Document:

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES
INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

Original Issue Date: March 20, 2017

Original Conversion Price (subject to adjustment herein): $2.03

 

Principal Amount: $

 

AUTHENTIDATE HOLDING CORP.

SENIOR SECURED CONVERTIBLE NOTE

 

THIS SENIOR SECURED CONVERTIBLE NOTE is
a duly authorized and validly issued Senior Secured Convertible Note of Authentidate Holding Corp., a Delaware corporation, (the
“Company”), having its principal place of business at 2225 Centennial Drive, Gainesville, GA 30504, due March
20, 2018 (this note, the “Note”). This Note is being issued pursuant to the Exchange Agreement (as defined below)
among the Company and the original holders of the Notes. By its acceptance of this Note, Holder agrees to be bound by the terms
of the Exchange Agreement. This Note is a direct obligation of the Company and payment of principal and interest of this Note shall
be secured in accordance with the Security Agreement dated as of the Original Issue Date of this Note (the “Security Agreement”).
This Note ranks pari passu in right of payment with all other Notes now or hereafter issued in accordance with the Exchange
Agreement under the terms set forth herein and shall be senior in right of payment to all other Indebtedness of the Company and
its Subsidiaries, subject to the terms, conditions and limitations set forth herein.

 

FOR VALUE RECEIVED, the Company promises
to pay to ____________ or its registered assigns (the “Holder”), or shall have paid pursuant to the terms hereunder,
the principal sum of $_____________ on March 20, 2018 (the “Maturity Date”) or such other earlier date
as this Note is required or permitted to be repaid as provided hereunder, and to pay Interest to the Holder on the aggregate unconverted
and then outstanding principal amount of this Note in accordance with the provisions hereof. This Note is subject to the following
additional provisions:

 

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

 

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

 

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

 

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

 

    	 	 	1

     

    

  

“Closing Bid Price” and
“Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade
price, respectively, for such security on the Trading Market, as reported by the Nasdaq Stock Market, or, if the Trading Market
begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as the case
may be) then the last bid price or last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported
by the Nasdaq Stock Market, or, if the Trading Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by the Nasdaq Stock Market, or if the foregoing do not apply, the last
closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin
board for such security as reported by the Nasdaq Stock Market, or, if no closing bid price or last trade price, respectively,
is reported for such security by the Nasdaq Stock Market, the average of the bid prices, or the ask prices, respectively, of any
market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC).
If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing
bases, the Closing Bid Price or the Closing Sale Price (as the case may be) of such security on such date shall be the fair market
value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market
value of such security, then such dispute shall be resolved in accordance with the procedures in Section 9(i). All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such
period.

 

“Common Stock” means
the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

“Common Stock Equivalents”
means any securities of the Company which entitle the holder thereof to acquire at any time Common Stock, including, without limitation,
any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable
for, or otherwise entitles the holder thereof to receive, Common Stock.

 

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

 

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

 

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

 

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

 

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

 

“Exchange Agreement”
means that certain Exchange Agreement, dated as of March 20, 2017 by and among the Company and the original Holder as amended,
modified or supplemented from time to time in accordance with its terms.

 

    	 	 	2

     

    

 

“Exempt Issuance” means
the issuance of (a) shares of Common Stock, restricted stock units, options or other Common Stock Equivalents to employees,
officers or directors of the Company or other eligible persons pursuant to any equity compensation plan presently existing or duly
adopted for such purpose by a majority of the non-employee members of the Board of Directors or a majority of the members of a
committee of non-employee directors of the Company (for purposes of clarity, the issuance of shares of Common Stock upon exercise
of options, vesting of restricted stock units or otherwise in accordance with the terms of an award granted pursuant to such a
Company plan subsequent to the date hereof shall also be an Exempt Issuance), (b) securities upon the exercise or exchange of or
conversion of any Securities issued hereunder or pursuant to other Notes issued under the Exchange Agreement, and/or other securities
exercisable or exchangeable for or convertible into shares of securities of the Company issued and outstanding on the date of this
Agreement (including shares of common stock that the Company may issue pursuant to the presently outstanding shares of Series D
Preferred Stock in lieu of cash dividends thereon) provided that such securities have not been amended since the date of this Agreement
to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities
(except that amendments or modifications to existing common stock purchase warrants to reduce the exercise price thereof and/or
alter the number or type of securities issuable upon exercise thereof shall be included within the definition of an Exempt Issuance),
(c) securities in connection with a rights offering to the Company’s stockholders, including any securities which may be
issued upon exercise of the rights distributed to the Company’s stockholders, (d) securities issued pursuant to mergers,
acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any
such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an
operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company
additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing
securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, (e)
shares of Common Stock (or securities convertible into or exercisable or exchangeable for shares of Common Stock) which may be
issued to consultants, vendors, lessors, distributors or similar persons, to the Company as consideration for services or assets
provided to the Company (and the shares of Common Stock which may be issued upon exercise or conversion of convertible securities
issued to the class persons specified in this clause) up to a maximum of 2,000,000 shares of Common Stock, (f) shares of Common
Stock or other securities issued in connection with any stock split, stock dividend or recapitalization of the Company, and (g)
a firm commitment underwritten public offering of equity securities of the Company for at least $5,000,000 of gross proceeds.

 

“Fair Market Value” means,
on any given day: (A) if the shares of Common Stock of the Company are exchange-traded, the average of the closing sales prices
per share of Common Stock for the ten (10) consecutive Trading Days ending on the day that is two (2) Trading Days prior to the
applicable date of determination of Fair Market Value; or (B) if the shares of Common Stock of the Company are not listed
or admitted to trading on any securities exchange but are regularly traded in any over-the-counter market, then the average of
the bid and ask prices per share of Common Stock for the ten (10) consecutive Trading Days ending on the day that is two (2) Trading
Days prior to the applicable date of determination of Fair Market Value; or (C) if the shares of Common Stock of the Company
are not traded as described in clauses (A) or (B), then the per share fair market value of the Common Stock as determined
in good faith by the Company’s Board of Directors.

 

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

 

“Indebtedness” shall
have the meaning ascribed to such term in the Security Agreement.

 

“Interest Payment Date”
shall have the meaning set forth in Section 2(a).

 

“Majority in Interest”
means, at any time of determination, fifty-one percent (51%) in interest (based on then-outstanding principal amounts of Notes
at the time of such determination) of the holders of Notes.

 

“National Securities Exchange”
means any of the following markets or exchanges on which the Common Stock is listed for trading on the date in question: the NYSE
MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any
successors to any of the foregoing).

 

    	 	 	3

     

    

 

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

 

“Optional Redemption”
shall have the meaning set forth in Section 6(a).

 

“Optional Redemption Amount”
means the sum of (a) 110% of the then outstanding principal amount of the Note and (b) accrued but unpaid interest through
the Optional Redemption Date.

 

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

 

“Permitted Indebtedness”
shall have the meaning ascribed to such term in the Security Agreement.

 

“Permitted Liens” shall
have the meaning ascribed to such term in the Security Agreement.

 

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

 

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

 

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

 

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

         

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

 

Section 2. Interest and Prepayment.

 

(a)   Payment of Interest. The
Company shall pay interest to the Holder, in cash, on the aggregate unconverted and then outstanding principal amount of this Note
at the rate of 5% per annum, payable in arrears on (i) each Optional Redemption Date (as to that principal amount then being
redeemed), (ii) each date on which any principal amount of this Note is being converted (as to that principal amount being converted),
and (iii) on the Maturity Date (each such date, an “Interest Payment Date”) (if any Interest Payment Date is
not a Business Day, then the applicable payment shall be due on the next succeeding Business Day).

 

(b)   Interest Calculations. Interest
shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and shall accrue daily commencing
on the Original Issue Date until payment in full of the outstanding principal, has been made.

 

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

 

    	 	 	4

     

    

 

Section 3. Registration of Transfers
and Exchanges.

 

(a)   Different Denominations. This Note
has not been registered under the Securities Act, or the securities laws of any state or other jurisdiction. Neither this Note
nor any interest or participation herein may be reoffered, sold, assigned, transferred, pledged, encumbered or otherwise disposed
of (a “Transfer”) in the absence of registration under the Securities Act and any applicable state securities
laws, or unless (i) such transaction is exempt from, or not subject to, registration under the Securities Act or the securities
laws of any state or other jurisdiction and (ii) is made in compliance with applicable federal and state statutory resale restrictions,
if any. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations (provided
that the minimum denomination shall be $10,000), as requested by the Holder surrendering the same. No service charge or other cost
will be payable by the Holder for such registration of transfer or exchange. Holder further agrees only to Transfer this Note,
or any portion thereof or interest therein, only (a) to an affiliate of the Holder, (b) to a Person it reasonably believes to be
an “accredited investor” within the meaning of Rule 501(a) under the Securities Act, or (c) pursuant to a transaction
in compliance with Rule 144 or Rule 144A under the Securities Act. Further, the Holder agrees that it shall not, prior to January
27, 2019, to its knowledge, Transfer all or any portion of this Note or any of the Conversion Shares to any other person or entity,
which person or entity is either (i) the beneficial holder of more than 4.9% of the Common Stock of the Company or (ii) would become,
by reason of such transfer, the beneficial holder of more than 4.9% of the Common Stock of the Company.

