Section 4(c)(ii) by the Share Delivery Date, the Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount being converted $5 per Trading Day (increasing
to $10 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 certificates are delivered or Holder rescinds such conversion. Nothing herein shall limit the Holder’s
right to pursue actual damages or declare an Event of Default pursuant to Section 6 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.

 

v.
Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available
to the Holder, if the Company fails for any reason to deliver or cause to be delivered to the Holder such Conversion Shares via DTC credit
or certificate or certificates by the Share Delivery Date pursuant to Section 4(c)(ii), and if after such Share Delivery Date the
Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm
otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder
was entitled to receive upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the Company shall
(A) pay in cash to the Holder (in addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x)
the Holder’s total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product
of (1) the aggregate number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied
by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions)
and (B) at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of
the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares of Common
Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(c)(ii). For
example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted
conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving
rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be required
to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock
upon conversion of this Note as required pursuant to the terms hereof.

 

    -8-

     

    

 

vi.
Reservation of Shares Issuable Upon Conversion. Following the Reverse Split becoming effective, the Company covenants that
it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock a number of shares of Common
Stock at least equal to 100% of the Required Minimum (to be adjusted monthly) for the sole purpose of issuance upon conversion of this
Note and payment of interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase
rights of Persons other than the Holder (and the other holders of the Note). 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.

 

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

 

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

 

d)
Holder’s Conversion Limitations. The Company shall not effect any conversion of this Note, and a Holder shall not
have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable
Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder
or any of the Holder’s Affiliates) (such Persons, “Attribution Parties”)) would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock
beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable
upon conversion of this Note or any portion of this Note with respect to which such determination is being made, but shall exclude the
number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially
owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence,
for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(d)
applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any
Affiliates and Attribution Parties) and the portion of principal amount (and accrued but unpaid interest) of this Note that is convertible
shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination
of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and the portion
of principal amount of this Note (and, if applicable, accrued and unpaid interest) that is convertible, in each case subject to the Beneficial
Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers
a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall
have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on
the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more
recent written notice delivered by the Company or the Company’s transfer agent to the Holder setting forth the number of shares
of Common Stock outstanding.  Upon the written or oral request of the 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 Note,
by the Holder or its Affiliates or Attribution Parties 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 Note held by the Holder. The
Holder may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect
to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions
of this Section 4(d) shall continue to apply. Any 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.

 

    -9-

     

    

 

Section 5. Certain
Adjustments.

 

a)
Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend
or otherwise makes a 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 Note), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of
a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification
of shares of the Common Stock, any shares of capital stock of the Company, then the 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. Notwithstanding the foregoing, the provisions of this Section 5 a) shall not apply to the Reverse Split.

 

a)
Subsequent Equity Sales. If, at any time while this Note 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 a price per share that is lower than the Conversion Price (such lower price, the “Base Valuation 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 a price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred
for less than the Base Valuation Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to 80% of the
Base Valuation Price . Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding
the foregoing, no adjustment will be made under this Section 5(b) in respect of an Exempt Issuance. For the avoidance of doubt,
if the Company engages in an at-the-market offering, the Company shall be deemed to have issued Common Stock at the lowest sale price
at which the Common Stock was sold in such offering. 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, exercise price or exchange rate (or other price) at which such securities may be converted into or exchangeable or exercised
for. The Company shall notify the Holder in writing, no later than one (1) Business Day following the issuance of any Common Stock or
Common Stock Equivalents subject to this Section 5(b), 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(b), upon the occurrence
of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Valuation Price (as adjusted
in accordance with Section 5)(a)) on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers
to the Base Valuation Price in the Notice of Conversion.

 

b)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 5(a) and Section 5(b)
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 Note (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, 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).

 

    -10-

     

    

 

c)
Pro Rata Distributions. During such time as this Note 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 Note, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Note (without regard to any limitations on exercise 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, 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).

 

d)
Fundamental Transaction. If, at any time while this Note is outstanding, (i) the Company effects any merger or consolidation
of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one transaction
or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or
(iv) the Company effects any reclassification 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 (in any such case, a “Fundamental Transaction”),
then, upon any subsequent conversion of this Note, 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, the same kind and amount of securities,
cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately
prior to such Fundamental Transaction, the holder of 1 share of Common Stock (the “Alternate Consideration”). 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 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 Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing
provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new Note consistent
with the foregoing provisions and evidencing the Holder’s right to convert such Note into Alternate Consideration. The terms of
any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity
to comply with the provisions of this Section 5(e) and insuring that this Note (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

    -11-

     

    

 

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.

