Document:

Exhibit 10.1

 

LOAN AGREEMENT

 

This Loan Agreement
(“Agreement”) is made and entered into in this 22ND day of January 2020 (“Effective Date”),
by and between EDISON NATION, INC., a Nevada corporation, its successors and assigns (the “Company”), and Greentree
Financial Group, Inc., a Florida corporation (“Lender”).

 

RECITALS

 

WHEREAS, the Company
is in need of capital for working capital and product expansion and Lender has agreed to provide
up to $1,100,000.00 of such capital according to the terms hereof; and

 

WHEREAS, Lender and
Company enter into this Agreement to establish terms by which Lender, in its sole discretion, may fund Loans, as set forth herein
and therein the related Note, described below.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the sufficiency
of which is acknowledged by Lender and Company (each “party” and, collectively, “parties”), the parties
hereby agree as follows:

 

1. LOANS; PROMISSORY
NOTES. Lender may loan the Company up to $1,100,000.00 pursuant to the terms hereof; provided, nothing herein or otherwise
shall obligate Lender to make any future loans to the Company. All sums advanced pursuant to the terms of this Agreement (a “Loan”)
shall be evidenced by a separate 10% convertible promissory note (the “Note”), in substantially the form set forth
as Exhibit A hereto. The Note shall be convertible into shares of the Company’s common stock (the “Common Stock”)
pursuant to the terms contained in the Note. All covenants, conditions and agreements contained herein are made a part of the Note,
unless modified therein.

 

a.       Unless
stated otherwise in the Note, the Note will automatically mature nine (9) months from the effective date of the applicable Note.

 

b.       All
sums advanced pursuant to this Agreement shall bear simple interest from the date the Loan is made until paid in full at an interest
rate of ten percent (10%) per annum. Interest not paid shall not compound and will be calculated on the basis of a 360 day year.
Interest shall be paid by the Company quarterly.

 

2. WARRANTS.
Upon the sale of the Note of $1,100,000 by the Company to the Lender at Effective Date, the Company shall simultaneously issue
to the Lender at the Effective Date, a warrant in substantially the form annexed hereto as Exhibit B (the “Warrant”)
to purchase 550,000 shares of Common Stock (the “Warrant Shares”) at an exercise price of $2.00 per share (the “Exercise
Price”). The Warrant shall be cashless exercisable for a period of three (3) years from the issue date specified on the face
of such Warrant. The Warrants shall have Down Round Protection meaning that prior to exercise, if at any time the Company grants,
issues or sells any Common Stock, options to purchase Common Stock, securities convertible into Common Stock or rights relating
to Common Stock (the “Purchase Rights”) to any person, entity, association, or other organization other than the Lender,
at a price per share less than the Exercise Price, then the Exercise Price hereof shall be proportionately reduced to match the
price per share of the Purchase Rights. For purposes of clarification, if the Company sells Common Stock at $1.50 per share at
any time after the date hereof but prior to exercise, then the Exercise Price of Lender’s Warrant Shares would be adjusted
to $1.50. Notwithstanding, the Exercise Price may not exceed $2.00 per share in any case.

 

 

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Loan Agreement

 

 

The
issuance of Purchase Rights shall not constitute a Down Round for purposes of this Agreement in the event of: (i) the exercise
of stock options or the conversion of convertible securities in each case issued to employees, directors of, or consultants to
the Company pursuant to a plan, agreement or arrangement approved by the Board of Directors of the Company; (ii) a dividend or
distribution payable to holders of capital stock of the Company; or (iii) a subdivision (by stock split, recapitalization or otherwise)
of outstanding shares of the Company into a greater number of shares.

 

3. ORIGINATION
SHARES. The Company agrees to issue Lender 100,000 shares of its common stock as an origination (the “Origination
Shares”)” payable at Effective Date. The Origination Shares are deemed fully earned upon the Effective Date.

 

4. ADVISORY SHARES.
The Company agrees to issue to Lender or its nominee 60,000 shares of its common stock as consideration for advisory services (the
 “Advisory Shares”) payable at the Effective Date. The Advisory Shares will be issued to assist the Company in developing
its online sales market in China, including collaborations with major online product selling platforms in China. The Advisory Shares
are deemed fully earned upon the Effective Date.

 

5. MANDATORY
CONVERSION. The Note shall be converted to shares of common stock on or before the 90th day after the effective
date of the Registration Statement at $2.00 per share (550,000 shares of common stock) or the Alternative Conversion Price if in
default.

 

6. TRUE-UP SHARES.
In the event that the average of the 15 lowest closing prices for the Company’s common stock on NASDAQ or other primary trading
market for the Company’s common stock (the average of such lowest closing prices being herein referred to, the “True-up
Price”) during the period beginning on the effective date of the Registration Statement and ending on the 90th
day after the effective date of the Registration Statement (the “Subsequent Pricing Period”) is less than $2.00 per
share, then the Company will issue the Lender additional shares of the Company’s common stock (the “True-up Shares”)
within three days from the expiration of the Subsequent Pricing Period, according to the following formula:

 

X= [$1,100,000 / A ] less B where:

 

X= number of True-up
Shares to be issued

A= the True-up Price

B = Shares previously
issued (550,000)

 

Example #1: If the
A-True-up Price is $1.80, then X-True-up Shares to be issued is equal to 61,112.

 

[$1,100,000/$1.8 (A- True-up
Price)] = 611,112 shares, less 550,000 (B- Shares Previously Issued) = 61,112 (X- True-Up Shares to be issued).