 

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

 

(c)  Reliance on Note Register.
The Transfer of this Note is registrable on the books of the Company upon surrender of this Note for registration of Transfer at
the Company’s designated office, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Company duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one
or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee
or transferees. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company may
treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such
agent shall be affected by notice to the contrary.

 

(d)  Transfer Mechanics. Upon
presentation of this Note for registration of Transfer at the Company’s designated office accompanied by (i) certification
by the transferor that such Transfer is in compliance with the terms hereof, (ii) a legal opinion or other information as the Company
may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act, as applicable, and (iii) by a written instrument of Transfer in a form
approved by the Company executed by the Holder, in person or by the Holder’s attorney thereunto duly authorized in writing,
and including the name, address and telephone and fax numbers of the transferee and name of the contact person of the transferee,
such Note shall be transferred on the Note Register, and a new Note of like tenor and bearing the same legends shall be issued
in the name of the transferee and sent to the transferee at the address and c/o the contact person so indicated. Transfers and
exchanges of Notes shall be subject to such additional restrictions as are set forth in the legends on the Notes and to such additional
reasonable regulations as may be prescribed by the Company as specified herein. Successive registrations of Transfers as aforesaid
may be made from time to time as desired, and each such registration shall be noted on the Note register.

 

    	 	 	5

     

    

 

(e)   Registration Rights. The Holder
shall be entitled to all of the rights and subject to all of the obligations regarding registration of the shares of Common Stock
issuable upon the conversion of this Note as described in the Exchange Agreement.

 

Section 4. Conversion.

 

(a)   Voluntary Conversion. At any time
after the Original Issue Date until this Note is no longer outstanding, principal of this Note shall be convertible, in whole or
in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the conversion
limitations set forth in Section 4(d) and Section 4(e) hereof). The Holder shall effect conversions by delivering to
the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”),
specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such
date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date
shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire
principal amount of this Note has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal
amount of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain records showing
the principal amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion
within two (2) Business Days of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records
of the Company shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this
Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.

 

(b)   Conversion Price. The conversion
price in effect on any Conversion Date shall be equal to $2.03 per share, subject to adjustment herein (the “Conversion
Price”).

 

(c)   Mechanics of Conversion.

 

(i)   Conversion Shares Issuable Upon
Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion of the principal amount of this
Note shall be equal to the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted
by (y) the Conversion Price.

 

(ii)   Delivery of Certificate Upon
Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates representing the number
of Conversion Shares being acquired upon the conversion of this Note and (B) a bank check in the amount of accrued and unpaid
interest. On or after the six-month anniversary of the Original Issue Date, the Company shall use its reasonable best efforts to
deliver any certificate or certificates required to be delivered by the Company under this Section 4(c) electronically through
The Depository Trust Company or another established clearing corporation performing similar functions, unless the Company determines,
in the exercise of its reasonable discretion, that it is appropriate to deliver physical certificates representing the Conversion
Shares.

 

    	 	 	6

     

    

 

(iii)   Company’s Failure to Timely
Convert. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after
the Company’s receipt of a Conversion Notice (whether via facsimile or otherwise), a certificate for the number of shares
of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s share register
or to credit the Holder’s or its designee’s balance account with DTC for such number of shares of Common Stock to which
the Holder is entitled upon the Holder’s conversion of any Conversion Amount (as the case may be) (a “Conversion
Failure”), then, in addition to all other remedies available to the Holder, (1) the Company shall pay in cash to the
Holder on each day after such third (3rd) Trading Day that the issuance of such shares of Common Stock is not timely effected an
amount equal to 0.5% of the product of (A) the sum of the number of shares of Common Stock not issued to the Holder on a timely
basis and to which the Holder is entitled multiplied by (B) the Closing Sale Price of the Common Stock on the Trading Day immediately
preceding the last possible date which the Company could have issued such shares of Common Stock to the Holder without violating
Section 4(c)(i) and (ii) the Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and retain
or have returned (as the case may be) any portion of this Note that has not been converted pursuant to such Conversion Notice,
provided that the voiding of a Conversion Notice shall not affect the Company’s obligations to make any payments which have
accrued prior to the date of such notice pursuant to this Section 4(c)(iii) or otherwise. The Holder agrees, however, that the
maximum aggregate damages payable to a Holder hereunder for a Conversion Failure shall be 2% of the amount determined pursuant
to the formula set forth in the immediately preceding sentence. In addition to the foregoing, if within three (3) Trading Days
after the Company’s receipt of a Conversion Notice (whether via facsimile or otherwise), the Company shall fail to issue
and deliver a certificate to the Holder and register such shares of Common Stock on the Company’s share register or credit
the Holder’s or its designee’s balance account with DTC for the number of shares of Common Stock to which the Holder
is entitled upon the Holder’s conversion hereunder (as the case may be), and if on or after such third (3rd) Trading Day
the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by
the Holder of shares of Common Stock issuable upon such conversion that the Holder anticipated receiving from the Company, then,
in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder’s
request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total
purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue
such shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates
representing such shares of Common Stock or credit the Holder’s balance account with DTC for the number of shares of Common
Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock multiplied
by (B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the Conversion Date.

 

(iv)   Obligation Absolute. The Company’s
obligations to issue and deliver the Conversion Shares upon conversion of this Note in accordance with the terms hereof are absolute
and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the
Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance
which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares;
provided, however, that such delivery shall not operate as a waiver by the Company of any such action the Company
may have against the Holder. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of
Default pursuant to Section 8 hereof for the Company’s failure to deliver Conversion Shares within the period specified
herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder
from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

    	 	 	7

     

    

 

(v)   Reservation of Shares Issuable Upon
Conversion. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares
of Common Stock for the sole purpose of issuance upon conversion of this Note, free from preemptive rights or any other actual
contingent purchase rights of Persons other than the Holder (and the other holders of the Notes), not less than 125% of such aggregate
number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Exchange Agreement) be issuable
(taking into account the adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal
amount of this Note. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly
authorized, validly issued, fully paid and non-assessable.

 

(vi)   Fractional Shares. No fractional
shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share
which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall round up such fractional share
to the next whole share.

 

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

 

    	 	 	8

     

    

 

(d)   Holder’s Conversion Limitations.
The Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any portion of this
Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together
with the Holder’s Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates)
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below) as a result of such conversion. 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 are issuable upon (i) conversion of the remaining,
unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company, in both cases which are subject to a limitation
on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes or the Warrants)
beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of
this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(d) applies,
the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates)
and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of
a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation
to other securities owned by the Holder together with any Affiliates) and which principal amount of this Note is convertible, in
each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed
to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions
set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In
addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4(d), in determining
the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated
in the most recent of the following: (i) the Company’s most recent periodic or annual report filed with the Commission,
as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the
Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written
or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of
shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days’ prior notice
to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4(d), provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial
Ownership Limitation provisions of this Section 4(d) shall continue to apply. Any such increase or decrease will not be effective
until the 61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of
this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d)
to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of this Note. Notwithstanding the foregoing, however,
a Holder that beneficially owned in excess of 4.99% or 9.99% of the Company’s Common Stock as of the Original Issue Date
shall not be subject to the relevant Beneficial Ownership Limitation set forth herein, unless subsequent to the Original Issue
Date, such Holder’s beneficial ownership of the Common Stock of the Company decreases to a level below 4.99% or 9.99%, in
which event the provisions of this Section 4(d) shall become applicable to such Holder.

 

 

Section 5. Certain Adjustments.

 

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

 

    	 	 	9

     

    

 

(b)   Pro Rata Distributions. During
such time as this Note is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or
rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time
after the issuance of this Note, then, in each such case, the Holder shall be entitled to participate in such Distribution to the
same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, to the extent that the Holder’s right to participate in any such Distribution would result
in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution
to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and
the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right
thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). Notwithstanding the foregoing, no adjustment
will be made under this Section 5(b) in respect of an Exempt Issuance.

 

(c)   Subsequent Equity Sales. If, at
any time while this Note is outstanding, the Company sells or grants any option to purchase or reduces the conversion or exercise
price of any outstanding securities, grants any right to reduce, or otherwise disposes of or issues, any Common Stock or Common
Stock Equivalents entitling any Person to acquire shares of Common Stock at a price per share that is lower than the then Conversion
Price, other than in connection with any Common Stock Equivalents outstanding on the Original Issue Date (such lower price, the
“Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) then the
Conversion Price shall be reduced to equal the product of (i) 0.85 and (ii) the Base Conversion Price; provided, however, that
such adjustment to the Conversion Price shall be made only to the extent that after taking into account such adjustment to the
Conversion Price the number of authorized but unissued shares of Common Stock available for issuance under the Company’s
Certificate of Incorporation is sufficient for the issuance of the maximum number of Conversion Shares issuable upon  conversion
of the Note at such adjusted Conversion Price. In the event that the Company at such time does not have a sufficient number
of authorized but unissued shares of Common Stock available for issuance at an adjusted Conversion Price, the Company shall immediately
use all commercially reasonable efforts to convene a meeting of its stockholders for the purpose of further amending its Certificate
of Incorporation for the purpose of increasing the authorized number of shares of Common Stock in such an amount as is necessary
to permit conversion of the Notes into the additional Conversion Shares issuable on account of such adjustment. Such adjustment
shall be made whenever such Common Stock or Common Stock Equivalents are issued. For purposes of clarity, if the holder of Common
Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued
in connection with such issuance, be entitled to receive shares of Common Stock at a price per share that is lower than the Conversion
Price, such issuance shall be deemed to be a Dilutive Issuance. The Company shall notify the Holder in writing, no later than the
Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(c), indicating
therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such
notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company provides
a Dilutive Issuance Notice pursuant to this Section 5(c), upon the occurrence of any Dilutive Issuance, the Holder is entitled
to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless
of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion. Notwithstanding the foregoing,
no adjustment will be made under this Section 5(c) in respect of an Exempt Issuance.

