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Exhibit 10.3

THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Third Amended and Restated Employment Agreement (“Agreement”), executed on this 9th day of June 2022, effective as of June 9, 2022 (the “Effective Date”), by and between Vera Bradley, Inc., an Indiana corporation (the “Corporation”), and Robert Wallstrom (“Executive”).  The Corporation and Executive are referred to jointly below as the “Parties.”  This Agreement supersedes and replaces the Employment Agreement entered between the Parties on November 4, 2013 and any subsequent amendments to such Employment Agreement.

WHEREAS, the Corporation desires to employ Executive and Executive desires to accept employment with the Corporation on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the employment of Executive, the mutual terms and conditions set forth below, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1.Employment and Duties.  Executive will be employed by the Corporation in the position of President and Chief Executive Officer.  Executive will report to the Corporation’s Board of Directors (the “Board”).  Executive’s primary responsibility will be executive management of the business and affairs of the Corporation and its Affiliates (as defined below).  Executive will have all of the authority, duties and responsibilities commensurate with the position, and will carry out such duties commensurate with the position as shall be assigned from time to time by the Board, subject to applicable laws, and ethical duties.  During the Term (as defined below), Executive shall devote Executive’s reasonable best efforts, energies and abilities and Executive’s full business time, skill and attention to the business and affairs of the Corporation and its Affiliates, and shall act at all times according to the highest professional standards, for the purpose of advancing the business of the Corporation and its Affiliates.  However, Executive may devote reasonable time to activities such as supervision of personal investments and activities involving professional, charitable, educational, civic, religious and similar types of activities, speaking engagements and membership on other boards of directors, provided such activities do not interfere in any material way with the business of the Corporation, and provided further that Executive cannot serve on a board of directors of a publicly traded company without the written consent of the Board.  The time involved in such activities shall not be treated as vacation time.  Executive shall be entitled to keep any amounts paid to him in connection with such activities (e.g., director fees and honoraria).  Executive’s principal place of employment will be the Corporation’s headquarters in Fort Wayne, Indiana.  During the Term, Executive also agrees to serve, if elected, as an officer and director of any Affiliate of the Corporation.  For purposes of this Agreement, an “Affiliate” shall mean a corporation that, for purposes of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), is a Parent or Subsidiary of the Corporation within the meaning of Code Sections 424(e) and 424(f).

2.Board of Directors.  On the Effective Date, the Board shall elect Executive to the Board.  In accordance with the Corporation’s by-laws, the Corporation shall nominate Executive as a director for shareholder approval at the 2014 annual meeting and at each annual meeting thereafter during the Term in which his term as a director is due to expire.

3.Term.  Employment under this Agreement shall commence on the Effective Date and shall expire at 5:00 p.m. E.S.T. at the end of the fiscal year ending on or about January 31, 2017 (the “Initial Term”), unless terminated earlier pursuant to the provisions of Sections 7, 8, 9 or 11 hereof.  The term of employment shall be renewed automatically for successive fiscal year periods (each a “Renewal Term”) after the expiration of the Initial Term, unless the Corporation provides Executive, or Executive provides the Corporation, with written notice to the contrary at least one hundred eighty (180) calendar days prior to the end of the Initial Term or any Renewal Term.  The Initial Term and any Renewal Terms are collectively referred to herein as the “Term.”  If either the Corporation or Executive elects not to renew the Term of this Agreement in accordance with this Section 3 and Executive thereafter continues in employment with the Corporation or its Affiliates, Executive shall be employed on an at-will basis and the terms of such employment and any subsequent termination of employment shall be subject solely to the Corporation’s general employment practices and policies.  In the event of a “Change in Control” of the Corporation (as such term is defined in 

the Vera Bradley, Inc. 2020 Equity and Incentive Plan, as amended or any successor thereto (the “Equity Plan”)) during the Term, the Term automatically will be extended until the later of (i) the second anniversary of the Change in Control, or (ii) the scheduled expiration of the then-current Term.

4.Compensation.
a.Base Salary.  The Corporation shall pay to Executive an annual base salary (“Base Salary”) of eight hundred seventy-one thousand two-hundred fifty dollars (U.S. $871,250) effective as of the Effective Date.  The Corporation will pay Executive’s Base Salary in equal installments in accordance with the Corporation’s standard payroll policies and schedule, subject to tax and elective withholding and deductions.  Thereafter, the Compensation Committee of the Board (the “Committee”) shall review Executive’s performance and Base Salary annually no later than March of each year, in light of competitive data, the Corporation’s performance, and Executive’s performance, and determine whether to adjust Executive’s Base Salary on a prospective basis, subject to Section 7(b).  Such adjusted annual salary then shall become Executive’s “Base Salary” for purposes of this Agreement and shall become effective in accordance with the same schedule as applied for all annual employee base salary changes.
b.Annual Bonus.  Executive will be eligible for an annual cash bonus (the “Bonus”), based on performance, and calculated as a percentage of Executive’s Base Salary, subject to the performance goals and procedures established by the Committee annually after consultation with Executive.  Subject to the terms and conditions of the annual cash bonus plan, Executive’s target bonus opportunity for each fiscal year shall be one hundred percent (100%) of Base Salary and the maximum bonus opportunity shall be two hundred percent (200%) of Base Salary.  Executive will become eligible for participation in the annual bonus plan for the 2015 fiscal year and Executive’s guaranteed annual bonus for that fiscal year shall be one hundred percent (100%) of Base Salary.  Thereafter, the Committee shall establish a minimum performance level each year, below which no bonus will be paid.  Actual payments under the annual bonus plan will be determined by the Committee, in its discretion, and will be based upon the level of achievement of the pre-established performance goals.  The Bonus will be paid at the time payment is made to other similarly situated executives of the Corporation, but in no event later than two and one-half (21⁄2) months after the close of the fiscal year in which Executive becomes vested in such Bonus, and is intended to qualify for the short-term deferral exception to Code Section 409A.  The Corporation may make changes to the design, vehicles and weighting of the annual bonus plan if such changes are applicable to all executives generally.
c.Equity Compensation.  Executive will be eligible to participate in any long-term incentive plans, and/or equity-based compensation plans established or maintained by the Corporation for its senior executive officers or employees, including, but not limited to, the Equity Plan.  For the Corporation’s 2015 fiscal year, the equity-based compensation grant shall have an economic value at grant of eight hundred thousand dollars ($800,000), and shall be made as part of the regular annual grant cycle for all executives of the Corporation (generally in the first quarter).  The Corporation may make changes to the design, vehicles and weighting of the Equity Plan if such changes are applicable to all executives generally.

5.Benefits.
a.Executive shall be entitled to the extent eligible to participate in any benefit plans as may be adopted and modified by the Corporation from time to time, including without limitation health, dental and medical plans, life and disability insurance, paid MTO, holiday, and retirement plans.  The benefits available to Executive shall be no less favorable than those available to other executives at similar levels within the organization or to the employees of the Corporation at the location where Executive works.  Benefits provided under this Agreement shall be subject to the terms and conditions of any applicable benefit plan, including any eligibility and vesting requirements, as such plans may be in effect or modified by the Corporation from time to time.
b.Executive shall be entitled to twenty-six (26) days of paid managed time off (“MTO”) each year.  The maximum number of accrued MTO hours that Executive can have at any point in time is equal to the total MTO hours earned in the last twelve (12) months, plus one (1) week of MTO carried over from the prior twelve (12) months of service.
c.The Corporation shall reimburse Executive for all reasonable and necessary travel, business entertainment, professional membership and other business expenses incurred by Executive in connection with the performance of Executive’s duties under this Agreement, on a basis upon 

timely submission by Executive of vouchers therefor in accordance with the Corporation’s standard policies and procedures.
d.The Corporation shall provide Executive with the following relocation reimbursements and benefits during the Initial Term, which, except as provided below,  shall be paid or reimbursed within thirty (30) days of the date such expenses were incurred, but in no event later than the last day of Executive’s taxable year following the taxable year in which the expense was incurred, provided that Executive has submitted vouchers therefor (other than the Cash Lump Sum Bonus) in accordance with the Corporation’s standard policies and  procedures: 						
	Relocation Assistance	Details
	Temporary Living	Interim living expenses reimbursed up to $3,000 per month for the first six (6) months of employment
	Moving of Household Goods	Reimbursement prior to March 15, 2014 of costs associated with moving household and personal effects (estimated to be approximately $25,000)
	House Hunting	Reimbursement prior to March 15, 2014 of expenses relating to two (2) pre-move house hunting trips for you and your family (estimated to be approximately $3,000)
	Home Sale/Purchase Assistance	Reimbursement of expenses to assist with sale of current (in 2014) and purchase of new (prior to March 15, 2014) home including customary closing costs, agent fees and base expenses associated with sale and purchase (estimated to be an aggregate of $80,000).
	Weekend Family Travel	Reimbursement prior to March 15, 2014 for weekend family travel for up to the first eight (8) weeks following the Effective Date, to be booked pursuant to the Corporation’s then effective travel policies
	Cash Lump Sum Bonus	Lump sum cash bonus on January 15, 2014 of $80,000 to help offset taxes incurred relative to relocation expenses and other miscellaneous expenses

The amount of expenses eligible for reimbursement under this Section 5(d), during Executive’s taxable year may not affect the expenses eligible for reimbursement in any other taxable year.   Executive’s right to reimbursement is not subject to liquidation or exchange for another benefit. 
e.The Corporation will pay Executive’s reasonable attorneys’ fees incurred to negotiate this Agreement up to twenty-five thousand dollars ($25,000).  Executive’s right to payment of legal fees under this Section 5(e) may not be liquidated or exchanged for any other benefit.

6.Termination by the Corporation.  The Corporation may terminate Executive’s employment during the Term:
a.without Cause (as defined below) by giving Executive ninety (90) calendar days’ prior written notice, or
b.for Cause (as defined below) by delivering to Executive a copy of a resolution duly adopted by the affirmative vote of a majority of the directors of the Board then in office at a meeting of the Board called and held for such purpose, finding that Executive has committed an act set forth below in this Section 6.  Nothing herein shall limit Executive’s right or Executive’s beneficiaries’ right to contest the validity or propriety of any such determination.  For purposes of this Agreement, “Cause” shall mean: (i) an intentional act of fraud, embezzlement or theft by Executive in connection with Executive’s duties or in the course of Executive’s employment with the Corporation or an Affiliate; (ii) Executive’s intentional wrongful material damage to the property of the Corporation or its Affiliates; (iii) Executive’s intentional material breach of Section 12 hereof while Executive remains in the employ of the Corporation or an Affiliate; (iv) an act of Gross Misconduct (as defined below); or (v) a conviction for a misdemeanor involving moral turpitude or a charge of a felony; and, in each case, the reasonable, good faith determination by the Board as hereafter provided that any such act or omission may be harmful to the Corporation or an Affiliate.  For purposes of this Agreement, “Gross Misconduct” shall mean a willful or grossly 

negligent act or omission that has or will have a material and adverse impact on the business or reputation of the Corporation or its Affiliates, or on the business of the customers or suppliers of the Corporation or its Affiliates as such relate to the Corporation.  In addition, Executive’s employment shall be deemed to have terminated for Cause if, based on facts and circumstances discovered after Executive’s employment has terminated, the Board determines in reasonable good faith, within one (1) year after Executive’s employment terminated, and after appropriate investigation and an opportunity for Executive to be interviewed (with or without counsel as Executive may determine) by a subcommittee of the independent Board members or its representative, that Executive committed an act during the Term that would have justified a termination for Cause.

7.Termination by Executive.  Executive may terminate his employment during the Term by giving the Corporation thirty (30) calendar days’ prior written notice or in the case of Retirement (as defined below) by providing one hundred-eighty (180) calendar days’ prior written notice ; provided that, if Executive purports to terminate his employment during the Term for Good Reason (as defined below), Executive must give the Corporation written notice of his intent to terminate for Good Reason within sixty (60) calendar days of the occurrence of the event that allegedly constitutes Good Reason.  The Corporation shall have a right to cure the event(s) or omission(s) alleged to constitute Good Reason for a period of thirty (30) calendar days after notice from Executive of his intention to terminate for Good Reason and, if not cured, Executive may terminate his employment within one hundred twenty (120) days of the occurrence of the event that allegedly constitutes Good Reason.  In the event of termination by notice under the first sentence of this Section 7, the Corporation in its discretion may elect a termination date that is earlier than the conclusion of the sixty (60) calendar day or one hundred-eighty (180) calendar day notice period, but the termination shall still be deemed either a Retirement or a voluntary termination by Executive with Good Reason under this Section.     “Good Reason” means the occurrence of any of the following events without Executive’s express written consent:
a.The material reduction of Executive’s authorities, duties, or responsibilities with the Corporation;
b.A material reduction by the Corporation of Executive’s Base Salary, other than a reduction approved by the Compensation Committee that similarly applies to all Executive Vice Presidents of the Corporation, provided that such a reduction in Base Salary shall not exceed more than ten percent (10%) from Executive’s highest Base Salary;
c.A material reduction by the Corporation of Executive’s annual bonus opportunity, other than a reduction approved by the Compensation Committee that similarly applies to all Executive Vice Presidents of the Corporation, provided that such a reduction in annual target bonus opportunity shall not exceed more than ten percent (10%) from Executive’s highest target bonus opportunity;
d.A relocation of the offices of Executive to a place greater than thirty-five (35) miles in distance from the current executive offices of the Corporation in Fort Wayne, Indiana; or
e.Any action or inaction that constitutes a material breach by the Corporation of this Agreement.

Notwithstanding the foregoing, any reduction in Executive’s Base Salary, annual bonus opportunity or severance payment in anticipation of, upon or within two (2) years following a Change in Control, shall constitute a material breach of the terms of this Agreement.  The Corporation shall have no obligations to Executive after Executive’s last day of employment following termination of employment under this Section, except as specifically set forth in this Agreement or under any applicable plans, programs or arrangements of the Corporation including, without limitation, the Corporation’s Certificate of Incorporation or By-Laws, as either may be amended from time to time, the Equity Plan and any agreements thereunder, and the indemnification agreement described in Section 14.
           
 “Retirement” shall mean a voluntary termination by Executive any time after having surpassed ten (10) years of service with the Corporation and reached the age of fifty-five (55) or a Termination by the Company without cause occurring any time after the date eighteen (18) months prior to when the Executive will surpass ten (10) years of service with the Corporation and reach the age of fifty-five (55).      

8.Automatic Termination.  Notwithstanding the provisions of Section 3, Executive’s employment shall automatically terminate upon Executive’s death or upon notice from the Corporation because of Disability (as defined below) while he remains Disabled.  Executive shall be deemed to have a “Disability” for purposes of this Agreement if Executive is unable to perform substantially, by reason of physical or mental incapacity, Executive’s duties or obligations under this Agreement, with or without reasonable 

accommodation as defined in the Americans with Disabilities Act and implementing regulations, for a period of one hundred and eighty (180) consecutive calendar days in any 360-calendar day period.

9.Term of Agreement.  Any termination of Executive’s employment shall also end the Term.  For purposes of this Agreement, Executive’s employment with the Corporation and its Affiliates shall be deemed to be terminated when Executive has a “separation from service” within the meaning of Code Section 409A, and references in this Agreement to termination of employment shall be deemed to refer to such a separation from service.  Upon Executive’s separation from service for any reason, Executive shall be deemed to have resigned as of the date of Executive’s separation from service from all offices, directorships and fiduciary positions with the Corporation, its Affiliates, and employee benefit plans of the Corporation unless Executive is affirmatively re-appointed or re-elected to such position as of the date of Executive’s separation from service.

10.Certain Obligations of the Corporation Following Termination of Executive’s Employment.  Following termination of Executive’s employment during the Term under the circumstances described below, the Corporation will pay to Executive the following compensation and provide the following benefits in addition to any benefits to which Executive may be entitled by law in full satisfaction and final settlement of any and all claims and demands that Executive or the Corporation may have against the other under this Agreement:
a.Termination of Employment for Any Reason.  In the event of Executive’s termination of employment for any reason, the Corporation shall pay or provide Executive (a) any unpaid Base Salary through the date of termination and (b) any benefits (including, without limitation, any unused vacation accrued in accordance with Section 5(b)) accrued, earned or vested, and any unreimbursed expenses incurred, up to and including the effective date of such termination to which Executive may be entitled under the terms of any applicable arrangement, plan or program (collectively, the “Accrued Amounts”).
b.Termination Without Cause by the Corporation or for Good Reason by Executive or Termination due to Retirement by either Party.  If, during the Term, the Corporation terminates Executive’s employment without Cause under Section 6(a) hereof or Executive terminates his employment for Good Reason or either Party terminates Executive’s employment by Retirement under Section 7 hereof and it is not on or within twenty-four (24) months after a Change in Control, Executive shall be entitled to the following payments and benefits, subject to Section 13:
i.The Accrued Amounts, as soon as reasonably practicable following the date of termination;
ii.Any Bonus that has been earned in the fiscal year prior to the employment termination that has not yet been paid, shall be payable at the time payment is made to other similarly situated executives of the Corporation, but in no event later than two and one-half (21⁄2) months after the close of the year in which Executive becomes vested in such Bonus;
iii.A pro rata portion of the amount of Bonus, if any, Executive would have received pursuant to Section 4(b) for the year in which Executive’s employment terminated (hereinafter, the “Prorated Bonus”).  The Corporation shall determine what annual Bonus, if any, Executive would have earned had he been employed through the end of the applicable period (the “Base Incentive Amount”), in accordance with the methods used to calculate the annual Bonus for the Corporation’s other similarly situated executives.  The pro rata portion to be paid pursuant to this Section shall be determined by multiplying the Base Incentive Amount by a fraction, the numerator of which is the number of calendar days from the beginning of the applicable annual period in which the termination occurred through the date of termination and the denominator of which is 365.  Any Prorated Bonus payment due under this Section shall be paid at the time payment is made to other similarly situated executives of the Corporation, but in no event later than two and one-half (21⁄2) months after the close of the fiscal year in which Executive would have become vested in such Bonus;
iv.A lump sum payment equal to two (2) times the sum of (A) Base Salary (B) target Bonus for the fiscal year of termination, payable within ten (10) calendar days after Executive’s delivery to the Corporation and non-revocation of an executed and enforceable Release, in accordance with and subject to Section 13;
v.Monthly Cash reimbursement of Executive’s COBRA premiums (or an amount equal to Executive’s COBRA premiums) (sufficient to cover full family health care) for a period 

of eighteen (18) months following the termination of Executive’s employment if Executive elects such COBRA coverage.  The foregoing notwithstanding, the Corporation’s obligation to reimburse described in the preceding sentence shall cease on the date Executive becomes eligible for coverage under another group health plan offered by a new employer of Executive or covered under a group health plan of the employer of Executive’s spouse, in either case, which does not impose pre-existing condition limitations on Executive’s coverage.  Nothing herein shall be construed to extend the period of time over which COBRA continuation coverage shall be provided to Executive or his dependents beyond that mandated by law.  (The foregoing (vii) is hereinafter referred to as the “COBRA Benefits”).
vi.If the Termination by either Party is due to Retirement, Executive shall have the right to any retirement benefits as have been or may be adopted and modified by the Corporation from time to time, including without limitation any retirement provisions outlined in award agreements made pursuant to the Equity Plan.    

c.Termination by Executive Without Good Reason or by the Corporation for Cause.  If, during the Term, Executive terminates employment under Section 7(a) hereof without Good Reason or the Corporation terminates Executive’s employment under Section 6(b) hereof for Cause, Executive shall be entitled to no further compensation or other benefits under this Agreement except for the Accrued Amounts, payable in a single lump sum as soon as practicable following the date of termination.
d.Death; Disability.  If Executive’s employment is terminated during the Term by reason of Executive’s death or for Disability, Executive or Executive’s estate, as the case may be, shall be entitled to the following payments and benefits, subject to Section 13:
i.The Accrued Amounts, as soon as reasonably practicable following the date of termination.  Except as provided in subsection (iv) of this paragraph 10(d), if Executive’s employment is terminated during the Term by reason of Executive’s death or for Disability, the treatment of any equity compensation awards held by Executive shall be governed by the terms of the plan or agreement under which such awards were granted;
ii.Any Bonus that has been earned in the fiscal year prior to the employment termination that has not yet been paid, shall be payable at the time payment is made to other similarly situated executives of the Corporation, but in no event later than two and one-half (21⁄2) months after the close of the year in which Executive becomes vested in such Bonus;
iii.The Prorated Bonus, if any, Executive would have received for the year in which Executive’s employment terminated, payable at the time payment is made to other similarly situated executives of the Corporation, but in no event later than two and one-half (21⁄2) months after the close of the fiscal year in which Executive’s employment terminated;
iv.The COBRA Benefits.
e.Termination in Connection With a Change in Control.  If Executive’s employment is terminated in anticipation of, upon or within twenty-four (24) months following a Change in Control (as defined in the Equity Plan), by the Corporation without Cause under Section 6(a) hereof or by Executive for Good Reason under Section 7 hereof, Executive shall be entitled to the following payments, subject to Sections 12 and 13:
i.The Accrued Amounts, as soon as reasonably practicable following the date of termination;
ii.Any Bonus that has been earned in the fiscal year prior to the employment termination that has not yet been paid, shall be payable at the time payment is made to other similarly situated executives of the Corporation, but in no event later than two and one-half (21⁄2) months after the close of the year in which Executive becomes vested in such Bonus;
iii.The Pro Rated Bonus;
iv.A lump sum payment equal to two (2) times the sum of (A) Base Salary (B) target Bonus for the fiscal year of termination, payable within ten (10) calendar days after Executive’s delivery to the Corporation and non-revocation of an executed and enforceable Release, in accordance with and subject to Section 13;
v.In exchange for Executive’s continued compliance with the Restrictive Covenants in Section 12 after the date of the Change in Control, an additional lump sum payment equal to the sum of (A) Base Salary and (B) target Bonus for the fiscal year of termination, 

payable after the date of termination and within ten (10) calendar days after Executive’s delivery to the Corporation and non-revocation of an executed and enforceable Release, in accordance with and subject to Section 13, or, if the termination was in anticipation of a Change in Control, payable after the date of the Change in Control and within ten (10) calendar days after Executive’s delivery to the Corporation and non-revocation of an executed and enforceable Release, in accordance with and subject to Section 13; provided that, if Executive previously has delivered and not revoked an executed and enforceable Release in connection with his termination of employment before the Change in Control, the additional Release required by this clause shall only apply to the period between the execution and delivery of an enforceable Release upon Executive’s termination of employment and the date of the Change in Control;
vi.The COBRA Benefits; and
vii.Reimbursement for outplacement assistance up to a maximum amount of $50,000, for no longer than one year.
viii.The treatment of any equity compensation awards held by Executive shall be governed by the terms of the plan or agreement under which such awards were granted.
ix.If a Change in Control occurs and payments are made under this Section 10(e), and a final determination is made by legislation, regulation, or ruling directed to Executive or the Corporation, by court decision, or by independent tax counsel, that the aggregate amount of any payments made to Executive under this Agreement and any other agreement, plan, program or policy of the Corporation in connection with, on account of, or as a result of, such Change in Control (“Total Payments”) will be subject to an excise tax under the provisions of Code Section 4999, or any successor section thereof (“Excise Tax”), the Total Payments shall be reduced (beginning with those that are exempt from Code Section 409A) so that the maximum amount of the Total Payments (after reduction) shall be one dollar ($1.00) less than the amount that would cause the Total Payments to be subject to the Excise Tax; provided, however, that the Total Payments shall only be reduced to the extent that the after-tax value of amounts received by Executive after application of the above reduction would exceed the after-tax value of the Total Payments received without application of such reduction.  For this purpose, the after-tax value of an amount shall be determined taking into account all federal, state, and local income, employment, and excise taxes applicable to such amount.  In making any determination as to whether the Total Payments would be subject to an Excise Tax, consideration shall be given to whether any portion of the Total Payments could reasonably be considered, based on the relevant facts and circumstances, to be reasonable compensation for services rendered (whether before or after the consummation of the applicable Change in Control).  To the extent Total Payments must be reduced pursuant to this Section, the Corporation, without consulting Executive, will reduce the Total Payments to achieve the best economic benefit, and to the extent economically equivalent, on a pro-rata basis.
1.In the event that upon any audit by the Internal Revenue Service, or by a state or local taxing authority, of the Total Payments, a change is determined to be required in the amount of taxes paid by, or Total Payments made to, Executive, appropriate adjustments will be made under this Agreement such that the net amount that is payable to Executive after taking into account the provisions of Code Section 4999 will reflect the intent of the parties as expressed in this Section 10(e)(x).  Executive shall notify the Corporation in writing of any claim by the Internal Revenue Service that, if successful, would require payment of an Excise Tax or an additional Excise Tax on the Total Payments (a “Claim”).  Such notification shall be given as soon as practicable but no later than ten (10) business days after Executive is informed in writing of such Claim and shall apprise the Corporation of the nature of such Claim and the date on which such Claim is requested to be paid.  Executive shall not pay such Claim prior to the expiration of the thirty (30) calendar day period following the date on which Executive gives such notice to the Corporation (or such shorter period ending on the date that any payment of taxes with respect to such Claim is due).  If the Corporation notifies Executive in writing prior to the expiration of such period that it desires to contest such Claim, Executive shall: (1) give the Corporation any information reasonably requested by the Corporation relating to such Claim, 

(2) take such action in connection with contesting such Claim as the Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such Claim by an attorney reasonably selected by the Corporation, (3) cooperate with the Corporation in good faith in order to contest effectively such Claim, and (4) permit the Corporation to participate in any proceedings relating to such Claim; provided, however, that the Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Executive harmless for any Excise Tax, additional Excise Tax, or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses.  Without limitation on the foregoing provisions of this Section 10(e)(x)(A), the Corporation, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such Claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest the Claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one (1) or more appellate courts, as the Corporation shall determine, provided, however, that if the Corporation directs Executive to pay such Claim and sue for a refund, the Corporation shall advance the amount of such payment to Executive on an interest-free basis or, if such an advance is not permissible under applicable law, pay the amount of such payment to Executive as additional compensation, and shall indemnify and hold Executive harmless from any Excise Tax, additional Excise Tax, or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or additional compensation; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount.  The Corporation shall reimburse any fees and expenses provided for under this Section 10(e)(x) on or before the last day of Executive’s taxable year following the taxable year in which the fee or expense was incurred, and in accordance with the other requirements of Code Section 409A and Treasury Regulation §1.409A-3(i)(1)(v) (or any similar or successor provisions).
2.If, after the receipt by Executive of an amount advanced or paid by the Corporation pursuant to Section 10(e)(x)(A) above, Executive becomes entitled to receive any refund with respect to such Claim, Executive shall (subject to the Corporation’s complying with the requirements of Section 10(e)(x)(A)) promptly pay to the Corporation the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto).  If, after the receipt by Executive of an amount advanced by the Corporation pursuant to Section 10(e)(x)(A), a determination is made that Executive shall not be entitled to any refund with respect to such Claim and the Corporation does not notify Executive in writing of its intent to contest such denial of refund prior to the expiration of sixty (60) calendar days after such determination, then such advance shall be forgiven and shall not be required to be repaid.
f.Termination Following Notice of Non-Renewal.  If the Term of this Agreement expires due the Corporation electing not to renew the Term in accordance with Section 3, it shall be treated as a termination of Executive’s employment by the Corporation without Cause at the end of the then Term and Executive shall be entitled to those amounts set forth in Section 10(b) or 10 (e) of this Agreement, as applicable, subject to and in accordance with the terms of Section 13.  If the Term of this Agreement expires due to Executive electing not to renew the Term in accordance with Section 3, Executive shall receive, subject to Section 13, (i) the Accrued Amounts, as soon as reasonably practicable following the date of termination; and (ii) any Bonus that has been earned in the year prior to the employment termination that has not yet been paid, which Bonus shall be payable at the time payment is made to other similarly situated executives of the Corporation, but 

in no event later than two and one-half (21⁄2) months after the close of the year in which Executive becomes vested in such Bonus.
g.No Mitigation or Offset.  In the event of any termination of Executive’s employment under this Section 10, Executive shall be under no obligation to seek other employment or otherwise mitigate his damages, and there shall be no offset against amounts due to Executive under this Agreement on account of any remuneration or benefit attributable to any subsequent employment obtained by Executive, except as provided in Sections 10(b)(vii), 10(d)(v), 10(e)(vii), and 10(f)(v).
h.Compensation Recovery Policy.  Notwithstanding any provision in this Agreement to the contrary, payments under this Agreement will be subject to any Compensation Recovery Policy established by the Corporation and amended from time to time.

11.Nature of Payments.  Upon termination of employment pursuant to Sections 6, 7, 8, 9, or 10, Executive will be released from any duties and obligations to the Corporation set forth in this Agreement (except the duties and obligations under the Restrictive Covenants as set forth in Section 12 hereof and the obligation under Sections 13 and 22) and the obligations of the Corporation to Executive under this Agreement will be as set forth in Section 10.