 

Notwithstanding the foregoing, the value
to determine the number of True-up shares issued under this Agreement shall not exceed 30% of the Loan Amount. 30% of Loan Amount
is $330,000.

 

Example#2: If the True-up
Price is $1.25, then the True-up Shares calculation would be 330,000 Shares. However, the maximum amount of True-up shares shall
not exceed 30% of the Loan Amount ($1,100,000) and therefore 264,000 is the total True-up Shares to be issued.

 

 

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Loan Agreement

 

 

7. ALLOWANCE
FOR LEGAL FEE. A $15,000.00 allowance for Lender’s legal fees shall be paid by the Company and deducted from Lender’s
$1,100,000.00 payment.

 

8. REGISTRATION
RIGHTS. The Company shall prepare and file with the United States Securities and Exchange Commission (the “Commission”)
a registration statement on Form S-1 (the “Form S-1” or “Registration Statement”) within 30 days of the
Effective Date to cover two times the Common Stock underlying the Note conversion based on the lower of the conversion price of
$2.00 or the Alternative Conversion Price, the Warrant Shares and the Origination Shares. The Form S-1 must be effective within
105 days from the Effective date of this Agreement. There shall be monthly liquidated damages of $35,000 if the Registration Statement
is not filed within 30 days from the Effective Date and/ or declared effective within 105 days from the Effective Date of this
Agreement, which damages shall accrue each month until the applicable breach (failure to timely file, failure to timely have declared
effective, or both) has been cured. The parties acknowledge and agree that damages which will result to Lender for Company’s
failure to timely file or have declared effective the Registration Statement shall be extremely difficult or impossible to establish
or prove, and agree that the payment of $35,000 per month is a reasonable estimate of potential damages and shall constitute liquidated
damages for any breach of this paragraph. Any amounts due under this Section shall be paid by the fifth (5th) day of the month
following the month in which they accrued or, at the option of Lender, added to the principal of the Note. The legal fees associated
with filing the Form S-1 shall be paid by Company

 

9. REPRESENTATIONS
AND WARRANTIES BY THE COMPANY. In order to induce Lender to enter into this Agreement and to make the Loans provided for
herein, Company represents and warrants to Lender as follows:

 

a.       Organization,
Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Nevada and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted.

 

b.       Non-Shell
Status. The Company is not now or ever been a shell as that term is defined in Rule 405 of the Securities Act.

 

c.       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement, the Notes,
and the Warrants (all such documents together with all amendments, schedules, exhibits, annexes, supplements and related items,
to each such document shall hereinafter be collectively referred to as, the “Transaction Documents”). The execution,
delivery and performance of the Transaction Documents by the Company, and the consummation by it of the transactions contemplated
in, have been duly and validly authorized by all necessary corporate action. The Transaction Documents, when executed and delivered,
will constitute valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditor's rights and remedies or by other
equitable principles of general application.

 

d.       Disclosure.
None of the Transaction Documents nor any other document, certificate or instrument furnished to the Lender by or on behalf of
the Company in connection with the transactions contemplated by the Transaction Documents contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements made herein or therein, in the light of the circumstances
under which they were made herein or therein, not misleading.

 

 

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Loan Agreement

 

 

e.       Adequate
Shares. The Company will at all times have authorized and reserved a sufficient number of shares of Common Stock to provide
for the exercise of the rights represented by the respective Warrants and Notes.

 

f.       Periodic
Filings. The Company at all times will remain current in its reporting requirements with the SEC under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) including maintaining XBRL financial information on the Company’s
corporate website.

 

g.       Additional
Issuances. Except for the transactions contemplated by the Transaction Documents, the Company, for a period of twelve (12)
months from the date hereof, will not issue, grant or sell any security with a variable conversion or exercise rate.

 

h.       No
Shorting, Etc.  Lender agrees that for a period of twenty-four (24) months after the Effective Date of the sale by the
Company to Lender of a Note, neither Lender nor any of its affiliates, whether in their own capacity or through a third party,
shall directly or indirectly enter into or effect any “short sales” (as such term is defined in Rule 10a-1 of the Exchange
Act) of shares of Common Stock or any hedging transaction, including obtaining and/or borrowing any shares of Common Stock, which
establishes a net short position with respect to the shares of Common Stock underlying the Warrants and Notes, whether on a U.S.
domestic exchange or any foreign exchange.

 

 

10. REPRESENTATIONS
AND WARRANTIES BY LENDER. Lender, by its acceptance of this Note, represents and warrants to Company as follows:

 

(a)       Lender
is acquiring the Note with the intent to hold as an investment and not with a view of distribution. 

 

(b)       Lender
is an “accredited investor” within the definition contained in Rule 501(a) under the Securities Act of 1933, as amended
(the “Securities Act”), and is acquiring the Note for its own account, for investment, and not with a view to,
or for sale in connection with, the distribution thereof or of any interest therein. Lender has adequate net worth and means of
providing for its current needs and contingencies and is able to sustain a complete loss of the investment in the Note, and has
no need for liquidity in such investment. Lender, itself or through its officers, employees or agents, has sufficient knowledge
and experience in financial and business matters to be capable of evaluating the merits and risks of an investment such as an investment
in the Securities, and Lender, either alone or through its officers, employees or agents, has evaluated the merits and risks of
the investment in the Note.