 

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 the 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 is a party, any sale or transfer of all
or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities,
cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, then, in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion
of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear upon the Note Register, at least twenty
(20) calendar days prior to the applicable record or effective date hereinafter specified (or such shorter period as is reasonably possible,
but not less than ten (10) calendar days, if twenty (20) calendar days is not reasonably practicable), 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, or the date on which the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company was authorized, 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 any such reclassification,
consolidation, merger, sale, transfer, share exchange, or voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, 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 or if it is not subject to the reporting requirements of the
Commission, a press release. The Holder shall remain entitled to convert this Note during the 20-day period commencing on the date of
such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    -12-

     

    

 

Section 6. Events
of Default.

 

a)
“Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event
and whether such event shall be voluntary or involuntary or effected by 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) unless waived in writing by the Agent:

 

i.
any default in the payment of (A) the principal amount of the Note or (B) interest, liquidated damages and other amounts owing
to the Holder on the Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by
acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B) above, is not cured
within five (5) Trading Days;

 

ii.
the Company shall fail to observe or perform any other covenant or agreement contained in the Note (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)
which failure is not cured, if possible to cure, within the earlier to occur of (A) five (5) Trading Days after notice of such failure
sent by the Holder to the Company and (B) ten (10) Trading Days after the Company has become or should have become aware of such failure;

 

iii.
a material breach, default, event of default or the failure observe or perform any covenant or agreement (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 any Obligor is obligated (and not covered by clause (v) below);

 

iv.
any Obligor experiences a Material Adverse Effect as to the Obligor which in turn results in a Material Adverse Effect on the Company.
For the purpose of this Note “Material Adverse Effect” shall not include any event,
occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions;
(ii) conditions generally affecting the industries in which the Company operates; (iii) any changes in financial or securities markets
in general; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof (v) any
pandemic or lockdown arising from a pandemic; or (vi) any changes in applicable laws or accounting rules, including GAAP; provided,
however, that any event, occurrence, fact, condition or change referred to in clauses (i) through (iv) immediately
above shall be taken into account in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur
to the extent that such event, occurrence, fact, condition or change has a disproportionate effect on the Company compared to other participants
in the industries in which the Company conducts its businesses;

 

v.
prior to the payment in full and satisfaction of all amounts owed under this Note, any security interest and Lien purported to
be created by any Transaction Document shall cease to be in full force and effect, or shall cease to give the Secured Parties (as defined
in the Security Agreement), the Liens, rights, powers and privileges purported to be created and granted under such Transaction Documents
(including a perfected first priority security interest in and Lien on all of the Collateral thereunder (except as otherwise expressly
provided in such Transaction Document)) in favor of the Secured Parties, or shall be asserted by any Obligor or any Affiliate(s) not to
be a valid, perfected, first priority (except as otherwise expressly provided in this Agreement or any such Transaction Document) security
interest in or Lien on the Collateral covered thereby;

 

    -13-

     

    

 

vi.
any representation or warranty made in this Note, 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 (or, to the extent such representation or warranty is qualified by materiality or Material Adverse Effect, in
any respect) as of the date when made or deemed made;

 

vii.
any Obligor 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 $100,000,
whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or being able to be
declared to be due and payable prior to the date on which it would otherwise become due and payable

 

viii.
any Obligor shall be subject to a Bankruptcy Event which has a Material Adverse Effect on the Company;

 

ix.
(A) the Common Stock shall not be eligible for listing or quotation for trading, or has been suspended from listing or quotation,
on its Principal Market and shall not resume listing or quotation for trading thereon or on any other Trading Market within three (3)
Trading Days, or (B) the transfer of shares of Common Stock through the DTC System is no longer available or “chilled”;

 

x.
the Company shall be a party to any Change of Control Transaction or shall agree to sell or dispose of all or in excess of fifty
percent (50%) of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change
of Control Transaction);

 

xi.
the Company shall fail for any reason to (A) credit or cause to be credited Conversion Shares to the Holder’s or its designee’s
account with DTC or (B) deliver or cause to be delivered certificates to the Holder prior to the fifth Trading Day after a Conversion
Date or the Company shall provide at any time notice to the Holder of the Company’s intention to not honor requests for conversions
of the Note in accordance with the terms hereof;

 

xii.
the Company fails to be in compliance with Rule 144(c)(1) (or Rule 144(i)(2), if applicable);

 

xiii.
the occurrence of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any property of the Borrower
or any Subsidiary having an aggregate fair value or repair cost (as the case may be) in excess of $100,000 individually or in the aggregate,
and any such levy, seizure or attachment shall not be set aside, bonded or discharged within forty-five (45) days after the date thereof;