12.Restrictive Covenants. 
a.Executive understands the global nature of the Corporation’s businesses and the effort the Corporation undertakes to develop and protect its business, goodwill, confidential information and competitive advantage.  Accordingly, Executive recognizes and agrees that the scope and duration of the restrictions described in this Section 12 are reasonable and necessary to protect the legitimate business interests of the Corporation.  All payments and benefits to Executive under this Agreement are conditioned expressly on Executive’s compliance with each of the provisions of this Section 12.  During the period of Executive’s employment and for a period of two (2) years following Executive’s termination of employment for any reason, Executive shall not:
i.singly, jointly, or in any other capacity, in a manner that contributes to any research, design, development, strategy, marketing, promotion, or sales, or that relates to Executive’s employment with the Corporation, directly or beneficially engage in, manage, join, participate in the management, operation or control of, or work for (as an employee, consultant or independent contractor), or permit the use of his name by, or provide financial or other assistance to, any person or entity that engages in the design, production, marketing, and retailing of (A) handbags and other bags and related accessories (“Handbag Competitive Activities”), or (B) accessories such as jewelry, travel and leisure items, and baby clothes and accessories (“Other Competitive Activities”), and, in the case of either (A) or ((B), has received in the prior fiscal year at least twenty-five percent (25%) of its revenues from Handbag Competitive Activities and more than fifty (50%) of its revenues from the combination of Handbag and Other Competitive Activities (a “Competitor”), provided that the foregoing shall not limit Executive from providing services or assistance to a subsidiary or affiliate of a Competitor, in a situation where Executive provides no services or assistance whatsoever to the subsidiary or affiliate that is a Competitor, without the express written approval of the Chairman of the Board; 
ii.provide any service or assistance to a Competitor, (A) that is of the general type of service or assistance provided by Executive to the Corporation, subject to the proviso in Section 12(a)(i) above (B) that relates to any design, product, project or piece of work with which Executive was involved during his employment, (C) that contributes to causing an entity to design, manufacture, sell and market any product or service that competes with or that is similar to the handbags and other bags, jewelry, travel and leisure items, and baby clothes and accessories that are designed, produced, sold or marketed by the Corporation, or (D) in which there is a reasonable possibility that Executive may, intentionally or inadvertently, use or rely upon the Corporation’s secret or confidential information;
iii.(A) solicit or accept if offered to Executive, with or without solicitation, on his own behalf or on behalf of any other person, the services of any person who is a then-current employee of the Corporation (or was an employee of the Corporation during the year preceding such solicitation), (B) solicit any of the Corporation’s then-current employees (or an individual who was employed by or engaged by the Corporation during the year 

preceding such solicitation) to terminate employment or an engagement with the Corporation, not including any general, non-targeted advertising, or (C) agree to hire any then-current employee (or an individual who was an employee of the Corporation during the year preceding such hire) of the Corporation into employment with Executive or any company, individual or other entity; provided that the foregoing shall not be violated by a hiring with respect to which Executive had no personal involvement in any manner or by Executive serving as a reference upon request; or
iv.On behalf of a Competitor, directly or indirectly divert or attempt to divert from the Corporation any business in which the Corporation has been actively engaged during Executive’s employment, nor interfere with the relationships of the Corporation or with their sources of business; 
b.Confidentiality.  Executive recognizes that the Corporation will disclose secret or confidential information to Executive during the period of Executive’s employment to enable Executive to perform his duties.  Subject to the following sentence, Executive shall not during his employment (except in connection with the proper performance of his duties) and thereafter, without the prior written consent of the Board, disclose to any person or entity, or use for any reason or purpose, any material or significant secret or confidential information concerning the business of the Corporation that Executive obtained in the course of Executive’s employment.  This Section shall not be applicable if and to the extent Executive is required to testify in a legislative, judicial or regulatory proceeding pursuant to an order of Congress, any state or local legislature, a judge, or an administrative law judge, or if such secret or confidential information is required to be disclosed by Executive by any law, regulation or order of any court or regulatory commission, department or agency; provided, however, that Executive shall provide the Corporation with prompt notice thereof so that the Corporation may seek an appropriate protective order and/or waive compliance with this Section with respect to such requirement.  In the absence of a protective order or the receipt of waiver hereunder, if Executive is nonetheless, in the opinion of Executive’s counsel, compelled to furnish the Corporation’s confidential information to any third party or else stand liable for contempt or suffer other censure or penalty, such party may furnish such information without liability under this Section or otherwise.  Executive further agrees that if Executive’s employment is terminated for any reason, Executive will not take, but will leave with the Corporation, all records and papers and all matter of whatever nature that bears secret or confidential information of the Corporation.  For purposes of this Agreement, the term “secret or confidential information” shall include, but not be limited to, product assortment, product design, prints, any and all records, notes, memoranda, data, writings, research, personnel information, customer information, pricing, sales and marketing information, product information or designs, supplier lists, the Corporation’s financial information and plans, processes, methods, techniques, systems, formulas, patents, models, devices, compilations or any other information of whatever nature in the possession or control of the Corporation, that has not been published or disclosed to the general public, the fashion industry or the design industry. For purposes of this Agreement, the term “secret or confidential information” shall not include Executive’s personal address book.
c.Judicial Modification.  If a court of competent jurisdiction declares that any term or provision of this Section 12 is invalid or unenforceable, the Corporation and Executive intend that (i) the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or geographic area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, (ii) the Corporation and Executive shall request that the court exercise that power, and (iii) the Agreement shall be enforceable as so modified after the expiration of the time within which the judgment or decision may be appealed.
d.Nondisparagement.  Executive agrees not to make, repeat, authorize, or permit any person under his control to make, directly or indirectly, any public statements (whether oral or written), comments, remarks, or publications of any type or of any nature, to anyone, including but not limited to the news media, investors, potential investors, industry analysts, competitors, strategic partners, vendors, employees (past and present), and customers, which would defame or disparage the business reputation, practices, or conduct of the Corporation or its Affiliates (including its products, services or its business decisions), or their employees, directors or officers, or any of them, at any time now or in the future.  The Corporation agrees that its Board of Directors, Executive Vice Presidents and Chief Executive Officer will not, directly or indirectly, make, 

repeat, authorize or permit any person under its, his or her control to make any public statements (whether oral or written), comments, remarks, or publications of any type or of any nature to anyone, including but not limited to the news media, industry analysts, competitors, strategic partners, vendors, employees (past and present), and customers, which would defame or disparage the reputation of Executive at any time now or in the future.  Nothing set forth in this Section 12(d) shall be interpreted to prohibit Executive, the Corporation, the Corporation’s Affiliates, or the directors, partners, officers and employees of the Corporation and its Affiliates from making truthful statements (i) in the good faith normal performance of his or their duties, (ii) when required by law, subpoena or court order and/or from responding to any inquiry by any regulatory or investigatory organization, (iii) of a normal competitive nature, or (iv) in direct rebuttal to a disparaging statement made by another. 
e.Remedies.  If Executive violates or threatens to violate any provision of this Section 12, the Corporation or its successors in interest shall be entitled, in addition to any other remedies that they may have, including money damages, to (i) an injunction to be issued by a court of competent jurisdiction restraining Executive from committing or continuing any violation of this Section 12 and, in the event of a material violation, (ii) cessation of the severance payments and benefits provided under Section 10.  In the event that Executive is found to have breached any provision set forth in this Section 12, the time period provided for in that provision shall be deemed tolled (i.e., it will not begin to run) for so long as Executive was in violation of that provision.
f.No restrictive covenants in any grant or award under the Equity Plan can be broader or more limiting than those set forth in this Section 12 and shall be considered limited accordingly.  

13.Release.  Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement beyond Accrued Amounts shall only be payable if Executive delivers to the Corporation an original, signed release of claims of Executive occurring up to the release date, in a form substantially the same as attached hereto as Exhibit A (the “Release”).  The Corporation shall deliver the Release to Executive within ten (10) calendar days of the date Executive’s employment terminates and Executive must deliver to the Corporation and not revoke an executed and enforceable Release no later than thirty (30) calendar days after the date Executive’s employment terminates (the “Release Deadline”).  Payment of the amounts described in Section 10 shall commence no earlier than the date on which Executive delivers to the Corporation and does not revoke an executed and enforceable release as described herein.  Payment of any severance or benefits that are not exempt from Code Section 409A shall be delayed until the Release Deadline, irrespective of when Executive executes the Release; provided, however, that where Executive’s termination of employment and the Release Deadline occur within the same fiscal year, the payment may be made up to thirty (30) calendar days prior to the Release Deadline, and provided further that where Executive’s termination of employment and the Release Deadline occur in two separate fiscal years, payment may not be made before the later of January 1 of the second year or the date that is thirty (30) calendar days prior to the Release Deadline.  As part of the Release, Executive shall affirm that Executive (a) has advised the Corporation, in writing, of any facts that Executive is aware of that constitute or might constitute a violation of any ethical, legal or contractual standards or obligations of the Corporation or any Affiliate, and (b) is not aware of any existing or threatened claims, charges, or lawsuits that Executive has not disclosed to the Corporation.

14.Indemnification.  The Corporation shall maintain a directors’ and officers’ liability insurance policy covering Executive on the same basis as in effect for other senior executive employees, and shall provide indemnity to Executive by a separate, written indemnification agreement.

15.Notices.  Any and all notices, requests, demands, and other communications provided for herein shall be sufficient if in writing and shall be deemed to have been duly given if delivered by hand or if sent by registered or certified mail, return receipt requested.  Notice shall be deemed to have been given when notice is received by the party on whom the notice was served.  Notice to the Corporation shall be addressed to the Corporation at its principal office, with attention to the General Counsel, and notice to Executive shall be addressed to Executive at Executive’s last address as shown on the records of the Corporation.

16.Governing Law.  This Agreement shall be governed by, construed and enforced in accordance with the substantive laws of the State of Indiana, without regard to its internal conflicts of law provisions.

17.Severability.  In the event that any provision of this Agreement shall be determined to be invalid, illegal or otherwise unenforceable or contrary to law or public policy, the enforceability of the other provisions in this Agreement shall not be affected thereby.

18.Assignment; Successors.  Executive recognizes that this is an agreement for personal services and that Executive may not assign this Agreement.  The Agreement shall inure to the benefit of and be binding upon the Corporation’s successors and assigns.

19.Entire Agreement/Amendment.  This Agreement and the Confidentiality, Non-Competition and Confirmatory Assignment Agreement referred to in Section 12 constitute the entire agreement between the Parties with respect to the subject matter hereof and supersedes any and all other agreements, either oral or in writing, among the Parties hereto with respect to the subject matter hereof.  This Agreement may not be amended except by written agreement signed by both Parties.

20.Execution in Counterparts.  This Agreement may be executed in one or more counterparts, and by the different Parties in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement (and all signatures need not appear on any one counterpart), and this Agreement shall become effective when one or more counterparts has been signed by each of the Parties hereto and delivered to each of the other Parties hereto.

21.Waiver.  The failure of either of the Parties to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Agreement or any provision hereof or the right of either of the Parties to enforce each and every provision of this Agreement.  No waiver of any breach of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party against whom or which enforcement of such waiver is sought, and no waiver of any such breach shall be construed or deemed to be a waiver of any other or subsequent breach.

22.Capacity.  Executive and the Corporation hereby represent and warrant to the other that:  (i) Executive or the Corporation has full power, authority and capacity to execute and deliver this Agreement, and to perform Executive’s or the Corporation’s obligations hereunder; (ii) such execution, delivery and performance will not (and with the giving of notice or lapse of time or both would not) result in the breach of any agreements or other obligations to which Executive or the Corporation is a party or Executive or the Corporation is otherwise bound; and (iii) this Agreement is Executive’s or the Corporation’s valid and binding obligation in accordance with its terms.

23.Arbitration.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising out of Executive’s employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Fort Wayne, Indiana, in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators.  In the event that any person or entity other than Executive or the Corporation may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  This Section 23 shall be specifically enforceable.  Notwithstanding the foregoing, this Section 23 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 23.  Punitive and consequential damages shall not be permitted as an award and each party shall bear the fees and expenses of its own counsel and expert witnesses; provided that the arbitrator(s), in its sole discretion, may award attorneys’ fees, expenses, and costs to Executive if he prevails in the arbitration.

24.Consent to Jurisdiction.  To the extent that any court action is permitted consistent with or to enforce this Agreement, the parties hereby consent to the jurisdiction of the court of the State of Indiana, including the federal Courts located therein.  Accordingly, with respect to any such court action, Executive (a) submits to 

the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.

25.Survival.  All Sections of this Agreement survive beyond the Term, except those in Section 1 through 6, and as otherwise specifically stated.

26.Code Section 409A.  This Agreement is intended to comply with Code Section 409A and the interpretative guidance thereunder, including the exceptions for short-term deferrals, separation pay arrangements, reimbursements, and in-kind distributions, and shall be administered accordingly.  This Agreement shall be construed and interpreted with such intent.  Each payment under Section 11 of this Agreement or any Corporation benefit plan is intended to be treated as one of a series of separate payments for purposes of Code Section 409A and Treasury Regulation §1.409A-2(b)(2)(iii).  Any payment under Section 10 that is subject to Code Section 409A and not exempt under the short-term deferral rule, will not be made before the date that is six (6) months after the date of termination or, if earlier, the date of Executive’s death (the “Six-Month Delay Rule”) if Executive is a Specified Employee (as defined below) as of his termination of employment.  Payments to which Executive otherwise would be entitled during the first six (6) months following his termination of employment (the “Six-Month Delay”) will be accumulated and paid on the first day of the seventh month following his termination of employment.  Notwithstanding the Six-Month Delay Rule, to the maximum extent permitted under Code Section 409A and Treasury Regulation §1.409A-1(b)(9)(iii) (or any similar or successor provisions), during the Six-Month Delay and as soon as practicable after satisfaction of Section 13 of this Agreement, the Corporation will pay Executive an amount equal to the lesser of (A) the total severance scheduled to be provided under Section 10 above, or (B) two times the lesser of (1) the maximum amount that may be taken into account under a qualified plan pursuant to Code Section 401(a)(17) for the year in which Executive’s termination of employment occurs, and (2) the sum of Executive’s annualized compensation based upon the annual rate of pay for services provided to the Corporation for the taxable year of Executive preceding the taxable year of Executive in which his termination of employment occurs; provided that amounts paid under this sentence will count toward, and will not be in addition to, the total payment amount required to be made to Executive by the Corporation under Section 10 above.  For purposes of this Agreement, the term “Specified Employee” has the meaning given to that term in Code Section 409A and Treasury Regulation §1.409A-1(i) (or other similar or successor provisions).  The Corporation’s “specified employee identification date” (as described in Treasury Regulation §1.409A-1(i)(3) or any similar or successor provisions) will be December 31 of each year, and the Corporation’s “specified employee effective date” (as described in Treasury Regulation §1.409A-1(i)(4) or any similar or successor provisions) will be April 1 of each succeeding year.

IN WITNESS WHEREOF, this Employment Agreement has been duly executed:

									
	VERA BRADLEY, INC. 		EXECUTIVE
	By: /s/ Robert J Hall		/s/ Robert Wallstrom
	Its: Chairman of the Board of Directors		Robert Wallstrom

EXHIBIT A

RELEASE AND WAIVER AGREEMENT

This Release and Waiver Agreement (“Agreement”) is entered into this ___ day of ________________, 20__ by and between Vera Bradley, Inc., an Indiana corporation (the “Corporation”) and Robert Wallstrom (hereinafter “Executive”).

WHEREAS, Executive’s employment with the Corporation is terminated effective __________________, 20__ (“Termination Date”) and the Corporation and Executive have voluntarily agreed to the terms of this Agreement in exchange for severance benefits under the Employment Agreement between the parties effective November 11, 2013, as it may be amended (“Employment Agreement”), to which Executive otherwise would not be entitled;

WHEREAS, accordingly the Corporation has determined that Executive will receive severance pay if Executive executes and complies with the terms of this Agreement; and

WHEREAS, Executive acknowledges that the consideration received by Executive under the terms of this Agreement and the Employment Agreement for the release and waiver contained herein is in addition to any consideration the Corporation is otherwise required to provide Executive.

NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements set forth below, the parties hereby acknowledge and agree as follows:

1.Severance.  In consideration for Executive’s agreements contained herein and Executive’s compliance with Executive’s continuing obligations under the Employment Agreement, including his obligations under Section 12, the Corporation will pay Executive the applicable severance provided in Section 10 [Note—actual agreement to specify the applicable subsections of Section 10] of the Employment Agreement.  Except as specifically provided in this Agreement, the Employment Agreement and any applicable plans, programs or arrangements of the Corporation including, without limitation, the Corporation’s Certificate of Incorporation or By-laws, as either may be amended from time to time, the Vera Bradley, Inc. 2010 Equity and Incentive Plan, as amended or any successor thereto (the “Equity Plan”) and any agreements thereunder, and the indemnification agreement dated effective as of November 11, 2013 between the Corporation and Executive (the “Indemnification Agreement”), Executive shall not be entitled to any other payment, benefits or other consideration from the Corporation.

2.Waiver and Release.  In consideration for the payments and benefits to be provided to Executive as set forth herein and the Employment Agreement, Executive, himself and for any person or entity that may claim by him or through him, including Executive’s heirs, executors, administrators, successors and assigns, hereby knowingly, irrevocably, unconditionally and voluntarily waives, releases and forever discharges the Corporation, its Affiliates, and each of its individual or collective past, present and future parent, subsidiaries, divisions and affiliates, its and their joint ventures and its and their respective directors, officers, associates, employees, representatives, partners, consultants insurers, attorneys, administrators, accountants, executors, heirs, successors, and agents, and each of its and their respective predecessors, successors and assigns and all persons acting by, through or in concert with any of them (hereinafter collectively referred to as “Releasees”), from any and all claims, causes of action or liabilities relating to Executive’s employment with the Corporation or the termination thereof, known or unknown, suspected or unsuspected, arising from any omissions, acts or facts that have occurred up until and including the date Executive executes this Agreement which have been or could be asserted against the Releasees, including but not limited to:
a.causes of action or liabilities relating to Executive’s employment with the Corporation or the termination thereof arising under Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (the “ADEA”), the Employee Retirement Income Security Act, the Worker Adjustment and Retraining Notification Act, the American with Disabilities Act, the Equal Pay Act, the Family and Medical Leave Act, and the Delaware General Corporations Act as such Acts have been amended, and/or any other foreign, federal, state, municipal, or local employment discrimination statutes (including, but not limited to, claims based on age, sex, attainment of 

benefit plan rights, race, religion, national origin, marital status, sexual orientation, ancestry, harassment, parental status, handicap, disability, retaliation, and veteran status); and/or
b.causes of action or liabilities related to Executive’s employment with the Corporation or the termination thereof arising under any other federal, state, municipal, or local statute, law, ordinance or regulation; and/or
c.causes of action or liabilities relating to rights to or claims for pension, profit-sharing, wages, bonuses or other compensation or benefits; and/or
d.any other cause of action relating to Executive’s employment with the Corporation or the termination thereof including, but not limited to, actions seeking severance pay, except as provided herein, actions based upon breach of contract, wrongful termination, defamation, intentional infliction of emotional distress, tort, personal injury, invasion of privacy, defamation, discrimination, retaliation, promissory estoppel, fraud, violation of public policy, negligence and/or any other common law, or other cause of action whatsoever arising out of or relating to employment with and/or separation from employment with the Corporation and/or any of the other Releasees.

Nothing herein shall limit or impede Executive’s right to file or pursue an administrative charge with, or participate in, any investigation before the Equal Employment Opportunity Commission, or any other local, state or federal agency, and/or any causes of action which by law Executive may not legally waive.  Executive agrees, however, that if Executive or anyone acting on Executive’s behalf, brings any action concerning or related to any cause of action or liability released in this Agreement, Executive waives any right to, and will not accept, any payments, monies, damages, or other relief, awarded in connection therewith.

Nothing herein shall constitute a waiver or release of any of Executive’s rights under this Agreement, any other applicable plans, programs or arrangements of the Corporation including, without limitation, the Corporation’s Certificate of Incorporation or By-laws, as either may be amended from time to time, the Equity Plan and any agreements thereunder, or under the Indemnification Agreement.

Executive expressly waives the benefits of any statute or rule of law that, if applied to this Agreement, would otherwise exclude from its binding effect any claims against the Corporation not now known by Executive to exist.

3.Cause of Action.  As used in this Agreement, the phrase “cause of action” includes all claims, covenants, warranties, promises, agreements, undertakings, actions, suits, counterclaims, causes of action, complaints, charges, obligations, duties, demands, debts, accounts, judgments, costs, expenses, losses, damages and liabilities, of whatsoever kind or nature, in law, equity or otherwise.

4.No Assignment of Causes of Action.  Executive represents and warrants that he has not filed or caused to be filed against the Releasees any claims, actions or lawsuits.  Executive further represents and warrants that he has not sold, assigned, transferred, conveyed or otherwise disposed of to any third party, by operation of law or otherwise, any claim of any nature whatsoever relating to any matter covered by this Agreement.

5.Representations of the Corporation.  The Corporation represents that it is not presently aware of any cause of action that it or any of the other Releasees have against Executive as of the date hereof.  The Corporation acknowledges that the release granted by Executive in Section 2 above will be null and void in the event the Corporation subsequently seeks to treat Executive’s termination of employment as “for Cause” under the last sentence of Section 6(b) of the Employment Agreement.

6.Representations of Executive.  Executive represents that Executive has been given an adequate opportunity to advise the Corporation’s human resources, legal, or other relevant management division, and has so advised such division in writing, of any facts that Executive is aware of that constitute or might constitute a violation of any ethical, legal or contractual standards or obligations of the Corporation or any Affiliate.  Executive further represents that Executive is not aware of any existing or threatened claims, charges, or lawsuits that he/she has not disclosed to the Corporation.

7.Notice to Seek Counsel, Consideration Period, Revocation Period.  Executive acknowledges that Executive has been advised in writing hereby to consult with an attorney before signing this document and that Executive has had at least twenty-one (21) calendar days after receipt of this document to consider whether to accept or reject this Agreement.  Executive understands that Executive may sign this Agreement prior to the end of such twenty-one (21) calendar day period, but is not required to do so.  Under ADEA, Executive has seven (7) calendar days after Executive signs this Agreement to revoke it.  Such revocation must be in writing and delivered either by hand or mailed and postmarked within the seven (7) calendar day period.  If sent by mail, it is requested that it be sent by certified mail, return receipt requested to the Corporation’s General Counsel Office at 5620 Industrial Road, Fort Wayne, Indiana 46825.  If Executive revokes this Agreement as provided herein, it shall be null and void and Executive shall not be entitled to receive the payments as described in the first sentence of Section 1 herein.  If Executive does not revoke this Agreement within seven (7) calendar days of signing it, this Agreement shall become enforceable and effective on the seventh (7th) day after Executive signs this Agreement (“Effective Date”).

8.Governing Law; Disputes.  Except as provided in Section 23 of the Employment Agreement, or as provided below, jurisdiction and venue over disputes with regard to this Agreement shall be exclusively in the courts of the State of Indiana or the United States District Court for the Northern District of Indiana.  This Agreement shall be construed and interpreted in accordance with and governed by the laws of the State of Indiana, without regard to the choice of laws provisions of such laws.  The parties agree that any action brought by a party to enforce or interpret this Agreement shall be brought in a State or Federal Court sitting in Indiana; except that an action by the Corporation to enforce its rights under Section 12 of the Employment Agreement may also be brought in Executive’s state of residency or any other forum in which Executive is subject to personal jurisdiction.  In addition, Executive and the Corporation specifically consent to personal jurisdiction in the State of Indiana for purposes of this Agreement.

9.Amendment; Waiver.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Executive and the Corporation.  This Agreement shall be enforced in accordance with its terms and shall not be construed against either party.

10.Severability.  The parties agree that if any provision, section, subsection or other portion of this Agreement shall be determined by any court of competent jurisdiction to be invalid, illegal or unenforceable in whole or in part and such determination shall become final, such provision or portion shall be deemed to be severed or limited, but only to the extent required to render the remaining provisions and portion of this Agreement enforceable.  This Agreement as thus amended will remain in full force and effect and will be binding on the parties and will be enforced so as to give effect to the intention of the parties insofar as that is possible.  In addition, the parties hereby expressly empower a court of competent jurisdiction to modify any term or provision of this Agreement to the extent necessary to comply with existing law and to enforce this Agreement as modified.

11.Enforcement.  This Agreement may be pleaded as a full and complete defense and may be used as the basis for an injunction against any action at law or proceeding at equity, or any private or public judicial or non-judicial proceeding instituted, prosecuted, maintained or continued in breach hereof.

12.No Enlargement of Employee Rights.  Executive acknowledges that, except as expressly provided in this Agreement, any employment or contractual relationship between him and the Corporation is terminated, and that he has no future employment or contractual relationship with the Corporation other than the contractual relationship created by this Agreement, the Employment Agreement, any other applicable plans, programs or arrangements of the Corporation including, without limitation, the Corporation’s Certificate of Incorporation or By-laws, as either may be amended from time to time, the Equity Plan and any agreements thereunder, and the Indemnification Agreement.  The Corporation has no obligation, contractual or otherwise, to employ or reemploy, hire or rehire, or recall or reinstate Executive in the future with the Corporation.

13.No Representations.  Executive represents that he has carefully read and understands the scope and effect of the provisions of this Agreement.  Executive has not relied upon any representations or statements made by the Corporation that are not specifically set forth in this Agreement.

14.Counterparts.  This Agreement may be executed in two counterparts, each of which shall be deemed to be an original but both of which together will constitute one and the same instrument.

15.Withholding.  The Corporation shall withhold from any payments otherwise due or payable hereunder any amounts required to be withheld in order to comply with any federal, state, local or other income or other tax laws requiring withholding with respect to compensation and benefits provided to Executive pursuant to this Agreement.

16.Successors and Assigns.  This Agreement binds and inures to the benefit of Executive’s heirs, administrators, representatives, executors, successors and assigns, and the Corporation’s successors and assigns.

17.Entire Agreement – Termination of Prior Agreements.  This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes any previous oral and written agreements or representations relating to the subject matters herein, except for the Employment Agreement, any other applicable plans, programs or arrangements of the Corporation including, without limitation, the Corporation’s Certificate of Incorporation or By-laws, as either may be amended from time to time, the Equity Plan and any agreements thereunder, and the Indemnification Agreement.

The undersigned hereby acknowledge and agree that Executive has carefully read and fully understands all the provisions of this Agreement, has had an opportunity to seek counsel regarding it and have voluntarily entered into this Agreement by signing below as of the date(s) set forth above.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date indicated above.

									
	VERA BRADLEY, INC.		EXECUTIVE
	By:		
	Its:		Robert Wallstrom

CHI:2778773.11
CHI:2778773.15Exhibit
10.1

 

[*] Certain information in this document has been omitted from this
exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

AMENDED
AND RESTATED SECURITIES PURCHASE AGREEMENT

 

This
Amended and Restated Securities Purchase Agreement (this “Agreement”) is dated as of June 3, 2022 by and among MusclePharm
Corporation, a Nevada corporation (the “Company”), and each purchaser identified on the signature pages hereto (each,
including its successors and assigns, a “Subsequent Purchaser” and collectively, the “Subsequent Purchasers”)
and amends and restates that certain Securities Purchase Agreement, dated as of October 13, 2021 (the “Prior Agreement”),
by and among the Company and each purchaser identified on the signature pages thereto (the “Initial Purchasers”, and
together with the Subsequent Purchasers, individually, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS,
the Company and each Initial Purchaser executed and delivered the Prior Agreement on October 13, 2021 in reliance upon the exemption
from securities registration afforded by Section 4(a)(2) of the Securities Act (as defined below), and Rule 506 of Regulation D promulgated
thereunder.

 

WHEREAS,
the Company authorized the issuance of original issue discount senior secured notes of the Company, in substantially the form attached
hereto as Exhibit A (as amended pursuant to those certain Waiver and Amendment Agreements (as defined below), the “Initial
Notes”). As used herein, “Waiver and Amendment Agreements” means those certain Waiver and Amendment Agreements,
each by and between the Company and each of the Initial Purchasers.

 

WHEREAS,
each Initial Purchaser purchased, and the Company sold at the Initial Closing (as defined below), upon the terms and conditions stated
in the Prior Agreement, (i) that aggregate principal amount of Initial Notes set forth opposite such Initial Purchaser’s name in
column (3) on the Initial Schedule of Purchasers attached hereto (which aggregate principal amount of Initial Notes for all Initial Purchasers
was $8,197,674.42 (including an original issuance discount), which principal amount was increased to an aggregate principal of Initial
Notes for all Initial Purchasers to $9,759,135.00 contemporaneously with the execution of this Agreement – such increased amount
for each Initial Purchaser is set forth opposite such Initial Purchaser’s name in column (3A)) on the Initial Schedule of Purchasers
attached hereto and (ii) Warrants, in substantially the form attached hereto as Exhibit B (the “Initial Warrants”),
representing the right to acquire that number of shares of Common Stock set forth opposite such Initial Purchaser’s name in column
(4) on the Initial Schedule of Purchasers attached hereto (the shares of Common Stock issuable pursuant to the terms of the Initial Warrants,
the “Initial Warrant Shares”).

 

WHEREAS,
pursuant to Section 5.5 of the Prior Agreement, any term of the Prior Agreement may be amended only with the written consent of the Required
Holders (as defined therein) and any amendment effected in accordance with Section 5.5 of the Prior Agreement is binding upon each Initial
Purchaser and the Company.

 

    	1

    	 

    

 

WHEREAS,
the Company and the Required Holders wish to amend and restate the Prior Agreement to allow, subject to the terms and conditions set
forth in this Agreement, any Person (as defined below) that, upon approval of the Company and the Required Holders (as defined below),
becomes a Subsequent Purchaser hereunder by duly executing and delivering to the Company a Joinder Agreement (each, a “Joinder
Agreement”) in the form attached hereto as Exhibit I, at the Subsequent Closing (as defined below) to purchase, and
require the Company to sell (i) up to $3,750,000 aggregate principal amount of Notes, in the form attached hereto as Exhibit J
(the “Subsequent Notes”, and together with the Initial Notes, the “Notes”) and (ii) Warrants, in
substantially the form attached hereto as Exhibit K (the “Subsequent Warrants”, and together with the Initial
Warrants, the “Warrants”), representing the right to acquire such number of shares of Common Stock equal to 150% of
the aggregate principal amount of Subsequent Notes divided by $0.21 (the shares of Common Stock issuable pursuant to the terms of the
Subsequent Warrants, collectively, the “Subsequent Warrant Shares”, and together with the Initial Warrant Shares,
the “Warrant Shares”).

 

WHEREAS,
the Subsequent Notes will rank junior to Prestige Capital Corporation (“Prestige”) as it relates to receivables factored
with Prestige, pari passu to the Initial Notes and senior to all other outstanding and future indebtedness of the Company and
its Subsidiaries (as defined below), will be guaranteed by all Subsidiaries of the Company, as evidenced by the Subsidiary Guarantee
(as defined herein), and will be secured by a first priority perfected security interest (subject to Permitted Liens under and as defined
in the Notes) in all of the current and future Collateral (as defined in the Security Agreement (as defined herein)) of the Company,
except for “Excluded Property” (as such term is defined in the Security Agreement), currently formed or formed in the future,
as evidenced by that certain Security Agreement.

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act (as defined below),
and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

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

 

ARTICLE
I. DEFINITIONS

 

1.1
Definitions. 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 Subsequent Notes, and (b) the following terms have the meanings set forth in this
Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

    	2

    	 

    

 

“Board
of Directors” means the board of directors of the Company.

 

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

 

“CARES
Act” means (x), with respect to any provision governing or related to the PPP Loans, Title I of the Coronavirus Aid, Relief
and Economic Security Act, as amended (including any successor thereto), and (y) with respect to all obligations to pay any taxes or
other amounts to any governmental or regulatory authority that were deferred, Title II of the Coronavirus Aid, Relief and Economic Security
Act, as amended (including any successor thereto), and, in each case, all requests, rules, guidelines, requirements and directives thereunder
or issued in connection therewith or in implementation thereof, regardless of the date enacted, adopted, issued or implemented.

 

“Closing”
shall have the meaning ascribed to such term in Section 2.1(b).

 

“Closing
Date” shall have the meaning ascribed to such term in Section 2.1(d).

 

“Collateral
Agent” shall have the meaning ascribed to such term in Section 4.18(a).

 

“Collateral
Agent Indemnitees” shall have the meaning ascribed to such term in Section 4.18(a).

 

“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.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, 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.

 

    	3

    	 

    

 

“Company
Counsel” means Sheppard, Mullin, Richter & Hampton LLP, with offices located at 30 Rockefeller Plaza, New York, NY 10112.

 

“Disclosure
Schedules” means those disclosure schedules being delivered by the Company to the Purchasers concurrently with the execution
of this Agreement.

 

“Disclosure
Time” means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time) and
before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following the
date hereof, and (ii) if this Agreement is signed between midnight (New York City time) and 9:00 a.m. (New York City time) on any Trading
Day, no later than 9:01 a.m. (New York City time) on the date hereof.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors or independent contractors
of the Company for services rendered to the Company pursuant to the approval of 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 established for such purpose, (b) securities upon the
exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date of this Agreement, provided that the terms of 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 (other than in connection with stock splits or combinations) or to extend the term of such securities,
and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of
the Company, provided that such securities are issued as “restricted securities” (as defined in Rule 144), and provided that
any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating
company (including a vendor, service provider or other commercial counterparty) or an owner of an asset in a business synergistic with
the business of the Company, or a Person (which may include an individual) acting as a product endorser, brand ambassador, influencer
or other capacity intended to build brand awareness, product interest or generate sales and that, in each case under this clause (c),
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 (for the avoidance of doubt, the foregoing shall not limit the issuance of securities to a placement agent or investor relations
firm acting in such capacity or a substantially similar capacity).

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

    	4

    	 

    

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(ll).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(ll).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(bb).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Lead
Investor” shall have the meaning ascribed to such term in Section 2.1(e)(1).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Lock-Up
Agreements” means the Lock-Up Agreements, dated as of the Initial Closing Date, by and among the Company and each of the directors
and officers of the Company, in the form of Exhibit C attached hereto.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Notes”
has the meaning set forth in the preamble.