 

(c)       
Lender acknowledges and agrees that it is purchasing the Note hereunder based
upon its own inspection, examination and determination with respect thereto as to all matters, and without reliance upon any express
or implied representations or warranties of any nature, whether in writing, orally or otherwise, made by or on behalf of or imputed
to the Company.

 

(d)       Lender
has no contract, arrangement or understanding with any broker, finder, investment bank, financial intermediary or similar agent
with respect to any of the transactions contemplated by this Agreement.

 

 

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Loan
Agreement

 

 

11.
LIQUIDATED DAMAGES.

 

a.       If
(i) the Registration Statement on Form S-1 is not filed with the SEC on or prior to the date 30 days from the Effective Date,
(ii) the Registration Statement has not been declared effective by the SEC on or prior to the date 75 days from the filing
date, or (iii)  any registration statement required by this Agreement is filed and declared effective by the Commission but
shall thereafter cease to be effective or fail to be usable for its intended purpose (each such event referred to as a “Registration
Default”), the Company hereby agrees to pay liquidated damages (“Liquidated Damages”) to Lender $35,000 per month
until the Form S-1 takes effective.  Following the cure of all Registration Defaults relating to any particular registrable
Securities, Liquidated Damages shall cease to accrue; provided, however, that, if after Liquidated Damages have ceased
to accrue, a different Registration Default occurs, Liquidated Damages shall again accrue pursuant to the foregoing provisions.
Any amounts due under this Section shall be paid by the fifth (5th) day of the month following the month in which they
accrued.

 

b.       If
the Company fails to deliver any Securities due Lender hereunder on the date dictated by this Agreement (each a, “Delivery
Date”), the Company shall pay to Lender in immediately available funds $1,000.00 per day past the Delivery Date that the
Securities are actually issued. Any amounts due under this Section shall be paid by the fifth (5th) day of the month
following the month in which they accrued. The Company agrees that the right to receive Securities is a valuable right to Lender
and a material consideration of it entering this Agreement. The parties agree that it would be impracticable and extremely difficult
to ascertain the amount of actual damages caused by a failure of the Company to timely deliver shares as required hereby. Therefore,
the parties agree that the foregoing liquidated damages provision represents reasonable compensation for the loss which would be
incurred by the Lender due to any such breach. The parties agree that this Section is not intended to in any way limit Lender’s
right to pursue other remedies, including actual damages and/or equitable relief.

 

c.       The
Company and Lender hereto acknowledge and agree that the sums payable as Liquidated Damages under subsection 10(a) and 10(b) above
shall constitute liquidated damages and not penalties and are in addition to all other rights of the Lenders, including the right
to call a default under the Securities Purchase Agreement.  The parties further acknowledge that (i) the amount of loss
or damages likely to be incurred is incapable or is difficult to precisely estimate, (ii) the amounts specified in such subsections
bear a reasonable relationship to, and are not plainly or grossly disproportionate to, the probable loss likely to be incurred
in connection with any failure by the Company to obtain or maintain the effectiveness of a registration statement, (iii) one of
the reasons for the Company and the Lender reaching an agreement as to such amounts was the uncertainty and cost of litigation
regarding the question of actual damages, and (iv) the Company and the Lender are sophisticated business parties and have been
represented by sophisticated and able legal counsel and negotiated this Agreement at arm’s length.

 

 

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Loan Agreement

 

 

12. COMMON SHARE
ISSUANCE. Upon receipt by the Company of a written request from Lender to convert any amount due under any Note or to exercise
any portion of any Warrant, subject to any limitations on conversion or exercise contained in any Note and/or Warrant, the Company
shall have three (3) business days (“Delivery Date”) to issue the shares of Common Stock rightfully listed in such
request. If the Company fails to timely deliver the shares, the Company shall pay to Lender in immediately available funds $1,000.00
per day past the Delivery Date that the shares are actually issued. Any amounts due under this Section shall be paid by the fifth
(5th) day of the month following the month in which they accrued or, at the option of Lender, may be added to the principal
under any Note. The Company agrees that the right to convert the Notes or exercise its Warrants is a valuable right to Lender and
a material consideration of it entering this Agreement. The parties agree that it would be impracticable and extremely difficult
to ascertain the amount of actual damages caused by a failure of the Company to timely deliver shares as required hereby. Therefore,
the parties agree that the foregoing liquidated damages provision represents reasonable compensation for the loss which would be
incurred by the Lender due to any such breach. The parties agree that this Section is not intended to in any way limit Lender’s
right to pursue other remedies, including actual damages and/or equitable relief.

 

13. CONVERSION
COSTS. The Company agrees to reimburse Lender’s certificate processing cost by adding $1,500 to the principal for
each note conversion effected by Lender.

 

14. EVENTS OF
DEFAULT. An event of default will occur if any of the following circumstances occur (each an “Event of Default”):

 

a.       Any
representation or warranty made by Company in this Agreement or in connection with any Warrant or Note, or in any financial statement,
or any other statement furnished by Company to Lender is untrue in any material respect at the time when made or becomes untrue.

 

b.       Default
by Company in the observance or performance of any other covenant or agreement contained in this Agreement.

 

c.       Default
by Company under the terms of any Note or Warrant or any other third party note or warrant that exceeds a value of $1,000,000.

 

d.        Filing
by Company of a voluntary petition in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief
under the Bankruptcy Code as amended or under any other insolvency act or law, state or federal, now or hereafter existing.