 

xiv.
any monetary judgment, writ or similar final process shall be entered or filed against any Obligor 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 forty-five (45) calendar days;

 

    -14-

     

    

 

xv.
the Company shall enter into any transaction or arrangement structured in accordance with,
based upon, or related or pursuant to, in whole or in part, Section 3(a)(l0) of the Securities Act;

 

xvi.
the Company shall enter into a Variable Rate Transaction;

 

xvii.
any attempt by the Borrower or its officers, directors, and/or Affiliates to transmit, convey,
disclose, or any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or Affiliates of, material
non-public information concerning the Borrower, to the Holder or its successors and assigns without the Holder’s prior written consent,
which is not immediately cured by Borrower’s public disclosure of such information on that same date;

 

xviii.
the Initial Registration Statement (as defined in the Registration Rights Agreement) shall not have been filed by the Filing Date
(as defined in the Registration Rights Agreement)or declared effective by the Commission on or prior to the Effectiveness Date (as defined
in the Registration Rights Agreement); and if, during the Effectiveness Period (as defined in the Registration Rights Agreement), either
(a) the effectiveness of the Registration Statement lapses for any reason except as expressly permitted by the Registration Rights Agreement
and Rule 144 shall be unavailable to the Holder to resell the Registrable Securities; and

 

xix.
the Reverse Split does not occur by November 30, 2021.

 

b)
Remedies Upon Event of Default. If any Event of Default occurs, at the Holder’s election the outstanding principal
amount of this Note, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date
of acceleration, shall become immediately due and payable in cash pursuant to clause (ii) of the definition of Mandatory Default Amount.
Commencing on the occurrence of any Event of Default and for as long an Event of Default is not cured, the interest rate on this Note
as set forth in Section 2 above shall accrue at a rate equal to 18% per annum (the “Default Rate”). Upon the
payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed by the Company. In connection
with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest
or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights
and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by
Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as
the Holder receives full payment pursuant to this Section 6(b). No such rescission or annulment shall affect any subsequent
Event of Default or impair any right consequent thereon. No such rescission or annulment shall affect any subsequent Event of Default
or impair any right consequent thereon; and in addition to any other rights and remedies available to the Holder in an Event of Default,
the Conversion Price in effect on any Conversion Date shall be equal to the Alternate Conversion Price, subject to adjustment herein,
without any notice or any action taken by the Holder. The Borrower shall pay the Holder hereof costs of collection, including reasonable
attorneys’ fees.

 

    -15-

     

    

 

Section 7. Negative
Covenants. As long as any portion of this Note remains outstanding, unless the Holder shall have otherwise given prior written consent,
the Company shall not, and shall not permit any of its subsidiaries (whether or not a Subsidiary on the Original Issue Date) to, directly
or indirectly:

 

a)
except for Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any Indebtedness 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)
except for 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, any documents with respect
to its Indebtedness, or any contract or other agreement material to its business, in any manner that materially and adversely affects
any rights of the Holder under any of the Transaction Documents. The Company’s issuance of Series A Convertible Preferred Stock
in connection with the reclassification of its preferred stock pursuant to an Amendment to its Certificate of Incorporation filed on September
13, 2021 shall not be deemed to materially and adversely affect any rights of the Holder;

 

d)
repay, repurchase or offer to repay, repurchase or otherwise acquire any shares of its Common Stock or Common Stock Equivalents
or other equity interests other than as to (i) the Conversion Shares and the 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 Note;

 

e)
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Liabilities, and other than
regularly scheduled principal and interest payments of Permitted Indebtedness, provided that such payments shall not be permitted
if, at such time, or after giving effect to such payment, any Event of Default exist and is ongoing without cure;

 

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

 

g)
enter into any new transaction with any Affiliate of the Company unless (i) such transaction (A) is in the ordinary course of such
Person’s business, (B) is made on an arm’s-length basis on terms no less favorable to such Person than would be obtained in
a transaction with a non-Affiliate, (C) expressly approved by a majority of the disinterested directors of the Company, and (D) does not
involve the payment or receipt of consideration, or otherwise involve value, in excess of $250,000 and (ii) the Company provides 5 Trading
Days prior written notice to the Agent;

 

    -16-

     

    

 

h)
intentionally omitted;

 

i)
file any registration statement with respect to any securities issued after the date hereof, or otherwise cause such securities
to become registered with the SEC or under any state securities laws prior to the registration of the Conversion Shares and the Warrant
Shares (or that would have priority in right of sale over the Conversion Shares or the Warrant Shares);

 

j)
make any material change to the nature of its business;

 

k)
wind-up, liquidate, or dissolve, or merge, consolidate or amalgamate with any Person;