 

    	 	 	10

     

    

 

(d)   Fundamental Transaction. If,
at any time while this Note is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects
any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one
or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of more than 50% of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock of the Company
are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly,
in one or more related transactions consummates a business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement
or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this
Note, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 4(d) and
Section 4(e) on the conversion of this Note), the number of shares of Common Stock of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note
is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) and Section 4(e)
on the conversion of this Note). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share
of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following
such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Note and the other Transaction Documents in accordance with the provisions of this Section 5(d). Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of
such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Note and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.

 

    	 	 	11

     

    

 

 

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

 

(f)   Notice to the Holder.

 

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

 

(ii)   Notice to Allow Conversion by Holder.
If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the
Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the approval of any
stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or
merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory
share exchange whereby the Common Stock is converted into other securities, cash or property or (D) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered
to the Holder at its last address as it shall appear upon the Note Register, at least ten (10) calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken
for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein
or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the
extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company, the
Company shall not be required to provide such notice until such time as it makes public disclosure of such event, at which point
it shall simultaneously with its public disclosure, provide notice to the Holder. The Holder shall remain entitled to convert this
Note during the period commencing on the date of such notice through the effective date of the event triggering such notice except
as may otherwise be expressly set forth herein.

 

Section 6. Redemption.

 

(a)   Optional Redemption at Election of
Company. Subject to the provisions of this Section 6(a) and provided that the Company has filed all reports required to
be filed by it pursuant to Sections 13(a), 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the “SEC Reports”),
prior to the Optional Redemption Notice Date (defined below), then commencing 30 days following the date that the Company’s
Common Stock is listed for trading on a National Securities Exchange and at any time thereafter, the Company may deliver a notice
to the Holder (an “Optional Redemption Notice” and the date such notice is deemed delivered hereunder, the “Optional
Redemption Notice Date”) of its irrevocable election to redeem some or all of the then outstanding principal amount of
this Note for cash in an amount equal to the Optional Redemption Amount on the 60th calendar day following the Optional
Redemption Notice Date (such date, the “Optional Redemption Date,” such 60 day period, the “Optional
Redemption Period” and such redemption, the “Optional Redemption”). The Optional Redemption Amount
is payable in full on the Optional Redemption Date. The Company covenants and agrees that it will honor all permitted Notices of
Conversion tendered from the time of delivery of the Optional Redemption Notice through 5:00 p.m. (New York time) on the business
day immediately preceding the Optional Redemption Date. The Company further agrees to use commercially reasonable efforts to promptly
file all SEC Reports required to be filed. The Company’s determination to pay an Optional Redemption in cash shall be applied
ratably to all of the holders of the then outstanding Notes based on their (or their predecessor’s) initial purchases of
Notes pursuant to the Exchange Agreement. Unless a Holder elects to convert its Notes prior to the time and date specified above
in compliance with the terms and conditions of this Note, each Holder shall, prior to 5:00 p.m. (New York time) on the Optional
Redemption Date, return any and all original Notes to be redeemed to the Company (or such other place at set forth in the Optional
Redemption Notice) and such certificates shall be duly endorsed or assigned either to the Company or in blank.

 

    	 	 	12

     

    

 

(b)   Redemption Procedure. The payment
of cash pursuant to an Optional Redemption shall be payable on the Optional Redemption Date. If any portion of the payment pursuant
to an Optional Redemption shall not be paid by the Company by the applicable due date, interest shall accrue thereon at an interest
rate equal to the lesser of 15% per annum or the maximum rate permitted by applicable law until such amount is paid in full.
Notwithstanding anything herein contained to the contrary, if any portion of an Optional Redemption Amount in connection with an
Optional Redemption remains unpaid after such date, the Holder may elect, by written notice to the Company given at any time thereafter,
to invalidate such Optional Redemption, ab initio, and, with respect to the Company’s failure to honor the Optional
Redemption, the Company shall have no further right to exercise such Optional Redemption.

 

Section 7. Seniority, Security
and Negative Covenants.

 

(a)            Seniority
and Security. This Note ranks pari passu in right of payment with all other Notes now or hereafter issued in accordance
with the Exchange Agreement and shall be senior in right of payment to all other Indebtedness of the Company and its subsidiaries,
subject to the terms herein. The obligations of the Company under this Note are secured by certain assets of the Company pursuant
to the Security Agreement, dated as of the date of the Exchange Agreement, between the Company and the Secured Parties (as defined
therein).

 

(b)           Negative
Covenants. As long as any portion of this Note remains outstanding, unless the holders of a Majority in Interest shall have
otherwise given prior written consent, the Company shall not, and shall not permit any of the Subsidiaries to, directly or indirectly:

 

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

 

(ii)   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;

 

(iii)   repay, repurchase or offer to repay,
repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or Common Stock Equivalents
other than as to (i) the Conversion Shares as permitted or required under the Transaction Documents; (ii) repurchases
of Common Stock or Common Stock Equivalents pursuant to employee, director or consultant repurchase plans or similar agreements;
and (iii) repurchases of Common Stock or Common Stock Equivalents of any claims asserted or threatened by holders of such securities;
or

 

    	 	 	13

     

    

 

 

(iv)   prepay any Indebtedness, other
than the Notes if on a pro-rata basis and other than pursuant to payments of Permitted Indebtedness. For purposes of clarity, nothing
herein shall restrict or limit the Company’s payment of the principal amount of, or interest on, any instruments evidencing
Indebtedness issued by the Company prior to the date hereof and as such instruments may have been amended to date, in accordance
with their terms, and any deferrals, renewals or extensions thereof, and any notes or other instruments or evidences of Indebtedness
issued in respect of or in exchange thereof. 

 

(c)                 Notwithstanding
the foregoing provisions of this Section 7, if any transaction contemplated by Section 7(b) provides for the repayment of this
Note at or prior to the closing of such transaction, then the consent of the Holder shall not be required, provided that
this Note is paid in full at or prior to the closing of such transaction.

 

Section 8. Events of Default

 

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

 

(i)       the
Company’s or any Subsidiary’s failure to pay to the Holder any amount of Principal, Interest, late charges or other
amounts when and as due under this Note (including, without limitation, the Company’s or any Subsidiary’s failure to
pay any redemption payments or amounts hereunder) or any other Transaction Document (as defined in the Exchange Agreement) or any
other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated hereby and
thereby, except, in the case of a failure to pay Interest, late charges or other amounts when and as due, in which case only if
such failure remains uncured for a period of at least fifteen (15) days;

 

(ii)       the
occurrence of any default under, redemption of or acceleration prior to maturity of any Indebtedness of the Company or any of its
Subsidiaries, other than in any amount not in excess of an aggregate of $150,000;

 

(iii)       bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed
within sixty (60) days of their initiation; 

 

(iv)       the
commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the filing by it of a petition seeking reorganization or relief under any applicable federal, state or foreign law,
or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence
of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Company or any Subsidiary in furtherance of any such action;

 

(v)       the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary
or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or
insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition
of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (iii) a decree, order,
judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order,
judgment or other similar document unstayed and in effect for a period of sixty (60) consecutive days;

 

    	 	 	14

     

    

 

 

(vi)       a
final judgment or judgments for the payment of money aggregating in excess of $150,000 are rendered against the Company and/or
any of its Subsidiaries and which judgments are not, within forty-five (45) days after the entry thereof, bonded, discharged or
stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however, any
judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $150,000
amount set forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which
written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an
indemnity and the Company or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within
forty-five (45) days of the issuance of such judgment;

 

(vii)       the
Company and/or any Subsidiary, individually or in the aggregate, either (i) fails to pay, when due, or within any applicable grace
period, any payment with respect to any Indebtedness in excess of $150,000 due to any third party (other than, with respect to
unsecured Indebtedness only, payments contested by the Company and/or such Subsidiary (as the case may be) in good faith by proper
proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP) or
is otherwise in breach or violation of any agreement for monies owed or owing in an amount in excess of $150,000, which breach
or violation permits the other party thereto to declare a default or otherwise accelerate amounts due thereunder, or (ii) suffer
to exist any other circumstance or event that would, with or without the passage of time or the giving of notice, result in a default
or event of default under any agreement binding the Company or any Subsidiary, which default or event of default would or is likely
to have a material adverse effect on the business, assets, operations (including results thereof), liabilities, properties, condition
(including financial condition) or prospects of the Company or any of its Subsidiaries, individually or in the aggregate;

 

(viii)       other
than as specifically set forth in another clause of this Section 8(a), the Company or any Subsidiary breaches, in any material
respect, any representation, warranty, covenant or other term or condition of any Transaction Document (including, without limitation,
the Security Agreement, except, in the case of a breach of a covenant or other term or condition that is curable, only if such
breach remains uncured for a period of ten (10) consecutive Trading Days after notice of breach from Holder or fifteen (15) consecutive
Trading Days from when the Company became aware of such breach (in each case, subject to any grace or cure period provided therein);

 

(ix)        any
material provision of any Transaction Document (including, without limitation, the Security Agreement) shall at any time for any
reason (other than pursuant to the express terms thereof or such provision has been performed in full or waived by the relevant
party) cease to be valid and binding on or enforceable against the parties thereto, or a proceeding shall be commenced by the Company
or any Subsidiary or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability
thereof, or the Company or any Subsidiary shall deny in writing that it has any liability or obligation purported to be created
under any Transaction Document; 

 

    	 	 	15

     

    

 

 

(x)        the
Security Agreement shall for any reason fail or cease to create a separate valid and perfected and, except to the extent permitted
by the terms hereof or thereof, first priority Lien on the Collateral (as defined in the Security Agreement) in favor of the Holder;
or 

 

(xi)       any
material damage to, or loss, theft or destruction of, any material portion of the Collateral, whether or not insured, which causes,
for more than thirty (30) consecutive days, the cessation or substantial curtailment of revenue producing activities at any facility
of the Company or any Subsidiary, if any such event or circumstance could have a Material Adverse Effect.