 

e.       Filing
of an involuntary petition against Company in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other
relief under the Bankruptcy Code as amended, or under any other insolvency act or law, state or federal, now or hereafter existing,
and the continuance thereof for sixty (60) days undismissed, unbonded or undischarged.

 

f.       Company
liquidates, transfers, sells or assigns substantially its assets or elects to wind down its operations or dissolve.

 

g.       The
Company fails to maintain irrevocable TA instruction or file with the Company’s transfer agent along with a reserve of common
shares sufficient to satisfy the Note based on a then hypothetical conversion scenario per the terms of the Note.

 

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Loan Agreement

 

 

h.       The
Company fails to maintain DTC or DWAC eligibility.

 

i.       The
Company fails to stay current in its SEC reporting obligations, including maintaining XBRL financial information on the Company’s
corporate website.

 

j.       The
Company fails to deliver the Lender the shares of Common Stock rightfully listed in any Conversion Notice or any Warrants Exercise
Notice within three (3) business days.

 

k.       The
Company breaches any other agreement it has with Lender or his assigns.

 

l.       The
Company interferes with Lender’s or its assigns’ efforts to remove the restrictive legend from the Common Stock issued
as a result of conversion of any Note when Lender or his assign has provided an attorney opinion letter opining that the shares
are eligible to have the legend removed pursuant to Rule 144 or otherwise.

 

m.       The
Company fails to prepare and file with the United States Securities and Exchange Commission (the “Commission”) a registration
statement on Form S-1 within 30 days of the Effective Date to cover the Common Stock underlying the Note and Warrants granted hereto,
or the Form S-1 fails be effective within 105 days from the Effective Date.

 

15. REMEDIES.
(i) There will be no cure period available for the Event of Default as defined in Section 14(d), 14(e) and 14(m); or (ii) upon
the occurrence of any other Event of Default as defined above, and provided such Event of Default has not been cured by the Company
within ten (10) business days after written notice of the occurrence of such Event of Default, the principal and any accrued interest
of the Note will be due immediately, and Lender shall have all of the rights and remedies provided by applicable law and equity.
To the extent permitted by law, Company waives any rights to presentment, demand, protest, or notice of any kind in connection
with this Agreement, any Warrant and/or any Note. No failure or delay on the part of Lender in exercising any right, power, or
privilege hereunder or thereunder will preclude any other or further exercise thereof or the exercise of any other right, power,
or privilege. The rights and remedies provided herein are cumulative and not exclusive of any other rights or remedies provided
at law or in equity. In the event Lender shall refer this Agreement to an attorney to enforce the terms hereof, the Company agrees
to pay all the costs and expenses incurred in attempting or effecting the enforcement of the Lender’s rights, including reasonable
attorney's fees, whether or not suit is instituted.

 

16. NOTICE.
Any and all notices, demands, advance requests or other communications required or desired to be given hereunder by any party shall
be in writing and shall be validly given or made to another party if (i) personally served, (ii) sent by email on the date such
email is sent (provided confirmation of such email being sent is provided upon request) (iii) deposited in the United States mail,
postage prepaid, return receipt requested, or (iv) by facsimile with confirmation receipt. Notice hereunder is to be given as follows:

 

If to the Company:

 

EDISON NATION, INC.

909 New Brunswick Ave

Phillipsburg, NJ 08865

Attn: Christopher Ferguson

 

 

 

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Loan Agreement

 

 

If to the Lender:

 

Greentree Financial Group, Inc.

7951 S.W. 6th Street, Suite 216

Plantation, Florida 33324

Attn: R. Chris Cottone

 

17. GENERAL PROVISIONS.
All representations and warranties made in the Transaction Documents shall survive the execution and delivery of this Agreement
and the making of any Loans hereunder. This Agreement will be binding upon and inure to the benefit of Company and Lender, their
respective successors and assigns.

 

18. ENTIRE AGREEMENT.
The Transaction Documents contain the entire agreement of the parties and supersedes and replaces all prior discussions, negotiations
and representations of the parties. No party shall rely upon any oral representations in entering into this agreement, such oral
representations, if any, being expressly denied by the party to whom they are attributed and it being the intention of the parties
to limit the terms of this Agreement to those matters contained herein in writing. However, incorporated Notes shall be deemed
controlling at all times with regards to any inconsistent or changed terms or amendments contained therein.

 

19. BINDING EFFECT.
This agreement is binding upon and inures to the benefit of the parties hereto, their heirs, personal representatives, successors
and assigns. Lender may assign its rights hereunder without prior permission from the Company.

 

20. GOVERNING
LAW AND CONSENT TO JURISDICTION. This Agreement shall be governed by and construed in accordance with the laws of the State
of Nevada, without regard to conflict of law provisions. All disputes arising out of or in connection with this Agreement, or in
respect of any legal relationship associated with or derived from this Agreement, shall only be heard in any competent court residing
in Clark County, Nevada. The Company agrees that a final judgment in any such action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any manner provided by law. The Company further waives any objection
to venue in any such action or proceeding on the basis of inconvenient forum. The Company agrees that any action on or proceeding
brought against the Lender shall only be brought in such courts.

 

21. ATTORNEYS
FEES. In the event the Lender hereof shall refer this Agreement to an attorney to enforce the terms hereof, the Company
agrees to pay all the costs and expenses incurred in attempting or effecting the enforcement of the Lender's rights, including
reasonable attorney's fees, whether or not suit is instituted.

 

22. AMENDMENT.
The terms of this Agreement may not be amended, modified, or eliminated without written consent of the parties.

