Document:

EXHIBIT 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of November 7, 2013, between Fuse Science, Inc., a Nevada corporation
(the “Company”), and the purchasers signatory hereto (the each a “Purchaser” and collectively,
the “Purchasers”).

 

WHEREAS, subject
to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended
(the “Securities Act”), the Company desires to issue and sell to the Purchasers, and the Purchasers desire to
purchase from the Company, severally and not jointly (i) 10% senior secured convertible promissory notes, in the aggregate principal
face amount of $700,000 (the “Purchase Price”) and in the form attached hereto as Exhibit A (the
“Notes”), which Notes shall be, at the option of the Holder (as defined in the Notes), convertible into and
exchanged for shares (the “Conversion Shares”) of capital stock of the Company in a Subsequent Financing (as
defined in the Notes) in accordance with Section 4 and Section 4A of the Notes, and (ii) warrants, in the form attached hereto
as Exhibit B (the “Warrants” and with the Notes, the “Securities”) to
purchase shares of Common Stock (the “Warrant Shares” and with the Conversion Shares, the “Shares”);

 

WHEREAS, the
Notes shall be secured by a first priority perfected security interest in all of the tangible and intangible assets of the Company
and all of its subsidiaries, whether now existing or hereafter acquired or created by the Company (the “Subsidiaries”),
whether such assets are now owned or hereafter created or acquired by the Company and/or its Subsidiaries (collectively, the “Assets”),
all in accordance with the terms of a pledge and security agreement in the form attached hereto as Exhibit C (the
“Security Agreement”).

 

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 and the Purchasers agree as follows:

 

		1.	Purchase and Sale of the Securities.

 

(a)          Closing.
On the Closing Date (as defined below), upon the terms and subject to the conditions set forth herein:

 

		(i)	the Company hereby agrees to sell to the Purchasers, and the Purchasers hereby agree to purchase
from the Company the Notes, in consideration of the Purchase Price, as set forth on each such Purchaser’s signature page.
For purposes of this Agreement, “Closing Date” means the date on which all of the Transaction Documents (as
defined herein) have been executed and delivered by the parties thereto, and all conditions precedent to (i) Purchasers’
obligations to pay the Purchase Price and (ii) the Company’s obligation to deliver the Securities, in each case, have been
satisfied or waived.

 

    	 

    	 

    

 

		(ii)	The Purchasers shall deliver the Purchase Price, via wire transfer of immediately available funds
payable by the Purchasers, or, if applicable, by the execution and delivery by a Purchaser of a conversion notice (the “Conversion
Notice”) of existing indebtedness of the Company held by such Purchaser in an amount equal to such Purchaser’s Purchase
Price, to the escrow agent pursuant to the terms of the Escrow Agreement, in the form attached hereto as Exhibit D
(the “Escrow Agreement”, and together with this Agreement, the Notes, Security Agreement and any and all exhibits
and schedules hereto or hereto, the “Transaction Documents”), using the wire instructions contained in the Escrow
Agreement.

 

The Company and the Purchasers shall each
deliver to the other items set forth in Section 1(b) deliverable at the closing (the “Closing”). In addition,
at the Closing, the Company shall deliver to certain purchasers the Share Exchange Agreement.

 

		(b)	Deliverables.

 

		(i)	On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser
(other than with respect to an agreement which will only be delivered to the applicable Purchaser or Purchasers) the following:

 

		A.	this Agreement, duly executed by the Company;

 

		B.	a Note, duly executed by the Company, in the Purchase Price set forth on such Purchaser’s
signature page;

 

		C.	a Warrant, duly executed by the Company, to purchase that number of shares on a cashless basis
at an exercise price of $0.06 per share equal to the product of (i) the aggregate purchase price of the Note times (ii) 33.33 (
23,333,100 shares of the Company’s common stock in the aggregate) (the “Warrant Shares”);

 

		D.	the Security Agreement, duly executed by the Company and evidence of filing UCC Financing Statements
with the State of Nevada in a form reasonably acceptable to Purchasers; and

 

		E.	the Escrow Agreement, duly executed by the Company.

 

		(ii)	On or prior to the Closing Date, each Purchaser (other than with respect to an agreement which
will only be delivered by the applicable Purchasers) shall deliver or cause to be delivered to the Company the following:

 

		A.	this Agreement, duly executed by each Purchaser;

 

    	 

    	 

    

 

		B.	the Security Agreement, duly executed by the Collateral Agent (as defined below);

 

		C.	the Purchase Price by wire transfer to the Company or a duly executed Conversion Notice; and

 

		D.	the Escrow Agreement, duly executed by each Purchaser.

 

		(c)	Closing Conditions.

 

		(i)	The obligations of the Company hereunder in connection with the Closing are subject to the waiver
or satisfaction of the following conditions:

 

		A.	the accuracy on the Closing Date of the representations and warranties of Purchasers contained
herein;

 

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

 

		C.	the delivery by Purchasers of the items set forth in Section 1(b)(ii) of this Agreement.

 

		(ii)	The obligations of Purchasers hereunder in connection with the Closing are subject to the waiver
or satisfaction of the following conditions:

 

		A.	the accuracy in all material respects on the Closing Date of the representations and warranties
of Company contained herein

 

		B.	all obligations and agreements of the Company required to be performed at or prior to the Closing
Date shall have been performed; and

 

		C.	the delivery by the Company of the items set forth in Section 1(b)(i) of this Agreement.

 

2.          Security.
In accordance with the terms and the conditions of the Security Agreement, the Company agrees to secure the repayment of the loan
amount under the Notes (the “Loan Amount”), all accrued and unpaid interest (as defined below) thereon and all
other payments due thereunder, as well as all of the Company’s obligations thereunder by creating a UCC secured pledge of
the Assets for the benefit of all Purchasers (the “UCC Pledge”). From time to time, Purchaser may demand, and
the Company shall execute, such additional documents as may be reasonably necessary to maintain the UCC Pledge.

 

3.          Representations
and Warranties of the Company. The Company represents and warrants to each Purchaser as follows:

 

    	 

    	 

    

 

(a)          Subsidiaries.
The Company’s Subsidiaries as of the date hereof are set forth in Schedule 3(a). Except as set forth in Schedule 3(a), the
Company owns, directly or indirectly, 100% of each Subsidiary and such ownership interest is free and clear of any liens, and all
of the issued and outstanding shares of capital stock of each Subsidiary are validly issued, fully paid and non-assessable and
free of preemptive and similar rights to purchase securities. Neither the Company nor the Subsidiaries are subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any shares of the capital stock of any Subsidiary or any
convertible securities, rights, warrants or options of the type described in the preceding sentence. Neither the Company nor any
Subsidiary is party to, nor has any knowledge of, any agreement restricting the voting or transfer of any shares of the capital
stock of any Subsidiary.

 

(b)          Organization
and Qualification. Each of the Company and each Subsidiary is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, and has the requisite power and authority to own and use
its properties and assets and to carry on its business as currently conducted and contemplated to be conducted. Each of the Company
and each Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where
the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in a
material adverse effect on the business, condition (financial or otherwise), operations, prospects or property of the Company or
a Subsidiary, taken as a whole (“Material Adverse Effect”), and no proceeding has been initiated in any such
jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby
have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company,
the board of directors or the Company’s stockholders in connection therewith, other than in connection with the Required
Approvals (as defined herein). Each Transaction Document to which it is a party has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except: (i) as may be limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

 

    	 

    	 

    

 

(d)          No
Conflicts. The execution, delivery and performance by the Company of the Transaction Documents, the issuance and sale of the
Securities and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will
not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, result in the creation of any lien upon any of the properties or assets
of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or the Subsidiary is a party or by which any property or asset of
the Company or the Subsidiary is bound or affected, or (iii) subject to the Required Approvals (as defined below), conflict with
or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or
governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)          Filings,
Consents and Approvals. Neither the Company nor any Subsidiary 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 the filing of a Current Report on Form 8-K and a Form D with the Securities and Exchange Commission (the “Commission”)
and such filings as are required to be made under applicable state securities laws (the “Required Approvals”).