 

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.12(a).

 

“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.

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(ll).

 

“Placement
Agent” means ROTH Capital Partners, LLC.

 

    	5

    	 

    

 

“PPP
Loan Agreement” means that certain Note, dated April 27, 2020 by the Company in favor of Harvest Small Business Finance, LLC
(the “PPP Lender”).

 

“PPP
Loans” means the Indebtedness incurred under the PPP Loan Agreement in the aggregate principal amount equal to $964,910.

 

“Principal
Amount” means, as to each Purchaser, (i) with respect to the Initial Notes, the amount set forth opposite such Purchaser’s
name in column (3) on the Initial Schedule of Purchasers attached hereto, which shall equal 116.28% of such Purchaser’s Initial
Subscription Amount, which amount shall be increased to the amount set forth opposite such Purchaser’s name in column (3A) on the
Initial Schedule of Purchasers attached hereto contemporaneously with the execution of this Agreement, which shall equal 138.43% of such
Purchaser’s Initial Subscription Amount, and (ii) with respect to the Subsequent Notes, the amount set forth opposite such Purchaser’s
name in column (3) on the Subsequent Schedule of Purchasers attached hereto, which shall equal 125.00% of such Purchaser’s Subsequent
Subscription Amount.

 

“Pro
Rata Portion” shall have the meaning ascribed to such term in Section 4.12(e).

 

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

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Offering” means a firm commitment underwritten public offering of Common Stock and/or Common Stock Equivalents in connection
with the listing or quotation of the Common Stock on a “national securities exchange” as defined in Rule 600(b) of Regulation
NMS.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Required
Holders” means holders of at least a majority of the aggregate Principal Amount of Notes issued and shall include the Lead
Investor so long as the Lead Investor or any of its affiliates holds any Securities issued hereunder.

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then potentially issuable in the future
pursuant to the Transaction Documents, including any Warrant Shares issuable upon exercise in full of all Warrants assuming any adjustment
as of such date to the Exercise Price (which shall be equal to no less than the par value of the Common Stock), and a corresponding adjustment
to the number of Warrant Shares, in each case, in accordance with the terms of the Warrants, but ignoring any exercise limits set forth
therein.

 

    	6

    	 

    

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Notes, the Warrants, and the Warrant Shares.

 

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

 

“Security
Documents” means (i) the Subsidiary Guarantee, (ii) the pledge and security agreement, in the form attached hereto as Exhibit
D (as amended or modified from time to time in accordance with its terms, the “Security Agreement”), (iii) the
intercreditor agreement with Prestige Capital Corporation, in the form attached hereto as Exhibit E (as amended or modified from
time to time in accordance with its terms, the “Prestige Intercreditor Agreement”), (iv) the intercreditor agreement
with Ryan Drexler, in the form attached hereto as Exhibit F (as amended or modified from time to time in accordance with its terms,
the “CEO Intercreditor Agreement”), (v) any account control agreement, (vi) a perfection certificate in the form attached
hereto as Exhibit G and (vii) all financing statements, fixture filings, security agreements, pledges, assignments, mortgages,
landlord waivers, collateral access agreements, deeds of trust, opinions of counsel, and all other documents requested by the Collateral
Agent to create, perfect, and continue perfected or to better perfect the Collateral Agent’s security interest in and liens on
all of the assets of the Company and each of its Subsidiaries (whether now owned or hereafter arising or acquired, tangible or intangible,
real or personal), and in order to fully consummate all of the transactions contemplated hereby and under the other Transaction Documents.

 

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

 

“Subscription
Amount” shall have the meaning ascribed to such term in Section 2.1(e)(ii).

 

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.12(a).

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.12(b).

 

    	7

    	 

    

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof.

 

“Subsidiary
Guarantee” means the Subsidiary Guarantee, dated October 13, 2021, by each Subsidiary in favor of the Purchasers, in the form
of Exhibit H attached hereto, as amended or modified from time to time in accordance with its terms.

 

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

 

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

 

“Transaction
Documents” means this Agreement, the Notes, the Warrants, Lock-Up Agreements, Security Documents, any Joinder Agreements and
all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

“Transfer
Agent” means EQ Shareowner Services, the current transfer agent of the Company, with a mailing address of 1110 Center Point
Curve, Suite 101, Mendota Heights, MN 55120, and any successor transfer agent of the Company.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13.

 

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

 

    	8

    	 

    

 

“Warrants”
has the meaning set forth in the preamble.

 

“Warrant
Shares” has the meaning set forth in the preamble.

 

ARTICLE
II. PURCHASE AND SALE

 

2.1
Closings.

 

(a)
Initial Closing. Upon the satisfaction (or waiver) of the conditions set forth in Sections 2.2(a), 2.3(a) and 2.3(b) below, the
Company issued and sold to each Initial Purchaser, and each Initial Purchaser severally, but not jointly, agreed to purchase from the
Company on the Initial Closing Date (as defined below), (x) a principal amount of Initial Notes as is set forth opposite such Initial
Purchaser’s name in column (3) on the Initial Schedule of Purchasers attached hereto and (y) Initial Warrants to acquire up to
that number of Initial Warrant Shares as is set forth opposite such Initial Purchaser’s name in column (4) on the Initial Schedule
of Purchasers attached hereto (the “Initial Closing”).

 

(b)
Subsequent Closing. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 2.2(b), 2.3(c) and 2.3(d)
below, the Company shall issue and sell to each Subsequent Purchaser, and each Subsequent Purchaser severally, but not jointly, agrees
to purchase from the Company on the Subsequent Closing Date (as defined below), (x) a principal amount of Subsequent Notes as set forth
on the signature page of such Subsequent Purchaser attached to such Subsequent Purchaser’s Joinder Agreement and (y) Subsequent
Warrants to acquire such number of shares of Common Stock as set forth on the signature page of such Subsequent Purchaser attached to
such Subsequent Purchaser’s Joinder Agreement (the “Subsequent Closing” and together with the Initial Closing,
each a “Closing”).

 

(c)
Initial Closing Date. The date of the Initial Closing (the “Initial Closing Date”) was October 13, 2021.

 

(d)
Subsequent Closing Date.

 

(i)
The date and time of the Subsequent Closing (the “Subsequent Closing Date,” and together with the Initial Closing
Date, each a “Closing Date” and collectively, the “Closing Dates”) shall be 10:00 a.m., New York
City time, on the date hereof, subject to satisfaction (or waiver) of the conditions to the Subsequent Closing set forth in Sections
2.2(b), 2.3(c) and 2.3(d) below and the conditions contained in this Section 2.1(d), at the offices of the Company or such other location
determined by the parties. Any Initial Purchaser or any Person approved by the Company and the Required Holders may become a Subsequent
Purchaser and may purchase Subsequent Notes and Subsequent Warrants by duly executing and delivering a Joinder Agreement to the Company.
The number of Subsequent Notes to be purchased by the Subsequent Purchaser at the Subsequent Closing shall not exceed $3,750,000 aggregate
principal amount of Subsequent Notes.

 

    	9

    	 

    

 

(e)
Form of Payment.

 

(i)
Initial Closing. On the Initial Closing Date, (i) each Initial Purchaser paid such amount as set forth opposite such Purchaser’s
name in column (5) on the Initial Schedule of Purchasers attached hereto (the “Initial Subscription Amount”) to the
Company for the Initial Notes and Initial Warrants issued and sold to such Initial Purchaser at the Initial Closing (less, in the case
of Empery Tax Efficient, LP (the “Lead Investor”), the amounts withheld pursuant to Section 5.2), by wire transfer
of immediately available funds in accordance with the Company’s written wire instructions or a certified check, (ii) the Company
delivered to each Initial Purchaser the Initial Notes and Initial Warrants which such Initial Purchaser purchased hereunder, in each
case duly executed on behalf of the Company and registered in the name of such Initial Purchaser or its designee and (iii) the Company
and each Purchaser delivered the other items set forth in Section 2.2 at the Initial Closing.

 

(ii)
Subsequent Closing. On the Subsequent Closing Date, (i) each Subsequent Purchaser shall pay such amount as set forth opposite
such Purchaser’s name in column (5) on the Subsequent Schedule of Purchasers attached hereto (the “Subsequent Subscription
Amount” and together with the Initial Subscription Amount, the “Subscription Amount”) to the Company for
the Subsequent Notes and the Subsequent Warrants to be issued and sold to such Subsequent Purchaser at the Subsequent Closing (less,
in the case of the Lead Investor, the amounts withheld pursuant to Section 5.2) by wire transfer of immediately available funds in accordance
with the Company’s written wire instructions or a certified check, (ii) the Company shall deliver to each Subsequent Purchaser
the Subsequent Notes which such Subsequent Purchaser is then purchasing hereunder along with the Subsequent Warrants which such Subsequent
Purchaser is purchasing hereunder, in each case duly executed on behalf of the Company and registered in the name of such Subsequent
Purchaser or its designee and (iii) the Company and each Subsequent Purchaser shall deliver the other items set forth in Section 2.2(b)
at the Subsequent Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2(b), 2.3(c) and 2.3(d), the Subsequent
Closing shall take place remotely by electronic transfer of the Subsequent Closing documentation.

 

2.2
Deliveries.

 

(a)
Initial Closing Deliveries.

 

(i)
On or prior to the Initial Closing Date, the Company delivered or caused to be delivered to each Initial Purchaser the following:

 

(A)
the Prior Agreement duly executed by the Company;

 

(B)
a legal opinion of Company Counsel and of Nevada counsel of the Company, each in form and substance reasonably acceptable to the Initial
Purchasers;

 

(C)
an Initial Note with a principal amount equal to such Initial Purchaser’s Principal Amount, registered in the name of such Initial
Purchaser;

 

    	10

    	 

    

 

(D)
an Initial Warrant registered in the name of such Initial Purchaser to purchase up to a number of shares of Common Stock equal to 150%
of the initial Principal Amount of such Initial Purchaser’s Initial Note divided by $0.7085, with an exercise price equal to $0.7794,
subject to adjustment therein;

 

(E)
the Company’s wire instructions, on Company letterhead and duly executed by the Chief Executive Officer or Chief Financial Officer;

 

(F)
the Collateral Agent received the Security Documents, duly executed by the parties thereto;

 

(G)
the Collateral Agent received all documents, instruments, filings and recordations and searches reasonably necessary in connection with
the perfection of a valid security interest in the Collateral of Company and each of its Subsidiaries and, in the case of the filings
with the United States Patent and Trademark Office and the United States Copyright Office, protection of such security interests was
executed and delivered or made, or, in the case of UCC filings, was in proper form for filing, registration or recordation, as applicable;

 

(H)
the Collateral Agent received the results of searches (including comparable searches in any jurisdiction outside the United States) for
any effective UCC financing statements, tax liens or judgment liens filed against the Company or any of its Subsidiaries or any property
of any of the foregoing, which results did not show any such liens;

 

(I)
the Collateral Agent received the Security Agreement, duly executed by the Company and each of its Subsidiaries, together with (A) the
original stock certificates representing all of the equity interests and all promissory notes required to be pledged thereunder, accompanied
by undated stock powers and allonges executed in blank and other proper instruments of transfer and (B) any copyright, patent and trademark
agreements required by the terms of the Security Agreement; and

 

(J)
the Company delivered to such Initial Purchaser such other documents relating to the transactions contemplated by the Prior Agreement
as such Initial Purchaser or its counsel reasonably requested.

 

(ii)
On or prior to the Initial Closing Date, each Initial Purchaser delivered or caused to be delivered to the Company the following:

 

(A)
the Prior Agreement duly executed by such Initial Purchaser; and

 

(B)
such Initial Purchaser’s Initial Subscription Amount by wire transfer to the account specified in writing by the Company.

 

    	11

    	 

    

 

(b)
Subsequent Closing Deliveries.

 

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

 

(A)
this Agreement duly executed by the Company;

 

(B)
a legal opinion of Company Counsel and of Nevada counsel of the Company, each in form and substance reasonably acceptable to the Subsequent
Purchasers;

 

(C)
a Subsequent Note with a principal amount equal to such Subsequent Purchaser’s Principal Amount, registered in the name of such
Subsequent Purchaser;

 

(D)
a Subsequent Warrant registered in the name of such Subsequent Purchaser to purchase up to a number of shares of Common Stock equal to
150% of the Principal Amount of such Subsequent Purchaser’s Subsequent Note divided by $0.21, with an exercise price equal to $0.231,
subject to adjustment therein;

 

(E)
the Company shall have provided each Subsequent Purchaser with the Company’s wire instructions, on Company letterhead and duly
executed by the Chief Executive Officer or Chief Financial Officer;

 

(F)
the Company shall have delivered to such Subsequent Purchaser such other documents relating to the transactions contemplated by this
Agreement as such Subsequent Purchaser or its counsel may reasonably request;

 

(G)
the Collateral Agent shall have received the results of searches (including comparable searches in any jurisdiction outside the United
States) for any effective UCC financing statements, tax liens or judgment liens filed against the Company or its Subsidiaries or any
property of any of the foregoing, which results shall not show any such liens (other than those contemplated by the Security Documents);

 

(H)
the Company shall have delivered to such Subsequent Purchaser each of the Waiver and Amendment Agreements, each duly executed and delivered
by the Company and the applicable Initial Purchaser;

 

(J)
The Company shall have delivered to such Subsequent Purchaser a Letter Agreement, in form and substance reasonably acceptable to the
Subsequent Purchasers, duly executed and delivered by and between the Company and Ryan Drexler, pursuant to which the Company and
Ryan Drexler shall have agreed (i) while any Notes remain outstanding, to reduce Mr. Drexler’s annual cash compensation,
including base salary and bonuses, to $250,000 and (ii) to extend the maturity date of (A) that certain Secured Revolving Promissory
Note, dated October 15, 2020 by and between the Company and Ryan Drexler, in the maximum principal amount of $3,000,000, as amended
and restated by that certain Convertible Secured Promissory Note dated as of August 13, 2021 in the principal amount of $2.5 million
and (B) that certain convertible secured promissory note dated November 29, 2020 in the original principal amount of $2.9 million
issued to Ryan Drexler, which amended and restated a convertible secured promissory note dated as of August 21, 2020 to a date not
sooner than 91 days following the Maturity Date (as defined in the Subsequent Notes); and

 

    	12

    	 

    

 

(K)
The Company shall have duly executed and delivered to such Subsequent Purchaser the Joinder Agreement of such Subsequent Purchaser.

 

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

 

(A)
a Joinder Agreement duly executed by such Subsequent Purchaser; and

 

(B)
such Subsequent Purchaser’s Subsequent Subscription Amount by wire transfer to the account specified in writing by the Company.

 

2.3
Closing Conditions.

 

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

 

(i)
the accuracy in all material respects (or, to the extent representations or warranties were qualified by materiality, in all respects)
on the Initial Closing Date of the representations and warranties of the Initial Purchasers contained herein (unless as of a specific
date therein in which case they were accurate in all material respects (or, to the extent representations or warranties were qualified
by materiality, in all respects) as of such date);

 

(ii)
all obligations, covenants and agreements of each Initial Purchaser required to be performed at or prior to the Initial Closing Date
were performed; and

 

(iii)
the delivery by each Initial Purchaser of the items set forth in Section 2.2(a)(ii) of this Agreement.

 

(b)
The respective obligations of the Initial Purchasers hereunder in connection with the Initial Closing were subject to the following conditions
being met:

 

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

 

(ii)
all obligations, covenants and agreements of the Company required to be performed at or prior to the Initial Closing Date were performed;

 

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

 

(iv)
there were no Material Adverse Effect with respect to the Company since the date of the Prior Agreement; and

 

(v)
from the date of the Prior Agreement to the Initial Closing Date, trading in the Common Stock had not been suspended by the Commission
or the Company’s principal Trading Market and, at any time prior to the Initial Closing Date, trading in securities generally as
reported by Bloomberg L.P. had not been suspended or limited, or minimum prices had not been established on securities whose trades were
reported by such service, or on any Trading Market, nor was a banking moratorium declared either by the United States or New York State
authorities nor had any material outbreak or escalation of hostilities or other national or international calamity of such magnitude
in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Initial
Purchaser, made it impracticable or inadvisable to purchase the Initial Notes and Initial Warrants at the Initial Closing occurred.

 

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

 

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

 

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

 

(iii)
the delivery by each Subsequent Purchaser of the items set forth in Section 2.2(b)(ii) of this Agreement.

 

(d)
The respective obligations of the Subsequent Purchasers hereunder in connection with the Subsequent Closing are subject to the following
conditions being met:

 

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

 

    	14

    	 

    

 

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

 

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

 

(iv)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof;

 

(v)
from the date hereof to the Subsequent Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the
Company’s principal Trading Market and, at any time prior to the Subsequent Closing Date, trading in securities generally as reported
by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades
are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable
judgment of such Subsequent Purchaser, makes it impracticable or inadvisable to purchase the Subsequent Notes and Subsequent Warrants
at the Subsequent Closing; and

 

(vi)
each Lock-Up Agreement shall remain in full force and effect.

 

ARTICLE
III. REPRESENTATIONS AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall
be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the
corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties as of the date
hereof and as of each applicable Closing Date to each Purchaser:

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and
all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and
free of preemptive and similar rights to subscribe for or purchase securities.

 

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(b)
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any
Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would
not have or reasonably be expected to result in: (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.

 

 (c)  
Authorization; Enforcement.

 

(i)
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, 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 or (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(ii)
With respect to each Security Document to which any Subsidiary is a party, such Subsidiary has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by such agreement and otherwise to carry out its obligations thereunder.
The execution and delivery of such Security Document and the consummation by the Company of the transactions contemplated thereby have
been duly authorized by all necessary action on the part of the Company, and no further action is required by the respective Subsidiary,
its managers or its members in connection therewith. Each Security Document to which any Subsidiary is a party has been (or upon delivery
will have been) duly executed by such Subsidiary(ies) and, when delivered in accordance with the terms thereof, will constitute the valid
and binding obligation of the respective Subsidiary enforceable against such Subsidiary in accordance with its terms, except (A) as listed
by general equitable principals and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (B) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies or (C) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

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

 

(e)
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) the filings
required pursuant to Section 4.6 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading Market for the issuance
and sale of the Securities and the listing of the Warrant Shares for trading thereon in the time and manner required thereby, and (iii)
the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively,
the “Required Approvals”).

 

(f)
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents or under federal or state securities laws. The Warrant
Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable,
free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents or under
federal or state securities laws. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock
for issuance of the Warrant Shares at least equal to the Required Minimum on the date hereof.

 

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(g)
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall
also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof.
The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant
to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees
pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic report under the Exchange Act. Except as set forth on Schedule 3.1(g),
no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities or as set forth on Schedule
3.1(g), there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right
to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock
Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary
to issue shares of Common Stock or other securities to any Person (other than the Purchasers). There are no outstanding securities or
instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such
security or instrument upon an issuance of securities by the Company or any Subsidiary. There are no outstanding securities or instruments
of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary.
The Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have
been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder,
the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting
agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s stockholders.

 

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(h)
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”). As of their respective dates, the SEC Reports complied in all material respects with the requirements
of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of
a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the
SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with
respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be
otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the
case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as set forth on Schedule 3.1(i), (i) there has been no event, occurrence or development that has
had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice
and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend
or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any
shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment
of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no
event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with
respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition,
that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed
made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.

 

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(j)
Litigation. Except as set forth on Schedule 3.1(j), there is no action, suit, inquiry, notice of violation, proceeding
or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their
respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state,
county, local or foreign) (collectively, an “Action”), except with respect to any inquiry as would not, individually
or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. None of the Actions set forth on Schedule
3.1(j), (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) except as otherwise set forth on Schedule 3.1(j), would, if there were an unfavorable decision, have or reasonably be
expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has
been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach
of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by
the Commission involving the Company or any current director or officer of the Company, except as would not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

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

 

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

 

    	20

    	 

    

 

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

 

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

 

(o)
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries, (ii) Liens for the payment
of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of
which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries
are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance and (iii)
the Liens contemplated by the Security Documents.

 

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(p)
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports and which
the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Except
as set forth on Schedule 3.1(p), none of, and neither the Company nor any Subsidiary has received a notice (written or otherwise)
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be
abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date
of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not have or reasonably be expected
to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there
is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where
failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(q)
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the Company
nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase
in cost.

 

(r)
Transactions with Affiliates and Employees. Except as set forth on Schedule 3.1(r), none of the officers or directors of
the Company or any Subsidiary and, to the knowledge of the Company, none of the other employees of the Company or any Subsidiary, is
presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real
or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise requiring payments to
or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any
such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess
of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on
behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.

 

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(s)
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002, as amended, that are effective as of the date hereof, and any and all applicable rules and regulations
promulgated by the Commission thereunder that are effective as of the date hereof and as of each applicable Closing Date. The Company
and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the
Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d- 15(e)) for the
Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed
by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness
of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of the period covered by the most recently
filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most
recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure
controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in
the internal control over financial reporting (as such term is defined in the Exchange Act) that have materially affected, or is reasonably
likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries. This representation and
warranty is expressly qualified and limited by the material weaknesses and significant deficiencies described in the SEC Reports.

 

(t)
Certain Fees. Except for fees payable by the Company to the Placement Agent in connection with each applicable Closing, no brokerage
or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.
The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons
for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

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

 

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(v)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(w)
Registration Rights. Except as set forth on Schedule 3.1(w), no Person has any right to cause the Company or any Subsidiary
to effect the registration under the Securities Act of any securities of the Company or any Subsidiaries.

 

(x)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and
the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is currently contemplating
terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing
or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic
transfer through the Depository Trust Company or another established clearing corporation and the Company is current in payment of the
fees to the Depository Trust Company (or such other established clearing corporation) in connection with such electronic transfer.

 

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

 

(z)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or
counsel with any information that it believes constitutes or is reasonably likely to constitute material, non-public information for
purposes of U.S. federal securities laws. The Company understands and confirms that the Purchasers will rely on the foregoing representation
in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers
regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure
Schedules to this Agreement, is true and correct in all material respects and does not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which
they were made, not misleading. The press releases disseminated by the Company during the twelve (12) months preceding the date of this
Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made and when made,
not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect
to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

    	24

    	 

    

 

(aa)
No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration of any
such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of
the securities of the Company are listed or designated.

 

(bb)
Solvency. Based on the consolidated financial condition of the Company as of each applicable Closing Date, after giving effect
to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of
its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such
debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has
no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy
or reorganization laws of any jurisdiction within one (1) year from each applicable Closing Date. The preceding portions of this representation
and warranty are expressly qualified and limited by the going concern qualification expressed by the Company’s auditors in their
opinions pertaining to the Company’s financial statements as of, and for the years ended, December 31, 2021, 2020 and 2019. Schedule
3.1(bb) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or
for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means
(x) any liabilities for borrowed money or amounts owed in excess of $50,000 (and specifically excluding trade accounts payable incurred
in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of
others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

    	25

    	 

    

 

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

 

(dd)
No General Solicitation. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers and
certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(ee)
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any
agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful
payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate
funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf
of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of FCPA.

 

(ff)
Accountants. The Company’s accounting firm is set forth on Schedule 3.1(ff) of the Disclosure Schedules. To the knowledge
and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall
express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year
ending December 31, 2022.

 

    	26

    	 

    

 

(gg)
Seniority. As of each applicable Closing Date, no Indebtedness or other claim against the Company is senior to the Notes in right
of payment or security, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured
by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations (which
is senior only as to the property covered thereby), subject to the Prestige Intercreditor Agreement.

 

(hh)
No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company
is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability to perform any
of its obligations under any of the Transaction Documents (subject to the customary inclusion of the payment of Company legal expenses
in connection with the transactions as part of the flow of funds at each applicable Closing).

 

(ii)
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers
is acting solely in the capacity of an arms’ length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or
any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby
is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s
decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the
transactions contemplated hereby by the Company and its representatives.

 

(jj)
Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(g) and 4.15 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers has been
asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the
Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified
term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales
or “derivative” transactions, before or after the closing of this or future private placement transactions, may negatively
impact the market price of the Company’s publicly-traded securities, (iii) any Purchaser, and counter-parties in “derivative”
transactions to which any such Purchaser is a party, directly or indirectly, may presently have a “short” position in the
Common Stock and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party
in any “derivative” transaction. The Company further understands and acknowledges that (y) one or more Purchasers may engage
in hedging activities at various times during the period that the Securities are outstanding, including, without limitation, during the
periods that the value of the Warrant Shares deliverable with respect to Warrants are being determined, and (z) such hedging activities
(if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging
activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any
of the Transaction Documents.

 

    	27

    	 

    

 

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

 

(ll)
FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under
the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured,
packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed
by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration,
investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices,
good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the failure
to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company’s knowledge, threatened,
action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint, or investigation)
against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received any notice, warning letter
or other communication from the FDA or any other governmental entity, which (i) contests the premarket clearance, licensure, registration,
or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and
promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws
or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical
hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company
or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or any of
its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its Subsidiaries,
and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business and operations of
the Company have been and are being conducted in all material respects in accordance with all applicable laws, rules and regulations
of the FDA. The Company has not been informed by the FDA that the FDA will prohibit the marketing, sale, license or use in the United
States of any product proposed to be developed, produced or marketed by the Company nor has the FDA expressed any concern as to approving
or clearing for marketing any product being developed or proposed to be developed by the Company.

 

    	28

    	 

    

 

(mm)
Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance
with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the
Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the
Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company
policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the
release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or
prospects.

 

(nn)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(oo)
U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within
the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(pp)
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly,
five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total
equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its
Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject
to the BHCA and to regulation by the Federal Reserve.

 

(qq)
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record- keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended,
applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

    	29

    	 

    

 

(rr)
No Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under the
Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of
the Company participating in the offering hereunder, any beneficial owner of twenty percent (20%) or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together,
“Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule
506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification
Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the
Purchasers a copy of any disclosures provided thereunder.

 

(ss)
Other Covered Persons. Other than the Placement Agent, the Company is not aware of any person (other than any Issuer Covered Person)
that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any
Securities.

 

(tt)
Notice of Disqualification Events. The Company will notify the Purchasers and the Placement Agent in writing, prior to each applicable
Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage
of time, become a Disqualification Event relating to any Issuer Covered Person.

 

(uu)
Shell Company Status. The Company is not currently an issuer identified in, or subject to, Rule 144(i)(1) of the Securities Act,
and has satisfied the conditions of Rule 144(i)(2) of the Securities Act at least one year prior to the date hereof.

 

(vv)
PPP Loans. At the time of submission of the application for the PPP Loans, the Company believed in good faith that it is eligible
under the CARES Act to incur the PPP Loans. The proceeds of the PPP Loans were used for purposes permitted by the CARES Act. The PPP
Loans have been forgiven in full upon by the Small Business Administration. All applications, documents and other information submitted
to the PPP Lender and any governmental or regulatory authority with respect to the PPP Loans (including forgiveness thereof) were true
and correct in all material respects, in each case, at the time of submission.

 

3.2
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and
warrants as of the date hereof and as of each applicable Closing Date to the Company as follows (unless as of a specific date therein,
in which case they shall be accurate as of such date):

 

    	30

    	 

    

 

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

 

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

 

(c)
Purchaser Status. At the time such Purchaser was offered the Securities being purchased at the applicable Closing, it was, and
as of the date of the Prior Agreement or hereof, as applicable, it was, is, and as of each applicable Closing Date was or is, and on
each date on which it exercises any Warrants, it will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7), (a)(8), (a)(9), (a)(12) or (a)(13) under the Securities Act.

 

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

 

    	31

    	 

    

 

(e)
General Solicitation. Such Purchaser is not, to such Purchaser’s knowledge, purchasing the Securities being purchased at
the applicable Closing as a result of any advertisement, article, notice or other communication regarding such Securities published in
any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or, to the knowledge of such
Purchaser, any other general solicitation or general advertisement.

 

(f)
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed
necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the
Securities being purchased at the applicable Closing and the merits and risks of investing in such Securities; (ii) access to information
about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment being
made at the applicable Closing. Such Purchaser acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement
Agent has provided such Purchaser with any information or advice with respect to the Securities being purchased at the applicable Closing
nor is such information or advice necessary or desired. Neither the Placement Agent nor any Affiliate has made or makes any representation
as to the Company or the quality of the Securities being purchased at the applicable Closing and the Placement Agent and any Affiliate
may have acquired non-public information with respect to the Company which such Purchaser agrees need not be provided to it. In connection
with the issuance of the Securities being purchased at the applicable Closing to such Purchaser, neither the Placement Agent nor any
of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser. Such Purchaser acknowledges and agrees that the Company
only has made the representations and warranties expressly set forth herein and in the other Transaction Documents.

 

(g)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has
not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any
purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser
first received a term sheet (written or oral) with respect to the transactions contemplated at the applicable Closing from the Company
or any other Person representing the Company, or provided to the Company any such term sheet, setting forth the material terms of the
transactions contemplated at the applicable Closing and ending immediately prior to the execution of the Prior Agreement or hereof, as
applicable. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above
shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities being purchased at the applicable Closing. Other than to other Persons party to this Agreement or to such Purchaser’s
representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates,
such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence
and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute
a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow, identification
of the availability of, and/or securing of, securities of the Company in order for such Purchaser (or its broker or other financial representative)
to effect Short Sales or similar transactions in the future.

 

    	32

    	 

    

 

(h)
As of the date of this Agreement, other than Securities purchased pursuant to the Prior Agreement, such Purchaser is not a “beneficial
owner” (as such term is defined in Nevada Revised Statutes 78.414) of any shares of the capital stock or other securities of the
Company.

 

The
Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance of doubt, nothing contained
herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order
to effect Short Sales or similar transactions in the future.

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions.

 

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

 

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(b)
The Purchasers agree to the imprinting, so long as is required by this Section 4.1, 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] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY
SUCH SECURITIES.

 

The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor”
as defined in Rule 501(a) under the Securities Act and, if required under the terms of such arrangement, such Purchaser may transfer
pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company
and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no
notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

 

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(c)
Certificates evidencing the Warrant Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i)
while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of
such Warrant Shares pursuant to Rule 144 (assuming cashless exercise of the Warrants), (iii) if such Warrant Shares are eligible for
sale under Rule 144 without any volume or manner of sale restrictions (assuming cashless exercise of the Warrants) or (iv) if such legend
is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by
the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent or the Purchaser if
required by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a Purchaser, respectively. If all or
any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Warrant
Shares, or if such Warrant Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Warrant
Shares shall be issued free of all legends. The Company agrees that, at such time as such legend is no longer required under this Section
4.1(c), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement
Period (as defined below) following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Warrant
Shares, as applicable, issued with a restrictive legend (such date, the “Legend Removal Date”), deliver or cause to
be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company
may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth
in this Section 4. Certificates for Warrant Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to
the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by
such Purchaser. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a
number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery
of a certificate representing Warrant Shares, as applicable, issued with a restrictive legend.