 

23. SEVERABILITY.
Every provision of this Agreement is intended to be severable. If any term or provision thereof is illegal or invalid for any reason
whatsoever, such illegality or invalidity shall not affect the validity or legality of the remainder of this Agreement.

 

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Loan Agreement

 

 

24. CONSTRUCTION.
Section and paragraph headings are for convenience only and do not affect the meaning or interpretation of this Agreement. No rule
of construction or interpretation that disfavors the party drafting this Agreement or any of its provisions will apply to the interpretation
of this Agreement. Instead, this Agreement will be interpreted according to the fair meaning of its terms.

 

25. FURTHER ASSURANCES.
Each party hereto agrees to do all things, including execute, acknowledge and/or deliver any documents which may be reasonably
necessary, appropriate or desirable to effectuate the transactions contemplated herein pursuant to terms and conditions of this
Agreement.

 

 

IN WITNESS WHEREOF, the parties hereto
enter into this Loan Agreement which is effective as of the date first written.

 

	Company:	 	Lender:   	 
	 	 	 	 	 	 
	EDISON NATION, INC.	 	Greentree Financial Group, Inc.	 
	 	 	 	 	 	 
	By: 	/s/ Christopher Ferguson	 	By: 	/s/  R. Chris Cottone	 
	Name:	Christopher Ferguson	 	Name:	R. Chris Cottone	
	Title:	Chief Executive Officer	 	Title:	Vice President  	 

 

 

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Loan Agreement

 

EXHIBIT A

 

NOTE FORM

 

 

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Loan Agreement

 

 

EXHIBIT B

 

WARRANT FORM

 

 

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Exhibit A

 

THESE SECURITIES AND THE
SECURITIES INTO WHICH THEY CONVERT HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION NOR 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 AND COMPANY RESTRICTIONS.

 

 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, EDISON NATION, INC.,
a Nevada corporation, its successors and assigns (the “Company) promises to pay to the order of Greentree Financial Group,
Inc., a Florida corporation (“Holder”), in immediately available funds, the aggregate principal amount set forth below
(the “Principal Amount”), plus all accrued interest thereon, in accordance with the terms of this Convertible Promissory
Note (“Note”).

 

	EFFECTIVE DATE:	January 22, 2020
	PRINCIPAL AMOUNT:	$1,100,000 
	MATURITY DATE:	October 22, 2020

 

		1.	INCORPORATION. This Note is being issued pursuant to the terms of that certain Loan Agreement,
dated as of January 22, 2020 by and between the Company and the Holder (the “Loan Agreement”). If not otherwise defined
herein, all capitalized terms herein shall have the meanings given to them in the Loan Agreement. Further, all of the terms, representations,
warranties, agreements, covenants and conditions set forth in the Loan Agreement are incorporated herein by reference. To the extent
that there is a conflict between any condition, term or provision of this Note and the Loan Agreement, the conditions, terms, and
provisions set forth herein shall specifically supersede the conflicting conditions, provisions and/or terms in the Loan Agreement.

 

		2.	PAYMENT. All outstanding principal and accrued but unpaid interest and fees shall be due
and payable nine-months from the Effective Date (“Maturity Date”). Payment shall be made at Holder’s address
at 7951 SW 6th Street, Suite 216, Plantation, FL 33324, or as otherwise directed by Holder. Notwithstanding the above,
this Note must be converted to Common Stock at $2.00 per share or the Alternative Conversion Price if in default within 90 days
after the effective date of the Registration Statement as set forth in Section 10.

 

		3.	INTEREST. Interest shall accrue on the unpaid principal balance of this Note at the annual
rate of Ten Percent (10%) until the entire Principal Amount is paid in full. Interest shall not be compounded and shall be computed
on the basis of a three hundred sixty (360) day year comprised of twelve (12) months of thirty (30) days each, with any calculation
based upon a partial month of less than thirty (30) days based on actual days lapsed. The Company will make interest payments quarterly,
with the first interest payment due three (3) months from the Effective Date hereof and on each 3 months from such date until all
interest and outstanding principal is paid in full.

 

 

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		4.	PREPAYMENT. The Company may, at its option, at any time and from time to time, prepay all
or any part of the principal balance of this Note before the Maturity Date, without any penalty; provided, that it shall
provide Holder with fifteen (15) days’ advanced written notice of its intent to prepay this Note. Holder shall have the option
to elect to convert this Note per the terms of this Note and the Loan Agreement at any time prior to the Company’s prepayment.
Any partial prepayments would be applied to accrued interest balance first, then fees and then principal.

 

		5.	REORGANIZATION. In case of any consolidation or merger of the Company with or into any other
corporation, entity or person, or any other corporate reorganization, in which the Company shall not be the continuing or surviving
entity of such consolidation, merger or reorganization (any such transaction being hereinafter referred to as a “Reorganization”),
then, in each case, the Holder of this Note, on conversion hereof at any time after the consummation or effective date of such
Reorganization (the “Reorganization Date”), shall receive, in lieu of the shares of stock or other securities at any
time issuable upon the conversion of this Note issuable on such conversion prior to the Reorganization Date, the stock and other
securities and property (including cash) to which such Holder would have been entitled upon the Reorganization Date if such Holder
had converted this Note immediately prior thereto. The Company shall ensure that the surviving entity in any Reorganization specifically
assumes the Company’s obligations under this Note and the Loan Agreement.