 

(f)          Issuance
of the Securities. Each of the Note and the Warrant are duly authorized and, when issued and paid for in accordance with the
terms of the applicable Transaction Documents, will be duly and validly issued, fully paid and non-assessable, and free and clear
of all liens other than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares, upon the conversion
of the Note, subject to stockholder approval of an increase in the Company’s authorized capitalization, to the extent necessary,
duly authorized and, when issued and paid for in accordance with the terms of the applicable Transaction Documents, will be duly
and validly issued, fully paid and non-assessable, and free and clear of all liens other than restrictions provided for in the
Transaction Documents. The shares of Common Stock issuable upon exercise of the Warrant, subject to stockholder approval of an
increase in the Company’s authorized capitalization, to the extent necessary, have been duly authorized and, when issued
and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and non-assessable,
free and clear of all liens other than restrictions on transfer provided for in the Transaction Documents. Subject to stockholder
approval of an increase in the Company’s authorized capitalization, to the extent necessary,. the Company has reserved from
its duly authorized capital stock, such number of securities for issuance upon conversion or exercise of the Note and Warrant,
as applicable.

 

(g)          Capitalization;
Additional Issuances. All of the issued and outstanding securities of the Company as of the date hereof are as set forth in
Schedule 3(g). Except as set forth in Schedule 3(g), as of the date hereof, there are no outstanding agreements or preemptive
or similar rights affecting the issuance of the Notes and no outstanding rights, warrants or options to acquire, or instruments
convertible into or exchangeable for, or agreements or understandings with respect to the sale or issuance of, the Notes. The exercise
price of any of the Company’s outstanding warrants and options are set forth in Schedule 3(g).

 

    	 

    	 

    

 

(h)          Litigation.
Except as set forth in Schedule 3(h), there are no actions or proceedings pending or, to the knowledge of the Company, threatened
by or against Company or any of its Subsidiaries involving more than, individually or in the aggregate, Ten Thousand Dollars ($10,000).
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 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 UCC Pledge or the issuance of 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 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 or a claim of breach of fiduciary duty. 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 or any current
or former director or officer of the Company

 

(i)          Regulatory
Permits. Each of the Company and each Subsidiary possess all certificates, authorizations and permits issued by the appropriate
federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as currently conducted
or as contemplated to be conducted, except where the failure to possess such permits could not reasonably be expected to result
in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any
notice of proceedings relating to the revocation or modification of any Material Permit.

 

(j)          SEC
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such shorter
period as the Company was required by law to file such reports) (the foregoing materials being collectively referred to herein
as the “SEC Reports” ) on a timely basis or has timely filed 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 and the rules and regulations of the
Commission promulgated thereunder, 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 light of
the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports
comply in all material respects with the rules and regulations of the Commission with respect thereto as in effect at the time
of filing. Such financial statements have been prepared in accordance with U.S. 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 U.S. GAAP, and fairly present in all material respects the financial position of the Company as of and for the dates thereof
and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

 

    	 

    	 

    

 

(k)          Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth herein, 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.

 

(l)          No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to Purchasers.

 

(m)          Acknowledgment
Regarding the Purchasers’ 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 Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated 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
thereby is merely incidental to such Purchaser’s purchase of the Securities. The Company further represents to each Purchaser
that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

 

(n)          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 which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or any Subsidiary’s
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 Subsidiary is a party to a collective bargaining agreement, and the Company and each Subsidiary believe that
their relationships with their employees are good. No executive officer, to the knowledge of the Company, 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 Subsidiary to any liability with respect
to any of the foregoing matters. The Company and each Subsidiary is 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.

 

    	 

    	 

    

 

(o)          Benefit
Plans. Copies of all documentation relating to any Benefit Plans (including all plan documents, written descriptions of plans,
actuarial reports and governmental filings and determinations with respect to such Benefit Plans) have been delivered or made available
to each Purchaser. None of the Benefit Plans is a “Defined Benefit Plan” that would be subject to Part 3 of Title 1
of the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder (“ERISA”),
Section 412 of the Internal Revenue Code of 1986, as amended, or Title IV of ERISA. None of the Benefit Plans is a “multiemployer
plan” (as such term is defined in Section 3(37) of ERISA) or a “single employer under multiple controlled groups”
as described in Section 4063 of ERISA, and neither the Company nor any Affiliate has ever contributed to or had an obligation to
contribute, or incurred any liability in respect of a contribution to any multiemployer plan. Each Benefit Plan has been operated
in compliance with its terms in all respects, and each Benefit Plan complies, in all respects, with all provisions of applicable
Law except as would not have a Material Adverse Effect. “Benefit Plans” means any Plan ever maintained, established
or to which contributions have at any time been made by the Company or any of its Affiliates existing at the Closing Date or prior
thereto, to which the Company contributes or has contributed, or under which any consultant, employee, former consultant, former
employee or director or former director of the Company or any beneficiary thereof is covered, has ever been covered, is or has
ever been eligible for coverage or has any benefit rights.

 

(p)          Compliance.
Neither the Company nor any Subsidiary: (i) is in violation of any order of any court, arbitrator or governmental body or (ii)
is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all
foreign, federal, state and local laws applicable to its business, except in each case as could not have or reasonably be expected
to result in a Material Adverse Effect.

 

(q)          Environmental
Matters. The Company has complied with and is in compliance with all federal, state, local and foreign statutes (civil and
criminal), laws, ordinances, regulations, rules, permits, approvals, judgments, orders and decrees applicable to it or any of its
properties, leased real property, assets, operations and businesses relating to environmental protection, and health and safety
(collectively “Environmental Laws”) including, without limitation, Environmental Laws relating to air, surface
water and groundwater, land and the generation, storage, use, handling, transportation, treatment, release, threatened release,
remediation, exposure to or disposal of Hazardous Wastes, Hazardous Materials and Hazardous Substances (as such terms are defined
in any applicable Environmental Law), as well as oil, petroleum, petroleum products, asbestos or any substance containing asbestos,
and polychlorinated biphenyls (collectively “Hazardous Materials”), (ii) the Company has obtained and fully
complied with and is currently in full compliance with all environmental permits and other environmental approvals necessary for
the conduct of its business and the operation of its properties, and has reported to the appropriate governmental or regulatory
authorities, to the extent required by all Environmental Laws, all past and present sites owned and operated by the Company where
Hazardous Materials have been treated, stored, disposed of or otherwise handled, (iii) to the knowledge of the Company, there is
not nor has there been any condition, event, circumstance, practice, activity, incident which could reasonably be expected to give
rise to any common law liability or liability pursuant to any Environmental Laws or otherwise form the basis of any claim, demand
or litigation against the Company; (iv) there are no claims, demand, suits, judicial or administrative actions, governmental investigators
or legal proceedings pending or, to the knowledge of the Company, threatened against the Company relating in any way to any Environmental
laws, nor has the Company received notice of any violation of, or any claim alleging liability under, any Environmental Laws, (v)
there have been no releases or threats of releases (as these terms are defined in Environmental Laws) of any Hazardous Materials
at, from, in or on any property previously or currently owned or operated by the Company, except as permitted by Environmental
Laws, and (vi) there is no on-site or off-site location to which the Company has transported or disposed of Hazardous Materials
or arranged for the transportation of Hazardous Materials which is the subject of any federal, state, local or foreign enforcement
action or any other investigation which could reasonably be expected to lead to any claim against the Company for any clean-up
cost, remedial work, damage to natural resources, property damage or personal injury, including, but not limited to, any claim
under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Resource Conservation and
Recovery Act, the Hazardous Materials Transportation Act or comparable state or local statutes or regulations, except as would
not have a Material Adverse Effect.

 

    	 

    	 

    

 

(r)          Title
to Assets. The Company and each Subsidiary have good and marketable title in all personal property owned by them that is material
to the business of the Company and each Subsidiary, in each case, free and clear of all liens, except for liens that do not materially
affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by
the Company and each Subsidiary and liens for the payment of federal, state, foreign or other taxes, the payment of which is neither
delinquent nor subject to penalties (“Permitted Liens”). Any real property and facilities held under lease by
the Company and each Subsidiary are held by them under valid, subsisting and enforceable leases with which the Company and each
Subsidiary are in compliance.