 

(d)
In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, (i) as partial liquidated
damages and not as a penalty, for each $1,000 of Warrant Shares (based on the VWAP of the Common Stock on the date such Securities are
submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to Section 4.1(c), $10 per Trading Day (increasing
to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date
until such certificate is delivered without a legend to the extent required by Section 4.1(c) above, and (ii) if the Company fails to
(a) issue and deliver (or cause to be delivered) to a Purchaser by the Legend Removal Date a certificate representing the Securities
so delivered to the Company by such Purchaser that is free from all restrictive and other legends and (b) if after the Legend Removal
Date such Purchaser purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale
by such Purchaser of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal
to all or any portion of the number of shares of Common Stock that such Purchaser anticipated receiving from the Company without any
restrictive legend, then, an amount equal to the excess of such Purchaser’s total purchase price (including brokerage commissions
and other out-of- pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket
expenses, if any) (the “Buy-In Price”) over the product of (A) such number of Warrant Shares that the Company was
required to deliver to such Purchaser by the Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock
on any Trading Day during the period commencing on the date of the delivery by such Purchaser to the Company of the applicable Warrant
Shares (as the case may be) and ending on the date of such delivery and payment under this clause (ii).

 

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(e)
Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser 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 4.1 is predicated upon the Company’s reliance upon this understanding.

 

(f)
Each Purchaser, severally and not jointly with the other Purchasers, agrees that prior to selling or transferring any Note held by such
Purchaser, in whole or in part, that it will first offer Ryan Drexler (“Drexler”) a right of first offer with respect
to such Note. Prior to transferring such Note to any Person, other than to one or more Affiliates of such Purchaser, such Purchaser will
give Drexler written notice (a “ROFO Request Notice”) granting Drexler the right to make an offer to such Purchaser
for the purchase of such Note from such Purchaser. Drexler will have two (2) Business Days to make such an offer by delivering written
notice (a “ROFO Notice”) to such Purchaser, which offer must be denominated in US Dollars payable by wire transfer
of immediately available funds. If Drexler fails to deliver a ROFO Notice within two (2) Business Days following the date of a ROFO Request
Notice or such offer does not meet the qualifications set forth above, Drexler shall forfeit all rights under this Section 4.1(f) with
respect to such Note. If Drexler delivers a proper ROFO Notice to such Purchaser, such Purchaser shall have five (5) Business Days to
accept or decline such offer; provided that if such Purchaser does not explicitly accept such offer within five (5) Business Days,
such Purchaser shall be deemed to have declined such offer. If such Purchaser wishes to accept such offer, such Purchaser shall deliver
a written notice of acceptance to Drexler indicating its acceptance of Drexler’s offer and the date of closing of the sale of such
Note to Drexler (which date shall be at least five (5) Business Days following delivery of such notice). If such Purchaser declines such
offer, such Purchaser shall deliver a written notice declining such offer to Drexler. Any Purchaser declining an offer by Drexler shall
have thirty (30) days to sell such Note to any other Person for a purchase price greater than that offered by Drexler (or to one or more
of such Purchaser’s Affiliates as set forth below). After declining a proper offer by Drexler, such Purchaser shall not be permitted
to sell or transfer such Note to any Person, other than to one or more Affiliates of such Purchaser, for an aggregate purchase price
equal to or less than the purchase price offered by Drexler in his ROFO Notice. If such Note is not sold to another Person for a price
greater than the price offered by Drexler within such thirty (30)-day period, prior to selling or transferring such Note in the future
(other than to one or more of such Purchaser’s Affiliates), such Purchaser shall be required to grant Drexler another opportunity
to purchase such Note in accordance with the provisions set forth in this Section 4.1(f). If a Purchaser wishes to transfer or sell its
Note to one or more of its Affiliates, as a condition to such transfer or sale, such Affiliate(s) shall take such Note subject to the
provisions of this Section 4.1(f) and shall be obligated to comply with the provisions of this Section 4.1(f) as if each such Affiliate(s)
were the Purchaser hereunder.

 

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4.2
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding
shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its
obligations under the Transaction Documents, including, without limitation, its obligation to issue the Warrant Shares pursuant to the
Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless
of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect that
such issuance may have on the ownership of the other stockholders of the Company.

 

4.3
Furnishing of Information; Public Information.

 

(a)
If the Common Stock is not registered under Section 12(b) or 12(g) of the Exchange Act on the date hereof, the Company agrees to cause
the Common Stock to be registered under Section 12(g) of the Exchange Act on or before the sixtieth (60th) calendar day following
the date hereof. Until the time that the Warrants have expired or are no longer outstanding, the Company covenants to maintain the registration
of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to use reasonable best efforts to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof
pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

(b)
At any time during the period commencing from the six (6) month anniversary of the Initial Closing Date and ending at such time that
all of the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without
restriction or limitation pursuant to Rule 144, if the Company (i) shall fail for any reason to satisfy the current public information
requirement under Rule 144(c) or (ii) has ever been an issuer described in Rule 144 (i)(1)(i) or becomes an issuer in the future, and
the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a “Public Information Failure”), then,
in addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal
to two percent (2.0%) of the aggregate Exercise Price of such Purchaser’s Warrants on the day of a Public Information Failure and
on every thirtieth (30th) day (pro rated for periods totaling less than thirty (30) days) thereafter until the earlier of (a) the date
such Public Information Failure is cured and (b) such time that such public information is no longer required for the Purchasers to transfer
the Warrant Shares pursuant to Rule 144. The payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred
to herein as “Public Information Failure Payments.” Public Information Failure Payments shall be paid on the earlier
of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd)
Business Day after the event or failure giving rise to the Public Information Failure Payments is cured. In the event the Company fails
to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate
of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue
actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at
law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

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4.4
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would
require the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of
the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior
to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.5
Exercise Procedures. The form of Notice of Exercise included in the Warrants sets forth the totality of the procedures required
of the Purchasers in order to exercise the Warrants. Without limiting the preceding sentences, no ink-original Notice of Exercise shall
be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required
in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required of the Purchasers
to exercise their Warrants. The Company shall honor exercises of the Warrants and shall deliver Warrant Shares in accordance with the
terms, conditions and time periods set forth in the Transaction Documents.

 

4.6
Securities Laws Disclosure; Publicity. The Company shall (a) by the Disclosure Time, issue a press release disclosing the material
terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release, the Company
represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers
by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the
transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges
and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company,
any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the
Purchasers or any of their Affiliates on the other hand, shall terminate and be of no further force or effect. The Company and each Purchaser
shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the
Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of
the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any
press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law,
in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.
Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser
in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except
(a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to
the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with
prior notice of such disclosure permitted under this clause (b) and reasonably cooperate with such Purchaser regarding such disclosure.

 

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4.7
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person,
that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by
the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving
Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.8
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, which shall be disclosed pursuant to Section 4.6, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf, will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes
constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt of such information
and agreed with the Company to keep such information confidential. The Company understands and confirms that each Purchaser shall be
relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent that the Company, any of its
Subsidiaries, or any of their respective officers, director, agents, employees or Affiliates delivers any material, non-public information
to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any
duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or
Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates
not to trade on the basis of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law.
To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information
regarding the Company or any Subsidiaries and the Purchaser has not explicitly consented in writing to the receipt of such material non-public
information, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Company
understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the
Company.

 

4.9
Use of Proceeds. Except as set forth on Schedule 4.9 attached hereto, the Company shall use the net proceeds from the sale
of the Securities hereunder for working capital purposes and shall not use such proceeds: (a) for the redemption of any Common Stock
or Common Stock Equivalents, (b) for the settlement of any outstanding litigation or (c) in violation of FCPA or OFAC regulations.

 

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4.10
Indemnification of Purchasers. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser
and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any
and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in
settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or
incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company
in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity, or
any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect
to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser Party’s
representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may
have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser
Party which constitutes fraud, gross negligence or willful misconduct). If any action shall be brought against any Purchaser Party in
respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing,
and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser
Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to
assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict
on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be
responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser
Party under this Agreement (y) for any settlement by such Purchaser Party effected without the Company’s prior written consent,
which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability
is attributable to such Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such
Purchaser Party in this Agreement or in the other Transaction Documents or any conduct by such Purchaser Party which constitutes fraud,
gross negligence or willful misconduct. The indemnification required by this Section 4.10 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills are received or are incurred. Each Purchaser Party hereby
agrees, to the extent that it is a recipient of any such periodic payments contemplated in the prior sentence to return such amounts
to the extent it is ultimately determined by a final non- appealable judgment of a court of competent jurisdiction that such Purchaser
Party is ultimately not entitled to indemnification hereunder. The indemnity agreements contained herein shall be in addition to any
cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject
to pursuant to law.

 

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4.11
Reservation and Listing of Securities.

 

(a)
The Company shall maintain a reserve of the Required Minimum from its duly authorized shares of Common Stock for issuance pursuant to
the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents.

 

(b)
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum
on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles
of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time,
as soon as possible and in any event not later than the 75th day after such date.

 

(c)
The Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such Trading
Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum on
the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation
on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation and (iv)
maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum on such date on such Trading
Market or another Trading Market. The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through
the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment of fees to
the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer.

 

4.12
Participation in Future Financing- Initial Purchasers.

 

(a)
From the date of the Prior Agreement until the date that is the 18-month anniversary of the Initial Closing Date, upon any issuance by
the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents for cash consideration, Indebtedness or a combination
of units thereof (a “Subsequent Financing”), each Initial Purchaser shall have the right to participate in up to an
amount of the Subsequent Financing equal to 20% of the Subsequent Financing (the “Participation Maximum”) on the same
terms, conditions and price provided for in the Subsequent Financing.

 

(b)
Between the time period of 4:00 pm (New York City time) and 6:00 pm (New York City time) on the Trading Day immediately prior to the
Trading Day of the expected announcement of the Subsequent Financing (or, if the Trading Day of the expected announcement of the Subsequent
Financing is the first Trading Day following a holiday or a weekend (including a holiday weekend), between the time period of 4:00 pm
(New York City time) on the Trading Day immediately prior to such holiday or weekend and 2:00 pm (New York City time) on the day immediately
prior to the Trading Day of the expected announcement of the Subsequent Financing), the Company shall deliver to each Initial Purchaser
a written notice of the Company’s intention to effect a Subsequent Financing (a “Subsequent Financing Notice”),
which notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to
be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include
a term sheet and transaction documents relating thereto as an attachment.

 

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(c)
Any Initial Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by 6:30 am (New
York City time) on the Trading Day following the date on which the Subsequent Financing Notice is delivered to such Initial Purchaser
(the “Notice Termination Time”) that such Initial Purchaser is willing to participate in the Subsequent Financing,
the amount of such Initial Purchaser’s participation, and representing and warranting that such Initial Purchaser has such funds
ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice. If the Company receives no such
notice from an Initial Purchaser as of such Notice Termination Time, such Initial Purchaser shall be deemed to have notified the Company
that it does not elect to participate in such Subsequent Financing.

 

(d)
If, by the Notice Termination Time, notifications by the Initial Purchasers of their willingness to participate in the Subsequent Financing
(or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company
may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing
Notice, including with such Subsequent Purchasers that may elect to participate in the Subsequent Financing pursuant to Section 4.20
hereof.

 

(e)
If, by the Notice Termination Time, the Company receives responses to a Subsequent Financing Notice from Initial Purchasers seeking to
purchase more than the aggregate amount of the Participation Maximum, each such Initial Purchaser shall have the right to purchase its
Pro Rata Portion (as defined below) of the Participation Maximum. “Pro Rata Portion” means the ratio of (x) the Subscription
Amount of Securities purchased on the Initial Closing Date by an Initial Purchaser participating under this Section 4.12 as set forth
opposite such Initial Purchaser’s name in column (3A)) on the Initial Schedule of Purchasers attached hereto and (y) the sum of
the aggregate Subscription Amounts of Securities purchased on each Initial Closing Date by all Initial Purchasers participating under
this Section 4.12 as set forth on the Initial Schedule of Purchasers attached hereto.

 

(f)
The Company must provide the Initial Purchasers with a second Subsequent Financing Notice, and the Initial Purchasers will again have
the right of participation set forth above in this Section 4.12, if the definitive agreement related to the initial Subsequent Financing
Notice is not entered into for any reason on the terms set forth in such Subsequent Financing Notice within two (2) Trading Days after
the date of delivery of the initial Subsequent Financing Notice.

 

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(g)
The Company and each Initial Purchaser agree that, if any Initial Purchaser elects to participate in the Subsequent Financing, the transaction
documents related to the Subsequent Financing shall not include any term or provision that, directly or indirectly, will, or is intended
to, exclude one or more of the Initial Purchasers from participating in a Subsequent Financing, including, but not limited to, provisions
whereby such Initial Purchaser shall be required to agree to any restrictions on trading as to any securities of the Company or be required
to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, this Agreement,
without the prior written consent of such Initial Purchaser. In addition, the Company and each Initial Purchaser agree that, in connection
with a Subsequent Financing, the transaction documents related to the Subsequent Financing shall include a requirement for the Company
to issue a widely disseminated press release by 9:30 am (New York City time) on the Trading Day of execution of the transaction documents
in such Subsequent Financing (or, if the date of execution is not a Trading Day, on the immediately following Trading Day) that discloses
the material terms of the transactions contemplated by the transaction documents in such Subsequent Financing.

 

(h)
Notwithstanding anything to the contrary in this Section 4.12 and unless otherwise agreed to by such Initial Purchaser, the Company shall
either confirm in writing to such Initial Purchaser that the transaction with respect to the Subsequent Financing has been abandoned
or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that
such Purchaser will not be in possession of any material, non-public information, by 9:30 am (New York City time) on the second (2nd)
Trading Day following date of delivery of the Subsequent Financing Notice. If by 9:30 am (New York City time) on such second (2nd) Trading
Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the
abandonment of such transaction has been received by such Initial Purchaser, such transaction shall be deemed to have been abandoned
and such Initial Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company
or any of its Subsidiaries.

 

(i)
Notwithstanding the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance.

 

4.13
Variable Rate Transactions. From the date of this Agreement until such time as no Purchaser holds any of the Warrants, the Company
shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of
Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible
into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion
price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for
the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise
or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security (other
than customary anti-dilution events in connection with stock splits, combinations, recapitalizations, reclassifications, dilutive issuances
and similar events) or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company
or the market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement, including, but not limited to,
an equity line of credit (but excluding an “at-the-market” offering; provided that such “at-the-market”
offering does not have any securities issuances until the one (1) year anniversary of each applicable Closing Date), whereby the Company
may issue securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to
preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

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4.14
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration
is also offered to all of the parties to such Transaction Documents. Further, the Company shall not make any payment of principal or
interest on the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable
time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated
separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed
as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.15
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that
neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales, of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at
such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as
described in Section 4.6. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the
transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described
in Section 4.6, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included
in the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained in this Agreement to the contrary,
the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will
not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement
are first publicly announced pursuant to the initial press release as described in Section 4.6, (ii) no Purchaser shall be restricted
or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and
after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.6 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the
Company to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates after
the issuance of the initial press release as described in Section 4.6. Notwithstanding the foregoing, in the case of a Purchaser that
is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and
the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of
such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio
manager that made the investment decision to purchase the Securities covered by this Agreement.

 

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4.16
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at each applicable
Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of
such actions promptly upon request of any Purchaser.

 

4.17
Lock-Up Agreements. The Company shall not amend, modify, waive or terminate any provision of any of the Lock-Up Agreements except
to extend the term of the lock-up period and shall enforce the provisions of each Lock-Up Agreement in accordance with its terms. If
any party to a Lock-Up Agreement breaches any provision of a Lock-Up Agreement, the Company shall promptly use its best efforts to seek
specific performance of the terms of such Lock-Up Agreement.

 

4.18
Collateral Agent.

 

(a)
Each Purchaser hereby (a) appoints the Lead Investor as the collateral agent hereunder and under the Security Documents (in such capacity,
the “Collateral Agent”), and (b) authorizes the Collateral Agent (and its officers, directors, employees and agents)
to take such action on such Purchaser’s behalf in accordance with the terms hereof and thereof. The Collateral Agent shall not
have, by reason hereof or pursuant to any Security Documents, a fiduciary relationship in respect of any Purchaser. Neither the Collateral
Agent nor any of its officers, directors, employees and agents shall have any liability to any Purchaser for any action taken or omitted
to be taken in connection hereof or the Security Documents except to the extent caused by its own gross negligence or willful misconduct,
and each Purchaser agrees to defend, protect, indemnify and hold harmless the Collateral Agent and all of its officers, directors, employees
and agents (collectively, the “Collateral Agent Indemnitees”) from and against any losses, damages, liabilities, obligations,
penalties, actions, judgments, suits, fees, costs and expenses (including, without limitation, reasonable attorneys’ fees, costs
and expenses) incurred by such Collateral Agent Indemnitee, whether direct, indirect or consequential, arising from or in connection
with the performance by such Collateral Agent Indemnitee of the duties and obligations of Collateral Agent pursuant hereto or any of
the Security Documents.

 

(b)
The Collateral Agent shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or any telephone
message believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper Person, and with respect
to all matters pertaining to this Agreement or any of the other Transaction Documents and its duties hereunder or thereunder, upon advice
of counsel selected by it.

 

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(c)
The Collateral Agent may resign from the performance of all its functions and duties hereunder and under the Notes and the Security Documents
at any time by giving at least ten (10) Business Days prior written notice to the Company and each holder of the Notes. Such resignation
shall take effect upon the acceptance by a successor Collateral Agent of appointment as provided below. Upon any such notice of resignation,
the Required Holders shall appoint a successor Collateral Agent. Upon the acceptance of the appointment as Collateral Agent, such successor
Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent,
and the retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement, the Notes and the Security
Agreement. After any Collateral Agent’s resignation hereunder, the provisions of this Section 4.18 shall inure to its benefit.
If a successor Collateral Agent shall not have been so appointed within said ten (10) Business Day period, the retiring Collateral Agent
shall then appoint a successor Collateral Agent who shall serve until such time, if any, as the Required Holders appoints a successor
Collateral Agent as provided above.

 

(d)
The Company hereby covenants and agrees to take all actions as promptly as practicable reasonably requested by either the Required Holders
or the Collateral Agent (or its successor), from time to time pursuant to the terms of this Section 4.18, to secure a successor Collateral
Agent satisfactory to such requesting part(y)(ies), in their sole discretion, including, without limitation, by paying all fees of such
successor Collateral Agent, by having the Company agree to indemnify any successor Collateral Agent and by each of the Company executing
a collateral agency agreement or similar agreement and/or any amendment to the Security Documents reasonably requested or required by
the successor Collateral Agent.

 

4.19
Reserved.

 

4.20
Participation in Future Financing- Subsequent Purchasers.

 

(a)
From the date hereof until the date that is the 18-month anniversary of the Subsequent Closing Date, upon any Subsequent Financing, each
Subsequent Purchaser shall have the right to participate in up to an amount of the Subsequent Financing equal to the Participation Maximum
on the same terms, conditions and price provided for in the Subsequent Financing.

 

(b)
Between the time period of 4:00 pm (New York City time) and 6:00 pm (New York City time) on the Trading Day immediately prior to the
Trading Day of the expected announcement of the Subsequent Financing (or, if the Trading Day of the expected announcement of the Subsequent
Financing is the first Trading Day following a holiday or a weekend (including a holiday weekend), between the time period of 4:00 pm
(New York City time) on the Trading Day immediately prior to such holiday or weekend and 2:00 pm (New York City time) on the day immediately
prior to the Trading Day of the expected announcement of the Subsequent Financing), the Company shall deliver to each Subsequent Purchaser
a Subsequent Financing Notice, which notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the
amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed
to be effected and shall include a term sheet and transaction documents relating thereto as an attachment.

 

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(c)
Any Subsequent Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by 6:30 am (New
York City time) on the Trading Day following the date on which the Subsequent Financing Notice is delivered to such Subsequent Purchaser
(the “Subsequent Notice Termination Time”) that such Subsequent Purchaser is willing to participate in the Subsequent
Financing, the amount of such Subsequent Purchaser’s participation, and representing and warranting that such Subsequent Purchaser
has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice. If the Company
receives no such notice from a Subsequent Purchaser as of such Subsequent Notice Termination Time, such Subsequent Purchaser shall be
deemed to have notified the Company that it does not elect to participate in such Subsequent Financing.

 

(d)
If, by the Subsequent Notice Termination Time, notifications by the Subsequent Purchasers of their willingness to participate in the
Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent
Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set forth
in the Subsequent Financing Notice, including with such Initial Purchasers that may elect to participate in the Subsequent Financing
pursuant to Section 4.12 hereof.

 

(e)
If, by the Subsequent Notice Termination Time, the Company receives responses to a Subsequent Financing Notice from Subsequent Purchasers
seeking to purchase more than the aggregate amount of the Participation Maximum, each such Subsequent Purchaser shall have the right
to purchase its Subsequent Pro Rata Portion of the Participation Maximum. “Subsequent Pro Rata Portion” means the
ratio of (x) the Subscription Amount of Securities purchased on the Subsequent Closing Date by a Subsequent Purchaser participating under
this Section 4.20 as set forth opposite such Subsequent Purchaser’s name in column (3) on the Subsequent Schedule of Purchasers
attached hereto and (y) the sum of the aggregate Subscription Amounts of Securities purchased on each Subsequent Closing Date by all
Subsequent Purchasers participating under this Section 4.20 as set forth on the Subsequent Schedule of Purchasers attached hereto.

 

(f)
The Company must provide the Subsequent Purchasers with a second Subsequent Financing Notice, and the Subsequent Purchasers will again
have the right of participation set forth above in this Section 4.20, if the definitive agreement related to the initial Subsequent Financing
Notice is not entered into for any reason on the terms set forth in such Subsequent Financing Notice within two (2) Trading Days after
the date of delivery of the initial Subsequent Financing Notice.

 

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(g)
The Company and each Subsequent Purchaser agree that, if any Subsequent Purchaser elects to participate in the Subsequent Financing,
the transaction documents related to the Subsequent Financing shall not include any term or provision that, directly or indirectly, will,
or is intended to, exclude one or more of the Subsequent Purchasers from participating in a Subsequent Financing, including, but not
limited to, provisions whereby such Subsequent Purchaser shall be required to agree to any restrictions on trading as to any securities
of the Company or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in
connection with, this Agreement, without the prior written consent of such Subsequent Purchaser. In addition, the Company and each Subsequent
Purchaser agree that, in connection with a Subsequent Financing, the transaction documents related to the Subsequent Financing shall
include a requirement for the Company to issue a widely disseminated press release by 9:30 am (New York City time) on the Trading Day
of execution of the transaction documents in such Subsequent Financing (or, if the date of execution is not a Trading Day, on the immediately
following Trading Day) that discloses the material terms of the transactions contemplated by the transaction documents in such Subsequent
Financing.

 

(h)
Notwithstanding anything to the contrary in this Section 4.20 and unless otherwise agreed to by such Subsequent Purchaser, the Company
shall either confirm in writing to such Subsequent Purchaser that the transaction with respect to the Subsequent Financing has been abandoned
or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that
such Purchaser will not be in possession of any material, non-public information, by 9:30 am (New York City time) on the second (2nd)
Trading Day following date of delivery of the Subsequent Financing Notice. If by 9:30 am (New York City time) on such second (2nd) Trading
Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the
abandonment of such transaction has been received by such Subsequent Purchaser, such transaction shall be deemed to have been abandoned
and such Subsequent Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company
or any of its Subsidiaries.

 

(i)
Notwithstanding the foregoing, this Section 4.20 shall not apply in respect of an Exempt Issuance.

 

ARTICLE
V. MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any Subsequent Purchaser, as to such Subsequent Purchaser’s obligations
hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, including the Initial
Purchasers, by written notice to the Company, if the Subsequent Closing has not been consummated on or before June 10, 2022, provided,
however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties); provided,
further, that if this Agreement is terminated prior to the Subsequent Closing, this Agreement shall be void ab initio and
the Prior Agreement shall be reinstated and be in full force and effect.

 

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5.2
Fees and Expenses. The Company shall reimburse the Lead Investor or its designee(s) for all costs and expenses up to the greater
of $50,000 incurred in connection with the negotiation and execution of this Agreement, those certain Waiver and Amendments, each by
and between the Company and each of the Initial Purchasers, and the Subsequent Closing (exclusive of any amounts paid in connection with
the Initial Closing) and any other amount approved by the Company in writing, which may be by email (in addition to any other amounts
paid to any Purchaser or its counsel prior to the date of this Agreement) incurred in connection with the transactions contemplated by
the Transaction Documents (including all legal fees and disbursements in connection therewith, documentation and implementation of the
transactions contemplated by the Transaction Documents and due diligence in connection therewith), which amount may be withheld by such
Purchaser from its Subscription Amount at each applicable Closing. The Company shall be responsible for the payment of any placement
agent’s fees, financial advisory fees, or broker’s commissions (other than for Persons engaged by any Purchaser) relating
to or arising out of the transactions contemplated hereby, including, without limitation, any fees or commissions payable to the Placement
Agent. The Company shall pay, and hold each Purchaser harmless against, any liability, loss or expense (including, without limitation,
reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except
as expressly set forth in the Transaction Documents 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. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required
for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes
and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4
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 time of transmission, if such notice or communication is
delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached
hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment as 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.

 

5.5
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument
signed, in the case of an amendment, by the Company and the Required Holders or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts
a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be
required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any
amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

 

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5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

 

5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent
of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom
such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the
transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8
No Third Party Beneficiaries. The Placement Agent shall be the third-party beneficiary of the representations and warranties of
the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. Drexler shall be the third-party
beneficiary of the provisions of Section 4.1(f). This Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except
as otherwise set forth in Section 4.10 and this Section 5.8.

 

5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and
defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto
or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively
in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of
any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient
venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction
Documents, then, in addition to the obligations of the Company under Section 4.10, the prevailing party in such Action or Proceeding
shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other reasonable costs and expenses incurred
with the investigation, preparation and prosecution of such Action or Proceeding.

 

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5.10
Survival. The representations and warranties contained herein shall survive each applicable Closing and the delivery of the Securities.

 

5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party,
it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

 

5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions
of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may
rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election
in whole or in part without prejudice to its future actions and rights; provided, however, that, in the case of a rescission
of an exercise of a Warrant, the applicable Purchaser shall be required to return any Warrant Shares subject to any such rescinded exercise
notice concurrently with the return to such Purchaser of the aggregate exercise price paid to the Company for such shares and the restoration
of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant (including, issuance of a replacement
warrant certificate evidencing such restored right).

 

5.14
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.

 

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5.15
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages,
each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction
Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that
a remedy at law would be adequate.

 

5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by
or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including,
without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such
restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at
any time hereafter in force, in connection with any Action or Proceeding that may be brought by any Purchaser in order to enforce any
right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document,
it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature
of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without
limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums
in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed
that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by
statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will
be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless such application is precluded
by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Purchaser
with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Purchaser to the unpaid principal
balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at such Purchaser’s election.

 

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5.18
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document
are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non- performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other
Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as
a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way
acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each
Purchaser 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 Purchaser to be joined as an additional
party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation
of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the
convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood
and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser,
solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

 

5.19
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts
have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts
are due and payable shall have been canceled.

 

5.20
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day.

 

5.21
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.

 

5.22
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE
PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

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5.23
Affirmation and RELEASE. Each of the Company and Canada Musclepharm Enterprises Corp. (collectively, the “Obligors”)
hereby expressly reaffirms its obligations under the Transaction Documents, including its grant of security in the Collateral (as defined
in the Security Agreement) under the Security Agreement in favor of the Collateral Agent.

 

EACH
OF THE OBLIGORS (IN ITS OWN RIGHT AND ON BEHALF OF ITS DIRECTORS, OFFICERS, EMPLOYEES, INDEPENDENT CONTRACTORS, ATTORNEYS AND AGENTS)
(THE “RELEASING PARTIES”) JOINTLY AND SEVERALLY RELEASES, ACQUITS AND FOREVER DISCHARGES THE COLLATERAL AGENT AND THE PURCHASERS
AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, INDEPENDENT CONTRACTORS, ATTORNEYS AND AGENTS (COLLECTIVELY, THE “RELEASED
PARTIES”), TO THE FULLEST EXTENT PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, FROM ANY AND ALL ACTS AND OMISSIONS OF THE RELEASED
PARTIES, AND FROM ANY AND ALL CLAIMS, CAUSES OF ACTION, COUNTERCLAIMS, DEMANDS, CONTROVERSIES, COSTS, DEBTS, SUMS OF MONEY, ACCOUNTS,
RECKONINGS, BONDS, BILLS, DAMAGES, OBLIGATIONS, LIABILITIES, OBJECTIONS AND EXECUTIONS OF ANY NATURE, TYPE, OR DESCRIPTION WHICH THE
RELEASING PARTIES HAVE AGAINST THE RELEASED PARTIES, INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE, GROSS NEGLIGENCE, USURY, UNCONSCIONABILITY,
DURESS, ECONOMIC DURESS, DEFAMATION, CONTROL, INTERFERENCE WITH CONTRACTUAL AND BUSINESS RELATIONSHIPS, CONFLICTS OF INTEREST, MISUSE
OF INSIDER INFORMATION, CONCEALMENT, DISCLOSURE, SECRECY, MISUSE OF COLLATERAL, WRONGFUL RELEASE OF COLLATERAL, FAILURE TO INSPECT, ENVIRONMENTAL
DUE DILIGENCE, NEGLIGENT NOTE PROCESSING AND ADMINISTRATION, WRONGFUL SETOFF, VIOLATIONS OF STATUTES AND REGULATIONS OF GOVERNMENTAL
ENTITIES, INSTRUMENTALITIES AND AGENCIES (CIVIL), SECURITIES AND ANTITRUST LAWS VIOLATIONS, TYING ARRANGEMENTS, BREACH OR ABUSE OF ANY
ALLEGED FIDUCIARY DUTY, BREACH OF ANY ALLEGED SPECIAL RELATIONSHIP, COURSE OF CONDUCT OR DEALING, ALLEGED OBLIGATION OF FAIR DEALING,
ALLEGED OBLIGATION OF GOOD FAITH, AND ALLEGED OBLIGATION OF GOOD FAITH AND FAIR DEALING, IN CONNECTION WITH OR RELATED TO THE TRANSACTION
DOCUMENTS AND THIS AGREEMENT AND NOTES, AT LAW OR IN EQUITY, IN CONTRACT IN TORT OR OTHERWISE, KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED
(COLLECTIVELY, THE “RELEASED CLAIMS”); PROVIDED, HOWEVER, THAT THE RELEASED CLAIMS SHALL NOT INCLUDE ANY CLAIMS ARISING OUT
OF ANY FAILURE BY THE COLLATERAL AGENT OR INVESTORS TO PERFORM, ON OR AFTER THE DATE HEREOF, ANY OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER
OR UNDER ANY OF THE TRANSACTION DOCUMENTS OR THIS AGREEMENT AND NOTES. THE RELEASING PARTIES FURTHER JOINTLY AND SEVERALLY AGREE TO LIMIT
ANY DAMAGES THEY MAY SEEK IN CONNECTION WITH ANY CLAIM OR CAUSE OF ACTION, IF ANY, TO EXCLUDE ALL PUNITIVE AND EXEMPLARY DAMAGES, DAMAGES
ATTRIBUTABLE TO LOST PROFITS OR OPPORTUNITY, DAMAGES ATTRIBUTABLE TO MENTAL ANGUISH, AND DAMAGES ATTRIBUTABLE TO PAIN AND SUFFERING,
AND THE RELEASING PARTIES DO HEREBY JOINTLY AND SEVERALLY WAIVE AND RELEASE ALL SUCH DAMAGES WITH RESPECT TO ANY AND ALL CLAIMS OR CAUSES
OF ACTION WHICH MAY ARISE AT ANY TIME AGAINST ANY OF THE RELEASED PARTIES. THE RELEASING PARTIES REPRESENT AND WARRANT THAT NO FACTS
EXIST WHICH COULD PRESENTLY SUPPORT THE ASSERTION OF ANY OF THE RELEASED CLAIMS AGAINST THE RELEASED PARTIES. THE RELEASING PARTIES FURTHER
COVENANT NOT TO SUE THE RELEASED PARTIES ON ACCOUNT OF ANY OF THE RELEASED CLAIMS. THIS PARAGRAPH IS IN ADDITION TO AND SHALL NOT IN
ANY WAY LIMIT ANY OTHER RELEASE, COVENANT NOT TO SUE, OR WAIVER BY THE RELEASING PARTIES IN FAVOR OF THE RELEASED PARTIES. NOTWITHSTANDING
ANY PROVISION OF THIS AGREEMENT OR NOTES (IN EACH CASE, AS AMENDED HEREBY) OR ANY OTHER TRANSACTION DOCUMENT, THIS PARAGRAPH SHALL REMAIN
IN FULL FORCE AND EFFECT AND SHALL SURVIVE THE DELIVERY AND PAYMENT ON THE OBLIGATIONS, THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS.