 

		6.	MANDATORY CONVERSION.

 

		a)	On the 90th day after the effective date of Registration Statement as set forth in Section
10, the Holder is required to convert all of the outstanding Principal Amount of this Note, or any portion of the Principal Amount
hereof, and any accrued interest, in whole or in part, into shares of the common stock of the Company (the “Common Stock”).
In addition, the Holder may convert, in whole or in part, any of the outstanding balances due under the Note into shares of
Common Stock at any time after the effective date of the Registration Statement, 180 days from the Effective date of this Note
or upon receipt of notice from the Company of its intent to prepay this Note, whichever is sooner. Any amount converted under this
Note will be converted into common stock of the Company at $2.00 per share (“Conversion Price”), which will be adjusted
to Alternative Conversion Price if any event of default occurs.

 

		b)	Alternative Conversion Price should be equal to 50% of the lowest trading price on the primary
trading market on which the Company's Common Stock is quoted for the last ten (10) trading days immediately prior to but not including
the Conversion Date.

 

		c)	Conversion Limitation. Notwithstanding any other provision of this Note, the Holder may
not convert this Note if such conversion would cause Holder’s beneficial ownership (as defined by Section 13(d) of the Securities
Exchange Act of 1934, as amended) of the Company to exceed 4.9% of its total issued and outstanding common or voting shares. Upon
not less than sixty-one (61) days advance written notice, at any time or from time to time, the Holder at its sole discretion,
may waive this 4.9% conversion limit. However, under any circumstance, the Holder may not convert this Note if such conversion
would cause Holder’s beneficial ownership (as defined by Section 13(d) of the Securities Exchange Act of 1934, as amended)
of the Company to exceed 9.9% of its total issued and outstanding common or voting shares. Any common shares converted under this
Note need to be delivered to the Holder within three (3) business days of the receipt of Conversion Notice.

  

 

 

Initial:   CF  

 

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		d)	Authorized and Reserved Shares. The Company covenants that at all times until the Note is
satisfied in full, the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from
preemptive rights, to provide for the issuance of a number of shares of Common issuable upon the full conversion of this Note (assuming
no payment of Principal Amount or interest) as of any issue date (taking into consideration any adjustments to the conversion price)
multiplied by (ii) two (2) (the “Reserved Amount”). The initial Reserved Amount as of the Issue Date shall be
1,500,000. In the event that the Company shall be unable to reserve the entirety of the Reserved Amount (the “Reserve Amount
Failure”), the Company shall promptly take all actions necessary to increase its authorized share capital to accommodate
the Reserved Amount (the “Authorized Share Increase”), including without limitation, all board of directors actions
and approvals and promptly (but no less than 60 days following the calling and holding a special meeting of its shareholders no
more than 60 days following the Reserve Amount Failure to seek approval of the Authorized Share Increase via the solicitation of
proxies. The Company represents that upon issuance, the conversion shares will be duly and validly issued, fully paid and non-assessable.
The Company (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the conversion shares
or instructions to have the conversion shares issued as contemplated by this Note, and (ii) agrees that its issuance of this Note
shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates or cause
the Company to electronically issue shares of Common Stock to execute and issue the necessary certificates for the conversion shares
or cause the conversion shares to be issued as contemplated in accordance with the terms and conditions of this Note.

 

		7.	CONVERSION COST. The Company agrees to reimburse the Holder’s certificate processing
cost by adding $1,500 to the Principal for each note conversion effected by Holder.

 

		8.	COMMON SHARE ISSUANCE. Upon receipt by the Company of a written request from Holder to convert
any amount due under any Note pursuant to a voluntary or mandatory conversion, subject to any limitations on conversion contained
in any Note, the Company shall have three (3) business days (“Delivery Date”) to request issuance of the shares of
Common Stock rightfully listed in such request. If the Company fails to timely deliver the shares, the Company shall pay to Holder
in immediately available funds $1,000 per day past the Delivery Date that the shares are actually issued. Any amounts due under
this Section shall be paid by the fifth (5th) day of the month following the month in which they accrued or, at the option of Holder,
may be added to the principal under any Note. The Company agrees that the right to convert the Notes is a valuable right to Holder
and a material consideration of it entering this Agreement. The parties agree that it would be impracticable and extremely difficult
to ascertain the amount of actual damages caused by a failure of the Company to timely deliver shares as required hereby. Therefore,
the parties agree that the foregoing liquidated damages provision represents reasonable compensation for the loss which would be
incurred by the Holder due to any such breach. The parties agree that this Section is not intended to in any way limit Holder’s
right to pursue other remedies, including actual damages and/or equitable relief.

 

		9.	ADJUSTMENTS.

 

		a)	In case the Company shall at any time prior to the conversion of the Note, or the maturity of the
Note, whichever first occurs, effect a recapitalization or reclassification of such character that its Common Stock shall be changed
into or become exchangeable for a larger or smaller number of shares, then the Conversion Price shall be appropriately adjusted
to reflect any such event. Notwithstanding, the Conversion Price may not exceed $2.00 per share in any case.

 

 

 

Initial:   CF  

    	 	3 of 7	 

     

    

 

		b)	Prior to conversion, if at any time the Company grants, issues or sells any Common Stock, options
to purchase Common Stock, securities convertible into Common Stock or rights relating to Common Stock (the “Purchase Rights”)
to any person, entity, association, or other organization other than the Holder, at a price per share less than the Conversion
Price, then the Conversion Price hereof shall be proportionately reduced to match the price per share of the Purchase Rights. For
purposes of clarification, if the Company sells Common Stock at $1.50 per share at any time prior to conversion, then the Conversion
Price of Holder’s Converted Shares would be adjusted to $1.50.