 

(s)          Intellectual
Property. The Company and each Subsidiary own all right, title and interest in, or possesses adequate and enforceable rights
to use, all patents, patent applications, trademarks, trade names, service marks, copyrights, rights, licenses, franchises, trade
secrets, confidential information, processes, formulations, software and source and object codes necessary for the conduct of their
businesses (collectively, the “Intangibles”). Neither the Company nor any Subsidiary has infringed upon the
rights of others with respect to the Intangibles and neither the Company nor any Subsidiary have received notice that they have
or may have infringed or are infringing upon the rights of others with respect to the Intangibles, or any notice of conflict with
the asserted rights of others with respect to the Intangibles that could, individually or in the aggregate, or could reasonably
be expected to have, have a Material Adverse Effect.

 

(t)          Insurance.
The Company and each Subsidiary is insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and each
Subsidiary are engaged. Neither the Company nor any Subsidiary has any reason to believe that it 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 at a cost that would not have a Material Adverse Effect.

 

    	 

    	 

    

 

(u)          Transactions
With Affiliates and Employees. Except as may be described in Schedule 3(u), none of the officers or directors of the Company
and, to the knowledge of the Company, none of the employees of the Company, 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, 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 or partner, in each case in excess
of $10,000, other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred
in the ordinary course of business on behalf of the Company and (iii) other employee benefits, including stock option agreements,
under any stock option plan of the Company.

 

(v)         Certain
Fees. Other than a cash fee of seven percent (7%) payable to Dawson James Securities (“DJS”) and six percent
(6%) warrants issuable to DJS in connection with the bridge financing contemplated herein, no brokerage or finder’s fees
or commissions are or will be payable by the Company 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. Purchaser shall have no
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.

 

(w)          Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.

 

(x)          Tax
Returns. 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 each Subsidiary have filed all necessary federal, state and foreign income and franchise
tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any Subsidiary.

 

(y)          Foreign
Corrupt Practices. None of the Company, any Subsidiary or, to the knowledge of the Company, any agent or other person acting
on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign
or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company
is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices
Act of 1977, as amended.

 

(z)          No
Disagreements with Accountants or Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company which
could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.

 

    	 

    	 

    

 

(aa)         Indebtedness.
Except as disclosed on schedule 3(aa), neither the Company nor any Subsidiary is in default with respect to, or liable under (x)
any liabilities for borrowed money or amounts owed in excess of $10,000 (other than trade accounts payable incurred in the ordinary
course of business), or (y) any guaranties, endorsements and other contingent obligations in respect of indebtedness of others,
whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto).

 

(bb)         Internal
Controls. Except as disclosed in Schedule 3(bb), the Company is in compliance with the provisions of the Sarbanes-Oxley Act
of 2002 currently applicable to the Company. The Company and each Subsidiary maintains 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 U.S.
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 established disclosure controls and procedures
(as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures
to ensure that material information relating to the Company, including the Subsidiaries, is made known to the certifying officers
by others within those entities, particularly during the period in which the Company’s most recently filed periodic report
under the Exchange Act, as the case may be, is being prepared. The Company's certifying officers have evaluated the effectiveness
of the Company's controls and procedures as of the end of the period covered by the 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 significant changes in the Company's
internal controls (as such term is defined in Item 308 of Regulation S-K) or, to the Company's knowledge, in other factors that
could significantly affect the Company's internal controls. The Company maintains and will continue to maintain a standard system
of accounting established and administered in accordance with U.S. GAAP and the applicable requirements of the Exchange Act.

 

(cc)         OFAC.
None of the Company, any Subsidiary or, to the knowledge of the Company, any director, officer, agent, employee or Affiliate of
the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”); and the Company will not, directly or indirectly, use the proceeds of the offering, or
lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other person, for the purpose
of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.

 

    	 

    	 

    

 

(dd)         Full
Disclosure. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company, its business
and the transactions contemplated hereby 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.

 

4.          Representations
and Warranties of the Purchasers. Each Purchaser, severally and not jointly, represents and warrants to the Company, only with
respect to itself, as follows:

 

(a)          Purchaser
is an “accredited investor” as defined by Rule 501 under the Securities Act. Purchaser is capable of evaluating the
merits and risks of its investment in the Securities and has the ability and capacity to protect its interests.

 

(b)          Purchaser
understands that the Securities have not been registered. Purchaser understands that the Securities will not be registered under
the Securities Act in reliance upon an exemption in reliance on Section 4(2) of the Securities Act.

 

(c)          Purchaser
acknowledges that Purchaser has such knowledge and experience in financial and business matters that Purchaser is capable of evaluating
the merits and risks of an investment in the Securities and of making an informed investment decision with respect thereto.

 

(d)          Purchaser
is purchasing the Securities for investment purposes and not with a view to distribution or resale, nor with the intention of selling,
transferring or otherwise disposing of all or any part thereof for any particular price, or at any particular time, or upon the
happening of any particular event or circumstance, except selling, transferring, or disposing the Securities in compliance with
all applicable provisions of the Securities Act, the rules and regulations promulgated by the Commission thereunder, and applicable
state securities laws; and that an investment in the Securities is not a liquid investment.

 

(e)          Purchaser
has all requisite legal and other power and authority to execute and deliver this Agreement and to carry out and perform its obligations
under the terms of this Agreement. This Agreement constitutes a valid and legally binding obligation of Purchaser, enforceable
in accordance with its terms, except: (i) as may be limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(f)          There
are no actions, suits, proceedings or investigations pending against Purchaser or Purchaser’s assets before any court or
governmental agency (nor, to Purchaser’s knowledge, is there any threat thereof) which would impair in any way Purchaser’s
ability to enter into and fully perform Purchaser’s commitments and obligations under this Agreement or the transactions
contemplated hereby.

 

    	 

    	 

    

 

(g)          The
execution, delivery and performance of and compliance with this Agreement and the issuance of the Securities to Purchaser will
not result in any violation of, or conflict with, or constitute a default under, any of Purchaser’s articles of incorporation
or by-laws, or equivalent limited liability company, trust or partnership documents, if applicable, or any agreement to which Purchaser
is a party or by which it is bound, nor result in the creation of any mortgage, pledge, lien, encumbrance or charge against any
of the assets or properties of Purchaser or the Securities purchased by Purchaser.

 

(h)          Purchaser
is aware that the Securities will be (unless registered by the Company), when issued, “restricted securities” as that
term is defined in Rule 144 of the general rules and regulations under the Securities Act, and may not be offered, sold or transferred
except pursuant to an effective registration statement or an exemption from registration under the Securities Act.

 

(i)          Purchaser
understands that the Securities shall bear the following legend or one substantially similar thereto, which Purchaser has read
and understands:

 

NEITHER THIS SECURITY NOR ANY SECURITY
INTO WHICH IT MAY BE CONVERTED HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR APPLICABLE STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY SECURITY INTO WHICH IT MAY BE CONVERTED MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF AT ANY TIME IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM REGISTRATION.

 

(j)          Any
sales, transfers, or other dispositions of the Securities by Purchaser, if any, will be made in compliance with the Securities
Act and all applicable rules and regulations promulgated thereunder.

 

(k)          Purchaser
further represents that the address of Purchaser set forth on the signature page is its principal place of business; that Purchaser
is purchasing the Securities for Purchaser’s own account and not, in whole or in part, for the account of any other person;
and that Purchaser has not formed any entity, and is not an entity formed, for the purpose of purchasing the Securities.

 

(l)          Purchaser
represents and warrants that no finder, broker, agent, financial advisor or other intermediary, nor any purchaser representative
or any broker-dealer acting as a broker, is entitled to any compensation in connection with the transactions contemplated by this
Agreement.