 

(Signature
Pages Follow)

 

    	54

    	 

    

 

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

 

	MusclePharm
    Corporation	 	Address
    for Notice:
	 	 	6728
    W. Sunset Road, Suite 130,

    Las
    Vegas, NV 89118

	 	 	 
	By:	 	 	 
	Name:	Ryan
    Drexler	 	Email:
    ryan.drexler@musclepharm.com
	Title:	Chief
    Executive Officer and Chairman	 	 
	 	 	 	 
	With
    a copy to (which shall not constitute notice):

     

    Richard
    A. Friedman, Esq.

    Sheppard,
    Mullin, Richter & Hampton, LLP

    30
    Rockefeller Plaza

    New
    York, NY 10112
	 	 

 

Solely
with respect to Section 5.23:

 

	CANADA
    MusclePharm ENTERPRISES Corp.	 	Address
    for Notice:
	 	 	6728
    W. Sunset Road, Suite 130,

    Las
    Vegas, NV 89118

	 	 	 
	By:	 	 	 
	Name:	Ryan
    Drexler	 	Email:
    ryan.drexler@musclepharm.com
	Title:	Chief
    Executive Officer and Chairman	 	 
	 	 	 	 
	With
    a copy to (which shall not constitute notice):

     

    Richard
    A. Friedman, Esq.

    Sheppard,
    Mullin, Richter & Hampton, LLP

    30
    Rockefeller Plaza

    New
    York, NY 10112
	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

[Signature
Page to Amended and Restated Securities Purchase Agreement]

 

    	55

    	 

    

 

[PURCHASER
SIGNATURE PAGES TO MSLP

AMENDED
AND RESTATED SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser:

 

By:

 

Signature
of Authorized Signatory of Purchaser:

 

Name
of Authorized Signatory:

 

Title
of Authorized
Signatory: 

 

Address
for Notice to Purchaser:

 

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

[SIGNATURE
PAGES
CONTINUE]

 

    	56

    	 

    

 

INITIAL
SCHEDULE OF PURCHASERS

 

	(1)	 	(2)	 	 	(3)	 	 	(3A)	 	 	(4)	 	 	(5)	 	 	(6)	 
	Purchaser	 	Address and
 Facsimile Number	 	 	Aggregate
 Principal
 Amount of Initial Notes	 	 	Aggregate Principal Amount of Initial Notes (as adjusted)	 	 	Number of Initial Warrant Shares	 	 	Initial Subscription Amount	 	 	Legal Representative’s Address and Facsimile Number	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	                       	 	 	 	                        	 	 	 	                       	 	 	 	                    	 	 	 	                       	 	 	 	                       	 

 

    	57

    	 

    

 

SUBSEQUENT
SCHEDULE OF PURCHASERS

 

	(1)	 	(2)	 	 	(3)	 	 	(4)	 	 	(5)	 	 	(6)	 
	Purchaser	 	Address and
 Facsimile Number	 	 	Aggregate
 Principal
 Amount of Subsequent Notes	 	 	Number of Subsequent Warrant Shares	 	 	Subsequent Subscription Amount	 	 	Legal Representative’s Address and Facsimile Number	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	                                 	 	 	 	                              	 	 	 	                             	 	 	 	                                 	 	 	 	                                      	 

 

    	58

    	 

    

 

EXHIBIT
A

INITIAL
NOTE

 

See
Exhibit 4.2 of the Company’s Current Report on Form 8-K filed with the SEC on October 19, 2021.

 

    	 

     

    

 

EXHIBIT
B

INITIAL
WARRANT

 

See
Exhibit 4.1 of the Company’s Current Report on Form 8-K filed with the SEC on October 19, 2021.

 

    	 

     

    

 

EXHIBIT
C

LOCK-UP
AGREEMENT

 

October
13, 2021

 

	 	Re:	Securities
    Purchase Agreement, dated as of October 13, 2021 (the “Purchase Agreement”), between MusclePharm Corporation (the “Company”)
    and the purchasers signatory thereto (each, a “Purchaser” and, collectively, the “Purchasers”)

 

Ladies
and Gentlemen:

 

Defined
terms not otherwise defined in this letter agreement (the “Letter Agreement”) shall have the meanings set forth in
the Purchase Agreement. Pursuant to Section 2.2(a) of the Purchase Agreement and in satisfaction of a condition of the Company’s
obligations under the Purchase Agreement, the undersigned irrevocably agrees with the Company that, from the date hereof until 180 days
after the Closing Date (such period, the “Restriction Period”), the undersigned will not offer, sell, contract to
sell, hypothecate, pledge or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected
to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by
the undersigned or any Affiliate of the undersigned or any person in privity with the undersigned or any Affiliate of the undersigned),
directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within
the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with respect to,
any shares of Common Stock of the Company or securities convertible, exchangeable or exercisable into, shares of Common Stock of the
Company beneficially owned, held or hereafter acquired by the undersigned (the “Securities”), or make any demand for
or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration
of any shares of Common Stock or Common Stock Equivalents or publicly disclose the intention to do any of the foregoing. Beneficial ownership
shall be calculated in accordance with Section 13(d) of the Exchange Act. Notwithstanding the foregoing, the Restriction Period shall
be 90 days if, between 90 and 180 days after the Closing Date, the VWAP is not less than $2.00 per share of Common Stock.

 

Notwithstanding
the foregoing, and subject to the conditions below, the undersigned may transfer the Securities provided that (1) the Company receives
a signed lock-up letter agreement (in the form of this Letter Agreement) for the balance of the Restriction Period from each donee, trustee,
distributee, or transferee, as the case may be, prior to such transfer, (2) any such transfer shall not involve a disposition for value,
(and (3) neither the undersigned nor any donee, trustee, distributee or transferee, as the case may be, otherwise voluntarily effects
any public filing or report regarding such transfers, with respect to transfer:

 

    	 

     

    

 

	 	i)	as
    a bona fide gift or gifts;
	 	 	 
	 	ii)	to
    any immediate family member or to any trust for the direct or indirect benefit of the undersigned or the immediate family of the
    undersigned (for purposes of this Letter Agreement, “immediate family” shall mean any relationship by blood, marriage
    or adoption, not more remote than first cousin);
	 	 	 
	 	iii)	to
    any corporation, partnership, limited liability company, or other business entity all of the equity holders of which consist of the
    undersigned and/or the immediate family of the undersigned;
	 	 	 
	 	iv)	if
    the undersigned is a corporation, partnership, limited liability company, trust or other business entity (a) to another corporation,
    partnership, limited liability company, trust or other business entity that is an Affiliate of the undersigned or (b) in the form
    of a distribution to limited partners, limited liability company members or stockholders of the undersigned;
	 	 	 
	 	v)	if
    the undersigned is a trust, to the beneficiary of such trust; or
	 	 	 
	 	vi)	by
    will, other testamentary document or intestate succession to the legal representative, heir, beneficiary or a member of the immediate
    family of the undersigned.

 

In
addition, notwithstanding the foregoing, this Letter Agreement shall not restrict the delivery of shares of Common Stock to the undersigned
upon (i) exercise of any options granted under any employee benefit plan of the Company, (ii) the exercise of warrants or (iii) the conversion
or exercise of any other instruments held by the undersigned; provided that, in each case under this paragraph, such shares of Common
Stock delivered to the undersigned in connection with such exercise are subject to the restrictions set forth in this Letter Agreement.

 

Furthermore,
the undersigned may enter into any new plan established in compliance with Rule 10b5-1 of the Exchange Act; provided that (i) such plan
may only be established if no public announcement or filing with the Securities and Exchange Commission, or other applicable regulatory
authority, is made in connection with the establishment of such plan during the Restriction Period and (ii) no sale of shares of Common
Stock are made pursuant to such plan during the Restriction Period.

 

The
undersigned acknowledges that the execution, delivery and performance of this Letter Agreement is a material inducement to each Purchaser
to complete the transactions contemplated by the Purchase Agreement and the Company shall be entitled to specific performance of the
undersigned’s obligations hereunder. The undersigned hereby represents that the undersigned has the power and authority to execute,
deliver and perform this Letter Agreement, that the undersigned has received adequate consideration therefor and that the undersigned
will indirectly benefit from the closing of the transactions contemplated by the Purchase Agreement.

 

    	2

     

    

 

This
Letter Agreement may not be amended or otherwise modified in any respect without the written consent of each of the Company and the undersigned.
This Letter Agreement shall be construed and enforced in accordance with the laws of the State of New York without regard to the principles
of conflict of laws. The undersigned hereby irrevocably submits to the exclusive jurisdiction of the United States District Court sitting
in the Southern District of New York and the courts of the State of New York located in Manhattan, for the purposes of any suit, action
or proceeding arising out of or relating to this Letter Agreement, and hereby waives, and agrees not to assert in any such suit, action
or proceeding, any claim that (i) it is not personally subject to the jurisdiction of such court, (ii) the suit, action or proceeding
is brought in an inconvenient forum, or (iii) the venue of the suit, action or proceeding is improper. The undersigned hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by receiving a copy thereof
sent to the Company at the address in effect for notices to it under the Purchase Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. The undersigned hereby waives any right to a trial by jury. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. The undersigned agrees and understands
that this Letter Agreement does not intend to create any relationship between the undersigned and any Purchaser and that no Purchaser
is entitled to cast any votes on the matters herein contemplated and that no issuance or sale of the Securities is created or intended
by virtue of this Letter Agreement.

 

This
Letter Agreement shall be binding on successors and assigns of the undersigned with respect to the Securities and any such successor
or assign shall enter into a similar agreement for the benefit of the Purchasers.

 

***
SIGNATURE PAGE FOLLOWS***

 

    	3

     

    

 

This
Letter Agreement may be executed in two or more counterparts, all of which when taken together may be considered one and the same agreement.

 

	 	 
	Signature	 
	 	 
	Ryan
    Drexler	 
	Print
    Name	 
	 	 
	CEO
    & Chairman of the Board	 
	Position
    in Company, if any	 
	 	 
	Address
    for Notice:	 
	 	 
	 	 
	 	 

 

By
signing below, the Company agrees to enforce the restrictions on transfer set forth in this Letter Agreement.

 

MUSCLEPHARM
CORPORATION

 

	By:
    	 	 
	Name:	Sabina
    Rizvi	 
	Title:	President
    & CFO	 

 

    	4

     

    

 

EXHIBIT
D

PLEDGE
AND SECURITY AGREEMENT

 

See
Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on October 19, 2021.

 

    	 

     

    

 

EXHIBIT
E

INTERCREDITOR
AGREEMENT

 

Intercreditor
Agreement (this “Agreement”), dated as of October 13, 2021 among PRESTIGE CAPITAL FINANCE, LLC, as successor by merger
to PRESTIGE CAPITAL CORPORATION, a Delaware limited liability company (“Prestige”), as representative (in such capacity,
with its successors and assigns, and as more specifically defined below, the “Factoring Representative”) for the Factoring
Secured Parties (as defined below), EMPERY TAX EFFICIENT, LP (“Empery”), as representative (in such capacity, with
its successors and assigns, and as more specifically defined below, the “Notes Representative”) for the Notes Secured
Parties (as defined below), and each of the Financing Parties (as defined below) party hereto.

 

WHEREAS
Prestige and MusclePharm Corporation, a Nevada corporation (the “Company”) are parties to the Purchase and Sale Agreement
dated as of January 11, 2016 (as amended by (i) that certain Modification and Extension Agreement, dated as of October 25, 2016, (ii)
that certain Modification and Extension Agreement, dated as of March 22, 2017, (iii) that certain Modification and Extension Agreement,
dated as of September 15, 2017, (iv) that certain Modification and Extension Agreement, dated as of March 20, 2018, (v) that certain
Modification and Extension Agreement, dated as of April 10, 2019, (vi) that certain letter agreement dated March 30, 2020, (vii) that
certain Modification and Extension Agreement, dated as of June 14, 2021, (viii) that certain Modification and Extension Agreement, dated
as of July 26, 2021, (ix) that certain Modification and Extension Agreement, dated as of even date herewith and (x) as may have otherwise
been modified prior to the date hereof, the “Existing Factoring Agreement”), pursuant to which the Company has agreed
to sell, transfer and assign, and Prestige has agreed to purchase and accept, all of Company’s right, title and interest in and
to those specific accounts receivable owing to Company as set forth on the assignment forms (each, a “Factoring Assignment”)
provided by Prestige and delivered from time to time by the Company to Prestige (collectively, the “Factored Accounts”);

 

WHEREAS
the Company, Empery and each party listed as a “Buyer” on the signature pages thereto (each a “Buyer”,
and collectively, the “Buyers”) are parties to the Securities Purchase Agreement, dated as of the date hereof (as
amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, the “Existing Securities
Purchase Agreement”) pursuant to which the Company shall be required to sell, and the Buyers shall purchase or have the right
to purchase, the Notes (as defined in the Existing Securities Purchase Agreement) (as such Notes may be amended, restated, amended and
restated, supplemented, replaced or otherwise modified from time to time, collectively, the “Existing Notes”);

 

WHEREAS,
the Company has granted to the Factoring Representative security interests in the Factoring Collateral as security for payment and performance
of the Factoring Obligations; and

 

WHEREAS,
the Company has granted to the Notes Representative security interests in the Notes Collateral as security for payment and performance
of the Notes Obligations.

 

    	-1-

    	 

    

 

NOW
THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and other good and valuable consideration, the
existence and sufficiency of which is expressly recognized by all of the parties hereto, the parties agree as follows:

 

SECTION
1. Definitions; Rules of Construction.

 

1.1
UCC Definitions. The following terms which are defined in the Uniform Commercial Code are used herein as so defined: Accounts,
Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Financial Assets, Fixtures,
Goods, General Intangibles, Instruments, Inventory, Investment Property, Letter of Credit, Letter-of-Credit Rights, Money, Payment Intangibles,
Promissory Notes, Proceeds, Records, Securities, Securities Accounts, Security Entitlements, Supporting Obligations, and Tangible Chattel
Paper.

 

1.2
Defined Terms. The following terms, as used herein, have the following meanings:

 

“Additional
Factoring Agreement” means any agreement approved for designation as such by the Notes Representative in its sole and reasonable
discretion.

 

“Additional
Notes Agreement” means any agreement approved for designation as such by the Notes Representative in its sole and reasonable
discretion.

 

“Bankruptcy
Code” means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended from time to time.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to remain closed.

 

“Company”
has the meaning set forth in recitals.

 

“Collateral”
means, collectively, all Factoring Collateral and all Notes Collateral.

 

“Common
Collateral” means all Collateral that constitutes both Factoring Collateral and Notes Collateral.

 

    	-2-

    	 

    

 

“Enforcement
Action” means, with respect to the Factoring Obligations or the Notes Obligations, (a) the taking of any action to enforce
or realize upon any Lien in the Collateral, including the institution of any foreclosure proceedings or the noticing of any public or
private sale or other disposition pursuant to Article 8 or Article 9 of the Uniform Commercial Code or other applicable law, (b) the
exercise of any right or remedy provided to a secured creditor or otherwise on account of a Lien in the Collateral under the Factoring
Documents, the Notes Documents, applicable law, in an Insolvency Proceeding or otherwise, including the election to retain any Collateral
in satisfaction of a Lien, (c) the taking of any action or the exercise of any right or remedy in respect of the collection on, set off
against, marshaling of, or foreclosure on the Collateral or the Proceeds of Collateral, (d) the sale, lease, license, or other disposition
of all or any portion of the Collateral, at a private or public sale, other disposition or any other means permissible under applicable
law at any time that an event of default under any of the Factoring Documents or Notes Documents shall have occurred which is continuing,
and (e) the exercise of any other right of liquidation against any Collateral (including the exercise of any right of recoupment or set-off
or any rights against Collateral obtained pursuant to or by foreclosure of a judgment Lien obtained against any Financing Party) whether
under the Factoring Documents, the Notes Documents, applicable law, in an Insolvency Proceeding or otherwise. It is specifically understood
and agreed that neither (x) the notification and collection of Accounts in the ordinary course of business, nor (y) the sweeping of the
Company’s depository account with Wells Fargo Bank, National Association, with account number 4241874361 and which is subject to
a deposit account control agreement in favor of the Factoring Representative in the ordinary course of business, by Prestige, the Factoring
Representative and/or the Factoring Secured Parties, shall constitute an Enforcement Action.

 

“Enforcement
Expenses” shall mean all reasonable costs, expenses or fees (including fees incurred by the Factoring Representative, the Notes
Representative or any attorneys or other agents or consultants retained by the Factoring Representative or the Notes Representative)
that the Factoring Representative, the Notes Representative or any other Factoring Secured Party or Notes Secured Party may suffer or
incur after the occurrence of a breach, default or event of default on account or in connection with (a) the repossession, storage, repair,
appraisal, insuring, completion of the manufacture of, preparing for sale, advertising for sale, selling, collecting or otherwise preserving
or realizing upon any Collateral, (b) the settlement or satisfaction of any prior Lien or other encumbrance upon any Collateral, (c)
the enforcement of, or any workout under or restructuring of, any of the Factoring Documents or the Notes Documents, as the case may
be, or the collection of any of the Factoring Obligations or the Notes Obligations, as the case may be, (d) any Insolvency Proceeding
or (e) the exercise of rights under Section 3 hereof.

 

“Existing
Factoring Agreement” has the meaning set forth in the recitals.

 

“Existing
Notes” has the meaning set forth in the recitals.

 

“Factored
Accounts” has the meaning set forth in the recitals.

 

“Factoring
Agreement” means the collective reference to (a) the Existing Factoring Agreement, (b) any Additional Factoring Agreement,
(c) any Factoring Assignment and (d) any other purchase and sale agreement, credit agreement, note agreement, promissory note, indenture
or other agreement or instrument evidencing or governing the terms of any indebtedness or other financial or factoring accommodation
that has been incurred to extend, replace, refinance or refund in whole or in part the indebtedness and other obligations outstanding
under the Existing Factoring Agreement (regardless of whether such replacement, refunding or refinancing is a “working capital”
facility, asset-based facility or otherwise), any Additional Factoring Agreement or any other agreement or instrument referred to in
this clause (c) (a “Replacement Factoring Agreement”). Any reference to a Factoring Agreement hereunder shall be deemed
a reference to any Factoring Agreement then extant.

 

“Factoring
Collateral” means all Accounts, Inventory, machinery and Equipment, Instruments, Documents, Chattel Paper, General Intangibles,
whether now owned or hereafter created or acquired by the Company, wherever located, and all replacements and substitutions therefore,
accessions thereto, and Products and Proceeds thereof, and all property of Company at any time in Prestige’s possession.

 

    	-3-

    	 

    

 

“Factoring
Documents” means the Factoring Agreement, each Factoring Security Document, each Factoring Guarantee and each other agreement,
instrument or other document from time to time executed or delivered in connection with any of the foregoing.

 

“Factoring
Guarantee” means any guarantee by any Financing Party of any or all of the Factoring Obligations.

 

“Factoring
Lien” means any Lien created by the Factoring Security Documents.

 

“Factoring
Obligations” means (a) all consideration, fees, costs, discounts, penalties, expenses or other amounts in respect of the purchase
and sale of the Factored Accounts or any other assets or property sold, transferred and/or purchased under the Factoring Documents, (b)
all premiums, default fees (if any) (including without limitation any Post-Petition Fees) on all advances or other financial accommodations
made pursuant to the Factoring Agreement by the Factoring Secured Parties, (c) all guarantee obligations, indemnities, fees, expenses
and other amounts payable from time to time pursuant to the Factoring Documents, in each case whether or not allowed or allowable in
an Insolvency Proceeding, and (d) all other amounts due to the Factoring Secured Parties under the terms of the Factoring Documents.
To the extent any payment with respect to any Factoring Obligation (whether by or on behalf of any Financing Party, as Proceeds of security,
enforcement of any right of setoff or otherwise) is declared to be a fraudulent conveyance or a preference in any respect, set aside
or required to be paid to a debtor in possession, any Notes Secured Party, receiver or similar Person, then the obligation or part thereof
originally intended to be satisfied shall, for the purposes of this Agreement and the rights and obligations of the Factoring Secured
Parties and the Notes Secured Parties, be deemed to be reinstated and outstanding as if such payment had not occurred; provided, that
“Factoring Obligations” shall not include consideration, loans, advances or similar obligations, and guarantee obligations
in excess of the Maximum Factoring Obligations made or incurred under the Factoring Documents. For clarification, the financial accommodations
provided by Prestige, the Factoring Representative and the Factoring Secured Parties to the Company are not loans and Prestige, the Factoring
Representative and the Factoring Secured Parties do not charge interest. All transactions between Prestige, the Factoring Representative
and the Factoring Secured Parties are factoring transactions and not loans, regardless of any terms otherwise used herein.

 

“Factoring
Obligations Payment Date” means the first date on which (a) the Factoring Obligations (other than those that constitute Unasserted
Contingent Obligations) have been indefeasibly paid in cash in full and (b) the Factoring Documents shall have been terminated and extinguished
in accordance with their respective terms.

 

“Factoring
Priority Collateral” means all Factoring Collateral consisting of the following:

 

(a)
the Factored Accounts and any other Accounts of the Company;

 

(b)
all goods returned by or reclaimed or repossessed from Account Debtors and all goods described in copies of invoices delivered by the
Company to Prestige, the Factoring Representative and/or the Factoring Secured Parties, in each case, with respect to the Factored Accounts
and any other Accounts of the Company (the “Reclaimed Goods”);

 

    	-4-

    	 

    

 

(c)
to the extent evidencing or governing the Factored Accounts or any other Accounts of the Company, Instruments, Documents, Chattel (including
Tangible Chattel Paper and Electronic Chattel Paper), General Intangibles (other than goodwill, intellectual property and other proprietary
rights) and Supporting Obligations; provided that to the extent any such Instruments, Documents, Chattel, General Intangibles or Supporting
Obligations evidences or governs Notes Priority Collateral, only that portion evidencing or governing the Factored Accounts or such other
Accounts shall be included in the Factoring Priority Collateral;

 

(d)
all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related
thereto at any time evidencing or relating to any of the foregoing; provided that, to the extent any of the foregoing also relate to
Notes Priority Collateral, only that portion related to the items referred to in the foregoing clauses (a) and (b) as being included
in the Factoring Priority Collateral shall be included in the Factoring Priority Collateral; and

 

(e)
(i) all Proceeds in respect of, the foregoing (which shall include proceeds of credit insurance and insurance on the Reclaimed Goods,
but shall not include proceeds of any other insurance) and (ii) all collateral security and guarantees given by any Person with respect
to any of the foregoing.

 

For
purposes of clarification, and notwithstanding anything to the contrary set forth in this Agreement, (a) intellectual property and other
similar or related proprietary rights shall not constitute Factoring Priority Collateral, but instead shall constitute Notes Priority
Collateral, (b) Investment Property shall not constitute Factoring Priority Collateral, but shall instead constitute Notes Priority Collateral,
(c) the Proceeds of business interruption insurance, other than relating to the Reclaimed Goods, shall not constitute Factoring Priority
Collateral, but shall instead constitute Notes Priority Collateral, (d) the Proceeds of credit insurance and insurance on the Reclaimed
Goods shall constitute Factoring Priority Collateral and shall not in any way constitute Notes Priority Collateral, provided,
that it is agreed and understood that all proceeds of any insurance other than credit insurance and insurance on or relating to the Reclaimed
Goods shall constitute Notes Priority Collateral and (e) all obligations owed by any Financing Party or any of its subsidiaries to any
other Financing Party or any of its subsidiaries shall not constitute Factoring Priority Collateral, but shall instead constitute Notes
Priority Collateral

 

“Factoring
Representative” has the meaning set forth in the introductory paragraph hereof. In the case of any Replacement Factoring Agreement,
the Factoring Representative shall be the Person identified as such in such Agreement.

 

“Factoring
Secured Parties” means the Factoring Representative, Prestige and any other holders of the Factoring Obligations from time
to time.

 

“Factoring
Security Documents” means the Factoring Agreement and any other agreement, document or instrument pursuant to which a Lien
is granted by the Company or any subsidiary of the Company securing any Factoring Obligations or under which rights or remedies with
respect to such Liens are governed, together with any amendments, replacements, modifications, extensions, renewals or supplements to,
or restatements of, any of the foregoing, to the extent permitted hereby.

 

    	-5-

    	 

    

 

“Financing
Documents” shall mean, collectively, the Factoring Documents and the Notes Documents.

 

“Financing
Party” means the Company and each direct or indirect subsidiary, affiliate or shareholder (or equivalent) of Company or any
of its affiliates that is now or hereafter becomes a party to any Financing Document. All references in this Agreement to any Financing
Party shall include such Financing Party as a debtor-in-possession and any receiver or trustee for such Financing Party in any Insolvency
Proceeding.

 

“Insolvency
Proceeding” means any proceeding in respect of bankruptcy, insolvency, winding up, receivership, dissolution or assignment
for the benefit of creditors, in each of the foregoing events whether under the Bankruptcy Code or any similar federal, state or foreign
bankruptcy, insolvency, reorganization, receivership or similar law.

 

“Junior
Collateral” shall mean with respect to any Junior Secured Party, any Collateral on which it has a Junior Lien.

 

“Junior
Documents” shall mean, collectively, with respect to any Junior Obligations, any provision pertaining to such Junior Obligation
in any Financing Document or any other document, instrument or certificate evidencing or delivered in connection with such Junior Obligation.

 

“Junior
Liens” shall mean (a) with respect to any Factoring Priority Collateral, all Liens securing the Notes Obligations and (b) with
respect to any Notes Priority Collateral, all Liens securing the Factoring Obligations.

 

“Junior
Obligations” shall mean (a) with respect to any Factoring Priority Collateral, all Notes Obligations and (b) with respect to
any Notes Priority Collateral, all Factoring Obligations.

 

“Junior
Representative” shall mean (a) with respect to any Factoring Obligations or any Factoring Priority Collateral, the Notes Representative
and (b) with respect to any Notes Obligations or any Notes Priority Collateral, the Factoring Representative.

 

“Junior
Secured Parties” shall mean (a) with respect to the Factoring Priority Collateral, all Notes Secured Parties and (b) with respect
to the Notes Priority Collateral, all Factoring Secured Parties.

 

“Junior
Security Documents” shall mean with respect to any Junior Secured Party, the Security Documents that secure the Junior Obligations.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, deed to secure debt, lien, pledge, hypothecation, assignment, assignation,
debenture, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any
of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party
with respect to such securities.

 

    	-6-

    	 

    

 

“Lien
Priority” means with respect to any Lien of the Factoring Representative or Notes Representative in the Common Collateral,
the order of priority of such Lien specified in Section 2.1.

 

“Maximum
Factoring Obligations” shall mean, as of any date of determination, the amount that is equal to $12,500,000 less the
aggregate amount of all permanent reductions of any maximum advance amount under the Factoring Agreement after the date hereof.

 

“Notes
Agreement” means the collective reference to (a) the Existing Securities Purchase Agreement and the Existing Notes, (b) any
Additional Notes Agreement and (c) any other credit agreement, loan agreement, securities purchase agreement, note agreement, promissory
note, additional notes, indenture or other agreement or instrument evidencing or governing the terms of any indebtedness or other financial
accommodation that has been incurred to increase, extend, replace, refinance or refund in whole or in part the indebtedness and other
obligations outstanding under the Existing Notes Agreement, any Additional Notes Agreement or any other agreement or instrument referred
to in this clause (c) unless such agreement or instrument expressly provides that it is not intended to be and is not a Notes Agreement
hereunder (a “Replacement Notes Agreement”). Any reference to the Notes Agreement hereunder shall be deemed a reference
to any Notes Agreement then extant.

 

“Notes
Collateral” means all assets, whether now owned or hereafter acquired by any Financing Party, in which a Lien is granted or
purported to be granted to any Notes Secured Party as security for any Notes Obligation.

 

“Notes
Creditors” means the Buyers.

 

“Notes
DIP Financing” has the meaning set forth in Section 5.2(a).

 

“Notes
Documents” means each Notes Agreement, each Notes Security Document, each Notes Guarantee and each other “Transaction
Document” as defined in the Notes Agreement.

 

“Notes
Guarantee” means any guarantee by any Financing Party of any or all of the Notes Obligations.

 

“Notes
Lien” means any Lien created by the Notes Security Documents.

 

    	-7-

    	 

    

 

“Notes
Obligations” means (a) all principal of and interest (including without limitation any Post-Petition Fees) and premium (if
any) on all indebtedness under the Notes Agreement or any Notes DIP Financing by the Notes Creditors, (b) all guarantee obligations,
indemnities, fees, expenses and other amounts payable from time to time pursuant to the Notes Documents, in each case whether or not
allowed or allowable in an Insolvency Proceeding and (c) all other amounts due to the Notes Secured Parties under the terms of the Notes
Documents. To the extent any payment with respect to any Notes Obligation (whether by or on behalf of any Financing Party, as Proceeds
of security, enforcement of any right of setoff or otherwise) is declared to be a fraudulent conveyance or a preference in any respect,
set aside or required to be paid to a debtor in possession, any Factoring Secured Party, receiver or similar Person, then the obligation
or part thereof originally intended to be satisfied shall, for the purposes of this Agreement and the rights and obligations of the Factoring
Secured Parties and the Notes Secured Parties, be deemed to be reinstated and outstanding as if such payment had not occurred. Notwithstanding
anything to the contrary contained in this Agreement, the term “Notes Obligations” shall include, (x) Enforcement Expenses,
(y) any amounts required to be paid by any Financing Party to the Notes Representative or any other Notes Secured Party on such date
pursuant to any indemnity provision contained in the Notes Documents and (z) break-funding or similar payments payable to the Notes Representative
and/or the Notes Secured Parties pursuant to the Notes Documents in connection with prepayment of a Notes Obligation.

 

“Notes
Obligations Payment Date” means the first date on which (a) the Notes Obligations (other than those that constitute Unasserted
Contingent Obligations) have been paid in cash in full and (b) all commitments to extend credit under the Notes Documents have been terminated.

 

“Notes
Priority Collateral” means (a) all Collateral, other than the Factoring Priority Collateral, (b) all collateral security and
guarantees in respect of any of the foregoing, (c) all Proceeds, products, accessions, rents and profits of or in respect of any of the
foregoing (including all Proceeds of insurance (including, without limitation, business interruption insurance)).

 

“Notes
Priority Standstill Period” is defined in Section 3.2.

 

“Notes
Representative” has the meaning set forth in the introductory paragraph hereof. In the case of any Replacement Notes Agreement,
the Notes Representative shall be the Person identified as such in such Agreement.

 

“Notes
Secured Parties” means the Notes Representative, the Notes Creditors and any other holders of the Notes Obligations.