 

		10.	REGISTRATION RIGHTS. 

 

This Note will have registration
rights. The Company shall prepare and file with the United States Securities and Exchange Commission (the “Commission”)
a registration statement on Form S-1 (the “Form S-1” or “Registration Statement”) within 30 days of the
Effective Date to cover two times the Common Stock underlying the Note conversion based on the lower of the conversion price of
$2.00 or the Alternative Conversion Price. The Form S-1 must be effective within 105 days from the Effective date of this Note.
There shall be monthly liquidated damages of $35,000 if the Registration Statement is not filed within 30 days from the Effective
Date and/ or declared effective within 105 days from the Effective Date of this Note, which damages shall accrue each month until
the applicable breach (failure to timely file, failure to timely have declared effective, or both) has been cured. The parties
acknowledge and agree that damages which will result to Holder for Company’s failure to timely file or have declared effective
the Registration Statement shall be extremely difficult or impossible to establish or prove, and agree that the payment of $35,000
per month is a reasonable estimate of potential damages and shall constitute liquidated damages for any breach of this paragraph.
Any amounts due under this Section shall be paid by the fifth (5th) day of the month following the month in which they accrued
or, at the option of Holder, added to the principal of this Note. The legal fees associated with filing the Form S-1 shall be paid
by Company.

 

		11.	DEFAULT.  The occurrence of any one of the following events shall constitute an Event of
Default:

 

		a)	The non-payment, when due, of any principal or interest pursuant to this Note;

 

		b)	The material breach of any representation or warranty in the Loan Agreement;

 

		c)	The breach of any material covenant or undertaking herein or therein the Loan Agreement;

 

		d)	The commencement by the Company of any voluntary proceeding under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, receivership, dissolution, or liquidation law or statute of any jurisdiction, whether
now or hereafter in effect; or the adjudication of the Company as insolvent or bankrupt by a decree of a court of competent jurisdiction;
or the petition or application by the Company for, acquiescence in, or consent by the Company to, the appointment of any receiver
or trustee for the Company or for all or a substantial part of the property of the Company; or the assignment by the Company for
the benefit of creditors; or the written admission of the Company of its inability to pay its debts as they mature;

 

 

Initial:   CF  

    	 	4 of 7	 

     

    

  

		e)	The commencement against the Company of any proceeding relating to the Company under any bankruptcy,
reorganization, arrangement, insolvency, adjustment of debt, receivership, dissolution or liquidation law or statute of any jurisdiction,
whether now or hereafter in effect, provided, however, that the commencement of such a proceeding shall not constitute an Event
of Default unless the Company consents to the same or admits in writing the material allegations of same, or said proceeding shall
remain undismissed for 20 days; or the issuance of any order, judgment or decree for the appointment of a receiver or trustee for
the Company or for all or a substantial part of the property of the Company, which order, judgment or decree remains undismissed
for 20 days; or a warrant of attachment, execution, or similar process shall be issued against any substantial part of the property
of the Company;

 

		f)	The Company liquidates, transfers, sells or assigns substantially all of its assets or elects to
wind down its operations or dissolve;

 

		g)	The Company fails to maintain irrevocable TA instruction or file with the Company’s transfer
agent along with a reserve of common shares sufficient to satisfy the Note based on a then hypothetical conversion scenario per
the terms of the Note;

 

		h)	The Company fails to maintain DTC or DWAC eligibility;

 

		i)	The Company fails to stay current in its SEC reporting obligations, including maintaining XBRL
financial information on the Company’s corporate website;

 

		j)	The Company fails to deliver the Holder the shares of Common Stock rightfully listed in the Conversion
Notice and Warrant Exercise Notice within three (3) business days;

 

		k)	The Company defaults on any other debt or warrant agreement exceeding a value of $1,000,000;

 

		l)	The Company breaches any other agreement it has with Holder or his assigns;

 

		m)	The Company interferes with Holder’s or its assigns’ efforts to remove the restrictive
legend from the Common Stock issued as a result of conversion of the Note when Holder or his assign has provided an attorney opinion
letter opining that the shares are eligible to have the legend removed pursuant to Rule 144 or otherwise; or

 

		n)	The Company fails to prepare and file with the United States Securities and Exchange Commission
(the “Commission”) the Registration Statement within 30 days of the Effective Date to cover the Common Stock underlying
this Note and Warrants granted to the Holder pursuant to the Loan Agreement and Warrants Agreement, dated January 22, 2020, or
the Form S-1 fails be effective within 105 days from the Effective date of this Note.

 

There will be no cure
period available for the Event of Default as defined in Section 11(d),11(e) and 11(n); Upon the occurrence of any other Event of
Default, and provided such Event of Default as defined in Section 11, has not been cured by the Company within ten (10) business
days written notice, after the occurrence of such Event of Default (except a payment default of any interest, principal and/or
other amount when due, of which no cure period is available), the Holder, may, by written notice to the Company, declare all or
any portion of the unpaid Principal Amount due to Holder, together with all accrued interest thereon, immediately due and payable
(without advanced notice as may otherwise by required hereunder); provided that upon the occurrence of an Event of Default as set
forth in paragraph (d) or paragraph (e) hereof, all or any portion of the unpaid Principal Amount due to Holder, together with
all accrued interest thereon, shall immediately become due and payable without any such notice. There shall be a default charge
equal to 5% of the sum of any unpaid principal plus any interest accrued as of the default date. Upon the occurrence of an uncured
Event of Default as set forth in paragraph (n), a monthly penalty of $35,000 is payable to Holder until Form S-1 takes effective.
Any amounts due under this Section shall be paid by the fifth (5th) day of the month following the month in which they accrued.
Holder shall also have all other remedies available under law and equity.