 

(b)            Remedies
upon Event of Default.

 

(i)       If
an Event of Default (other than an Event of Default arising from events described in clauses (iii), (iv) and/or (v) of Section
8(a)) occurs and is continuing with respect to any of the Notes, the Holder may declare all of the then outstanding Principal of
this Note and all other Notes held by the Holder, including any Interest to the date of payment. Upon a declaration of acceleration,
such principal and premium, if any, and accrued and unpaid Interest, to the date of payment shall be immediately due and payable.
Upon the occurrence of an Event of Default arising from events described in clauses (iii), (iv) and/or (v) of Section 8(a), this
Note shall become due and payable automatically, without any declaration or other act on the part of the Holder. In the event of
such acceleration, the amount due and owing to the Holder shall be 110% of the outstanding Principal of the Notes held by the Holder
(plus all accrued and unpaid Interest and late charges, if any). The Company hereby, to the fullest extent permitted by applicable
law, waives presentment, demand, or any other notice of any other kind (except as otherwise specifically set forth herein), in
connection with performance, default, acceleration or enforcement of or under this Note.

 

(ii)       If
an Event of Default with respect to this Note occurs and is continuing, the Holder may pursue any available remedy by proceeding
at law or in equity to collect the defaulted payment or to enforce the performance of any provision of this Note. Notwithstanding
any other provision in this Note, the Holder of this Note shall have the right, which is absolute and unconditional, to receive
payment of the Principal, plus accrued and unpaid interest thereon, in respect of the Note held by the Holder, on or after the
final Maturity Date, or to bring suit for the enforcement of any such payment on or after such date, and such rights shall not
be impaired or affected adversely without the consent of the Holder.

 

(iii)       Except
as otherwise provided herein, no right or remedy conferred in this Note upon the Holder is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
No delay or omission of the Holder of this Note to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or any acquiescence therein. Every right and remedy
given by this Section 8 or by law to the Holder may be exercised from time to time, and as often as may be deemed expedient, by
the Holder.

 

    	 	 	16

     

    

 

 

Section 9. Miscellaneous.

 

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

 

(b)   Absolute Obligation. Except as
expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note at the time, place,
and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

 

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

 

(d)   Governing Law. 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 Delaware, without regard to the principles of conflict of laws thereof. Each
party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated
by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers,
shareholders, employees or agents) shall be commenced exclusively in the Delaware Court of Chancery and any state appellate court
therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline to accept jurisdiction over a particular
matter, in which case, in any Delaware state or federal court within the State of Delaware) (such courts, collectively, the “Delaware
Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Delaware Courts, or such Delaware
Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Note or the transactions contemplated hereby.

 

    	 	 	17

     

    

 

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

 

(f)   Severability; Usury. If any provision
of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable
to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found
that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate
of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law and
the interest payable shall be computed at such maximum rate. Any prior interest payments in excess of such maximum rate shall be
applied and shall be deemed to have been payments in reduction of the principal balance of this Note.

 

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

 

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

 

(i)   Dispute Resolution. In the
case of a dispute as to the determination of the Conversion Price, the Closing Bid Price, the Closing Sale Price or fair market
value (as the case may be) or the arithmetic calculation of the Conversion Rate or the applicable Optional Redemption Amount, the
Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may
be) via facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company
or the Holder (as the case may be) or (ii) if no notice gave rise to such dispute, at any time after the Holder learned of the
circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance
or sale was an issuance or sale or deemed issuance or sale of Exempt Securities). If the Holder and the Company are unable to agree
upon such determination or calculation within two (2) Business Days of such disputed determination or arithmetic calculation (as
the case may be) being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business
Days, submit via facsimile (a) the disputed determination of the Conversion Price, the Closing Bid Price, the Closing Sale Price
or fair market value (as the case may be) to an independent, reputable investment bank selected by the Company and approved by
the Holder or (b) the disputed arithmetic calculation of the Conversion Rate or the applicable Optional Redemption Amount or to
an independent, outside accountant as the Company and Holder mutually agree upon. The Company shall cause at its expense the investment
bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company
and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations
(as the case may be). Such investment bank’s or accountant’s determination or calculation (as the case may be) shall
be binding upon all parties absent demonstrable error.

 

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

(Signature Page Follows)  

 

    	 	 	18

     

    

 

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

  

	 	AUTHENTIDATE HOLDING CORP.
	 	 	 
	 	By:	
	 	 	Name: Hanif A. Roshan 
	 	 	Title:   Chief Executive Officer
	 	 
	 	Facsimile No. for delivery of Notices: ___________________

 

    	 	 	19

     

    

 

ANNEX A

 

NOTICE OF CONVERSION 

 

The undersigned hereby elects to convert
principal under the Senior Secured Convertible Note due March 20, 2018 of Authentidate Holding Corp., a Delaware corporation (the
“Company”), into shares of common stock (the “Common Stock”), of the Company according to
the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person other than
the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates
and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion,
except for such transfer taxes, if any.

 

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

 

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

 

Conversion calculations:

 

	Date to Effect Conversion: ____________________________________________	 
	 	 
	Principal Amount of Note to be Converted: ________________________________	 
	 	 
	Number of shares of Common Stock to be issued: ___________________________	 
	 	 
	Signature: ___________________________________________________________	 
	 	 
	Name: _____________________________________________________________	 
	 	 
	Address for Delivery of Common Stock Certificates: ___________________________________________________________________	 
	 	 
	___________________________________________________________________	 
	 	 
	Or	 
	 	 
	DWAC Instructions: 	 
	 	 
	Broker No: __________________________________________________________	 
	 	 
	Account No: _________________________________________________________	 

 

    	 	 	20

     

    

 

Schedule 1

 

CONVERSION SCHEDULE

 

The Senior Secured Convertible Note due on March 20, 2018 in
the original principal amount of $__________________ is issued by Authentidate Holding Corp. This Conversion Schedule reflects
conversions made under Section 4 of the above referenced Note.

 

Dated: ________________________

 

	Date of Conversion

(or for first entry,

Original Issue Date)	 	Amount of

Conversion	 	Aggregate

Principal

Amount

Remaining

Subsequent to

Conversion

(or original

Principal

Amount)	 	Company Attest
	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

 

    	 	 	21Exhibit 10.1

 

NOTE EXCHANGE AGREEMENT

 

THIS NOTE EXCHANGE
AGREEMENT (this “Agreement”) is dated as of March 20, 2017, between Authentidate Holding Corp., a Delaware corporation
(the “Company”) and the holders identified on the signature pages hereto (each, a “Holder”
and collectively, the “Holders”).

 

Recitals

 

WHEREAS, pursuant
to the terms and conditions of this Agreement, the Company hereby offers to the Holder a new secured promissory note (the “New
Note”) and the Holder, wishes to purchase and acquire the New Note in exchange for the surrender and cancellation of
one or more promissory notes held by the Holder, the terms and conditions of which are set forth on the signature page to this
Agreement (“Original Notes”) upon the terms and conditions set forth herein; and

 

NOW, THEREFORE,
in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby
agreed and acknowledged, the parties hereto hereby agree as follows:

 

1.           Defined
Terms. In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined
herein have the meanings given to such terms in the New Note or Security Agreement (as defined herein); and (b) the following
terms have the meanings set forth in this Section 1:

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person.  For the purposes of this definition, “control”, when used with
respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

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

 

“Closing Date”
means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto,
and all conditions precedent to: (i) the Holders’ obligations to surrender the Original Note and (ii) the Company’s
obligations to deliver the New Note have been satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common Stock”
means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities
may hereafter be reclassified or changed.

 

“Conversion
Price” shall have the meaning ascribed to such term in the New Note.

 

“Conversion
Shares” means the shares of Common Stock issuable upon the conversion of the New Note.

 

“Encumbrances”
shall mean any security or other property interest or right, claim, lien, pledge, option, charge, security interest, contingent
or conditional sale, or other title claim or retention agreement interest or other right or claim of third parties, whether perfected
or not perfected, voluntarily incurred or arising by operation of law, and including any agreement (other than this Agreement)
to grant or submit to any of the foregoing in the future.