 

“Notes
Security Documents” means (a) any Notes Agreement, the Security Agreement (as defined in the Notes Agreement), and any other
“Security Documents” as defined in the Notes Agreement and any documents that are designated under the Notes Agreement as
“Notes Security Documents” for purposes of this Agreement, and (b) any other agreement, document or instrument pursuant to
which a Lien is granted by the Company or any subsidiary of the Company securing any Notes Obligations or under which rights or remedies
with respect to such Liens are governed, together with any amendments, replacements, modifications, extensions, renewals or supplements
to, or restatements of, any of the foregoing.

 

“Person”
means any person, individual, sole proprietorship, partnership, joint venture, corporation, limited liability company, unincorporated
organization, association, institution, entity, party, including any government and any political subdivision, agency or instrumentality
thereof.

 

“Post-Petition
Fees” means any discounts, fees, interest or entitlement to fees or expenses or other charges that accrues after the commencement
of any Insolvency Proceeding (or would accrue but for the commencement of an Insolvency Proceeding), whether or not allowed or allowable
in any such Insolvency Proceeding.

 

“Prestige”
has the meaning set forth in the preamble hereto.

 

    	-8-

    	 

    

 

“Priority
Collateral” means the Factoring Priority Collateral or the Notes Priority Collateral.

 

“Proceeds”
means (a) all “proceeds,” as defined in Article 9 of the Uniform Commercial Code, with respect to the Common Collateral,
and (b) whatever is recoverable or recovered when any Common Collateral is sold, exchanged, collected, or disposed of, whether voluntarily
or involuntarily.

 

“Replacement
Factoring Agreement” has the meaning set forth in the definition of “Factoring Agreement.”

 

“Replacement
Notes Agreement” has the meaning set forth in the definition of “Notes Agreement.”

 

“Secured
Obligations” shall mean the Factoring Obligations and the Notes Obligations.

 

“Secured
Parties” means the Factoring Secured Parties and the Notes Secured Parties.

 

“Security
Documents” means, collectively, the Factoring Security Documents and the Notes Security Documents.

 

“Senior
Collateral” shall mean with respect to any Senior Secured Party, any Collateral on which it has a Senior Lien.

 

“Senior
Documents” shall mean, collectively, with respect to any Senior Obligation, any provision pertaining to such Senior Obligation
in any Financing Document or any other document, instrument or certificate evidencing or delivered in connection with such Senior Obligation.

 

“Senior
Liens” shall mean (a) with respect to the Factoring Priority Collateral, all Liens securing the Factoring Obligations and (b)
with respect to the Notes Priority Collateral, all Liens securing the Notes Obligations.

 

“Senior
Obligations” shall mean (a) with respect to any Factoring Priority Collateral, all Factoring Obligations and (b) with respect
to any Notes Priority Collateral, all Notes Obligations.

 

“Senior
Obligations Payment Date” shall mean (a) with respect to Factoring Obligations, the Factoring Obligations Payment Date and
(b) with respect to any Notes Obligations, the Notes Obligations Payment Date.

 

“Senior
Representative” shall mean (a) with respect to any Factoring Priority Collateral, the Factoring Representative and (b) with
respect to any Notes Priority Collateral, the Notes Representative.

 

“Senior
Secured Parties” shall mean (a) with respect to the Factoring Priority Collateral, all Factoring Secured Parties and (b) with
respect to the Notes Priority Collateral, all Notes Secured Parties.

 

    	-9-

    	 

    

 

“Senior
Security Documents” shall mean with respect to any Senior Secured Party, the Security Documents that secure the Senior Obligations.

 

“Unasserted
Contingent Obligations” shall mean, at any time, Factoring Obligations or Notes Obligations, as applicable, for taxes, costs,
indemnifications, reimbursements, damages and other liabilities (excluding the outstanding advances, principal of, and interest, discounts
and premium (if any) on, and fees and expenses relating to, any Factoring Obligation or Notes Obligation, as applicable) in respect of
which no assertion of liability (whether oral or written) and no claim or demand for payment (whether oral or written) has been made
(and, in the case of Factoring Obligations or Notes Obligations, as applicable, for indemnification, no notice for indemnification has
been issued by the indemnitee) at such time.

 

“Uniform
Commercial Code” shall mean the Uniform Commercial Code as in effect from time to time in the applicable jurisdiction.

 

1.3
Rules of Construction. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires
otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to
such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions
on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d)
all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights.

 

SECTION
2. Lien Priority.

 

2.1
Lien Subordination. Notwithstanding the date, manner or order of grant, attachment or perfection of any Junior Lien in respect
of any Collateral or of any Senior Lien in respect of any Collateral and notwithstanding any provision of the UCC, any applicable law,
any Security Document, any alleged or actual defect or deficiency in any of the foregoing or any other circumstance whatsoever, the Junior
Representative, on behalf of each Junior Secured Party, in respect of such Collateral hereby agrees that:

 

(a)
any Senior Lien in respect of such Collateral, regardless of how acquired, whether by grant, statute, operation of law, subrogation or
otherwise, shall be and shall remain senior and prior to any Junior Lien in respect of such Collateral (whether or not such Senior Lien
is subordinated to any Lien securing any other obligation); and

 

    	-10-

    	 

    

 

(b)
any Junior Lien in respect of such Collateral, regardless of how acquired, whether by grant, statute, operation of law, subrogation or
otherwise, shall be junior and subordinate in all respects to any Senior Lien in respect of such Collateral.

 

2.2
Prohibition on Contesting Liens. In respect of any Collateral, the Junior Representative, on behalf of each Junior Secured Party,
in respect of such Collateral agrees that it shall not, and hereby waives any right to:

 

(a)
contest, or support any other Person in contesting, in any proceeding (including any Insolvency Proceeding), the priority, validity or
enforceability of any Senior Lien on such Collateral; or

 

(b)
demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or similar right which it may
have in respect of such Collateral or the Senior Liens on such Collateral, except to the extent that such rights are expressly granted
in this Agreement.

 

2.3
Nature of Obligations. The parties hereto agree and acknowledge that the terms of the Factoring Obligations may not be materially
modified, extended or amended, and that the aggregate amount of the Factoring Obligations may not be increased, replaced or refinanced,
in each event, without prior written notice to and consent by the Notes Secured Parties, which consent will not be unreasonably withheld,
conditioned or delayed and without affecting the provisions hereof. The Factoring Representative on behalf of itself and the other Factoring
Secured Parties acknowledges that Notes Obligations may be replaced or refinanced without notice to or consent by the Factoring Secured
Parties and without affecting the provisions hereof. The Lien Priorities provided in Section 2.1 shall not be altered or otherwise
affected by any such amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement
or refinancing of either the Factoring Obligations or the Notes Obligations, or any portion thereof.

 

2.4
No New Liens.

 

(a)
Until the Notes Obligations Payment Date, no Financing Party shall grant or permit any Liens in favor of the Factoring Representative
or any other Factoring Secured Party on any assets of any Financing Party securing any Factoring Obligation unless such Financing Party
has offered to grant, or substantially contemporaneously grants, a Lien therein in favor of the Notes Representative, and if granted,
such Lien shall be subject to the Lien Priority set forth herein. If any Factoring Secured Party shall (nonetheless and in breach hereof)
acquire or hold any Lien on any assets of any Financing Party securing any Factoring Obligation which assets are not also subject to
the Lien of the Notes Representative under the Notes Documents, subject to the Lien Priority set forth herein, then the Factoring Representative
(or the relevant Factoring Secured Party) shall, without the need for any further consent of any other Factoring Secured Party and notwithstanding
anything to the contrary in any other Factoring Document be deemed to also hold and have held such Lien for the benefit of the Notes
Representative as security for the Notes Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify
the Notes Representative in writing of the existence of such Lien.

 

    	-11-

    	 

    

 

(b)
Until the Factoring Obligations Payment Date, no Financing Party shall grant or permit any Liens in favor of the Notes Representative
or any other Notes Secured Party on any assets of any Financing Party securing any Notes Obligation unless such Financing Party has offered
to grant, or substantially contemporaneously grants, a Lien therein in favor of the Factoring Representative, and if granted, such Lien
shall be subject to the Lien Priority set forth herein. If any Notes Secured Party shall (nonetheless and in breach hereof) acquire or
hold any Lien on any assets of any Financing Party securing any Notes Obligation which assets are not also subject to the Lien of the
Factoring Representative under the Factoring Documents, subject to the Lien Priority set forth herein, then the Notes Representative
(or the relevant Notes Secured Party) shall, without the need for any further consent of any other Notes Secured Party and notwithstanding
anything to the contrary in any other Notes Document be deemed to also hold and have held such lien for the benefit of the Factoring
Representative as security for the Factoring Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify
the Factoring Representative in writing of the existence of such Lien.

 

2.5
Separate Grants of Security and Separate Classification. Each Secured Party acknowledges and agrees that (i) the grants of Liens
pursuant to the Factoring Security Documents and the Notes Security Documents constitute two separate and distinct grants of Liens and
(ii) because of, among other things, their differing rights in the Common Collateral, the Notes Obligations are fundamentally different
from the Factoring Obligations and should be separately classified in any plan of reorganization proposed or adopted in an Insolvency
Proceeding. To further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that the
claims of the Factoring Secured Parties and the Notes Secured Parties in respect of the Common Collateral constitute claims in the same
class (rather than separate classes of senior and junior secured claims), then the Factoring Secured Parties and the Notes Secured Parties
hereby acknowledge and agree that all distributions shall be made as if there were separate classes of Factoring Obligation claims and
Notes Obligation claims against the Financing Parties (with the effect being that, to the extent that the aggregate value of the Factoring
Priority Collateral or Notes Priority Collateral is sufficient (for this purpose ignoring all claims held by the other Secured Parties)),
the Factoring Secured Parties or the Notes Secured Parties, respectively, shall be entitled to receive, in addition to amounts distributed
to them in respect of principal, repayment of advances, pre-petition interest, discounts and fees and other claims, all amounts owing
in respect of Post-Petition Fees that is available from each pool of Priority Collateral for each of the Factoring Secured Parties and
the Notes Secured Parties, respectively, before any distribution is made in respect of the claims held by the other Secured Parties,
with the other Secured Parties hereby acknowledging and agreeing to turn over to the respective other Secured Parties amounts otherwise
received or receivable by them to the extent necessary to effectuate the intent of this sentence, even if such turnover has the effect
of reducing the aggregate recoveries.

 

    	-12-

    	 

    

 

2.6
Agreements Regarding Actions to Perfect Liens.

 

(a)
Each of the Factoring Representative and the Notes Representative hereby acknowledges that, to the extent that it holds, or a third party
holds on its behalf, physical possession of or “control” (as defined in the Uniform Commercial Code) over Common Collateral
pursuant to the Factoring Security Documents or the Notes Security Documents, as applicable, such possession or control is also for the
benefit of the Notes Representative and the other Notes Secured Parties or the Factoring Representative and the other Factoring Secured
Parties, as applicable, solely to the extent required to perfect their security interest in such Common Collateral. Nothing in the preceding
sentence shall be construed to impose any duty on the Factoring Representative or the Notes Representative (or any third party acting
on either such Person’s behalf) with respect to such Common Collateral or provide the Notes Representative, any other Notes Secured
Party, the Factoring Representative or any other Factoring Secured Party, as applicable, with any rights with respect to such Common
Collateral beyond those specified in this Agreement, the Factoring Security Documents and the Notes Security Documents, as applicable,
provided that (i) subsequent to the occurrence of the Factoring Obligations Payment Date (so long as the Notes Obligations Payment
Date shall not have occurred), the Factoring Representative shall (A) deliver to the Notes Representative, at the Financing Parties’
sole cost and expense, any Common Collateral in its possession or control together with any necessary endorsements to the extent required
by the Notes Documents or (B) direct and deliver such Common Collateral as a court of competent jurisdiction otherwise directs, and (ii)
subsequent to the occurrence of the Notes Obligations Payment Date (so long as the Factoring Obligations Payment Date shall not have
occurred), the Notes Representative shall (A) deliver to the Factoring Representative, at the Financing Parties’ sole cost and
expense, any Common Collateral in its possession or control together with any necessary endorsements to the extent required by the Factoring
Documents or (B) direct and deliver such Common Collateral as a court of competent jurisdiction otherwise directs. The provisions of
this Agreement are intended solely to govern the respective Lien priorities as between the Factoring Secured Parties and the Notes Secured
Parties and shall not impose on the Factoring Secured Parties or the Notes Secured Parties any obligations in respect of the disposition
of any Common Collateral (or any proceeds thereof) that would conflict with prior perfected Liens or any claims thereon in favor of any
other Person that is not a Secured Party.

 

SECTION
3. Enforcement Rights

 

3.1
Exclusive Enforcement. Until the Senior Obligations Payment Date has occurred, whether or not an Insolvency Proceeding has been
commenced by or against any Financing Party, the Senior Secured Parties shall have the exclusive right to take and continue any Enforcement
Action (including the right to credit bid their debt) with respect to the Senior Collateral, without any consultation with or consent
of any Junior Secured Party; provided, however, that notwithstanding the foregoing (i) the Factoring Secured Parties shall
provide the Notes Secured Parties prior written notice of any Enforcement Action, (ii) the Notes Representative or any other Notes Secured
Party may exercise any of its rights or remedies (including, undertake any Enforcement Action) with respect to the Factoring Priority
Collateral after the termination of the Notes Priority Standstill Period and (iii) the Notes Secured Parties shall provide the Factoring
Secured Parties prior written notice of any Enforcement Action. Upon the occurrence and during the continuance of a default or an event
of default under the Senior Documents, the Senior Representative and the other Senior Secured Parties may take and continue any Enforcement
Action with respect to the Senior Obligations and the Senior Collateral in such order and manner as they may determine in their sole
discretion in accordance with the terms and conditions of the Senior Documents.

 

    	-13-

    	 

    

 

3.2
Standstill and Waivers.

 

(a)
Each Junior Representative, on behalf of itself and the other Junior Secured Parties, agrees that, until the Senior Obligations Payment
Date has occurred:

 

(i)
they will not take or cause to be taken any action, the purpose or effect of which is to make any Lien on any Senior Collateral that
secures any Junior Obligation pari passu with or senior to, or to give any Junior Secured Party any preference or priority relative to,
the Liens on the Senior Collateral securing the Senior Obligations;

 

(ii)
they will not contest, oppose, object to, interfere with, hinder or delay, in any manner, whether by judicial proceedings (including
without limitation the filing of an Insolvency Proceeding) or otherwise, any foreclosure, sale, lease, exchange, transfer or other disposition
of the Senior Collateral by any Senior Secured Party or any other Enforcement Action taken (or any forbearance from taking any Enforcement
Action) in respect of the Senior Collateral by or on behalf of any Senior Secured Party;

 

(iii)
they have no right to (x) direct either the Senior Representative or any other Senior Secured Party to exercise any right, remedy or
power with respect to the Senior Collateral or pursuant to the Senior Security Documents in respect of the Senior Collateral or (y) consent
or object to the exercise by the Senior Representative or any other Senior Secured Party of any right, remedy or power with respect to
the Senior Collateral or pursuant to the Senior Security Documents with respect to the Senior Collateral or to the timing or manner in
which any such right is exercised or not exercised (or, to the extent they may have any such right described in this clause (iii), whether
as a junior lien creditor in respect of the Senior Collateral or otherwise, they hereby irrevocably waive such right);

 

(iv)
they will not institute, or assert, in any suit, Insolvency Proceeding or other proceeding any claim against any Senior Secured Party
seeking damages from or other relief by way of specific performance, instructions or otherwise, with respect to, and no Senior Secured
Party shall be liable for, any action taken or omitted to be taken by any Senior Secured Party with respect to the Senior Collateral
or pursuant to the Senior Documents in respect of the Senior Collateral;

 

(v)
they will not commence judicial or nonjudicial foreclosure proceedings with respect to, seek to have a trustee, receiver, liquidator
or similar official appointed for or over, attempt any action to take possession of any Senior Collateral, exercise any right, remedy
or power with respect to (including set-off), or otherwise take any action to enforce their interest in or realize upon, the Senior Collateral
(including the exercise of any right under any lockbox agreement or account control agreement (but excluding any such lockbox or deposit
account that does not receive proceeds of Senior Collateral); and

 

(vi)
they will not seek, and hereby waive any right, to have the Senior Collateral or any part thereof marshaled upon any foreclosure or other
disposition of the Senior Collateral;

 

    	-14-

    	 

    

 

provided,
that, notwithstanding anything in this Agreement to the contrary:

 

i.
the Notes Representative and any other Notes Secured Party may exercise any or all rights and remedies (including, without limitation,
undertake any Enforcement Action or any other action described in the foregoing subsections (a)(i) through (vi) of this Section 3.2)
with respect to the Factoring Priority Collateral after the passage of a period of ninety (90) days from the date of the declaration
of a breach, default or event of default under the Factoring Agreements (the “Notes Priority Standstill Period”),
with prior notice to Prestige (provided, that the failure to give such notice shall not prejudice the rights of the Notes Representative
or the other Notes Secured Parties hereunder); provided, however, that notwithstanding anything herein to the contrary,
neither the Notes Representative nor any other Notes Secured Party will exercise any rights or remedies with respect to any Factoring
Priority Collateral if, notwithstanding the expiration of the Notes Priority Standstill Period, the Factoring Representative or the other
Factoring Secured Parties shall have commenced the exercise of any of their rights or remedies with respect to all or any material portion
of the Factoring Priority Collateral and are pursuing in good faith the exercise thereof; and provided, further, however
that nothing in this clause i. shall be construed to authorize the Notes Representative or any other Notes Secured Party to sell any
Factoring Priority Collateral free of the Lien of the Factoring Representative or any other Factoring Secured Party.

 

ii.
the Junior Representative may take any action (not adverse to the prior Liens on the Senior Collateral securing the Senior Obligations,
or the rights of the Senior Representative or any other Senior Secured Parties to exercise remedies in respect thereof) in order to preserve
or protect its Lien on the Senior Collateral in accordance with applicable law and in a manner not in contravention of the terms of this
Agreement (including, but not limited to, any of the provisions of Section 5);

 

iii.
the Junior Secured Parties shall be entitled to file any necessary responsive or defensive pleadings in opposition to any motion, claim,
adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of the Junior
Secured Parties, including any claims secured by the Senior Collateral, if any, in each case in accordance with applicable law and in
a manner not in contravention of the terms of this Agreement (including, but not limited to, any of the provisions of Section 5);

 

iv.
the Junior Secured Parties shall be entitled to file any pleadings, objections, motions or agreements which assert rights or interests
available to unsecured creditors of the Financing Parties arising under either the Bankruptcy Code or applicable non-bankruptcy law,
in each case in accordance with applicable law and not in contravention of the terms of this Agreement (including, but not limited to,
any of the provisions of Section 5);

 

v.
the Junior Secured Parties shall be entitled to vote on any plan of reorganization and file any proof of claim in an Insolvency Proceeding
or otherwise and other filings and make any arguments and motions that are, in each case, in a manner not in contravention of the terms
of this Agreement;

 

    	-15-

    	 

    

 

vi.
the Junior Secured Parties shall be entitled to join (but not exercise any control with respect to) any judicial foreclosure proceeding
or other judicial lien enforcement proceeding with respect to the Senior Collateral of the Senior Representative initiated by such Senior
Representative to the extent that any such action could not reasonably be expected, in any material respect, to restrain, hinder, limit,
delay for any material period or otherwise interfere with an Enforcement Action by such Senior Representative (it being understood that
neither the Junior Representative nor any Junior Secured Party shall be entitled to receive any proceeds from the Senior Collateral unless
otherwise expressly permitted herein);

 

vii.
subject to Section 3.2(a)(ii), the Junior Secured Parties shall be entitled to inspect, appraise or value the Collateral (and
to engage or retain investment bankers or appraisers for the purposes of appraising or valuing the Collateral) or to receive information
or reports concerning the Collateral, in each case pursuant to the terms of the Factoring Documents or Notes Documents, as applicable,
or applicable law;

 

viii.
subject to Section 3.2(a)(ii), the Junior Secured Parties shall be entitled to take any action to seek and obtain specific performance
or injunctive relief to compel a Financing Party to comply with (or not to violate or breach) an obligation under the Factoring Documents
or Notes Documents, as applicable; provided that such action does not include any action by a Junior Secured Party to seek specific performance
or injunctive relief against any Senior Secured Party or the disposition of any such Senior Secured Party’s Senior Collateral in
contravention of the other provisions of this Agreement;

 

ix.
the Junior Representative shall be entitled to bid for Collateral at any public or private sale thereof, provided that (A) such Junior
Representative does not challenge the bid of the Senior Representative for its Senior Collateral other than by the submission of a competing
bid, (B) each Senior Secured Party may subject to the terms of its Security Documents offset its Senior Obligations against the purchase
price for the Senior Collateral and (C) if such sale includes Junior Collateral and Senior Collateral, the Junior Secured Parties may
only bid cash with respect to the Senior Collateral; provided, that the cash portion of any such bid need not exceed the amount of the
Factoring Obligations or the Notes Obligations, as applicable, in respect of such Senior Collateral; and

 

x.
the Junior Secured Parties shall be entitled to enforce the terms of any subordination agreement with any Person (other than a Financing
Party) with respect to debt of a Financing Party that is subordinated to the Factoring Obligations or the Notes Obligations provided
(A) prior written notice of such action is provided to each of the Factoring Agent and the Notes Agent, (B) no such action includes any
Enforcement Action, (C) any payment or other property received by any such Junior Secured Party from such Person, to the extent resulting
from a transfer of property or an interest in property of any Financing Party, shall be deemed to be proceeds of Collateral subject to
the other terms of this Agreement and (D) any other payments received by such Junior Secured Party in connection with such action shall
otherwise be subject to the terms of such subordination agreement with such Person, any related subordination agreement with either or
both of the Factoring Representative and the Notes Representative and this Agreement.

 

    	-16-

    	 

    

 

(b)
The Notes Representative agrees not to exercise any Enforcement Action (other than those described in clauses ii.-x. directly above)
against the Notes Priority Collateral after the occurrence and during the continuance of a breach, default or event of default under
the Notes Documents (other than any such breach, default or event of default resulting from or in connection with a Bankruptcy Event
(as defined in the Existing Notes)), until after the passage of a period of thirty (30) days from the date of such breach, default or
event of default under the Notes Agreements.

 

3.3
Judgment Creditors. In the event that any Notes Secured Party becomes a judgment lien creditor in respect of Common Collateral
as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall be subject to the terms of this Agreement
for all purposes (including in relation to the Factoring Liens and the Factoring Obligations) to the same extent as all other Liens securing
the Notes Obligations are subject to the terms of this Agreement. In the event that any Factoring Secured Party becomes a judgment lien
creditor in respect of Common Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall
be subject to the terms of this Agreement for all purposes (including in relation to the Notes Liens and the Notes Obligations) to the
same extent as all other Liens securing the Factoring Obligations are subject to the terms of this Agreement.

 

3.4
Cooperation; Sharing of Information and Access.

 

(a)
The Notes Representative, on behalf of itself and the other Notes Secured Parties, agrees that each of them shall take such actions as
the Factoring Representative shall reasonably request in connection with the exercise by the Factoring Secured Parties of their rights
set forth herein in respect of the Factoring Priority Collateral. The Factoring Representative, on behalf of itself and the other Factoring
Secured Parties, agrees that each of them shall take such actions as the Notes Representative shall request in connection with the exercise
by the Notes Secured Parties of their rights set forth herein in respect of the Notes Priority Collateral.

 

(b)
In the event that the Factoring Representative shall, in the exercise of its rights under the Factoring Security Documents or otherwise,
receive possession or control of any books and Records of any Financing Party which contain information identifying or pertaining to
the Notes Priority Collateral, the Factoring Representative shall promptly notify the Notes Representative of such fact and, upon request
from the Notes Representative and as promptly as practicable thereafter, either make available to the Notes Representative such books
and Records for inspection and duplication or provide to the Notes Representative copies thereof. In the event that the Notes Representative
shall, in the exercise of its rights under the Notes Security Documents or otherwise, receive possession or control of any books and
records of any Financing Party which contain information identifying or pertaining to any of the Factoring Priority Collateral, the Notes
Representative shall promptly notify the Factoring Representative Agent of such fact and, upon request from the Factoring Representative
and as promptly as practicable thereafter, either make available to the Factoring Representative such books and records for inspection
and duplication or provide the Factoring Representative copies thereof.

 

    	-17-

    	 

    

 

(c)
The Factoring Representative, on behalf of itself and the other Factoring Secured Parties, agrees that it shall promptly notify the Notes
Representative of the occurrence or existence of a material breach, default or event of default under the Factoring Agreements. The Company
agrees that it shall promptly notify the Factoring Representative of the occurrence or existence of a material breach, default or event
of default under the Notes Agreements. Except to the extent the failure to provide notice is reasonably expected to harm the Notes Representative,
the failure to provide the notices in this subsection shall not expose the Factoring Representative to any liability or affect their
rights hereunder.

 

3.5
No Additional Rights For the Financing Parties Hereunder. Except as provided in Section 3.6 hereof, if any Factoring Secured
Party or Notes Secured Party shall enforce its rights or remedies in violation of the terms of this Agreement, no Financing Party shall
be entitled to use such violation as a defense to any action by any Factoring Secured Party or Notes Secured Party, nor to assert such
violation as a counterclaim or basis for set off or recoupment against any Factoring Secured Party or Notes Secured Party.

 

3.6
Actions Upon Breach.

 

(a)
If any Factoring Secured Party or Notes Secured Party, contrary to this Agreement, commences or participates in any action or proceeding
against any Financing Party or the Common Collateral, such Financing Party, with the prior written consent of the Factoring Representative
or the Notes Representative, as applicable, may interpose as a defense or dilatory plea the making of this Agreement, and any Factoring
Secured Party or Notes Secured Party, as applicable, may intervene and interpose such defense or plea in its or their name or in the
name of such Financing Party.

 

(b)
Should any Factoring Secured Party or Notes Secured Party, contrary to this Agreement, in any way take, attempt to or threaten to take
any action with respect to the Common Collateral (including, without limitation, any attempt to realize upon or enforce any remedy with
respect to this Agreement), or fail to take any action required by this Agreement, any Factoring Secured Party or Notes Secured Party
(in its own name or in the name of the relevant Financing Party), as applicable, or the relevant Financing Party, with the prior written
consent of the Factoring Representative or the Notes Representative, as applicable, may obtain relief against such Factoring Secured
Party or Notes Secured Party, as applicable, by injunction, specific performance and/or other appropriate equitable relief, it being
understood and agreed by each of the Factoring Representative on behalf of each Factoring Secured Party and the Notes Representative
on behalf of each Notes Secured Party that (i) the Factoring Secured Parties’ or Notes Secured Parties’, as applicable, damages
from its actions may at that time be difficult to ascertain and may be irreparable, and (ii) each Notes Secured Party or Factoring Secured
Party, as applicable, waives any defense that the Financing Parties and/or the Notes Secured Parties and/or Factoring Secured Parties,
as applicable, cannot demonstrate damage and/or be made whole by the awarding of damages.

 

    	-18-

    	 

    

 

3.7
Rights As Unsecured Creditors. Except as otherwise set forth in Section 2, and subject to Section 3.3, the Junior Representative
and the other Junior Secured Parties may exercise rights and remedies as unsecured creditors against any Financing Party that is obligated
with respect to or has guaranteed the Junior Obligations in accordance with the terms of the Junior Security Documents and applicable
law to the extent such exercise of rights and remedies is not in contravention of the terms of this Agreement (including, but not limited
to, any of the provisions of Section 2 hereof). Except as otherwise set forth in Section 2, nothing in this Agreement shall prohibit
the receipt by the Junior Representative or any other Junior Secured Parties of the required payments of interest, principal, discounts,
fees, reimbursement and other amounts in respect of the Junior Obligations so long as such receipt is not from Proceeds resulting from
the exercise by the Junior Representative or any other Junior Secured Parties of rights or remedies as a secured creditor (including
set-off) in respect of the Senior Collateral or enforcement in contravention of this Agreement of any Lien held by any of them. Notwithstanding
the foregoing, the Factoring Secured Parties shall give the Notes Secured Parties not less than fifteen (15) Business Days written notice
prior to the filing of an involuntary bankruptcy petition against any Financing Party, and the Notes Secured Parties shall give the Factoring
Secured Parties not less than fifteen (15) Business Days written notice prior to the filing of an involuntary bankruptcy petition against
any Financing Party.

 

SECTION
4. Application of Proceeds of Senior Collateral;
Dispositions and Releases of Lien; Notices and Insurance

 

4.1
Application of Proceeds.

 

(a)
Application of Proceeds of Senior Collateral. The Senior Representative and Junior Representative hereby agree that all Senior
Collateral, and all Proceeds thereof, received by either of them in connection with the collection, sale or disposition of Senior Collateral
upon the exercise of remedies by any of the Senior Representative, the Junior Representative or any other Secured Party, shall be applied,

 

first,
to the payment of reasonable costs and expenses (including reasonable attorneys fees and expenses and court costs) of the Senior Representative
in connection with such Enforcement Action,

 

second,
to the payment of the Senior Obligations in accordance with the Senior Documents until the Senior Obligations Payment Date, together,
with respect to the Factoring Obligations, with the concurrent permanent reduction of the Maximum Factoring Obligations in an amount
equal to the aggregate amount of payment of the Factoring Obligations,

 

third,
to the payment of the Junior Obligations in accordance with the terms thereof, and

 

fourth,
the balance, if any, to the Financing Parties or to whosoever may be lawfully entitled to receive the same or as a court of competent
jurisdiction may direct.

 

(b)
Limited Obligation or Liability. In exercising remedies, whether as a secured creditor or otherwise, the Senior Representative
shall have no obligation or liability to the Junior Representative or to any Junior Secured Party, regarding the adequacy of any Proceeds
or for any action or omission, save and except solely for an action or omission that breaches the express obligations undertaken by each
party under the terms of this Agreement.

 

(c)
Segregation of Collateral. Until the Senior Obligations Payment Date has occurred, any Senior Collateral that may be received
by any Junior Secured Party in violation of this Agreement shall be segregated and held in trust and promptly paid over to the Senior
Representative, for the benefit of the Senior Secured Parties, in the same form as received, with any necessary endorsements, and each
Junior Secured Party hereby authorizes the Senior Representative to make any such endorsements as agent for the Junior Representative
(which authorization, being coupled with an interest, is irrevocable).

 

    	-19-

    	 

    

 

4.2
Releases of Liens. Upon any release, sale or disposition of Senior Collateral. (a) permitted pursuant to the terms of both the
Factoring Documents and the Notes Documents that results in the release of the Senior Lien on any Senior Collateral (including without
limitation any sale or other disposition pursuant to any Enforcement Action) (other than release of the Senior Lien due to the occurrence
of the Senior Obligations Payment Date) or (b) in connection with the exercise by the Senior Representative of any rights or remedies
in respect of all or a material portion of the Senior Collateral, including one or more sales, leases, exchanges, transfers or other
dispositions of all or a material portion of the Senior Collateral, in each case, at such time as the proceeds of such sales, leases,
exchanges, transfers or other dispositions are applied as a concurrent permanent reduction of the (i) if the Senior Representative is
Notes Representative, the Notes Obligations and (ii) if the Senior Representative is the Factoring Representative, the Factoring Obligations
in an amount equal to the aggregate amount of such payment, the Junior Lien on such Senior Collateral (excluding any proceeds thereof)
shall be automatically and unconditionally released with no further consent or action of any Person. The Junior Representative shall
promptly execute and deliver such release documents and instruments and shall take such further actions as the Senior Representative
shall reasonably request to evidence any release of the Junior Lien described in this Section 4.2. The Junior Representative hereby
appoints the Senior Representative and any officer or duly authorized person of the Senior Representative, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power of attorney in the place and stead of the Junior Representative and
in the name of the Junior Representative or in the Senior Representative’s own name, from time to time, in the Senior Representative’s
sole discretion (but only if the Junior Representative fails to promptly execute any and all releases or instruments reasonably requested
by the Senior Representative in connection therewith), for the purposes of carrying out the terms of this Section 4.2, to take
any and all appropriate action and to execute and deliver any and all documents and instruments as may be necessary to accomplish the
purposes of this Section 4.2, including, without limitation, any financing statements, endorsements, assignments, releases or
other documents or instruments of transfer (which appointment, being coupled with an interest, is irrevocable).