 

 

Initial:   CF  

    	 	5 of 7	 

     

    

 

In the event that Holder
at its sole discretion elects to allow the Company to continue with repayment of the principal and interest on this Note after
an Event of Default, the interest rate on the unpaid principal of this Note will change to 18% or the highest interest rate currently
allowable under Nevada law for loans of this amount (the “Default Interest Rate”). In the event of any changes under
Nevada law relating to the increases or decreases of allowable interest rates, this Note will be changed to the highest amount
allowable under Nevada law without notification or further ratification. As of the date of Default or any Event of Default, assuming
the Holder allows reinstatement or continuation of this Note, the Default Interest Rate shall become the new rate of interest on
this Note.

 

Any payments
that the Holder allows under this section shall be made through a wire transfer of funds or Certified Check.

 

Upon the occurrence
of any Event of Default, the Holder at any time, at its sole discretion, may elect to immediately (without prior notice) convert
the outstanding Principal Amount of this Note, or any portion of the Principal Amount hereof, and any accrued interest, in whole
or in part, into shares of the Common Stock, according to the terms of this Note.

 

		12.	NOTICE. Any and all notices, demands, advance requests or other communications required
or desired to be given hereunder by any party shall be in writing and shall be validly given or made to another party if (i) personally
served, (ii) sent by email on the date such email is sent (provided confirmation of such email being sent is provided upon request)
(iii) deposited in the United States mail, postage prepaid, return receipt requested, or (iv) by facsimile with confirmation receipt.
Notice hereunder is to be given as follows:

 

If to the Company:

 

EDISON NATION, INC.

909 New Brunswick Ave

Phillipsburg, NJ 08865

Attn: Christopher Ferguson

 

If to the Holder:

 

Greentree Financial Group, Inc.

7951 S.W. 6th Street, Suite 216

Plantation, Florida 33324

Attn: R. Chris Cottone

 

		13.	SUCCESSION AND ASSIGNABILITY. This Note shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. The Holder may assign any of his or its rights, interests,
or obligations hereunder on his or its own discretion without further approval from the Company.

  

 

 

Initial:   CF  

    	 	6 of 7	 

     

    

 

		14.	GOVERNING LAW AND CONSENT TO JURISDICTION. This Note shall be governed by and construed
in accordance with the laws of the State of Nevada, without regard to conflict of law provisions. All disputes arising out of or
in connection with this Note, or in respect of any legal relationship associated with or derived from this Note, shall only be
heard in any competent court residing in Clark County, Nevada. The Company agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any manner provided by law. The Company
further waives any objection to venue in any such action or proceeding on the basis of inconvenient forum. The Company agrees that
any action on or proceeding brought against the Holder shall only be brought in such courts.

 

		15.	ATTORNEYS FEES. In the event the Holder hereof shall refer this Note to an attorney to enforce
the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting the enforcement of the
Holder's rights, including reasonable attorney's fees, whether or not suit is instituted.

 

		16.	CONFORMITY WITH LAW. It is the intention of the Company and of the Holder to conform strictly
to applicable usury and similar laws. Accordingly, notwithstanding anything to the contrary in this Note, it is agreed that the
aggregate of all charges which constitute interest under applicable usury and similar laws that are contracted for, chargeable
or receivable under or in respect of this Note, shall under no circumstances exceed the maximum amount of interest permitted by
such laws, and any excess, whether occasioned by acceleration or maturity of this Note or otherwise, shall be canceled automatically,
and if theretofore paid, shall be either refunded to the Company or credited on the Principal Amount of this Note.

 

		17.	SEVERABILITY. If any portion of this Note is declared by a court of competent jurisdiction
to be invalid or unenforceable, such portion shall be deemed severed from this Note, and the remaining part shall remain in full
force and effect as if no such invalid or unenforceable provisions had been a part of this Note.

 

		18.	WAIVER. Holder shall not be deemed to have waived any rights under this Note unless such
waiver is given in a dated writing signed by Holder. No delay or omission on the part of Holder in exercising any right pursuant
to this Note shall operate as a waiver of such right or any other right. A waiver by Holder of any provision of this Note or of
any rights against any individual, entity or collateral shall not prejudice or constitute a waiver of strict compliance of any
other provision of this Note by any other individual or entity. No prior waiver by Holder or course of dealing between Holder and
any individual or entity collectively constituting the Company shall constitute a waiver of any rights of Holder or of any obligations
pursuant to this Note.

 

		19.	This Note and the Loan Agreement (and the warrant issued thereunder) constitute the entire agreement
between the parties relating to the subject matter hereof, and may not be altered or amended except by written agreement signed
by the parties.

 

In witness whereof, the below parties signed and sealed this
Note as of above date written.

 

EDISON NATION, INC.

(“COMPANY”)

 

	By: 	/s/  Christopher Ferguson 	 
	Name:	Christopher Ferguson 	 
	Title:    	Chief Executive Officer	 

 

 

Initial:   CF  

 

    	 	7 of 7

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