 

5.          Other
Agreements.

 

(a)          Certain
Covenants of the Company. Until such time as the Loan Amount or any accrued fees or interest remain unpaid or outstanding,
the Company shall comply and operate in accordance with all of the following covenants and agreements, unless otherwise agreed
to in writing by the Purchasers:

 

    	 

    	 

    

 

		(i)	Payment of Obligations. The Company will timely pay and discharge all of its material obligations
and liabilities, including, without limitation, tax liabilities, except where the same may be contested in good faith by appropriate
proceedings.

 

		(ii)	Conduct of Business and Maintenance. The Company will continue to engage in business of
the same general type as now conducted by it and to preserve, renew and keep in full force and effect, its corporate existence
and its assets, rights, privileges and franchises to the extent necessary or desirable in the normal conduct of business or to
preserve the Collateral. The Company shall conduct its business in a manner so that it will not become subject to the Investment
Company Act of 1940, as amended.

 

		(iii)	Compliance with Laws. The Company will comply in all material respects with all applicable
laws, ordinances, rules, regulations, decisions, orders and requirements of governmental authorities.

 

		(iv)	Use of Proceeds. The use of proceeds of the Loan Amount shall be used solely for the purposes
set forth in Schedule 5(a) to this Agreement and for no other purposes.

 

		(v)	Notice of Legal Matters. The Company shall notify Purchaser promptly after the Company shall
obtain knowledge of any written notice of any legal or arbitral proceedings, and of all proceedings by or before any governmental
authority, and each material development in respect of such legal or other proceeding affecting the Company, except proceedings
which, if adversely determined, would not reasonably be likely to have a Material Adverse Effect.

 

		(vi)	Books and Records; Inspection and Audit Rights. The Company will keep proper books of record
and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities.
The Company will permit any representatives designated by Purchaser, upon reasonable prior notice, to visit and inspect its properties,
to examine and make extracts from its books and records, and to discuss its business, assets, affairs, finances, prospects, and
condition with its officers and independent accountants, all at such reasonable times during normal business hours and as often
as reasonably requested. Promptly upon Purchaser’s written request therefor, the Company shall deliver to Purchaser such
documents and other evidence of the existence, good standing, foreign qualification and financial condition of the Company as Purchaser
shall request from time to time.

 

    	 

    	 

    

 

		(vii)	Change of Control, etc. The Company shall not (i) merge or consolidate with or into any
person, (ii) sell, assign, lease, license or otherwise dispose of (whether in one transaction or in a series of transactions) all
or substantially all of its assets (whether now owned or hereafter acquired) to any person, or (iii) issue or sell securities of
the Company (whether in one transaction or in a series of transactions) such that the shareholders of the Company as of the date
of this Agreement hold or will hold less than a majority of the outstanding (on a fully-diluted basis) equity securities or voting
power of the Company (“Change of Control”).

 

		(viii)	Indebtedness and Liens. The Company shall not create or suffer to exist any debt or liens
other than (i) debt incurred by the Company in the ordinary course of business, not to exceed $10,000 in the aggregate, (ii) debt
which is subordinated in the right of payment to amounts payable to Purchaser pursuant to this Agreement on terms reasonably satisfactory
to Purchaser; and (iii) Permitted Liens.

 

		(ix)	Investments, Loans, Acquisitions and Hedge Agreements. The Company shall not: (i) purchase
or acquire or make any investment in any other person, (ii) purchase or acquire all or substantially all of the assets of any person
or any division of any person; (iii) make any loan, advance or extension of credit to, or contribution to the capital of, any other
person other than reimbursement of reasonable, bona fide and properly documented business expenses incurred on behalf of the Company;
(iv) sell, whether at face value or at a discount, any account receivable of the Company; or (v) make any commitment or acquire
any option or enter into any other arrangements for the purpose of making any of the foregoing investments, loans or acquisitions.

 

		(x)	Restricted Payments. The Company shall not declare, order, pay or make any dividend or distribution
of assets or payment of cash, or both, directly or indirectly to any person.

 

		(xi)	Transactions with Affiliates. The Company shall not enter into any transaction, including,
without limitation, the purchase, sale, or exchange of property or the rendering of any service, with any Affiliate, except in
the ordinary course of and pursuant to the reasonable requirements of the Company's business and upon fair and reasonable terms
no less favorable to the Company than it would obtain in a comparable arm's-length transaction with a person not an Affiliate.
“Affiliate” means, as applied to any person, (a) any other person directly or indirectly controlling, controlled
by or under common control with, that person, (b) any other person that owns or controls (i) 10% or more of any class of equity
securities of that person or any of its Affiliates or (ii) 10% or more of any class of equity securities (including any equity
securities issuable upon the exercise of any option or convertible security) of that person or any of its Affiliates, or (c) any
director, partner, officer, manager, agent, employee or relative of such person. For the purposes of this definition, “control”
(including with correlative meanings, the terms “controlling,” “controlled by,” and “under common
control with”), as applied to any person, means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that person, whether through ownership of voting securities or by contract or otherwise.

 

    	 

    	 

    

 

(xii)        Issuance
of Securities. Except in connection with the Subsequent Financing (as defined in the Notes) on terms and conditions acceptable
to the Purchasers, neither the Company nor any Subsidiary thereof shall issue any capital stock, debt securities, convertible securities
or common stock equivalents or enter into any agreement to do any of the foregoing. Further, as long as the Loan Amount or any
accrued fees or interest remain unpaid or outstanding, the Company shall not register shares of any kind, whether related to this
Agreement or not, using Commission Form S-8. The Conversion Shares of the Company issuable upon conversion of the Note in a Subsequent
Financing will be duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be
duly and validly issued, fully paid and non-assessable, free and clear of all Liens other than restrictions on transfer provided
for in the Transaction Documents. The Company will reserve from its duly authorized capital stock such number of securities for
issuance of the Conversion Shares upon the conversion of the Note. Notwithstanding any contrary provision set forth herein or in
any Transaction Document, from the date hereof until the date that is sixty (60) days from the date hereof, the Purchasers shall
have the exclusive right to participate on a pro rata basis (or in such other percentages as the Purchasers may agree upon) in
the next financing of the Company (which may be the Subsequent Financing) for up to $5.0 million at a purchase price per security
or unit of up to $0.35 per security or unit with 100% warrant coverage to the investors and on such other terms mutually acceptable
to the Company and the Purchasers.

 

(xiii) Exclusive License and
Distribution Agreement. Within thirty (30) days from the date hereof, the Company shall use commercially reasonable efforts
to enter into an exclusive distribution and licensing agreement with MusclePharm Corporation (“MSLP”), on terms
and conditions acceptable to MSLP and the Company.

 

(xix) Shareholder Approval. The
Company shall use its best efforts to promptly (and in any event within no longer than ninety (90) days) obtain shareholder approval
for the transactions contemplated herein and in the Transaction Documents (including, without limitation, the increase of the Company’s
Common Stock in order to comply with its obligation to issue securities in the Transaction Documents).

 

(b)          Notice
of Other Material Events. Until such time as the Loan Amount or any accrued fees or interest remain unpaid or outstanding,
the Company shall provide notice of the following:

 

    	 

    	 

    

 

		(i)	The Company shall furnish to each Purchaser prompt (but in no event more than two (2) business
days after the relevant occurrence) written notice of the occurrence of any Event of Default or any other event or circumstance
that results in, or could reasonably be expected to result in, a Material Adverse Effect.

 

		(ii)	The Company shall furnish to Purchaser written notice of the following not less than thirty (30)
days prior to the occurrence thereof: (A) any change of the Company’s corporate name or of any trade name used to identify
it in the conduct of its business or in the ownership of its properties, (B) any change of the state in which the Company is organized
or conducts business, (C) any change of the Company’s principal place of business, or (D) any change of the Company’s
identity or corporate structure.

 

		(iii)	Each notice delivered under this Section shall be accompanied by a statement of the Company setting
forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

(c)          Further
Assurances. At any time or from time to time after the execution hereof, the Company will promptly execute, deliver, verify,
acknowledge, record and/or file any and all further documents and instruments (including financing statements and continuation
statements), and promptly take any and all such other and further actions, as Purchaser may request in order to evidence or more
fully effectuate the transactions and security arrangements contemplated hereby and to otherwise carry out the terms hereof.