 

4.3
Insurance. (a) Proceeds of Common Collateral include insurance proceeds and therefore the Lien Priority shall govern the ultimate
disposition of casualty insurance proceeds. The Factoring Representative shall have the sole and exclusive right, as against the Notes
Representative, to adjust settlement of insurance claims in the event of any covered loss, theft or destruction of Factoring Priority
Collateral. The Notes Representative shall have the sole and exclusive right, as against the Factoring Representative, to adjust settlement
of insurance claims in the event of any covered loss, theft or destruction of Notes Priority Collateral. All proceeds of such insurance
shall be remitted to the Factoring Representative or the Notes Representative, as the case may be, and each of the Notes Representative
and Factoring Representative shall cooperate (if necessary) in a reasonable manner in effecting the payment of insurance proceeds in
accordance with Section 4.1.

 

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SECTION
5. Insolvency Proceedings.

 

5.1
Filing of Motions. Except as permitted under Section 3.2, until the occurrence of the Senior Obligations Payment Date,
the Junior Representative agrees on behalf of itself and the other Junior Secured Parties that no Junior Secured Party shall, in or in
connection with any Insolvency Proceeding, file any pleadings or motions, take any position at any hearing or proceeding of any nature,
or otherwise take any action whatsoever, in each case in respect of any of the Senior Collateral, including, without limitation, with
respect to the determination of any Liens or claims held by the Senior Representative (including the validity and enforceability thereof)
or any other Senior Secured Party in respect of any Senior Collateral or the value of any claims of such parties under Section 506(a)
of the Bankruptcy Code or otherwise.

 

5.2
Financing Matters.

 

(a)
The Factoring Representative agrees, on behalf of itself and the other Factoring Secured Parties, that if any Financing Party becomes
subject to any Insolvency Proceeding in the United States at any time prior to the Factoring Obligations Payment Date or the Notes Obligations
Payment Date, and the Notes Secured Parties desire to provide financing to any Financing Party under the Bankruptcy Code (any such financing,
“Notes DIP Financing”), the Notes Secured Parties shall not be obligated to obtain the consent of any other party
hereto (other than as set out in the proviso to this clause (a)) to such Notes DIP Financing and may provide such Notes DIP Financing
in any amount or manner as it so determines (other than as set out in the proviso to this clause (a)); provided, that, the Notes
Secured Parties shall not, without the written consent of the Factoring Representative, provide any Notes DIP Financing under Section
364(d) of the Bankruptcy Code that would result in the creation of a Lien senior to the Factoring Secured Parties’ Lien over the
Factoring Priority Collateral.

 

(b)
All Liens granted to the Notes Representative or the Factoring Representative in any Insolvency Proceeding, whether as adequate protection
or otherwise, are intended to be and shall be deemed to be subject to the Lien Priority and the other terms and conditions of this Agreement.

 

5.3
Relief From the Automatic Stay. Until the Notes Obligations Payment Date, the Factoring Representative agrees, on behalf of itself
and the other Factoring Secured Parties, that none of them will seek relief from the automatic stay or from any other stay in any Insolvency
Proceeding or take any action in derogation thereof, in each case in respect of any Notes Priority Collateral, (a) without the prior
written consent of the Notes Representative or (b) unless and to the extent that the Notes Representative has obtained relief from such
stay in respect of the Notes Priority Collateral. Until the Factoring Obligations Payment Date, the Notes Representative agrees, on behalf
of itself and the other Notes Secured Parties, that none of them will seek relief from the automatic stay or from any other stay in any
Insolvency Proceeding or take any action in derogation thereof, in each case in respect of any Factoring Priority Collateral, (a) without
the prior written consent of the Factoring Representative or (b) unless and to the extent that the Factoring Representative has obtained
relief from such stay in respect of the Factoring Priority Collateral.

 

    	-21-

    	 

    

 

5.4
No Contest. The Junior Representative, on behalf of itself and the Junior Secured Parties, agrees that, prior to the Senior Obligations
Payment Date, none of them shall contest (or support any other Person contesting) (a) any request by the Senior Representative or any
Senior Secured Party for adequate protection of its interest in the Senior Collateral (unless in contravention of Section 5.2(a)
or (b), as applicable), or (b) any objection by the Senior Representative or any Senior Secured Party to any motion, relief, action,
or proceeding based on a claim by the Senior Representative or any Senior Secured Party that its interests in the Senior Collateral (unless
in contravention of Section 5.2(a) or (b), as applicable) are not adequately protected (or any other similar request under
any law applicable to an Insolvency Proceeding), so long as any Liens granted to the Senior Representative as adequate protection of
its interests are subject to this Agreement.

 

5.5
Avoidance Issues. If any Senior Secured Party is required in any Insolvency Proceeding or otherwise to disgorge, turn over or
otherwise pay to the estate of any Financing Party, because such amount was avoided or ordered to be paid or disgorged for any reason,
including without limitation because it was found to be a fraudulent or preferential transfer, any amount (a “Recovery”),
whether received as proceeds of security, enforcement of any right of setoff or otherwise, then the Senior Obligations shall be reinstated
to the extent of such Recovery and deemed to be outstanding as if such payment had not occurred and the Senior Obligations Payment Date
shall be deemed not to have occurred. If this Agreement shall have been terminated prior to such Recovery, this Agreement shall be reinstated
in full force and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise affect the obligations
of the parties hereto.

 

5.6
Asset Dispositions in an Insolvency Proceeding. Neither the Junior Representative nor any other Junior Secured Party shall, in
an Insolvency Proceeding or otherwise, oppose any sale or disposition of any Senior Collateral that is supported by the Senior Secured
Parties, and the Junior Representative and each other Junior Secured Party will be deemed to have consented under Section 363 of the
Bankruptcy Code (and otherwise) to any sale of any Senior Collateral supported by the Senior Secured Parties and to have released their
Liens on such assets.

 

5.7
Other Matters. To the extent that the Senior Representative or any Senior Secured Party has or acquires rights under Section 363
or Section 364 of the Bankruptcy Code with respect to any of the Junior Collateral, the Senior Representative agrees, on behalf of itself
and the other Senior Secured Parties, not to assert any of such rights without the prior written consent of the Junior Representative.

 

5.8
Effectiveness in Insolvency Proceedings. This Agreement, which the parties hereto expressly acknowledge is a “subordination
agreement” under section 510(a) of the Bankruptcy Code, shall be effective before, during and after the commencement of an Insolvency
Proceeding.

 

SECTION
6. Amendments to Factoring Documents.

 

6.1
Each Financing Party and the Factoring Representative, on behalf of itself and the Factoring Secured Parties, agrees that without the
prior written consent of the Notes Representative, no Factoring Document may be otherwise amended, amended and restated, supplemented
or modified or entered into.

 

SECTION
7. Purchase Options.

 

7.1
Notice of Exercise.

 

(a)
At any time during the exercise period described in clause (b) below of this Section 7.1, any Person or Persons at any time or
from time to time designated by the Notes Representative, shall have the option at any time upon three (3) Business Days’ prior
written notice to the Factoring Representative to purchase all of the Factoring Obligations from the Factoring Secured Parties. Such
notice from such Notes Creditors to the Factoring Representative shall be irrevocable.

 

    	-22-

    	 

    

 

(b)
The right to purchase the Factoring Obligations as described in Section 7.1(a) may be exercised by giving the irrevocable written
notice described in Section 7.1(a) at any time after the date of the occurrence of any of the following: (i) a breach, default
or event of default has occurred and is continuing under the Factoring Documents and remains uncured or unwaived for at least thirty
(30) consecutive days and the requisite Factoring Secured Parties have not agreed to forbear from the exercise of remedies, (ii) the
maturity of the Factoring Obligations has been accelerated pursuant to a written notice delivered by the Factoring Representative to
any Financing Party based on a breach, default or event of default under the Factoring Documents, (iii) the Factoring Representative
shall have commenced, or shall have notified the Notes Representative that it intends to commence, the exercise of any of its rights
and remedies with respect to any Collateral, or shall have commenced, or shall have notified the Notes Representative that it intends
to commence, the exercise of any of its rights and remedies with respect to any Financing Party to collect the Factoring Obligations,
all in accordance with the Factoring Documents, (iv) a payment default or event of default has occurred and is continuing under the Notes
Documents for at least seven (7) consecutive days and has not been waived in accordance with the terms of the Notes Documents, (v) the
commencement of an Insolvency Proceeding with respect to any Financing Party or (vi) the Existing Factoring Agreement shall have been
amended, supplemented, modified or changed in violation of this Agreement.

 

7.2
Purchase and Sale. On the date specified by the relevant Notes Creditors in the notice contemplated by Section 7.1(a) above
(which shall not be less than three (3) Business Days after the receipt by the Factoring Representative of the notice of the relevant
Notes Creditor’s election to exercise such option), the Factoring Secured Parties shall sell to the relevant Notes Creditors, and
the relevant Notes Creditors shall purchase from the Factoring Secured Parties, the Factoring Obligations, provided that, (i)
the Notes Creditors shall not be deemed to be assuming any liabilities or obligations of the Factoring Secured Parties under the Factoring
Documents (other than the obligation to fund advances in the ordinary course) and (ii) the Factoring Representative and the Factoring
Secured Parties shall retain all rights to be indemnified or held harmless by the Financing Parties in accordance with the terms of the
Factoring Documents but shall not retain any other rights therefor.

 

7.3
Payment of Purchase Price. Upon the date of such purchase and sale, the relevant Notes Creditors shall (a) pay to the Factoring
Representative for the benefit of the Factoring Secured Parties (with respect to a purchase of the Factoring Obligations) as the purchase
price therefor the full amount of all the Factoring Obligations then outstanding and unpaid (including advances, discounts, outstanding
Factored Accounts, fees and expenses (including reasonable attorneys’ fees and legal expenses), prepayment premiums, default penalties,
minimums, termination or similar fees). Such purchase price and cash collateral shall be remitted by wire transfer in federal funds to
such bank account as the Factoring Representative may designate in writing for such purpose.

 

    	-23-

    	 

    

 

7.4
Limitation on Representations and Warranties. Such purchase shall be expressly made without representation or warranty of any
kind by any selling party (or the Factoring Representative) and without recourse of any kind, except that the selling party shall represent
and warrant: (a) the amount of the Factoring Obligations being purchased from it, (b) that such Factoring Secured Party owns the Factoring
Obligations free and clear of any Liens or encumbrances and (c) that such Factoring Secured Party has the right to assign such Factoring
Obligations and the assignment is duly authorized.

 

SECTION
8. Reliance; Waivers; etc.

 

8.1
Reliance. The Factoring Documents are deemed to have been executed and delivered, and all extensions of credit thereunder are
deemed to have been made or incurred, in reliance upon this Agreement. The Notes Representative, on behalf of it itself and the other
Notes Secured Parties, expressly waives all notice of the acceptance of and reliance on this Agreement by the Factoring Representative
and the other Factoring Secured Parties. The Notes Documents are deemed to have been executed and delivered and all extensions of credit
thereunder are deemed to have been made or incurred, in reliance upon this Agreement. The Factoring Representative, on behalf of itself
and the other Factoring Secured Parties, expressly waives all notices of the acceptance of and reliance on this Agreement by the Notes
Representative and the other Notes Secured Parties.

 

8.2
No Warranties or Liability. The Notes Representative and the Factoring Representative acknowledge and agree that neither has made
any representation or warranty with respect to the execution, validity, legality, completeness, collectability or enforceability of any
other Factoring Document or any Notes Document. Except as otherwise provided in this Agreement, the Notes Representative and the Factoring
Representative will be entitled to manage and supervise the respective extensions of credit to any Financing Party in accordance with
law and their usual practices, modified from time to time as they deem appropriate.

 

8.3
No Waivers. No right or benefit of any party hereunder shall at any time in any way be prejudiced or impaired by any act or failure
to act on the part of such party or any other party hereto or by any noncompliance by any Financing Party with the terms and conditions
of any of the Factoring Documents or the Notes Documents.

 

SECTION
9. Obligations Unconditional.

 

All
rights, interests, agreements and obligations hereunder of the Senior Representative and the Senior Secured Parties in respect of any
Collateral and the Junior Representative and the Junior Secured Parties in respect of such Collateral shall remain in full force and
effect regardless of:

 

(a)
any lack of validity or enforceability of any Senior Document or any Junior Document and regardless of whether the Liens of the Senior
Representative and Senior Secured Parties are not perfected or are voidable for any reason;

 

(b)
any change in the time, manner or place of payment of, or in any other terms of, all or any of the Senior Obligations or Junior Obligations,
or any amendment or waiver or other modification, including any increase in the amount thereof, whether by course of conduct or otherwise,
of the terms of any Senior Document or any Junior Document, solely to the extent not in violation of this Agreement;

 

    	-24-

    	 

    

 

(c)
any exchange, release or lack of perfection of any Lien on any Collateral or any other asset, or any amendment, waiver or other modification,
whether in writing or by course of conduct or otherwise, of all or any of the Senior Obligations or Junior Obligations or any guarantee
thereof;

 

(d)
the commencement of any Insolvency Proceeding in respect of any Financing Party; or

 

(e)
any other circumstances which otherwise might constitute a defense available to, or a discharge of, any Financing Party in respect of
any Secured Obligation or of any Junior Secured Party in respect of this Agreement.

 

SECTION
10. Miscellaneous.

 

10.1
Rights of Subrogation. The Notes Representative, for and on behalf of itself and the Notes Secured Parties, agrees that no payment
to the Factoring Representative or any Factoring Secured Party pursuant to the provisions of this Agreement shall entitle the Notes Representative
or any Notes Secured Party to exercise any rights of subrogation in respect thereof until the Factoring Obligations Payment Date; provided,
that notwithstanding anything to the contrary contained in this Agreement, the Notes Representative and the Notes Secured Parties shall
be permitted to take any such actions, or shall not be required to refrain from any such actions, as applicable, after the passage of
the Notes Priority Standstill Period. The Factoring Representative agrees to execute such documents, agreements, and instruments as the
Notes Representative or any Notes Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of
an interest in the Factoring Obligations resulting from payments to the Factoring Representative by such Person, so long as all reasonable
costs and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith by the Factoring Representative
are paid by such Person upon request for payment thereof. The Factoring Representative, for and on behalf of itself and the Factoring
Secured Parties, agrees that no payment to the Notes Representative or any Notes Secured Party pursuant to the provisions of this Agreement
shall entitle the Factoring Representative or any Factoring Secured Party to exercise any rights of subrogation in respect thereof until
the Notes Obligations Payment Date. Following the Notes Obligations Payment Date, the Notes Representative agrees to execute such documents,
agreements, and instruments as the Factoring Representative or any Factoring Secured Party may reasonably request to evidence the transfer
by subrogation to any such Person of an interest in the Notes Obligations resulting from payments to the Notes Representative by such
Person, so long as all reasonable costs and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith
by the Notes Representative are paid by such Person upon request for payment thereof.

 

    	-25-

    	 

    

 

10.2
Further Assurances. Each of the Notes Representative and the Factoring Representative will, at their own expense and at any time
and from time to time, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary
or desirable, or that the other party may reasonably request, in order to protect any right or interest granted or purported to be granted
hereby or to enable the Factoring Representative or the Notes Representative to exercise and enforce its rights and remedies hereunder;
provided, however, that no party shall be required to pay over any payment or distribution, execute any instruments or
documents, or take any other action referred to in this Section 10.2, to the extent that such action would contravene any law,
order or other legal requirement or any of the terms or provisions of this Agreement, and in the event of a controversy or dispute, such
party may interplead any payment or distribution in any court of competent jurisdiction, without further responsibility in respect of
such payment or distribution under this Section 10.2.

 

10.3
Conflicts. In the event of any conflict between the provisions of this Agreement and the provisions of any Factoring Document
or any Notes Document, the provisions of this Agreement shall govern.

 

10.4
Continuing Nature of Provisions. Subject to Section 5.5, this Agreement shall continue to be effective, and shall not be
revocable by any party hereto, until the earlier of (i) the Factoring Obligations Payment Date and (ii) the Notes Obligations Payment
Date. This is a continuing agreement and the Factoring Secured Parties and the Notes Secured Parties may continue, at any time and without
notice to the other parties hereto, to extend credit, advances and/or other financial accommodations, lend monies and provide indebtedness
to, or for the benefit of, any Financing Party on the faith hereof, subject to the provisions of this Agreement.

 

10.5
Amendments; Waivers.

 

(a)
No amendment or modification of any of the provisions of this Agreement shall be effective unless the same shall be in writing and signed
by the Factoring Representative and the Notes Representative, and, in the case of amendments or modifications that directly affect the
rights or duties of any Financing Party, such Financing Party.

 

(b)
It is understood that the Factoring Representative and the Notes Representative, without the consent of any other Factoring Secured Party
or Notes Secured Party, may in their discretion determine that a supplemental agreement (which may take the form of an amendment and
restatement of this Agreement) is necessary or appropriate to facilitate having additional indebtedness or other obligations (“Additional
Debt”) of any of the Financing Parties become Factoring Obligations or Notes Obligations, as the case may be, under this Agreement,
which supplemental agreement shall specify whether such Additional Debt constitutes Factoring Obligations or Notes Obligations, provided,
that such Additional Debt is permitted to be incurred by this Agreement, the Factoring Agreement and the Notes Agreement, in each case
then extant, and is permitted by said agreements to be subject to the provisions of this Agreement as Factoring Obligations or Notes
Obligations, as applicable.

 

10.6
Information Concerning Financial Condition of the Financing Parties. Each of the Notes Representative and the Factoring Representative
hereby assume responsibility for keeping itself informed of the financial condition of the Financing Parties and all other circumstances
bearing upon the risk of nonpayment of the Factoring Obligations or the Notes Obligations. The Notes Representative and the Factoring
Representative hereby agree that no party shall have any duty to advise any other party of information known to it regarding such condition
or any such circumstances (except as otherwise provided in the Factoring Documents and Notes Documents). In the event the Notes Representative
or the Factoring Representative, in its sole discretion, undertakes at any time or from time to time to provide any information to any
other party to this Agreement, it shall be under no obligation (a) to provide any such information to such other party or any other party
on any subsequent occasion, (b) to undertake any investigation not a part of its regular business routine, or (c) to disclose any other
information.

 

    	-26-

    	 

    

 

10.7
Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, EXCEPT AS
OTHERWISE REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED BY THE LAWS OF ANY JURISDICTION OTHER
THAN THE STATE OF NEW YORK ARE GOVERNED BY THE LAWS OF SUCH JURISDICTION.

 

10.8
Submission to Jurisdiction; JURY TRIAL WAIVER.

 

(a)
Each Factoring Secured Party, each Notes Secured Party and each Financing Party hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the
United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each such party hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State
or, to the extent permitted by law, in such Federal court. Each such party agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing
in this Agreement shall affect any right that the any Factoring Secured Party or Notes Secured Party may otherwise have to bring any
action or proceeding against any Financing Party or its properties in the courts of any jurisdiction.

 

(b)
Each Factoring Secured Party, each Notes Secured Party and each Financing Party hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so (i) any objection it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (a) of this Section and (ii)
the defense of an inconvenient forum to the maintenance of such action or proceeding.

 

(c)
Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 10.9. Nothing
in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

(d)
EACH PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. EACH PARTY HERETO REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS
A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

    	-27-

    	 

    

 

10.9
Notices. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given
shall be in writing and may be personally served, telecopied, or sent by overnight express courier service or United States mail and
shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy or five days after deposit
in the United States mail (certified, with postage prepaid and properly addressed). For the purposes hereof, (i) any notice to be provided
to a Financing Party shall be sent to the Financing Parties’ following address: 3753 Howard Hughes Parkway, Suite 200-849, Las
Vegas, NV 89169 (until notice of a change thereof is delivered as provided in this Section 10.9), and (ii) the addresses of the
other parties hereto (until notice of a change thereof is delivered as provided in this Section 10.9) shall be as set forth below
each party’s name on the signature pages hereof, or, at such other address as may be designated by such party in a written notice
to all of the other parties.

 

10.10
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and each of
the Factoring Secured Parties and Notes Secured Parties and their respective successors and assigns, and nothing herein is intended,
or shall be construed to give, any other Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral.

 

10.11
Headings. Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

 

10.12
Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall
not invalidate such provision in any other jurisdiction.

 

10.13
Other Remedies. For avoidance of doubt, it is understood that nothing in this Agreement shall prevent any Factoring Secured Party
or any Notes Secured Party from exercising any available remedy to accelerate the maturity of any indebtedness or other obligations owing
under the Factoring Documents or the Notes Documents, as applicable, or to demand payment under any guarantee in respect thereof.

 

10.14
Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery
of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart
of this Agreement. The parties hereto irrevocably and unreservedly agree that this Agreement may be executed by way of electronic signatures
and the parties agree that neither this Agreement, nor any part hereof, shall be challenged or denied any legal effect, validity and/or
enforceability solely on the ground that it is in the form of an electronic record. This Agreement shall become effective when it shall
have been executed by each party hereto.

 

    	-28-

    	 

    

 

10.15
Additional Financing Parties. The Company shall cause each Person that becomes a Financing Party after the date hereof to become
a party to this Agreement by execution and delivery by such Person of a Joinder Agreement in the form of Annex 1 hereto.

 

10.16
Consent to Notes Obligations. The Factoring Representative, on behalf of itself and the Factoring Secured Parties, hereby consents
to the incurrence by the Company and the other Financing Parties of all Notes Obligations and the entry into and performance of all Notes
Documents at any time and from time to time, notwithstanding the provisions of Section 5(i) of the Existing Factoring Agreement or any
other prohibition on the incurrence of Liens or indebtedness contained in any Factoring Agreement.

 

10.17
Existing Factoring Agreement Representations and Warranties. The Financing Parties represent and warrant that (i) there have been
no material modifications, amendments or variations to the Existing Factoring Agreement other than those listed in the recitals hereto
and (ii) upon this Agreement taking effect, the execution and delivery of the Note Documents will not conflict with, constitute a default
under, or constitute a breach of, the Existing Factoring Agreement.

 

[SIGNATURE
PAGES TO FOLLOW]

 

    	-29-

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	 	PRESTIGE
    CAPITAL FINANCE, LLC, as
	 	successor
    by merger to PRESTIGE CAPITAL
	 	CORPORATION,
    as Factoring Representative for
	 	and
    on behalf of the Factoring Secured Parties

 

	 	By:	
	 	 	 
	 	Name:	Alan
    R. Eliasof
	 	 	 
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Address
                                            for Notices:

	 	 	 
	 	400
    Kelby Street, 10th Flr
	 	Fort
    Lee, NJ 07024

 

	 	EMPERY
    TAX EFFICIENT, LP, as Notes
	 	Representative
    for and on behalf of the Notes
	 	Secured
    Parties

 

	                  	By:	
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address
    for Notices:

 

	 	Empery
    Tax Efficient, LP
	 	c/o
    Empery Asset Management, LP,
	 	1
    Rockefeller Plaza, Suite 1205
	 	New
    York, NY 10020
	 	Attn:
    Brett S. Director
	 	 
	 	Email:
    notices@emperyam.com

 

    	-30-

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

	 	PRESTIGE
    CAPITAL FINANCE, LLC, as
	 	successor
    by merger to PRESTIGE CAPITAL
	 	CORPORATION,
    as Factoring Representative for
	 	and
    on behalf of the Factoring Secured Parties

 

	                  	By:	
	 	Name:	
	 	Title:	
	 	 	 
	 	Address
                                            for Notices:

	 	 	 
	 	400
    Kelby Street, 10th Flr
	 	Fort
    Lee, NJ 07024

 

	 	EMPERY
    TAX EFFICIENT, LP, as Notes
	 	Representative
    for and on behalf of the Notes
	 	Secured
    Parties

 

	 	By:	Empery
    Asset Management, LP, its authorized agent
	                  		
	 	By:	 
	 	Name:	Brett
    Director
	 	Title:	General
    Counsel of Empery Asset
	 	Management,
    LP, its authorized agent
	 	 	 
	 	Address
    for Notices:

 

	 	Empery
    Tax Efficient, LP
	 	c/o
    Empery Asset Management, LP,
	 	1
    Rockefeller Plaza, Suite 1205
	 	New
    York, NY 10020
	 	Attn:
    Brett S. Director
	 	 
	 	Email:
    notices@emperyam.com

 

[Signature
Page to Intercreditor Agreement]

 

    	-31-

    	 

    

 

			
	 	FINANCING
    PARTIES:
	 	 
	 	MUSCLEPHARM
    CORPORATION
	 	 
	 	By:	 
	 	Name:	Sabina
    Rizvi
	 	Title:	President
    and Chief Financial Officer

 

	 	CANADA
    MUSCLEPHARM ENTERPRISES CORP.
	 	 
	 	By:	 
	 	Name:	Sabina
    Rizvi
	 	Title:	Chief
    Financial Officer

 

    	-32-

    	 

    

 

ANNEX
1

 

JOINDER
AGREEMENT

 

THIS
JOINDER AGREEMENT (this “Agreement”), dated as of ________ ____, 200_, is executed by ________________________________,
a _________________ (the “New Subsidiary”) in favor of PRESTIGE CAPITAL CORPORATION (“Factoring Representative”)
and EMPERY TAX EFFICIENT, LP (“Notes Representative”), in their capacities as Factoring Representative and Notes Representative,
respectively, under that certain Intercreditor Agreement (the “Intercreditor Agreement”), dated as of October 13,
2021 among the Factoring Representative, the Notes Representative, MusclePharm Corporation, a Nevada corporation and each of the other
Financing Parties party thereto. All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the
Intercreditor Agreement.

 

The
New Subsidiary, for the benefit of the Factoring Representative and the Notes Representative, hereby agrees as follows:

 

1.
The New Subsidiary hereby acknowledges the Intercreditor Agreement and acknowledges, agrees and confirms that, by its execution of this
Agreement, the New Subsidiary will be deemed to be a Financing Party under the Intercreditor Agreement and shall have all of the obligations
of a Financing Party thereunder as if it had executed the Intercreditor Agreement. The New Subsidiary hereby ratifies, as of the date
hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Intercreditor Agreement.

 

2.
The address of the New Subsidiary for purposes of Section 10.9 of the Intercreditor Agreement is as follows:

 

_______________________________

 

_______________________________

 

_______________________________

 

3.
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE NEW SUBSIDIARY HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

 

IN
WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by its authorized officer, as of the day and year first
above written.

 

	 	[NEW
    SUBSIDIARY]
	 	 	             
	 	By:	
	 	Name:	
	 	Title:	

 

    	-33-

     

    

 

EXHIBIT
F

INTERCREDITOR AND
SUBORDINATION AGREEMENT

 

This
INTERCREDITOR AND SUBORDINATION AGREEMENT is made as of October 13, 2021 (as amended, restated, amended and restated, supplemented
or otherwise modified from time to time, this “Agreement”), among RYAN DREXLER, an individual (“Subordinated
Creditor”), MUSCLEPHARM CORPORATION, a Nevada corporation (“Borrower”), and EMPERY TAX EFFICIENT,
LP, as representative on behalf of the buyers party to the Securities Purchase Agreement referred to below (“Senior Creditor”).

 

RECITALS

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement among Borrower and each of the buyers party thereto dated as of the date hereof,
as amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, the “Securities
Purchase Agreement”; capitalized terms used in this Agreement without definition shall have the meanings ascribed thereto in
the Securities Purchase Agreement), (i) Borrower has agreed to issue and sell to each Purchaser, and each Purchaser, severally and not
jointly, has agreed to purchase from the Borrower, securities of the Borrower pursuant to the terms and conditions thereof, including
the Notes (as defined in the Securities Purchase Agreement) (such Notes as amended, restated, amended and restated, supplemented, replaced
or otherwise modified from time to time, the “Notes”) and (ii) the Borrower and each of its present and future subsidiaries
have agreed to grant a security interest in and Lien upon, and otherwise pledge, all of its personal property and assets to Senior Creditor
to secure the Borrower’s obligations under the Securities Purchase Agreement, the Notes and the other Transaction Documents pursuant
to the Security Agreement and the other Security Documents;

 

WHEREAS,
Subordinated Creditor has made loans to Borrower pursuant to (i) that certain Secured Revolving Promissory Note dated as of October 15,
2020 issued by Borrower to Subordinated Creditor in the maximum principal amount of $3,000,000, as amended and restated by that certain
Convertible Secured Promissory Note dated as of August 13, 2021 and (ii) that certain Amended and Restated Convertible Secured Promissory
Note dated as of August 21, 2020 in the maximum principal amount of $2,735,199 issued by Borrower to Subordinated Creditor, as amended
and restated pursuant to that certain Convertible Secured Promissory Note dated as of November 29, 2020 issued by Borrower to Subordinated
Creditor in the maximum principal amount of $2,871,967, as amended by that certain Amendment to Convertible Secured Promissory Note dated
as of August 13, 2021, (collectively, the obligations of the Borrower with respect to the foregoing, in each case as amended, restated,
amended and restated, supplemented, replaced or otherwise modified from time to time, the “Subordinated Notes”, which,
in each case, are secured by a security interest and Lien upon all Borrower’s personal property and assets pursuant to that certain
Sixth Amended and Restated Security Agreement dated as of November 29, 2020, by and between Subordinated Creditor and Borrower) (as amended,
restated, amended and restated, supplemented, replaced or otherwise modified from time to time, the “Subordinated Security Agreement”);

 

    	-1-

     

    

 

WHEREAS,
a condition precedent to the effectiveness of the Securities Purchase Agreement is the execution and delivery of this Agreement by Senior
Creditor, Subordinated Creditor and the Borrower; and

 

WHEREAS,
the parties hereto desire to enter into this Agreement for the purposes set forth herein;

 

NOW,
THEREFORE, in consideration of the above recitals and the provisions set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Senior Creditor, Subordinated Creditor and Borrower hereby agree as follows:

 

1.
Notwithstanding any provision of the Subordinated Notes, the Subordinated Security Agreement, any other instrument, agreement or other
document now or hereafter evidencing or securing the payment of the whole or any part of the indebtedness and other obligations incurred
thereunder or any instrument, agreement or other document now or hereafter evidencing or securing any other indebtedness or other obligations
incurred from time to time by the Borrower or any of its subsidiaries (all of the foregoing, collectively, the “Subordinated
Loan Documents”) prohibiting or restricting the following actions, Subordinated Creditor hereby consents to Borrower’s
and its subsidiaries’ execution and delivery of, and performance under, the Securities Purchase Agreement, the Notes and the other
Transaction Documents, including the incurrence of the Senior Debt (as defined below) by Borrower (and its subsidiaries, as applicable)
pursuant to the Transaction Documents, and the grant by Borrower and its subsidiaries of a security interest and lien on all of its personal
property and assets to Senior Creditor to secure the Senior Debt.