 

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

 

“New Note”
means the Secured Convertible Note due, subject to the terms therein, on the one-year anniversary of the date on which it is issued,
as issued by the Company to the Holder hereunder, in an aggregate principal amount equal to the sum of (i) the principal amount
of the Original Notes, plus (ii) the accrued and unpaid interest on the Original Notes up to the Business Day immediately preceding
the Closing Date, which New Note shall be in the form of Exhibit A attached hereto.

 

    	 	1	 

    

    

 

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 4(d).

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the New Note, ignoring any conversion or exercise limits set forth therein.

 

“Securities”
means the New Note and the Conversion Shares.

 

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

 

“Security
Agreement” means that certain Amended and Restated Security Agreement, dated as of the date first set forth above, among
the Company and the secured parties, as named therein.

 

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

 

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

 

“Transaction
Documents” means this Agreement, the New Note, the Security Agreement, all exhibits and schedules thereto and hereto
and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

2.           Securities Exchange.

 

2.1        Exchange and
Closing

 

(a)         Upon the following
terms and subject to the conditions contained herein, Holder agrees to exchange from the Company the Original Notes and Holder
shall deliver and surrender to the Company at its principal offices for cancellation the Original Notes held by Holder, free and
clear of any liens, claims, charges, security interest or other legal or equitable Encumbrances in exchange for a New Note in the
aggregate principal amount equal to the principal amount of the Original Note, plus the accrued and unpaid interest on the Original
Notes up to the Business Day immediately preceding the Closing Date in the form of Exhibit A to this Agreement. Upon satisfaction
of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Company’s counsel
or such other location and on such Business Day as the parties shall mutually agree.

 

(b)        At Closing,
the New Note issued in exchange for cancellation of the Original Notes shall be deemed the full and final consideration for the
cancellation of the Original Notes, and notwithstanding anything to the contrary contained in the Original Notes or otherwise,
the Company and Holder hereby agree that upon the Closing: (i) the Company’s obligations under the Original Notes held by
Holder shall be deemed fully paid and satisfied; and (ii) the Original Notes shall automatically terminate and have no further
force and effect (other than those specific provisions which pursuant to the terms and provisions of the Original Notes which expressly
survive termination). Further, the Company and Holder hereby agree that upon the Closing the Company’s obligations to Holder
pursuant to any security agreements previously entered into between the Company and Holder shall be deemed fully satisfied and
the parties’ obligations to one another with respect to any security interests granted by the Company shall be governed solely
by the Security Agreement entered into between the Company and the Holders pursuant to this Agreement.

 

    	 	2	 

    

    

 

(c)        Holder
further agrees that it will write “PAID IN FULL” on the original of the Original Notes surrendered to the Company pursuant
to this Agreement and initial such phrase and return the originally executed version of the Original Notes to the Company. Notwithstanding
the foregoing, however, in the event the Holder does not inscribed the phrase “PAID IN FULL” on the Original Notes,
it hereby authorizes the Company’s agents and officers to write such phrase on the Original Notes. In the event Holder has
lost his, her or its Original Notes, or such Original Notes were lost, stolen or destroyed, Holder shall, instead of returning
the Original Notes, execute and deliver to the Company an affidavit of loss and indemnification undertaking (in a form acceptable
to the Company) with respect to such Original Notes and in which instrument the Holder acknowledges that the Original Notes are
cancelled and paid in full.

 

2.2        Deliveries.

 

(a)        On
or prior to the Closing Date (except as otherwise provided below), the Company shall deliver or cause to be delivered to Holder
the following: (i) this Agreement duly executed by the Company; (ii) the Security Agreement, duly executed by the Company; (iii)
a New Note registered in the name of Holder (such original New Note may be delivered within three Trading Days following Closing
Date); (iv) an agreement executed between the Company or its subsidiary, Peachstate Health Management LLC d/b/a AEON Clinical
Laboratories and the landlord of the premises in which the Company’s principal place of business is located pursuant to
which the landlord agrees to subordinate its security interest into certain assets of the Company to the security interests to
be granted to the Holder pursuant to the Security Agreement; and (v) such other documents relating to the transactions contemplated
by this Agreement as the Holder or its counsel may reasonably request.

 

(b)        On
or prior to the Closing Date, Holder shall deliver or cause to be delivered to the Company, as applicable, the following: (i) this
Agreement duly executed by Holder; (ii) the Security Agreement, duly executed by the Holder; (iii) the Holder’s Original
Notes (or an affidavit of loss and indemnity undertaking with respect thereto, in a form reasonably acceptable to the Company);
and (iv) such other documents relating to the transactions contemplated by this Agreement as the Company or its counsel may reasonably
request.

 

2.3         Closing
Conditions.

 

(a)        The obligations
of the Company hereunder in connection with the Closing are subject to the satisfaction, or waiver by the Company, of the following
conditions: (i) the accuracy in all material respects on the Closing Date of the representations and warranties of the Holder contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date); (ii) all obligations, covenants
and agreements of the Holder required to be performed at or prior to the Closing Date shall have been performed; (iii) the delivery
by the Holder of the items set forth in Section 2.2(b) of this Agreement; (iv) holders of an aggregate principal amount of
$2,170,000 of outstanding notes shall have agreed to exchange such notes for New Notes pursuant to the terms of this Agreement;
and (v) the Company shall have received any Required Approvals necessary to conduct the Closing.

 

(b)        The obligations
of the Holder hereunder in connection with the Closing are subject to the satisfaction, or waiver by the Holder, of the following
conditions: (i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of
the Company contained herein (unless as of a specific date therein); (ii) all obligations, covenants and agreements of the Company
required to be performed at or prior to the Closing Date shall have been performed; (iii) holders of an aggregate principal amount
of $2,170,000 of outstanding notes shall have agreed to exchange such notes for New Notes pursuant to the terms of this Agreement;
and (iv) the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement.

 

(c)        Solely
with respect to a Holder that beneficially owns (as determined in accordance with the rules and regulations promulgated under the
Exchange Act) or is an Affiliate of the direct beneficial owner, of shares of the Company’s Series B Preferred Stock, the
obligations of the parties hereunder are subject to the execution by the Company and the holder of the shares of the Company’s
Series B Preferred Stock, of a definitive agreement to exchange such shares of Series B Preferred Stock for a new class of preferred
stock, as described in such definitive agreement.

 

    	 	3	 

    

    

 

2.4        Status
of Original Notes. Holder hereby expressly agrees that effective as of the date of this Agreement, as first set forth above,
that the maturity dates of the Original Notes are hereby further extended until the date that is the Closing Date and that the
definition of the term “Maturity Date” as set forth in the Original Notes is hereby amended to be “the Closing
Date as contemplated by that certain Note Exchange Agreement dated as of March 20, 2017 between the Company and the Holder”.
Accordingly, from and after the date hereof, each reference in the Original Notes to the Original Notes (or words of like import)
shall mean and be a reference to the Original Notes as amended by hereby.

 

3.        Representations,
Warranties and Covenants of Holder.  Holder hereby makes the following representations and warranties to
the Company, and covenants for the benefit of the Company.

 

(a)        Due Organization
and Authorization; Binding Agreement. Holder is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization. Holder has full right, power and authority to execute and deliver this Agreement and to consummate
the transactions contemplated hereby. This Agreement has been duly and validly authorized, executed and delivered by Holder and
(assuming due authorization, execution and delivery by the Company) constitutes the valid and binding obligation of Holder enforceable
against Holder in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally, and general equitable principles
(whether considered in a proceeding in equity or at law).

 

(b)        No Conflicts.
The execution, delivery and performance of this Agreement by the Holder and the consummation by the Holder of the transactions
contemplated hereby do not and will not: (i) conflict with, or constitute a default (or an event which with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which
the Holder is a party or by which the Holder’s properties or assets are bound; or (ii) result in a violation of any federal,
state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations)
applicable to the Holder or by which any property or asset of the Holder are bound or affected, except, in each case, for such
conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the
aggregate, materially and adversely affect the Holder’s ability to perform its obligations under this Agreement. No
consent, approval, authorization or order of any person, entity, court, administrative agency or governmental authority is required
for the execution, delivery or performance of this Agreement by the Holder.

 

(c)        Holder Status.
At the time Holder was offered the New Note, it was, and as of the date hereof it is, and on each date on which it converts the
New Note it will be either: (i) an “accredited investor” as defined in Rule 501(a) under the Securities Act; or
(ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Holder is not required
to be registered as a broker-dealer under Section 15 of the Exchange Act. Holder has sufficient knowledge and experience in financial
matters as to be capable of evaluating the risks and merits of the transaction contemplated hereby. Holder is able to bear the
economic risk of its investment in the New Note for an indefinite period of time, is able to afford a complete loss of such investment,
and acknowledges that no public market exists for the New Note and that there is no assurance that a public market will ever develop
for such securities. Neither, the New Note nor the Conversion Shares have been registered under the Securities Act and, therefore,
cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available.