 

(d)          Reservation
of Shares. Subject to stockholder approval of an increase in the Company’s authorized capitalization, the Company shall
at all times reserve and keep available out of its authorized and unissued capital stock, solely for the purpose of providing for
the exercise of the conversion rights provided for under the Note and Warrant, such number of shares of capital stock as shall,
from time to time, be sufficient for issuance of the Conversion Shares upon conversion of such Note and Warrant Shares upon the
exercise of the Warrants in full.

 

6.          Events
of Default.

 

		(a)	Each of the following events, individually, shall constitute
an “Event of Default”:

 

		(i)	the Company shall fail to perform any obligation or pay any fee or any other amount payable under
any of the Transaction Documents, when and as the same shall become due and payable;

 

    	 

    	 

    

 

		(ii)	any representation or warranty made by or on behalf of the Company in or in connection with any
Transaction Document, or in any report, certificate or other document furnished pursuant to or in connection with any Transaction
Document, shall prove to have been incorrect in any material respect when made or deemed made or shall be breached;

 

		(iii)	any default by the Company under, or the occurrence of any event of default as defined in, any
other indebtedness owed by the Company;

 

		(iv)	any event causing or resulting in the UCC Pledge not to be a first priority perfected lien on the
Assets;

 

		(v)	any event, transaction, action or omission of or involving the Company shall occur which the Purchasers
reasonably believe will result in a Material Adverse Effect;

 

		(vi)	any of this Agreement or the Note shall cease to be, or shall be asserted by the Company or other
obligor thereunder not to be, in full force and effect; or

 

		(vii)	a Change of Control shall occur.

 

(b)          Remedies.
Notwithstanding anything to the contrary in any Transaction Document, upon the occurrence of an Event of Default, and in every
such event, and thereupon the outstanding Loan Amount so declared to be due and payable, together with all fees and other payment
obligations of the Company accrued but unpaid under the Transaction Documents, shall become due and payable immediately, without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company, and in case of any event
with respect to the Company described in clauses (vi), (vii) or (viii) of Section 6, the Loan Amount then outstanding, together
with all fees and other payment obligations of the Company accrued but unpaid under the Transaction Documents, shall automatically
become due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby waived by the Company.

 

7.          Intentionally
Omitted.

 

8.          Piggy-Back
Registration Rights.

 

(a)          For
a period of twelve (12) months following the Closing Date, if the Company shall decide to prepare and file with the Commission
a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of
its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities
issuable in connection with the stock option or other employee benefit plans, then the Company shall send to each Purchaser a written
notice of such determination and, if within fifteen days after the date of such notice, any such Purchaser shall so request in
writing, the Company shall include in such registration statement, all or any part of Purchaser’s shares of Common Stock
underlying the Notes or the Warrants (collectively, the “Registrable Securities”) such Purchaser requests to
be registered; provided, however, that, the Company shall not be required to register any Registrable Securities
pursuant to this Section that are eligible for resale without restriction pursuant to Rule 144 promulgated under the Securities
Act or that are the subject of a then effective registration statement; provided, further, however,

 

    	 

    	 

    

 

               
(i)            if the registration statement is an offering to be made on
a continuous basis pursuant to Rule 415 and is not on a Form S-3, and the Commission advises the Company that all of the Registrable
Securities which such Holders have requested to be registered may not be included under Rule 415(a)(i), then the number of Registrable
Securities to be registered for each Purchaser shall be reduced pro-rata among all the Purchasers to an amount to which is permitted
by the Commission for resale under Rule 415(a)(i) and each Purchaser shall have the right to designate which of its Registrable
Securities shall be omitted from the registration statement; provided, further, however, the Registrable Securities
hereunder shall have first priority over shares being registered by any other third parties other than the Company; and

 

               
(ii)           if the registration so proposed by the Company involves an underwritten
offering of the securities so being registered for the account of the Company, to be distributed by or through one or more underwriters
of recognized standing, and the managing underwriter of such underwritten offering shall advise the Company in writing that, in
its opinion, the distribution of all or a specified portion of the Registrable Securities which the Purchasers have requested the
Company to register and otherwise concurrently with the securities being distributed by such underwriters will materially and adversely
affect the distribution of such securities by such underwriters (such opinion to state the reasons therefor), then the Company
will promptly furnish each such Purchaser of Registrable Securities with a copy of such opinion, and by providing such written
notice to each such Purchaser, such Purchaser may be denied the registration of all or a specified portion of such Registrable
Securities (in case of such a denial as to a portion of such Registrable Securities, such portion to be allocated pro rata among
the Purchasers); provided, however, shares to be registered by the Company for issuance by the Company shall have
first priority, each holder of Registrable Securities hereunder shall have second priority, and any other shares being registered
on account of other third parties shall have third priority.

 

    	 

    	 

    

 

9.          Indemnification
by the Company. The Company shall indemnify the Purchasers and each of their respective officers, directors, shareholders,
members, partners, employees, agents and Affiliates in respect of, and hold each of them harmless from and against, any and all
Losses (as defined below, and whether or not involving any person not a party to this Agreement) suffered, incurred or sustained
by any of them or to which any of them becomes subject resulting from, arising out of or relating to (a) any material misrepresentation
on the part of the Company, (b) a breach by the Company of any of the representations and warranties contained herein, or (c) any
non-fulfillment of or failure to perform any covenant or agreement on the part of the Company contained in this Agreement or in
any of the Transaction Documents (including any certificates delivered in connection herewith or therewith). If and to the extent
that the indemnification hereunder is finally determined by a court of competent jurisdiction to be unenforceable, the Company
shall make the maximum contribution to the payment and satisfaction of the indemnified Losses as shall be permissible under applicable
laws. “Losses” means any and all damages, fines, fees, taxes, penalties, deficiencies, diminution in value of
investment, losses and expenses, including interest, reasonable expenses of investigation, court costs, reasonable fees and expenses
of attorneys, accountants and other experts or other expenses of litigation or other proceedings or of any claim, default or assessment
(including, without limitation, fees and expenses of attorneys, incurred in connection with (i) the investigation or defense of
any claim made by a person not a party hereto and (ii) asserting or disputing any rights under this Agreement against any party
hereto or otherwise).

 

10.          Appointment
of Collateral Agent; Indemnification of Collateral Agent.

 

(a)          Appointment
of Collateral Agent. Each Purchaser hereby appoints, authorizes and empowers MusclePharm Corporation (the “Collateral
Agent”) to act as the collateral agent and as representative, attorney-in-fact and agent, with full power of substitution,
to act in the name, place and stead of each of Purchaser, to take all actions necessary or appropriate in its judgment for the
accomplishment of the terms of any of the Transaction Documents, and to act on behalf of each Purchaser and to do or refrain from
doing all such further acts and things, to make all decisions and determinations, and to execute, deliver and receive all such
documents, as it shall deem necessary or appropriate in conjunction with any of the transactions contemplated by the Transaction
Documents. This appointment may be terminated, and such termination shall be effective, upon the earlier of the Collateral Agent’s
resignation as collateral agent and the written consent of the holders of a majority-in-interest of the Notes.

 

(b)          Limitation
of Liability; Indemnification. In addition to any and all protections and rights that may be granted hereunder to the Collateral
Agent as collateral agent, to the maximum extent permissible by law, the Collateral Agent will incur no liability with respect
to any action or inaction taken or failed to be taken in connection with its services as the collateral agent, except its own willful
misconduct or gross negligence. In all questions arising under any of the Loan Documents, the Collateral Agent may rely on the
advice of counsel of its choosing, and the Collateral Agent will not be liable to any party to any of the Loan Documents or any
other person or party for anything done, omitted or suffered in good faith by it in its capacity as the collateral agent based
on such advice. Each of the Purchasers (a) agrees, jointly and severally, to indemnify, defend and save harmless the Collateral
Agent from and against any and all loss, liability or expense (including the reasonable fees and expenses of outside counsel and
experts and their staffs and all expense of document location, duplication and shipment) arising out of or in connection with the
Collateral Agent’s execution and performance of its duties as collateral agent under any of the Loan Documents (a “Collateral
Agent Expense”), except to the extent that such Collateral Agent Expense is finally adjudicated to have been primarily
caused by the gross negligence or willful misconduct of the Collateral Agent, in its capacity as collateral agent, and (b) acknowledges
and agrees that the foregoing indemnities shall survive the Collateral Agent’s resignation as the collateral agent or the
termination of any of the Transaction Documents. In no event shall the Collateral Agent, in its capacity as the collateral agent,
be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits),
even if the Collateral Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

    	 

    	 

    

 

11.         Miscellaneous.

 

(a)          The
Company agrees not to transfer or assign this Agreement or any of the Company’s rights or obligations herein and each Purchaser
agrees that the transfer or assignment of the Notes acquired pursuant hereto shall be made only in accordance with all applicable
laws.