 

l)
enter into, incur or permit to exist, directly or indirectly, any agreement or other arrangement that materially prohibits, restricts
or imposes any condition upon the ability of the Company or any of its Subsidiaries to create, incur or permit to exist any Lien upon
any of its property or revenues, or that requires the grant of any security for an obligation if security is granted for another obligation,
except (i) this Agreement and the other Transaction Documents, and (ii) restrictions or conditions imposed by any agreement relating to
Permitted Indebtedness described in clause (iii) of the definition thereof (so long as such restrictions or conditions apply only to the
property or assets financed by such Indebtedness);

 

m)  
take any action that would cause it become subject to the registration requirements of the Investment Company Act of 1940, as amended;
or

 

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

 

Section 8. 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 facsimile, electronic mail or sent by a nationally
recognized overnight courier service, addressed to the Company, at the facsimile number, email address or mailing address set forth on
its signature page hereto, or such other facsimile number, electronic mail or address as the Company may specify for such purposes by
notice to the Holder delivered in accordance with this Section 8(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 electronic mail, by facsimile, or sent by a nationally
recognized overnight courier service addressed to the Holder at the email address, facsimile number or address of the Holder appearing
on the books of the Company, or if no such email address or facsimile number 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, or such other facsimile number, electronic mail or address as
the Holder may specify for such purposes by notice to the Company delivered in accordance with this Section 8(a). 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 electronic mail or facsimile prior to 5:30 p.m. (New York City time) on any Trading Day,
(ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via electronic mail or facsimile
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.

 

    -17-

     

    

 

b)
Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable,
on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the
Company. This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein.

 

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

 

d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note 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
Note 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 Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce
any provisions of this Note, 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.

 

    -18-

     

    

 

e)
Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Note 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 Note. The failure of the Company
or the Holder to insist upon strict adherence to any term of this Note 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 Note on any other occasion.
Any waiver by the Company or the Holder must be in writing.

 

f)  
Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note 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 Note as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, 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.

 

g)
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief.  The remedies provided in this Note
shall be cumulative and in addition to all other remedies available under this Note 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 Note.  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 Note.

 

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 Note and shall not be
deemed to limit or affect any of the provisions hereof.

 

j)  
Secured Obligation. The obligations of the Company under this Note are secured by all assets of the Company and each Subsidiary
pursuant to the Security Agreement, dated as of _________, 2021 between the Company, the Subsidiaries of the Company and the Secured Parties
(as defined therein).

 

(Signature Pages Follow)

 

    -19-

     

    

 

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

 

	 	PHONEBRASIL INTERNATIONAL, Inc.
	 	 
	 	By:	 
	 	Name:	P. Kelley Dunne
	 	Title:	 Chief Executive Officer
	 	 
	 	Mailing Address for Notices:
	 	21 Omaha Street
	 	Dumont, NJ 07628
	 	 
	 	Email Address for delivery of Notices:

 

Signature Page to Note

 

    

     

    

 

ANNEX A - NOTICE OF CONVERSION

 

The undersigned hereby elects
to convert principal (and, if applicable, accrued and unpaid interest) under the Convertible Promissory Note due ___________, 2023 of
PhoneBrasil International, Inc., a New Jersey 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(d) of this Note, as determined in accordance with such Section.

 

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 Information

 

Date to Effect Conversion: _____________________________________________________________   

 

Outstanding Principal Before Conversion: _____________________________________________________________  

 

Outstanding Interest Before Conversion: _____________________________________________________________  

 

Principal Amount of Note to be Converted: _____________________________________________________________  

 

Interest Amount of Note to be Converted: _____________________________________________________________   

 

Conversion Price Calculations:

 

Total Shares of Common Stock to be Issued: 

 

Outstanding Principal After Conversion: _____________________________________________________________    

 

Outstanding Interest After Conversion: _____________________________________________________________    

 

	DWAC Instructions	 	Physical Delivery
	 	 	 
	Broker:	 	 
	 	 	 
	DTC#:	 	Issue to:
	 	 	 
	Account:	 	Address:
	 	 	 
	Account Name:	 	 

 

Entity Name:  _____________________________________________________________    

 

Signatory Name:  _____________________________________________________________  

 

Title:  _____________________________________________________________  

 

Signature:  _____________________________________________________________   

 

 

    

     

    

 

Schedule 1

 

CONVERSION SCHEDULE

 

This Convertible Promissory Note due on [*], 2023
in the original principal amount of $[*] is issued by PhoneBrasil International, Inc., a New Jersey corporation. This Conversion Schedule
reflects conversions made under Section 4 of the above referenced Note.

 

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

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