 

(d)        Information.
Holder has reviewed, or has had the opportunity to review, with the assistance of professional and legal advisors of its choosing,
all information (including all documents filed or furnished to the Commission by the Company) relating to the business, finances
and operations of the Company and materials relating to the exchange transaction which have been requested by such Holder. Such
Holder has been afforded the opportunity to ask questions of the Company and has had sufficient access to the Company necessary
for Holder to decide to exchange its Original Notes for the New Note in accordance with this Agreement. Such Holder acknowledges
that all of the documents filed by the Company with the Commission under Sections 13(a), 14(a) or 15(d) of the Exchange Act, that
have been posted on the EDGAR site maintained by the Commission are available to such Holder, and such Holder has not relied on
any statement of the Company not contained in such documents in connection with such Holder’s decision to enter into this
Agreement or any other Transaction Document and to consummate the transactions contemplated hereby.

 

    	 	4	 

    

    

 

(e)        Certain
Disqualification Events. Neither the Holder, nor any director, executive officer, other member or officer of the Holder participating
in the transactions contemplated by this Agreement, any beneficial owner of 20% of more of the Holder’s outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Holder in any capacity at the time of sale (each a “Holder Covered Person”) is
subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act
(a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (3) (provided
that the foregoing exception shall not be available hereunder with respect to Rule 506(d)(2)(iv) for any Disqualification Event
of which the Company did not know as a result of the Holder’s failure to disclose such Disqualification Event to the Company).
Holder has exercised reasonable care to determine: (i) the identity of each person that is a Holder Covered Person; and (ii) whether
any Holder Covered Person is subject to a Disqualification Event.

 

(f)        Own
Account. The Holder is and will be acquiring the Securities for the Holder’s own account, for investment purposes, and
not with a view to any resale or distribution in whole or in part, in violation of the Securities Act or any applicable securities
laws; provided, however, that by making the representations herein, the Holder does not agree to hold such Securities
for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with federal
and state securities laws applicable to such disposition.

 

(g)        Restricted
Securities. The Holder understands that the Securities purchased hereunder, including the Conversion Shares, are “restricted
securities,” as that term is defined in the Securities Act and the rules thereunder, have not been registered under the Securities
Act, and that none of the Securities can be sold or transferred unless they are first registered under the Securities Act and such
state and other securities laws as may be applicable or an exemption from registration under the Securities Act is available (and
then the Securities may be sold or transferred only in compliance with such exemption and all applicable state and other securities
laws). Holder acknowledges that all certificates representing any of the New Note and the Conversion Shares will bear a restrictive
legend in a form as set forth below and hereby consents to the transfer agent for the Company’s Common Stock making a notation
on its records to implement the restrictions on transfer described herein.  Holder further understands that except as provided
in the Transaction Documents: (i) the Securities have not been and are not being registered under the Securities Act or any state
securities laws, must be held indefinitely and may not be offered for sale, sold, assigned or transferred unless: (A) subsequently
registered thereunder; (B) Holder shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to
the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption
from such registration; or (C) Holder provides the Company with reasonable assurance that such Securities can be sold, assigned
or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively,
“Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which
the seller (or the Person (through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities
Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the Commission thereunder;
and (iii) except as set forth in the Transaction Documents, neither the Company nor any other Person is under any obligation to
register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any
exemption thereunder.

 

(h)        Reliance
on Representations. Holder understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and Holder’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of Holder set forth herein in order to determine the availability of such exemptions and the eligibility of Holder
to acquire the Securities. The Holder undertakes to immediately notify the Company of any change in any statement or other information
relating to the Holder which takes place prior to the Closing time. No Person has made any written or oral representations to the
Holder that: (i) any Person will resell or repurchase the New Notes or the Conversion Shares or (ii) as to the future
price or value of the shares of Common Stock of the Company.

 

    	 	5	 

    

    

 

(i)        No Brokers.
The Holder has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees, commissions,
finders’ structuring fees, financial advisory fees or other similar fees in connection with any of the transactions contemplated
by this Agreement.

 

(j)        No General
Solicitation. The Holder acknowledges that the Securities were not offered to the Holder by means of any form of general or
public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including: (i) any advertisement,
article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or
radio; or (ii) any seminar or meeting to which the Holder was invited by any of the foregoing means of communications.

 

(k)        Representations
Regarding Original Notes. The Holder owns and holds, beneficially and of record, the entire right, title, and interest in and
to the Original Notes held by it, free and clear of any and all pledges, liens, security interests, mortgage, claims, charges,
restrictions, options, title defects or Encumbrances other than restrictions under the Securities Act and other applicable federal
and state securities laws. Holder has not, in whole or in part, (x) assigned, transferred, hypothecated, pledged or otherwise disposed
of the Original Notes or its rights in such Original Notes, or (y) given any person or entity any transfer order, power of attorney
or other authority of any nature whatsoever with respect to such Original Notes which would limit the Holder’s power to transfer
the Original Notes hereunder. Holder has the sole and unencumbered right and power to transfer and dispose of the Original Notes,
and such Original Notes are not subject to any agreement, arrangement or restriction with respect to the voting or transfer of
the Original Notes, except for this Agreement. No additional consideration for any purpose shall be due to Holder at Closing, with
respect to the Original Notes, other than the New Note. Upon delivery of the Original Notes to the Company for cancellation (as
contemplated by this Agreement), the Company will receive good and marketable title to the Original Notes, free and clear of all
pledges, liens, security interests, mortgage, claims, charges, restrictions, options, title defects or Encumbrances. The Original
Notes being surrendered by it for cancellation pursuant to this Agreement represent all of the Original Notes of the Company in
which Holder owns any legal or beneficial interest. No Event of Default (as defined in the Original Notes) has been declared under
the Original Notes and no Event of Default exists or is continuing with respect to the Original Notes.

 

(l)        No Representations.
No person or entity, other than the Company, has been authorized to give any information or to make any representation on behalf
of the Company in connection with the offering of Securities, and if given or made, such information or representations have not
been relied upon by the Holder as having been made or authorized by the Company.  The only representations and warranties
made by the Company in connection with the offering of Securities are those contained in this Agreement, and the only information
made available by the Company in connection with the offering of Securities is contained in this Agreement.

 

(m)        No
Legal, Tax or Investment Advice.   Holder understands that the tax consequences of the transactions contemplated
by this Agreement are complex, and accordingly Holder represents and warrants that it understands that nothing in this Agreement
or any other materials presented by or on behalf of the Company to him, her or it in connection with this Agreement and the transactions
contemplated herein, constitutes legal, tax or investment advice.   Holder has consulted such legal, tax and investment
advisors as he, she or it, in his, her or its sole discretion, has deemed necessary or appropriate in the circumstances.  
Holder is not relying on the Company or any of its respective affiliates or agents, including its counsel and accountants, for
any tax advice regarding the tax consequences of the transactions contemplated by this Agreement.

 

(n)          No
Governmental Review. Such Holder understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement in connection with the transactions contemplated by this Agreement
or the fairness or suitability of the investment in the New Note nor have such authorities passed upon or endorsed the merits of
the New Note.

 

4.       Representations, Warranties and Covenants of the Company.  The
Company represents and warrants to the Holder, and covenants for the benefit of the Holder, as follows:

 

    	 	6	 

    

    

 

(a)          Due
Organization. The Company has been duly incorporated and is validly existing and in good standing under the laws of the state
of Delaware, with full corporate power and authority to own, lease and operate its properties and to conduct its business as currently
conducted. The Company 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, could not have or reasonably be expected
to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document; (ii) a
material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the
Company and the Subsidiaries, taken as a whole; or (iii) a material adverse effect on the Company’s ability to perform
in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing
or seeking to revoke, limit or curtail such power and authority or qualification. 

 

(b)          Due
Authorization; Binding Agreement; No Conflicts. The Company has the requisite corporate power and authority to enter into and
to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry
out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other 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 herewith or therewith other than in connection with the Required Approvals. This Agreement and each
other 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, subject to the Required Approvals and except: (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally; (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies; and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

(c)          Validity
of New Note. The New Note issued pursuant to this Agreement, when delivered in exchange for the Original Notes in accordance
with this Agreement, will be the valid and binding obligations of the Company enforceable against the Company in accordance with
their terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, and general equitable principles (whether considered in a proceeding
in equity or at law). The Conversion Shares, when paid for and issued in accordance with the terms of the New Notes, will be validly
issued, fully paid and non-assessable, free and clear of all liens imposed by the Company other than restrictions on transfer provided
for herein and in the Transaction Documents.

 

(d)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) those
that have previously been obtained; (ii) the filings required pursuant to the Exchange Act; (iii) the notice and/or application(s)
to each applicable Trading Market, if any, for the issuance and sale of the Securities and the listing of the Conversion Shares
for trading thereon in the time and manner required thereby; and (iv) such other filings with the Commission as may be required
under the Securities Act and such filings as are required to be made under applicable state securities laws (collectively, the
“Required Approvals”).

 

5.            Other
Agreements.

 

5.1          Transfer
Restrictions.

 

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

 

    	 	7	 

    

    

 

(b)          The Holders agree to the imprinting,
so long as is required by this Section 5.1, of a legend on any of the Securities substantially in the following form:

 

[NEITHER] THIS SECURITY [NOR
THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS 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.

 

(c)          Each
Holder, severally and not jointly with the other Holders, agrees with the Company that Holder will sell any Securities pursuant
to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an
exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance with
the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing
Securities as set forth in this Section 5.1 is predicated upon the Company’s reliance upon this understanding.