 

(b)          This
Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.
The Transaction Documents constitute the entire agreement between the parties hereto with respect to the subject matter hereof
and may be amended or waived only by a written instrument signed by all parties.

 

(c)          Any
notice or other document required or permitted to be given or delivered to the parties hereto shall be in writing and sent: (i)
by fax, if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges
prepaid), or (b) by registered or certified mail, with return receipt requested (postage prepaid), or (c) by a recognized overnight
delivery service (with charges prepaid), to the following addresses:

 

		(i)	If to the Company, at:

 

Fuse Science, Inc.

6135 NW 167th Street

Suite E-21

Miami Lakes, Florida 33015

Tel: (305) 503-3873

Fax: (877) 212-7907

 

With a copy
(which shall not constitute notice) to:

 

	Gutiérrez Yelin & Boulris, PLLC	Roetzel & Andress
	100 Almeria Avenue, Suite 340	350 East Las Olas Boulevard
	Coral Gables, Florida  33134	Las Olas Centre II, Suite 1150
	Attention: Pedro G. Menocal, Esq.	Fort Lauderdale, Florida  33301
	Tel: (305) 358-5100	Attention: Dale S. Bergman, Esq.
	Fax: (888) 281-1829	Tel:  (954) 462-4150
	 	Fax:  (954) 462-4260

 

		(ii)	If to a Purchaser, to the address set forth on its signature page hereto,

 

With a copy
(which shall not constitute notice) to:

 

    	 

    	 

    

 

Sichenzia Ross
Friedman Ference LLP

61 Broadway,
32 nd Floor

New York, New
York 10006

Attention:
Harvey Kesner, Esq.

Tel: (212)
930-9700

Fax: (212)
930-9725

 

(d)          No
provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed by all parties
hereto. 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.

 

(e)          This
Agreement shall be enforced, governed and construed in all respects in accordance with the laws of the State of New York as such
laws are applied by the New York courts to contracts solely performed within its borders, except with respect to the conflicts
of law provisions thereof.

 

(f)          Any
legal suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby shall be
instituted exclusively in New York County, New York. The parties hereto hereby: (i) waive any objection which they may now have
or hereafter have to the venue of any such suit, action or proceeding, and (ii) irrevocably consent to the jurisdiction of the
federal and state courts located in New York County, New York in any such suit, action or proceeding. The parties further agree
to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the federal
and state courts located in New York County, New York. 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 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.

 

(g)          If
any provision of this Agreement is held to be invalid or unenforceable under any applicable statute or rule of law, then such provision
shall be deemed modified to conform with such statute or rule of law. Any provision hereof that may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other provisions hereof.

 

(h)          The
Company understands and agrees that money damages may not be a sufficient remedy for any breach of this Agreement by the Company,
and that Purchaser shall be entitled to equitable relief, including an injunction and specific performance, as a remedy for any
such breach, without the necessity of establishing irreparable harm or posting a bond therefor. Such remedies shall not be deemed
to be the exclusive remedies for a breach by the Company of this Agreement, but shall be in addition to all other remedies available
at law or equity to Purchaser.

 

    	 

    	 

    

 

(i)          All
pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine, singular or plural, as identity
of the person or persons may require.

 

(j)          This
Agreement may be executed in counterparts and by facsimile, each of which shall be deemed an original, but all of which, taken
together, shall constitute one and the same instrument.

 

(k)          The
Company shall be responsible for the payment of all fees and expenses in connection with the transactions contemplated in this
Agreement and the Transaction Documents, including, without limitation, the fees and out-of-pocket expenses of Sichenzia Ross Friedman
Ference LLP, incurred in connection with the preparation and negotiation of the Transaction Documents. Such fees and expenses shall
be paid from the escrow account at Closing.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 

    	 

    

 

Company Signature Page

 

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.

 

	FUSE SCIENCE, INC.	 
	 	 	 
	By:	 	 
	 	Name: Brian Tuffin	 
	 	Title: Chief Executive Officer 	 

 

    	 

    	 

    

 

Purchaser Signature Page

 

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

 

	[PURCHASER]	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

Purchase Price: ________________________

 

Address for Notice:

 

______________________________________

______________________________________

Attention of: ____________________________

Telephone: _____________________________

Facsimile:_______________________________EXHIBIT 10.2

 

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXCHANGEABLE 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.

 

10% SENIOR SECURED CONVERTIBLE PROMISSORY
NOTE

 

	$	November 7, 2013

 

FOR VALUE RECEIVED, Fuse Science, Inc.,
a Nevada corporation (the “Maker” or the “Company”), with its primary offices located at
6135 NW 167th Street, #E-21 Miami Lakes, Florida, 33015, promises to pay to the
order of                               (the “Payee”) or his or its registered assigns (with the Payee, the “Holder”),
upon the terms set forth below, the principal sum of                                                            and NO/100 Dollars ($             ) plus interest on the
unpaid principal sum outstanding at the rate of 10% per annum (this “Note”). Defined terms not otherwise defined
herein shall have the meanings ascribed to such terms in that certain note purchase agreement of even date herewith among the Maker,
the Holder and certain other holders of Notes substantially identical to this Note (the “Purchase Agreement”).

 

1.            Payments.

 

(a)          Unless
an Event of Default shall have previously occurred and be continuing or this Note shall be exchanged by the Holder for securities
in connection with the Subsequent Financing (as defined below) pursuant to Section 4 herein, the full amount of principal and accrued
interest under this Note shall be due and payable on January 4, 2014 (the “Maturity Date”). If exchanged for
securities of the Subsequent Financing, the Notes will be immediately cancelled upon delivery of the securities.

 

(b)          The
Maker shall pay interest to the Holder on the aggregate and then outstanding principal amount of this Note at the rate of 10% per
annum, payable in arrears on the earlier of (i) the Maturity Date or (ii) acceleration of this Note following an Event of Default
pursuant to Section 3(b). Interest on this Note shall commence to accrue as of the date of acceptance by the Company of the Purchase
Agreement as executed and delivered by the Holder (the “Original Issue Date”).

 

    	 

    	 

    

 

(c)          Interest
shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and shall accrue monthly commencing
on the Original Issue Date until payment in full of the outstanding principal, together with all accrued and unpaid interest, and
other amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this Note
is registered on the records of the Maker regarding registration and transfers of this Note.

 

(d)          All
overdue accrued and unpaid principal and interest to be paid hereunder shall entail a late fee at the rate of 10% per annum (or
such lower maximum amount of interest permitted to be charged under applicable law) which will accrue daily, from the date such
principal and/or interest is due hereunder through and including the date of payment. Except as otherwise set forth in this Note,
the Maker may not prepay any portion of the principal amount of this Note without the 10 Business Day advance written notice to
the Holder.

 

2.            Secured
Obligation. The obligations of the Maker under this Note are secured by certain assets of the Maker pursuant to that certain
Security Agreement, dated as of the date hereof, by and among the Maker and the secured parties signatory thereto

 

3.            Events
of Default.

 

(a)          “Event
of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it shall be
voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order,
rule or regulation of any administrative or governmental body):

 

(i)          any
default in the payment of the principal of, or the interest on, this Note, as and when the same shall become due and payable, for
which there will be no cure period;

 

(ii)         Maker
shall fail to observe or perform any obligation or shall breach any term or provision of this Note and such failure or breach shall
not have been remedied within ten (10) Business Days after the date on which notice of such failure or breach shall have been delivered
(other than those occurrences described in other provisions of this Section 3 for which a different grace or cure period is specified,
or for which no cure period is specified and which constitute immediate Events of Default);

 

(iii)        Maker
shall fail to observe or perform any of its material obligations owed to the Holder or any other material covenant, agreement,
representation or warranty contained in, or otherwise commit any material breach hereunder or in any other Transaction Document
executed in connection herewith, including the Purchase Agreement, and such failure or breach shall not have been remedied within
ten (10) Business Days after the date on which notice of such failure or breach shall have been delivered (other than those occurrences
described in other provisions of this Section 3 for which a different grace or cure period is specified, or for which no cure period
is specified and which constitute immediate Events of Default);

 

    	2

    	 

    

 

(iv)        Maker
shall commence, or there shall be commenced against the Maker a case under any applicable bankruptcy or insolvency laws as now
or hereafter in effect or any successor thereto, or the Maker commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to the Maker, or there is commenced against the Maker any such bankruptcy, insolvency or other proceeding
which remains undismissed for a period of sixty (60) days; or the Maker is adjudicated insolvent or bankrupt; or any order of relief
or other order approving any such case or proceeding is entered; or the Maker suffers any appointment of any custodian or the like
for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or the Maker makes
a general assignment for the benefit of creditors; or the Maker shall fail to pay, or shall state that it is unable to pay, or
shall be unable to pay, its debts generally as they become due; or the Maker shall call a meeting of its creditors with a view
to arranging a composition, adjustment or restructuring of its debts; or the Maker shall by any act or failure to act expressly
indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the
Maker for the purpose of effecting any of the foregoing;

 

(v)         Maker
shall default in any of its respective obligations under any other Note or 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 of the Maker, whether such
indebtedness now exists or shall hereafter be created and such default shall result in indebtedness aggregating more than $15,000
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable; or

 

(vi)        except
in connection with the Subsequent Financing, the Maker shall (a) be a party to any Change of Control Transaction (as defined below),
(b) agree to sell or dispose all or in excess of 50% of its assets in one or more transactions (whether or not such sale would
constitute a Change of Control Transaction), (c) redeem or repurchase more than a de minimis number of shares of Common Stock or
other equity securities of the Maker, or (d) make any distribution or declare or pay any dividends (in cash or other property,
other than common stock) on, or purchase, acquire, redeem, or retire any of the Maker’s capital stock, of any class, whether
now or hereafter outstanding. “Change of Control Transaction” means the occurrence of any of: (i) 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 Securities Exchange Act of 1934, as amended) of effective control (whether through legal or beneficial ownership of capital
stock of the Maker, by contract or otherwise) of in excess of 51% of the voting securities of the Maker, (ii) a replacement
at one time or over time of more than one-half of the members of the Maker’s board of directors which is not approved by
a majority of those individuals who are members of the board of directors on the date hereof (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), (iii) the merger of the Maker with or into another entity that is
not wholly owned by the Maker, consolidation or sale of 33% or more of the assets of the Maker in one or a series of related transactions,
or (iv) the execution by the Maker of an agreement to which the Maker is a party or by which it is bound, providing for any of
the events set forth above in (i), (ii) or (iii).

 

    	3

    	 

    

 

(vii)       The
occurrence of any event, whether or not such event could have been known through the exercise of due diligence or otherwise, which
could have a material adverse effect on the business or prospects of the Maker, shall immediately cause this Note to accelerate
and become immediately due and payable.

 

(b)          If
any Event of Default occurs and shall be continuing, the full principal amount of this Note, together with all accrued interest
thereon, shall become, at the Holder’s election, immediately due and payable in cash.

 

(c)          The
Holder need not provide and the Maker 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 declaration may be rescinded and annulled by the Holder at any time prior to
payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent
thereon.

 

4.          Subsequent
Financing Conversion and Exchange. At any time prior to the Maturity Date, this Note shall, at the option of the Holder, be
converted into and exchanged, into an amount equal to the face value of this Note, plus all accrued and unpaid interest hereon,
into any other securities issued by the Company in connection with a Subsequent Financing at a conversion price equal to seventy
five percent (75%) of the purchase price paid by the purchasers of such securities in the Subsequent Financing. In the event that
MusclePharm Corporation (OTCQB: MSLP) enters into a Subsequent Financing with the Maker, then the conversion price of such Subsequent
Financing shall be equal to eighty five percent (85%) of the purchase price paid by the purchasers of such securities in such Subsequent
Financing. Upon such exchange, this Note will be immediately cancelled upon delivery of the securities. The holder shall be entitled
to the exact same rights and benefits of any purchaser of securities in the Subsequent Financing. “Subsequent Financing”
means the first subsequent sale of its common stock, debt securities, or common stock equivalents by the Company in one or more
related closings following the Closing Date (as hereinafter defined) in an aggregate amount not less than $4.0 million.

 

The Maker agrees to
provide the Holder with at least five (5) Business Days prior notice before the consummation of a Subsequent Financing in order
to provide the Holder with an opportunity to covert and exchange this Note into the securities offered by the Maker to third parties
in a Subsequent Financing.

 

4A.           Additional
Conversion Rights. In addition to the Holder’s rights to convert this Note pursuant to Section 4 above, the Holder shall
have the following additional conversion rights:

 

(a)          Optional
Conversion. At any time or from time to time and prior to payment in full of the entire principal amount, the Holder shall
have the right, at the Holder’s option, to convert the principal Amount and accrued interest thereon, in whole or in part
(the “Conversion Amount”), into shares of common stock, par value $0.001 per share (the “Common Stock”)
of the Company. The number of shares of Common Stock to be issued upon a conversion hereunder shall be determined by dividing the
Conversion Amount by $0.065 (the “Conversion Price”).

 

    	4

    	 

    

 

(b)          Conversion
Mechanics. In order to convert this Note into Common Stock, the Holder shall give written notice to the Company at its principal
corporate office or the notice address provided in this Note (which notice, notwithstanding anything herein to the contrary, may
be given via facsimile, email, or other means in the discretion of the Holder) pursuant to the forms attached hereto as Exhibit
A (the “Conversion Notice”) of the election to convert the same pursuant to this section (the date on
which a Conversion Notice is given, a “Conversion Date”). Such Conversion Notice shall state the Conversion
Amount and the number of shares of Common Stock to which the Holder is entitled pursuant to the Conversion Notice (the “Conversion
Shares”). The Company shall immediately, but in no event later than five (5) trading days after receipt of a Conversion
Notice, deliver the Conversion Shares to the Holder.

 

(c)          No
Fractional Shares. No fractional Conversion Shares shall be issued by the Company. In lieu thereof, the shares of Common Stock
otherwise issuable shall be rounded up to the nearest whole Conversion Share.

 

(d) Holder’s
Conversion Limitations. The Company shall not affect any conversion of this Note, and a Holder shall not have the right to
convert any portion of this Note, pursuant to Section 4A or otherwise, to the extent that after giving effect to such issuance
after conversion as set forth on the applicable Conversion Notice, the Holder (together with the Holder’s Affiliates, and
any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), 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 shall include the number of shares of Common Stock issuable
upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (i) conversion of the remaining, nonconverted portion of this Note beneficially owned
by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except
as set forth in the preceding sentence, for purposes of this Section 4A(d), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder
that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act
and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 4A(d) applies, the determination of whether this Note is convertible (in relation to other securities
owned by the Holder together with any Affiliates) and of which portion of this Note is convertible shall be in the sole discretion
of the Holder, and the submission of an Conversion Notice shall be deemed to be the Holder’s determination of whether this
Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of
this Note is convertible, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 3(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 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. The Holder, upon not less than 61 days’ prior notice to the Company,
may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4A(d). Any such increase or decrease will
not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4A(d) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Note.