 

5.2          Reservation
of Securities. Subject to obtaining the Required Approvals, the Company shall maintain a reserve from its duly authorized shares
of Common Stock for issuance pursuant to the Transaction Documents in an amount no less than the Required Minimum. If, on any date,
the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum on such
date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate of incorporation
to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon
as possible, including by calling a meeting of the Company’s shareholders for such purpose.

 

5.3           Fees and
Expenses.  Each party hereto shall pay the fees and expenses of its advisors, counsel, accountants and other experts,
if any, and all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Agreement.

 

5.4          Waiver of Interest.  The
Holder hereby irrevocably waives any and all claims, demands, suits, actions, causes of action and rights whatsoever at law or
in equity, now existing or arising relating to any accrued and unpaid interest on the Original Note or any other agreement between
the parties.  The Holder hereby acknowledges and agrees that it shall not commence or prosecute in any way, or cause
to be commenced or prosecuted, any action in any court relating to such accrued and unpaid interest.

 

5.5          Treatment
of Prior Security Interests.  Each Holder hereby authorizes the Company to execute and file any Uniform Commercial
Code termination statements, release and termination of trademark security interests and other similar discharge or release documents
as are necessary or reasonably requested by the Company to terminate and release, as of record, the security interests, financing
statements, and all other notices of security interests and liens previously filed by with respect to the Original Notes of such
Holder (to the extent of the aggregate principal amount of Original Notes which are surrendered pursuant to this Agreement). Such
Holders hereby further authorize the Company and/or their counsel or representatives, immediately following the Closing, to file
the foregoing UCC and other termination statements (including a Termination of Trademark Security Interest) in such jurisdictions
as are deemed necessary by the Company to terminate and release the security interests granted pursuant to the Original Notes.
The Holders shall execute and deliver to or for the Company such additional documents (in recordable form, as appropriate) as the
Company may reasonably request to carry out the foregoing termination and release of the security interests granted under security
agreements pertaining to the Original Notes.

 

    	 	8	 

    

    

 

5.6          Piggyback Registration
Rights. Holder and the Company agree that the Holder shall be entitled to the registration rights with respect to the Underlying
Shares as set forth in this Section 5.6.

 

(a)          Definition
of Registrable Securities. As used in this Section 5.6, the term “Registrable Security” means, as of any date of
determination, (a) all of the shares of Common Stock then issued and issuable upon conversion in full of the New Notes (assuming
on such date the New Note is converted in full without regard to any conversion limitations therein), (b) any additional shares
of Common Stock issued and issuable in connection with any anti-dilution provisions in the New Notes (in each case, without giving
effect to any limitations on conversion set forth in the New Notes), and (c) any securities issued or then issuable upon any stock
split, dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that
any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the
effectiveness of any, or file another, registration statement hereunder with respect thereto) for so long as (i) a registration
statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities
Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective registration statement,
(ii) such Registrable Securities have been previously sold in accordance with Rule 144, or (iii) such securities become eligible
for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth
in a written opinion letter to such effect, addressed, delivered and acceptable to the Company’s transfer agent and the affected
Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend
upon which, such securities were issued or are issuable, were at no time held by any Affiliate of the Company). The term “Registrable
Securities” means any and all of the securities falling within the foregoing definition of “Registrable Security.”

 

(b)          Piggyback
Registration Rights. As used herein, a “Registration Statement” shall mean any registration statement filed by
the Company with the Commission under the Securities Act at any time or from time to time commencing on a date within one year
that any Underlying Shares may be issuable to the Holder and while any Registrable Securities remain outstanding; provided, however,
that a Registration Statement for the purposes hereof shall not include: (A) any registration statement (or amendment thereto)
filed by the Company which has not been declared effective on or before the date hereof; (B) any registration statement on Form
S-3 (or any successor form) filed by the Company for the purpose of effecting offers and sales of securities on a continuous or
delayed basis pursuant to Rule 415(a)(ix) or (x) under the Securities Act; (C) a registration relating to employee benefit plans
(whether effected on Form S-8 or its successor); or (D) a registration effected on Form S-4 (or its successor). If at any time
or from time to time while any Registrable Securities remain outstanding, the Company shall determine to register or shall be required
to register any of its Common Stock, whether or not for its own account, the Company shall:

 

(i)          provide
to each Holder written notice thereof at least seven (7) days prior to the filing of the Registration Statement by the Company
in connection with such registration;

 

(ii)          include
in such registration, and in any underwriting involved therein, all those Registrable Securities specified in a written request
by each Holder received by the Company within five (5) days after the Company mails the written notice referred to above. The Company
may withdraw the registration at any time. If a registration covered by this Section 5.6 is an underwritten registration on behalf
of the Company, and the underwriters advise the Company in writing that in their opinion the number of securities requested to
be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability
of the offering, the Company shall include in such registration: (1) first, the securities the Company proposes to sell, (2) second,
the Registrable Securities and other securities requested to be included in such registration, pro rata among the selling Holders
and any other selling security holders on the basis of the number of Registrable Securities owned by each such Holder and other
selling security holders. The Holders’ right to have Registrable Securities included in the first registration statement
filed by the Company may be deferred to the second registration statement filed by the Company, which deferral may be continued
to the third or subsequent registration statement so long as the registration statements are pursuant to underwritten offerings
and the underwriter determines in good faith that marketing factors require exclusion of some or all of the Registrable Securities
held by the Holders, but such deferral shall be only to the extent of such required exclusion as determined by the underwriter;
and

 

    	 	9	 

    

    

 

(iii)          if
the registration is an underwritten registration, each Holder of Registrable Securities shall enter into an underwriting agreement
in customary form with the underwriter and provide such information regarding Holder that the underwriter shall reasonably request
in connection with the preparation of the prospectus describing such offering, including completion of FINRA Questionnaires.

 

(c)          Covenants
with Respect to Registration. In connection with the registration in which the Registrable Securities are included, the Company
and Holder covenant and agree as follows:

 

(i)          The
foregoing registration rights shall be contingent on the Holders furnishing the Company with such appropriate information as the
Company shall reasonably request, including (A) such information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably
request. At least seven days prior to the first anticipated filing date of any Registration Statement, the Company shall notify
each Holder of the information the Company requires from such Holder if such Holder elects to have any of the Registrable Securities
included in the Registration Statement. A Holder shall provide such information to the Company at least two (2) Business Days prior
to the first anticipated filing date of such Registration Statement if it elects to have any of the Registrable Securities included
in the Registration Statement. Each Holder agrees to furnish to the Company a completed selling security holder questionnaire (a
“Questionnaire”) in the form provided to it by the Company not less than two Business Days prior to the filing date
of such Registration Statement. The Company shall not be required to include the Registrable Securities of a Holder in a Registration
Statement and shall not be required to pay any damages to such Holder who fails to furnish to the Company a fully completed Questionnaire
at least two Business Days prior to the filing date. The Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by it and, if required by the Commission, the natural persons
thereof that have voting and dispositive control over its shares of Common Stock.

 

(ii)          Each
Holder, by its acceptance of the Registrable Securities agrees to cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of a Registration Statement hereunder, unless such Holder has notified the Company
in writing of its election to exclude all of its Registrable Securities from such Registration Statement. Each Holder agrees that,
upon receipt of any notice from the Company that it must suspend sales of Common Stock pursuant to the Registration Statement,
it will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities, until the Holder is advised by the Company that such dispositions may again be made.

 

(iii)          Each
Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to
it in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

(iv)          The
Company shall indemnify each Holder of Registrable Securities to be sold pursuant to the registration statement and each person,
if any, who controls such Holder within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, against
all loss, claim, damage, expense or liability (including reasonable expenses reasonably incurred in investigating, preparing or
defending against any claim) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, arising
from such registration statement, except to the extent arising under paragraph (v) below.

 

(v)          Each
Holder owning Registrable Securities to be sold pursuant to a registration statement, and their successors and assigns, shall severally,
and not jointly, indemnify the Company, its officers and directors and any underwriter, and each person, if any, who controls the
Company or such underwriter within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss,
claim, damage or reasonable expense or liability (including expenses reasonably incurred in investigating, preparing or defending
against any claim) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising (A) from information
furnished by or on behalf of such Holder, or their successors or assigns, for inclusion in such registration statement, or (B)
as a result of use by the Holder of a registration statement that the Holder was advised to discontinue.

 

    	 	10	 

    

    

 

6.             Miscellaneous.

 

6.1          Governing Law;
Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, without regard to the conflicts of laws principles thereof. Each party hereto agrees that it shall bring any action,
proceeding, suit, demand, or claim with respect to any matter arising out of or related to this Agreement or the transactions contained
in or contemplated by this Agreement, exclusively in the Delaware Court of Chancery and any state appellate court therefrom within
the State of Delaware (unless the Delaware Court of Chancery shall decline to accept jurisdiction over a particular matter, in
which case, in any Delaware state or federal court within the State of Delaware) (such courts, collectively, the “Delaware
Courts”), and solely in connection with claims arising under this Agreement or the transactions that are the subject
of this Agreement (i) irrevocably submits to the exclusive jurisdiction of the Delaware Courts, (ii) waives any objection to laying
venue in any such action or proceeding in the Delaware Courts, (iii) waives any objection that the Delaware Courts are an inconvenient
forum or do not have jurisdiction over either party hereto, (iv) agrees that service of process upon such party in any such action
or proceeding shall be effective if notice is given in accordance with Section 6.5 of this Agreement, although nothing contained
in this Agreement shall affect the right to serve process in any other manner permitted by law and (v) agrees not to seek a transfer
of venue on the basis that another forum is more convenient. Notwithstanding anything herein to the contrary, (A) nothing in this
Section 6.1 shall prohibit any party from seeking or obtaining orders for conservatory or interim relief from any court
of competent jurisdiction and (B) each party hereto agrees that any judgment issued by a Delaware Court may be recognized, recorded,
registered or enforced in any jurisdiction in the world and waives any and all objections or defenses to the recognition, recording,
registration or enforcement of such judgment in any such jurisdiction.