 

    	5

    	 

    

 

4B.           Adjustment
of Conversion. Price and number of Conversion Shares. The Conversion Price and the number of Conversion Shares issuable upon conversion
of this Note, as applicable, shall be adjusted from time to time as follows:

 

(a)          Adjustment
upon Subdivision or Combination of Common Stock. If the Company at any time on or after the date hereof subdivides (by any
stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Conversion Shares will be proportionately increased. If the Company at any time on or after the Date
hereof combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding
shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will
be proportionately increased and the number of Conversion Shares will be proportionately decreased. Any adjustment under this Section
4B(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

(b)          Adjustment
of Conversion Price Upon Issuance of New Securities at Less Than the Conversion Price. In the event the Company shall, at any
time after the date hereof and prior to the repayment in full of the obligations evidenced by this Note, issue new securities,
without consideration or for a consideration per share less than the applicable Conversion Price in effect immediately prior to
such issue, then the Conversion Price shall be reduced, concurrently with such issue, to the consideration per share received by
the Company for such issue or deemed issue of the New Securities; provided, that, if such issuance or deemed issuance was without
Consideration, then the Company shall be deemed to have received an aggregate of $0.001 of Consideration for all such New Securities
issued or deemed to be issued; provided further, that, in the event of an adjustment pursuant to this Section 4B(b), the
number of Conversion Shares issuable upon conversion of this Note shall not change. “New Securities” shall have
the meaning ascribed to such term in that certain Fuse Science, Inc. Warrant of even date herewith.

 

    	6

    	 

    

 

(c)           Other
Events. If any event occurs of the type contemplated by the provisions of this Section 4B but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights), then
the Company’s Board of Directors will make an appropriate adjustment in the Conversion Price and the number of Conversion
Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 4B(c) will increase
the Conversion Price or decrease the number of Conversion Shares as otherwise determined pursuant to this Section 4B.

 

5.            Negative
Covenants. So long as any portion of this Note is outstanding, the Maker will not directly or indirectly:

 

(a)          other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind (i) debt incurred by the Company in the ordinary course of business, not to exceed $15,000 in the aggregate, (ii) debt
which is subordinated in the right of payment to amounts payable to Purchaser pursuant to this Agreement on terms reasonably satisfactory
to Purchaser, including but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom;

 

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

 

(c)          amend
its articles of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder, unless the
sole and exclusive purpose of such amendment of the Maker’s articles of incorporation, bylaws or other charter documents
is to increase the authorized capitalization of the Maker;

 

(d)          repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of securities other than the Notes
subject to the prepayment provisions herein;

 

(e)          pay
cash dividends or distributions on any equity securities of the Maker; or

 

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

 

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“Permitted
Indebtedness” shall mean either (a) the indebtedness of the Maker existing on the date of issuance of this Note and set
forth on Schedule 3(a)(a) of the Purchase Agreement, and (b) any indebtedness incurred by the Maker or any successor-in-interest
to the Maker in connection with a Subsequent Financing, (c) any indebtedness the proceeds of which are used to repay the Notes
in full after giving of appropriate notice as set forth in Section 1(e) above and (d) any indebtedness incurred in the ordinary
course of business or consented to by holders a majority of the outstanding principal and interest on the Notes, which consent
shall be binding upon the Holder.

 

“Permitted
Lien” shall mean 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 Maker)
have been established in accordance with generally accepted accounting procedures, (b) liens imposed by law which were incurred
in the ordinary course of business, such as carriers’, warehousemen’s and mechanics’ liens, statutory landlords’
liens, and other similar liens arising in the ordinary course of business, and (x) which 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 Maker or (y) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing
the forfeiture or sale of the property or asset subject to such lien, (c) purchase money security interests, and (d) liens set
forth on Schedule 6.1 of the Security Agreement.

 

6.          No
Waiver of the Holder’s Rights. All payments of principal and interest shall be made without setoff, deduction or counterclaim.
No delay or failure on the part of the Holder in exercising any of its options, powers or rights, nor any partial or single exercise
of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the
part of the Holder of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker
hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance,
default or endorsement of this Note. Acceptance by the Holder of less than the full amount due and payable hereunder shall in no
way limit the right of the Holder to require full payment of all sums due and payable hereunder in accordance with the terms hereof.

 

7.          Modifications.
No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party
to be bound thereby.

 

8.          Cumulative
Rights and Remedies; Usury. The rights and remedies of the Holder expressed herein are cumulative and not exclusive of any
rights and remedies otherwise available under this Note, or applicable law (including at equity). The election of the Holder to
avail itself of any one or more remedies shall not be a bar to any other available remedies, which the Maker agrees the Holder
may take from time to time. If it shall be found that any interest due hereunder shall violate applicable laws governing usury,
the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law.

 

9.          Use
of Proceeds. Maker shall use the proceeds from this Note hereunder solely for the purposes contemplated in Section 5(a) of
the Purchase Agreement and not for the satisfaction of any portion of the Maker’s debt (other than payment of trade payables
in the ordinary course of the Maker’s business and prior practices), to redeem any of the Maker’s equity or equity-equivalent
securities or to settle any outstanding litigation.

 

    	8

    	 

    

 

10.         Severability.
If any provision of this Note is declared by a court of competent jurisdiction to be in any way 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 shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically
be lowered to equal the maximum permitted rate of interest.

 

11.         Successors
and Assigns. This Note shall be binding upon the Maker and its successors and shall inure to the benefit of the Holder and
its successors and assigns. The term “Holder” as used herein, shall also include any endorsee, assignee or other
holder of this Note.

 

12.         Lost
or Stolen Promissory Note. If this Note is lost, stolen, mutilated or otherwise destroyed, the Maker shall execute and deliver
to the Holder a new promissory note containing the same terms, and in the same form, as this Note. In such event, the Maker may
require the Holder to deliver to the Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition
to the delivery of any such new promissory note.

 

13.         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 conflicts
of law thereof. Each of the Maker and the Holder agree that all legal proceedings concerning the interpretations, enforcement and
defense of this Note shall be commenced in the state and federal courts sitting in the City of New York, County of New York (the
“New York Courts”). Each of the Maker and the Holder hereby irrevocably submit to the exclusive jurisdiction
of the New York Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note),
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 any such court, that such suit, action or proceeding is improper. Each of the Maker and the Holder
hereby irrevocably waive 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 the other 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 manner
permitted by law. Each of the Maker and the Holder hereby irrevocably waive, 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.

 

14.         Notice.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance
with Section 9(c) of the Purchase Agreement.

 

    	9

    	 

    

 

15.         Required
Notice to the Holder. The Holder is to be notified by the Maker, within five (5), Business Days, in accordance with Section
15, of the existence or occurrence, of any Event of Default.

 

[Signature page follows]

 

    	10

    	 

    

 

The undersigned has executed this Note as
a maker and not as a surety or guarantor or in any other capacity.

 

	 	FUSE SCIENCE, INC.
	 	 	 
	 	By:	 
	 	 	Brian Tuffin, Chief Executive Officer

 

    	11

    	 

    

 

EXHIBIT A

 

	Date:  	 	 

 

FUSE SCIENCE, INC.

_______________________

_______________________

Attn:

 

CONVERSION NOTICE

 

The above-captioned
Holder hereby gives notice to FUSE SCIENCE, INC., a Nevada corporation (the “Company”), pursuant to that certain
Convertible Promissory Note made by the Company in favor of the Holder dated [__], 2013 in the principal amount of $_______ by
the Company (the “Note”); that the Holder elects to convert the portion of the Note balance set forth below
into fully paid and non-assessable shares of Common Stock of the Company as of the date of conversion specified below.

 

	A.	Date of conversion:	 	 
	B.	Conversion #:	 	 
	C.	Conversion Amount:	 	 
	D.	Conversion Price: 	 	 
	E.	Conversion Shares:	 	 
	F.	Remaining Note Balance:	 	 

 

Please transfer the Conversion Shares
to the undersigned at:

 

	Address:	 
	 	 
	 	 
	 	 

 

Sincerely,

 

	By:	 	 
	Name:	 	 

 

    	12

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