 

6.2          Confidentiality.  The
Holder acknowledges and agrees that the existence of this Agreement and the information contained herein and in the Exhibits hereto
(collectively, “Confidential Information”) is of a confidential nature and shall not, without the prior
written consent of the Company, be disclosed by the Holder to any person or entity, other than the Holder’s personal financial
and legal advisors for the sole purpose of evaluating an investment in the Company, and that it shall not, without the prior written
consent of the Company, directly or indirectly, make any statements, public announcements or release to trade publications or the
press with respect to the subject matter of this Agreement.  Notwithstanding the foregoing, the Holder may use or disclose
Confidential Information to the extent the Holder is required by law to disclose such Confidential Information, provided, however,
that prior to any such required disclosure, Holder shall give the Company reasonable advance notice of any such disclosure and
shall cooperate with the Company in protecting against any such disclosure and/or obtaining a protective order narrowing the scope
of such disclosure and/or use of the Confidential Information.  The Holder further acknowledges and agrees that the information
contained herein and in the other documents relating to this transaction may be regarded as material non-public information under
United States federal securities laws, and that United States federal securities laws prohibit any person who has received material
non-public information relating to the Company from purchasing or selling securities of the Company, or from communicating such
information to any person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell
securities of the Company.  Accordingly, until such time as any such non-public information has been adequately disseminated
to the public, the Holder shall not purchase or sell any securities of the Company, or communicate such information to any other
person.

 

6.3          Entire Agreement;
Amendment and Waivers.  This Agreement constitutes the entire understanding and agreement of the parties with respect
to the subject matter hereof and supersedes all prior and/or contemporaneous oral or written proposals or agreements relating thereto
all of which are merged herein.  This Agreement may not be amended or any provision hereof waived in whole or in part,
except by a written amendment signed by all of the 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.

 

    	 	11	 

    

    

 

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

 

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

 

6.6          Severability.
Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement
in any other jurisdiction.

 

6.7          Survival.
All representations and warranties made by the Company and each Holder will survive the execution of this Agreement and the Closing
until the first anniversary of the Closing Date, except for those representations and warranties which speak as of a specific date.
All covenants and other agreements set forth in this Agreement shall survive the Closing for the respective periods set forth therein
and if no such period is specified until the first anniversary of the Closing Date.

 

6.8          Specific
Performance; Enforcement. Each of the parties hereto recognizes and acknowledges that a breach by it of any covenants or agreements
contained in this Agreement will cause the other party to sustain damages for which it would not have an adequate remedy at law
for money damages, and therefore, each of the parties hereto agrees that in the event of any such breach the aggrieved party shall
be entitled to the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief in
addition to any other remedy to which it may be entitled at law or in equity. The parties agree that they shall be entitled to
enforce specifically the terms and provisions of this Agreement in addition to any other remedy to which they may entitled at law
or in equity.

 

6.9          Assignment;
Binding Effect; Benefits. This Agreement is not assignable without the written consent of each of the other parties hereto.
Subject to the foregoing, the provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, legal representatives, successors and permitted assigns. Except as expressly stated elsewhere herein, nothing
in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties or their respective
successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained
herein.

 

6.10        Independent
Nature of Holders’ Obligations and Rights. The obligations of Holder under any Transaction Document are several and not
joint with the obligations of any other Holder, and no Holder shall be responsible in any way for the performance or non-performance
of the obligations of any other Holder under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by the Transaction Documents. Holder shall be entitled
to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out
of the other Transaction Documents, and it shall not be necessary for any other Holder to be joined as an additional party in any
proceeding for such purpose.

 

    	 	12	 

    

    

 

6.11         Independent
Representation. Each Holder expressly represents and warrants to the Company that (a) before executing this Agreement,
said Holder has fully informed himself or itself of the terms, contents, conditions and effects of this Agreement; (b) said
Holder has relied solely and completely upon his or its own judgment in executing this Agreement; (c) said Holder has had
the opportunity to seek the advice of his or its own counsel and advisors before executing this Agreement; (d) said Holder
has acted voluntarily and of his or its own free will in executing this Agreement; (e) said Holder is not acting under duress,
whether economic or physical, in executing this Agreement; (f) this Agreement is the result of arm’s length negotiations
conducted by and among the parties; and (g) said Holder acknowledges that the law firm of Becker & Poliakoff, LLP has
been retained by the Company to prepare this Agreement as legal counsel for the Company, that Becker & Poliakoff, LLP does
not represent any Holder in connection with the preparation or execution of this Agreement, that such firm has not given any legal,
investment or tax advice to any Holder regarding this Agreement, and that such Holder has not relied upon any legal advice except
as provided by its own attorneys. Becker & Poliakoff, LLP is expressly intended as a beneficiary of the representations and
warranties of the Holders contained in this Section 6.11.

 

6.12         Fees
and Expenses. Except as expressly set forth in this Agreement to the contrary, each party shall pay the fees and expenses of
its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.

 

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

 

6.14         Termination. If
the Initial Closing has not been consummated on or before March 15, 2017, this Agreement may be terminated (a) by any Holder (except
where any such Holder is in breach of this Agreement or has failed to perform or satisfy any closing condition applicable to it),
as to such Holder’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and
the other Holders, or (b) by the Company (except for any breach by it or failure to perform or satisfy any closing condition applicable
to it), by written notice to the other parties; provided, however, that such termination will not affect the right
of any non-breaching party to sue or seek specific performance for any breach by any other party (or parties).

 

6.15         Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement. In this Agreement, unless the context otherwise requires: (i) words of the masculine or neuter gender
will include the masculine, neuter and/or feminine gender, and words in the singular number or in the plural number will each include,
as applicable, the singular number or the plural number, (ii) reference to any Person includes such Person’s successors and
assigns but, if applicable, only if such successors and assigns are permitted by this Agreement, (iii) the words “include,”
“includes” and “including” when used herein shall be deemed in each case to be followed by the words “without
limitation,” (iv) reference to any law means such law as amended, modified codified or reenacted, in whole or in part, and
in effect from time to time, including rules and regulations promulgated thereunder, (v) except as otherwise indicated, all references
in this Agreement to the words “Section,” “Schedule” and “Exhibit” are intended to refer to
Sections, Schedules and Exhibits to this Agreement, (vi) the headings of the Sections of this Agreement are for convenience only
and in no way modify, interpret or construe the meaning of specific provisions of this Agreement, (vi) the words “herein,”
“hereto,” and “hereby” and other words of similar import in this Agreement shall be deemed in each case
to refer to this Agreement as a whole and not to any particular Section or other subdivision of this Agreement, (vii) any reference
herein to “dollars” or “$” shall mean United States dollars, (viii) any reference herein to a Governmental
Authority shall be deemed to include reference to any successor thereto, and (ix) the specificity of any representation or warranty
contained herein shall not be deemed to limit the generality of any other representation or warranty contained herein.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	13	 

    

    

 

IN WITNESS WHEREOF, the Company and
each Holder has caused this Agreement to be executed on its behalf as of the date first written above.

 

	AUTHENTIDATE HOLDING CORP.
	 	 	Address for Notice:
	 	 	2225 Centennial Drive
	 	 	Gainesville, GA 30504
	 	 	Attn:  Chief Executive Officer
	 	 	 
	 	 	 Fax:
	Name: Hanif A. Roshan  	 	 
	Title:  Chief Executive Officer	 	 
	 	 	 
	With a copy
to (which shall not constitute notice): 	 	 
	 	 	 
	Becker & Poliakoff, LLP 	 	 
	45 Broadway, 8th Floor 	 	 
	New York, NY 10006 	 	 
	Attn: Michael A. Goldstein 	 	 
	Fax: 212-557-0295	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	14	 

    

    

 

[HOLDER SIGNATURE PAGES TO EXCHANGE AGREEMENT]

 

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

 

	Name of Holder:	 	
	 	 	 
	Signature of Authorized Signatory of Holder:	 	
	 	 	 
	Name of Authorized Signatory:	 	
	 	 	 
	Title of Authorized Signatory:	 	
	 	 	 
	Email Address of Authorized Signatory:	 	
	 	 	 
	Facsimile Number of Authorized Signatory:	 	
	 	 	
	Social Security or Tax I.D. Number:	 	
	 	 	
	Address for Notices to Holder:	 	
	 	 	
	 	 	
	 	 	
	 	 	
	Address for Delivery of certificated Securities for Holder (if not same as address for notices):	 	
	 	 	
	 	 	
	 	 	

 

Principal amount of New Note to be Issued at Closing: $________________

 

Original Note(s) Owned by Holder and Issue Date (the “Original Notes”): 

 

    	 	15	 

    

    

 

EXHIBIT A

 

FORM OF NEW NOTE

 

    	 	16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00268-of-00352.parquet"}]]