 

2.
Subordinated Creditor hereby subordinates any Lien Subordinated Creditor may have in the Collateral (as defined in the Security Agreement)
to any security interest or lien Senior Creditor may have in the Collateral. Notwithstanding the respective dates of attachment or perfection
of the security interest of Subordinated Creditor and the security interest of Senior Creditor, the security interest of Senior Creditor
in the Collateral shall at all times be prior to the security interest of Subordinated Creditor in the Collateral until Full Payment
(as defined below). The parties hereto agree that the Subordinated Debt shall not be secured other than as expressly provided in the
Subordinated Loan Documents on the date hereof.

 

3.
All loans, advances, debts, liabilities, obligations, debit balances, covenants and duties at any time or times owed by Borrower or any
of its subsidiaries to Subordinated Creditor or to any Person owned or controlled by Subordinated Creditor under the Subordinated Notes,
the Subordinated Security Agreement, the other Subordinated Loan Documents or otherwise (collectively, the “Subordinated Debt”),
are subordinated in right of payment to (a) all loans, advances, debts, liabilities, obligations, debit balances, covenants and duties
at any time or times owed by Borrower or any of its subsidiaries to Senior Creditor under the Securities Purchase Agreement, the Notes
or any other Transaction Document (together with the Securities Purchase Agreement and the Notes, collectively, the “Senior
Loan Documents”), whether now or hereafter created, incurred or arising, and whether direct or indirect, absolute or contingent,
secured or unsecured, primary or secondary, joint or several, liquidated or unliquidated, due or to become due, now existing or hereafter
arising, (b) all loans made or credit extended by Senior Creditor to Borrower or any of its subsidiaries during the pendency of any Insolvency
Proceeding (as defined below) of Borrower or any of its subsidiaries, (c) all interest, fees, charges, expenses and attorneys’
fees for which Borrower or any of its subsidiaries is now or hereafter becomes liable to pay to Senior Creditor under the Senior Loan
Documents or by law (including all interest, legal fees and other charges that accrue or are incurred in connection with any of the Senior
Debt (as defined below) during the pendency of any Insolvency Proceeding of Borrower or any of its subsidiaries, whether or not Senior
Creditor is authorized by 11 U.S.C. Section 506 or otherwise to claim or collect any such interest, legal fees or other charges from
Borrower or any of its subsidiaries), (d) any renewals, extensions, replacements or refinancings of any of the foregoing and (e) all
costs and expenses at any time incurred by Senior Creditor in connection with its enforcement of rights or exercise of remedies under
any of the Senior Loan Documents or applicable law or in equity to collect any of the Senior Debt, enforce any lien or security interest
of Senior Creditor or otherwise enforce any provisions of any of the Senior Loan Documents, or protect or preserve any of the Collateral
or defend any lien or security interest of Senior Creditor therein against the claims of third parties (clauses (a) through (e) above,
collectively, the “Senior Debt”). As used herein, “Insolvency Proceeding” means (x) any case, action
or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership,
dissolution, winding-up or relief of debtors or (y) any general assignment for the benefit of creditors, formal or informal moratorium,
composition, marshaling of assets for creditors or other, similar arrangement in respect of its creditors generally or any substantial
portion of its creditors, in each case, undertaken under the Bankruptcy Code or other applicable law.

 

    	-2-

     

    

 

4.
Subordinated Creditor will not demand or receive from Borrower or any of its subsidiaries (and neither Borrower nor any of its subsidiaries
will pay to Subordinated Creditor) all or any part of the Subordinated Debt, by way of payment, prepayment, setoff, lawsuit or otherwise,
nor will Subordinated Creditor exercise any right or remedy under any Subordinated Loan Document or with respect to any Collateral, or
any other right or remedy available at law or equity, nor will Subordinated Creditor commence, or cause to commence, prosecute or participate
in any administrative, legal or equitable action against Borrower or any of its subsidiaries, until (a) the Senior Debt has been indefeasibly
paid in full in cash, (b) the Transaction Documents have been terminated and (c) no claims, losses or liabilities related to the Senior
Debt to which Senior Creditor is entitled to indemnification or reimbursement by Borrower or any of its subsidiaries, whether pending
or threatened, remain unresolved (such events described in clauses (a) through (c) above, collectively, “Full Payment”).
In furtherance of the foregoing: (r) neither Borrower nor any of its subsidiaries shall, directly or indirectly, make any payment on
account of the Subordinated Debt (other than any salary, executive compensation, employee benefits or reimbursement of reasonable expenses,
in each case in the ordinary course of business and consistent with past practice, that is owed by Borrower or any of its subsidiaries
to Subordinated Creditor in Subordinated Creditor’s capacity as a director, officer or employee of the Borrower); (s) Subordinated
Creditor shall not demand, collect or accept from Borrower or any of its subsidiaries, or any other Person, any payment on account of
the Subordinated Debt or any part thereof; (t) Subordinated Creditor shall not accelerate the maturity or payment of any of the Subordinated
Debt, or assert, collect, enforce or seek to enforce any right or remedy with respect to the Subordinated Debt or any part thereof; (u)
Subordinated Creditor, the Borrower and its subsidiaries shall not permit the “Maturity Date” (as defined in the Subordinated
Loan Documents) or otherwise permit the maturity of any of the Subordinated Debt to be earlier than the date that is 181 days after the
latest “Maturity Date” (as defined in the Notes, as such term may be amended and/or extended from time to time) (the “Outside
Maturity Date”), and the Borrower and Subordinated Creditor hereby agree that to the extent any “Maturity Date”
(as defined in the Subordinated Loan Documents) occurs on or earlier than the Outside Maturity Date, such “Maturity Date”
shall be automatically, and without any further consent or action of any Person, extended to a date that is at least one day after the
Outside Maturity Date; (v) Subordinated Creditor shall not exchange, set off, release, convert to equity or otherwise discharge any part
of the Subordinated Debt; (w) Subordinated Creditor shall not hereafter give any subordination in respect of the Subordinated Debt or
transfer or assign any of the Subordinated Debt to any Person unless the transferee or assignee thereof first agrees in writing with
Senior Creditor to be bound by the terms of this Agreement; (x) neither Borrower nor any of its subsidiaries shall hereafter issue any
instrument, security or other writing evidencing any part of the Subordinated Debt, and Subordinated Creditor will not receive any such
writing, except upon the prior written approval of Senior Creditor or at the request of and in the manner requested by Senior Creditor;
(y) Subordinated Creditor shall not commence or join with any other creditor of Borrower or any of its subsidiaries in commencing any
Insolvency Proceeding against Borrower or any of its subsidiaries; and (z) neither Subordinated Creditor nor Borrower or any of its subsidiaries
otherwise shall take or permit any action prejudicial to or inconsistent with Senior Creditor’s priority position over Subordinated
Creditor that is created by this Agreement. Notwithstanding any other provision herein, prior to Full Payment, all accrued and unpaid
interest under the Subordinated Loan Documents or in connection with the Subordinated Debt may be capitalized and become part of the
applicable principal balance when such interest becomes payable by the Borrower or any of its subsidiaries to the Subordinated Creditor
(the “Deferred Interest Payments”). The Deferred Interest Payments shall become due and payable by the Borrower (or,
if applicable, its subsidiaries) to the Subordinated Creditor immediately after the occurrence of Full Payment.

 

    	-3-

     

    

 

5.
Subject to Section 15, Subordinated Creditor may execute, verify, deliver and file any proofs of claim in respect of the Subordinated
Debt in connection with any Insolvency Proceeding.

 

6.
Subordinated Creditor shall promptly deliver to Senior Creditor in the form received (except for endorsement or assignment by Subordinated
Creditor where required by Senior Creditor) for application to the Senior Debt any payment, distribution, security or proceeds received
by Subordinated Creditor from Borrower or any other Person, or any asset thereof, with respect to the Subordinated Debt until Full Payment.

 

7.
In the event of any Insolvency Proceeding, Full Payment shall occur before any payment is made to or received by Subordinated Creditor
with respect to the Subordinated Debt.

 

8.
Senior Creditor and Borrower and its subsidiaries are authorized to modify or amend any of the Senior Loan Documents to which they are
a party without prior notice to or the consent of Subordinated Creditor. Subordinated Creditor shall not be authorized to modify or amend
any of the Subordinated Loan Documents without the prior written consent of Senior Creditor (other than to reduce the rate of interest
or extend the time for payment).

 

9.
This Agreement shall remain effective until Full Payment. If at any time after Full Payment any payments of the Senior Debt must be disgorged
by Senior Creditor for any reason (including the bankruptcy of Borrower or any of its subsidiaries), this Agreement and the relative
rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made
and Subordinated Creditor shall immediately pay over to Senior Creditor all payments received with respect to the Subordinated Debt to
the extent that such payments would have been prohibited hereunder. At any time and from time to time, without notice to Subordinated
Creditor, Senior Creditor may take such actions with respect to the Senior Debt as Senior Creditor, in its sole discretion, may deem
appropriate, including extending the time of payment, increasing applicable interest rates, renewing, compromising or otherwise amending
the terms of any documents affecting the Senior Debt and any collateral securing the Senior Debt, and enforcing or failing to enforce
any rights against Borrower or any other Person. No such action or inaction shall impair or otherwise affect Senior Creditor’s
rights hereunder.

 

10.
Subordinated Creditor will not (and hereby waives any right to) take any action to contest or challenge (or assist or support any other
Person in contesting or challenging), directly or indirectly, whether or not in any proceeding (including in any Insolvency Proceeding),
the validity, priority, enforceability, or perfection of the Senior Debt or the Liens of Senior Creditor in respect of any of the Collateral
or the provisions of this Agreement. Senior Creditor will not (and hereby waives any right to) take any action to contest or challenge
(or assist or support any other Person in contesting or challenging), directly or indirectly, whether or not in any proceeding (including
in any Insolvency Proceeding), the validity, priority, enforceability, or perfection of the Subordinated Debt or the Liens of Subordinated
Creditor in respect of any of the Collateral or the provisions of this Agreement. Subordinated Creditor agrees that Subordinated Creditor
will not take any action that would interfere with any exercise of rights or remedies undertaken by Senior Creditor under the Senior
Loan Documents. Subordinated Creditor hereby waives any and all rights he may have as a junior creditor or otherwise to contest, protest,
object to, or interfere with the manner in which Senior Creditor seeks to enforce its rights and remedies under the Senior Loan Documents,
including enforcement of its Liens in any Collateral.

 

11.
In the event that Senior Creditor releases or agrees to release any of its security interests in any portion of the Collateral on which
Subordinated Creditor has a security interest or lien in connection with the sale or other disposition thereof, or any of such Collateral
is sold or retained pursuant to a foreclosure or similar action, the liens and security interests of Subordinated Creditor on such Collateral
shall be automatically released and Subordinated Creditor promptly shall execute and deliver to Senior Creditor or Borrower, as applicable,
such termination statements, releases and other documents as Senior Creditor or Borrower may reasonably request to effectively confirm
such release. In respect of, and to facilitate, the foregoing, to the extent that Subordinated Creditor fails or refuses to provide such
lien releases within five (5) Business Days after being requested by Senior Creditor to do so, Senior Creditor shall be empowered (which
power is coupled with an interest and is irrevocable for the terms of this Agreement), as Subordinated Creditor’s attorney in fact,
to execute and deliver such lien releases for and on behalf of Subordinated Creditor in its name, and to bind Subordinated Creditor accordingly
thereby.

 

12.
Subordinated Creditor hereby waives any rights he/it may have under applicable law to assert the doctrine of marshaling or to otherwise
require Senior Creditor to marshal any property of Borrower or any of its subsidiaries for the benefit of Subordinated Creditor or otherwise.

 

    	-4-

     

    

 

13.
Each of Borrower and Subordinated Creditor hereby represents and warrants that: (a) it has not relied nor will it rely on any representation
or information of any nature made by or received from Senior Creditor relative to Borrower’s financial condition, or the existence,
value or extent of any Collateral, in deciding to execute this Agreement; (b) no part of the Subordinated Debt is evidenced by any instrument,
agreement or other document except the Subordinated Notes and the Subordinated Security Agreement; (c) Subordinated Creditor is the lawful
owner of the Subordinated Debt, and the Subordinated Debt under the Subordinated Loan Documents identified in clause (b) above and the
organizational documents of Borrower constitutes the only debt, liabilities or obligations owed by Borrower or any of its subsidiaries
to Subordinated Creditor; and (e) Subordinated Creditor has not heretofore assigned or transferred any of the Subordinated Debt.

 

14.
This Agreement, which the parties hereto expressly acknowledge is a “subordination agreement” under Section 510(a) of the
Bankruptcy Code, shall be effective before, during and after the commencement of an Insolvency Proceeding with respect to Borrower or
any of its subsidiaries.

 

15.
In the event of any Insolvency Proceeding with respect to Borrower or any of its subsidiaries:

 

15.1
Full Payment shall occur before any payment or distribution of cash, securities or other property, by set-off or otherwise, on account
of such indebtedness, obligation or security (each, a “Distribution”) shall be made to Subordinated Creditor from
or on account of Borrower, any other Person or any assets thereof on account of any Subordinated Debt.

 

15.2
Any Distribution that would otherwise, but for the terms hereof, be payable or deliverable in respect of the Subordinated Debt shall
be delivered to Senior Creditor. Subordinated Creditor irrevocably authorizes, empowers, and directs any debtor, debtor-in-possession,
receiver, trustee, liquidator, custodian or conservator, or other person having authority, to pay or otherwise deliver all such Distributions
to Senior Creditor as set forth above. Subordinated Creditor also irrevocably authorizes and empowers Senior Creditor, in the name of
Subordinated Creditor, to demand, sue for, collect and receive any and all such Distributions.

 

15.3
Subordinated Creditor, agrees not to initiate, prosecute or participate in any claim, action or other proceeding challenging the enforceability,
validity, perfection or priority of any portion of the Senior Debt or any liens or security interests securing any portion of the Senior
Debt.

 

15.4
Subordinated Creditor agrees that Senior Creditor may consent to the use of cash collateral of, or provide debtor-in-possession financing
to, Borrower or any of its subsidiaries on such terms and conditions and in such amounts as Senior Creditor, in its sole discretion,
may decide and, in connection therewith, Borrower or any of its subsidiaries may grant (or continue to grant) to Senior Creditor liens
and security interests upon all of the property of Borrower or any of its subsidiaries, which liens and security interests (a) shall
secure payment of all Senior Debt owing to Senior Creditor (whether such Senior Debt arose prior to the commencement of such Insolvency
Proceeding or at any time thereafter) and all other financing provided by Senior Creditor during such Insolvency Proceeding and (b) shall
be superior in priority to all liens and security interests in favor of Subordinated Creditor on the property of Borrower or any of its
subsidiaries. Subordinated Creditor agrees that he/it will not object to or oppose any such cash collateral usage, any debtor-in-possession
financing or any sale or other disposition of any property securing all or any part of the Senior Debt free and clear of security interests,
liens, or other claims of Subordinated Creditor under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy Code,
if Senior Creditor has consented to such sale or disposition. Subordinated Creditor agrees not to assert any right he/it may have to
“adequate protection” in such Insolvency Proceeding and agrees that he/it will not seek to have the automatic stay lifted
in any Insolvency Proceeding. Subordinated Creditor agrees that he/it will not provide, or offer to provide, any debtor-in-possession
financing to Borrower or any of its subsidiaries without the prior written consent of Senior Creditor.

 

    	-5-

     

    

 

15.5
Subordinated Creditor agrees not to vote for any plan of reorganization that does not provide for the prior payment in full in cash of
the Senior Debt or otherwise vote its claims or interests in such Insolvency Proceeding (including voting for, or supporting, confirmation
of any plans of reorganization) in a manner that would be inconsistent with Subordinated Creditor’s covenants and agreements contained
herein; provided that nothing herein shall prevent Subordinated Creditor from voting in a manner consistent with how Senior Creditor
votes in such Insolvency Proceeding.

 

15.6
The Senior Debt shall continue to be treated as Senior Debt and the provisions of this Agreement shall continue to govern the relative
rights and priorities of Senior Creditor and Subordinated Creditor even if all or part of the Senior Debt or the liens or security interests
securing the Senior Debt are subordinated, set aside, avoided, invalidated, or disallowed in connection with any such Insolvency Proceeding.
This Agreement shall be reinstated if at any time any payment of any of the Senior Debt is rescinded or must otherwise be returned by
any holder of Senior Debt or any representative of such holder.

 

15.7
The parties acknowledge and agree that (a) the claims and interests of Senior Creditor under the Senior Loan Documents are substantially
different from the claims and interests of Subordinated Creditor under the Subordinated Debt Documents and (b) such claims and interests
should be treated as separate classes for purposes of Section 1122 of the Bankruptcy Code.

 

16.
If Subordinated Creditor has any claim against Borrower or any of its subsidiaries in any Insolvency Proceeding, Subordinated Creditor
hereby irrevocably makes, constitutes and appoints Senior Creditor as Subordinated Creditor’s attorney in fact, and grants to Senior
Creditor a power of attorney with full power of substitution, in the name of Subordinated Creditor or in the name of Senior Creditor,
without notice to Subordinated Creditor, and authorizes Senior Creditor (a) to file, in the name of Subordinated Creditor, such claim
on behalf of Subordinated Creditor, if Subordinated Creditor does not do so prior to 10 days before the expiration of the time to file
claims in such proceeding and if Senior Creditor elects, in its sole discretion, to file such claim or claims, (b) to enforce such claim,
either in its own name or in the name of Subordinated Creditor, by proof of claim, suit or otherwise, (c) to vote such claim to accept
or reject any plan of reorganization, and (d) to take any other action in connection with any such Insolvency Proceeding that Subordinated
Creditor would be authorized to take but for this Agreement, and any sums received by Senior Creditor in connection with such claim shall
be applied to the Senior Debt. Senior Creditor shall remit to Subordinated Creditor any funds remaining after those sums have been so
applied, to the extent permitted by applicable law or the proceedings governing any such bankruptcy. In no event shall Senior Creditor
be liable to Subordinated Creditor for any failure to prove the Subordinated Debt, to exercise any right with respect thereto or to collect
any sums payable thereon.

 

    	-6-

     

    

 

17.
All notices, requests and other communications to or upon a party hereto shall be in writing (including electronic transmission or similar
writing) and shall be given to such party at the address set forth in below or at such other address as such party may hereafter specify
for the purpose of notice to Subordinated Creditor and Senior Creditor in accordance with the provisions of this Section 17:

 

	 	If
    to Senior Creditor:	Empery
    Tax Efficient, LP
	 	 	c/o
    Empery Asset Management, LP,
	 	 	1
    Rockefeller Plaza, Suite 1205
	 	 	New
    York, NY 10020
	 	 	Attn:
    Brett S. Director
	 	 	Email:
    notices@emperyam.com
	 	 	 
	 	with
    a copy to:	Schulte
    Roth & Zabel LLP
	 	 	919
    Third Avenue
	 	 	New
    York, NY 10022
	 	 	Attn:
    Gregory Ruback, Esq.
	 	 	Email:
    Gregory.Ruback@srz.com
	 	 	 
	 	If
    to Subordinated Creditor:	Ryan
    Drexler
	 	 	89
    Olympia Chase Drive
	 	 	Las
    Vegas, NV 89141
	 	 	Attn:
    Ryan Drexler
	 	 	Email:
    ryan.drexler@musclepharm.com

 

Each
such notice, request or other communication shall be effective (a) if given by mail, three Business Days after such communication is
deposited in the U.S. Mail, with first class postage pre- paid, addressed to the noticed party at the address specified herein, (b) if
by nationally recognized overnight courier, when delivered with receipt acknowledged in writing by the noticed party, (c) if given by
personal delivery, when duly delivered with receipt acknowledged in writing by the noticed party or (d) given by electronic mail, unless
Senior Creditor otherwise prescribes, upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the
“return receipt requested” function, as available, return e-mail or other written acknowledgement); provided, however,
that if such electronic mail is not sent during the normal business hours of the recipient, such electronic mail shall be deemed to have
been sent at the opening of business on the next business day for the recipient. Any written notice, request or demand that is not sent
in conformity with the provisions hereof shall nevertheless be effective on the date that such notice, request or demand is actually
received by the individual to whose attention at the noticed party such notice, request or demand is required to be sent.

 

    	-7-

     

    

 

18.
This Agreement shall bind any successors or assignees of Subordinated Creditor and shall benefit any successors or assigns of Senior
Creditor and Subordinated Creditor. This Agreement is solely for the benefit of Subordinated Creditor and Senior Creditor and not for
the benefit of Borrower or any other Person. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction. All references to Borrower or any of its subsidiaries shall include
Borrower or any of its subsidiaries, as applicable, as debtor and debtor-in-possession and any receiver or trustee for Borrower or any
of its subsidiaries (as the case may be) in any Insolvency Proceeding.

 

19.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall
constitute one instrument. Any signatures delivered by a party by facsimile transmission or by other electronic transmission shall be
deemed an original signature hereto. The parties hereto irrevocably and unreservedly agree that this Agreement may be executed by way
of electronic signatures and the parties agree that neither this Agreement, nor any part hereof, shall be challenged or denied any legal
effect, validity and/or enforceability solely on the ground that it is in the form of an electronic record.

 

20.
THIS AGREEMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

21.
BORROWER AND SUBORDINATED CREDITOR HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN NEW YORK COUNTY, STATE
OF NEW YORK AND IRREVOCABLY AGREE THAT, SUBJECT TO SENIOR CREDITOR’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING
TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS. BORROWER AND SUBORDINATED CREDITOR EXPRESSLY SUBMIT AND CONSENT TO THE JURISDICTION
OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS. BORROWER AND SUBORDINATED CREDITOR HEREBY WAIVE PERSONAL SERVICE
OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON BORROWER AND SUBORDINATED CREDITOR BY CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER OR SUBORDINATED CREDITOR, AS THE CASE MAY BE, AT THE ADDRESS SET FORTH
IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE 10 DAYS AFTER THE SAME HAS BEEN POSTED.

 

22.
BORROWER AND SUBORDINATED CREDITOR HEREBY WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT. BORROWER AND SUBORDINATED CREDITOR HEREBY ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH PARTY HERETO HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON
THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH OF BORROWER AND SUBORDINATED CREDITOR HEREBY WARRANTS AND REPRESENTS THAT EACH HAS
HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

 

    	-8-

     

    

 

23.
The terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular section, paragraph or subdivision. Any pronoun used shall be deemed to cover all genders. The section
titles appear as a matter of convenience only and shall not affect the interpretation of this Agreement. References in this Agreement
to “Sections” shall be to the Sections of this Agreement unless otherwise specifically provided. All references in this Agreement
to statutes shall include all amendments of same and implementing regulations and any successor statutes and regulations; to any instrument
or agreement (including any of the Senior Loan Documents or the Subordinated Loan Documents) shall include any and all modifications
and supplements thereto and any and all restatements, extensions or renewals thereof to the extent such modifications, supplements, restatements,
extensions or renewals of any such documents are permitted by the terms hereof and thereof; to any Person means and includes the successors
and permitted assigns of such Person; or to “including” shall be understood to mean “including, without limitation”.
Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular
include the plural and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” A breach, default or Event of Default (as defined in the Security Agreement) shall be deemed to exist at all times
during the period commencing on the date that such breach, default or Event of Default occurs to the date on which such breach, default
or Event of Default is waived in writing pursuant to the Senior Loan Documents.

 

24.
This Agreement represents the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements
and commitments. Subordinated Creditor is not relying on any representations by Senior Creditor in entering into this Agreement, and
Subordinated Creditor has kept and will continue to keep itself fully apprised of the financial and other condition of Borrower. No amendment
or modification of any of the provisions of this Agreement shall be effective unless the same shall be in writing and signed by Subordinated
Creditor and Senior Creditor, and, in the case of amendments or modifications that directly affect the rights or duties of Borrower,
Borrower.

 

[Remainder
of page intentionally left blank.]

 

    	-9-

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	SUBORDINATED
    CREDITOR:
	 	
	 	RYAN
    DREXLER
	 	 	 
	 	 	/s/
	 	 	 
	 	 	 
	 	SENIOR
    CREDITOR:
	 	 
	 	EMPERY
    TAX EFFICIENT, LP
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	BORROWER:
	 	 
	 	MUSCLEPHARM
    CORPORATION
	 	 	 
	 	By:	/s/
	 	Name:
    	Sabina
    Rizvi
	 	Title:
    	President
    and Chief Financial Officer

 

    	INTERCREDITOR AND SUBORDINATION AGREEMENT

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	SUBORDINATED
    CREDITOR:
	 	 
	 	RYAN
    DREXLER
	 	 	 
	 	 	 
	 	 	 
	 	SENIOR
    CREDITOR:
	 	 
	 	EMPERY
    TAX EFFICIENT, LP
	 	By:
    	Empery
    Asset Management, LP, its authorized agent
	 	 	 
	 	By:	/s/
	 	Name:
    	Brett
    Director
	 	Title:
    	General
    Counsel of Empery
	 	 	Asset
    Management, LP, its authorized agent
	 	 	 
	 	BORROWER:
	 	 
	 	MUSCLEPHARM
    CORPORATION
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:	 

 

    	INTERCREDITOR AND SUBORDINATION AGREEMENT

     

    

 

EXHIBIT
G

PERFECTION
CERTIFICATE

 

October
13, 2021

 

Reference
is made to (i) the Securities Purchase Agreement (the “Securities Purchase Agreement”), dated as of the date hereof, by and
among MusclePharm Corporation, a Nevada corporation (“MusclePharm”), and each of the purchasers party thereto (the “Purchasers”)
and (ii) each of the Notes, dated the date hereof (the “Notes”), by MusclePharm in favor of each of the Purchasers.

 

MusclePharm
and Canada MusclePharm Enterprises Corp. (together with MusclePharm, each a “Company” and, collectively, the “Companies”),
on behalf of itself and each of the other Companies, after due investigation, does hereby certify to the Buyers and to Empery Tax Efficient,
LP, in its capacity as collateral agent under each of the Securities Purchase Agreement and the Notes (the “Collateral Agent”),
as follows:

 

1.
Names. Schedule I sets forth for each Company (a) the full and correct legal name and state of incorporation or organization
of such Company (in each case as it appears on its certificate or articles, as the case may be, of incorporation or organization or its
certificate of formation), (b) the federal employer identification number for such Company, (c) the organizational identification number
for such Company, and (d) each state in which such Company is qualified to do business and states whether such Company is in good standing
under the laws of each such state.

 

2.
Other Names. Schedule II sets forth for each Company (a) all names (including trade names and similar appellations) presently
used by such Company or any of its divisions or other business units and (b) all names (including former legal names and trade names
or similar appellations) used by such Company or any of its divisions or other business units during the past five years.

 

3.
Locations. Schedule III sets forth for each Company (a) the location (including county and zip code) of its chief executive
office, (b) the location (including county and zip code) of its chief place of business, (c) each location (including county and zip
code) where its books and records are maintained, (d) each location (including county and zip code) where chattel paper, inventory, equipment
and/or fixtures are maintained, and (e) each location (including county and zip code) previously maintained by such Company during the
past four months (and in the case of its chief executive office, during the past five years) for any of the purposes listed above.

 

4.
Outside Locations of Collateral. Schedule IV sets forth for each Company (a) the name and location (including county and
zip code) of each person or entity (other than a Company) that has or may have possession of any inventory, equipment or other assets
of such Company, and (b) the name and location (including county and zip code) of each person or entity (other than a Company) that has
previously had possession of any inventory, equipment or other assets of such Company during the past four months.

 

    	-1-

     

    

 

5.
Cash/Accounts. Schedule V sets forth for each Company all cash, money, currency and all deposit accounts, including demand,
time, savings, passbooks or similar accounts maintained with banks, savings and loan associations, or other financial institutions of
such Company.

 

6.
Investment Property. Schedule VI sets forth for each Company all investment property (as defined in the Uniform Commercial
Code as in effect in the State of New York), including, without limitation, all securities, security entitlements, security accounts,
commodity contracts and commodity accounts (as each such term is defined in the Uniform Commercial Code as in effect in the State of
New York), whether or not evidenced by certificates or instruments, and all the certificates and instruments, if any, representing or
evidencing such investment property and all security therefor of such Company.

 

7.
Securities; Instruments; Chattel Paper. Schedule VII sets forth for each Company all securities (whether debt or equity
and whether or not evidenced by a certificate), instruments, tangible chattel paper and electronic chattel paper held by or on behalf
of, and all letters of credit issued in favor of, such Company.

 

8.
Intellectual Property. Schedule VIII sets forth for each Company (a) all trademarks, service marks, trade names, business
names, logos or other business identifiers of like nature, all applications or recordings in respect thereof, and all licenses or contracts
in respect of the foregoing, (b) all letters patent, design patents and utility patents, all applications or recordings in respect thereof,
and all licenses or contracts in respect of the foregoing, (c) all copyrights, copyright registrations, all applications or recordings
in respect thereof, and all licenses or contracts in respect of the foregoing (d) any and all software, including without limitation,
(i) all computer programs, including source code and object code versions, (ii) all data, databases and compilations of data, whether
machine readable or otherwise and (iii) all documentation, training materials and configurations related to any of the foregoing, in
each case whether or not patented, and (e) a true and correct list of all material intellectual property license agreements entered into
by each Company. Please indicate whether any Company derives revenues from copyrights that are not registered with the U.S. Copyright
Office.

 

9.
Real Property. Schedule IX sets forth for each Company (a) all real property owned or leased by such Company, (b) if such
property is leased, the landlord and the term of the lease, and (c) if such property is held in fee, the holder of any lien on such real
property.

 

10.
Vehicles. Schedule X sets forth for each Company all the motor vehicles owned by such Company, identifying (a) the unit
and VIN numbers, (b) the state where such vehicle is titled, (c) any existing lienholders and (d) the make, model and year of such vehicle.

 

11.
Other Titled Collateral. Schedule XI set forth for each Company all aircraft and boats and all other inventory, equipment
and other goods of the Company which are subject to any certificate of title or other registration statute of the United States, any
state or any other jurisdiction, and provides a description of such goods and indicates the registration system and jurisdiction of such
goods.

 

12.
Commercial Tort Claims. Schedule XII sets forth for each Company all commercial tort claims (as defined in the Uniform
Commercial Code as in effect in the State of New York) of such Company.

 

13.
Completeness of Information Presented. No Company owns any material assets, except as set forth in the Schedules described above.

 

14.
Acknowledgment. The undersigned acknowledges that this Perfection Certificate is provided in connection with the Securities Purchase
Agreement and the Note, and that the Buyers will rely upon the information contained herein. The undersigned further acknowledges and
agrees that the information contained herein shall be deemed to be a representation and warranty under the Securities Purchase Agreement
and the Note, and that any material misstatements or material omissions contained herein may constitute a default under the Securities
Purchase Agreement and the Note.

 

[signature
page follows]

 

    	-2-

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Perfection Certificate as of the date first set forth above.

 

	 	MUSCLEPHARM
    CORPORATION
	 	 	 
	 	By:
    	 
	 	Name:	Sabina
    Rizvi
	 	Title:	Chief
    Financial Officer 
	 	 	 
	 	CANADA
    MUSCLEPHARM
	 	ENTERPRISES
    CORP.
	 	 	 
	 	By:
    	 
	 	Name:	Sabina
    Rizvi
	 	Title:	Chief
    Financial Officer

 

    	-3-

     

    

 

SCHEDULE
I

 

Persons

 

	Company

                                                                                Name
	 	State
    of Organization	 	Federal

                                                                                Employer I.D.
	 	Organizational
    I.D.	 	States
    where Qualified to do Business
	 	 	 	 	 	 	 	 	 
	MusclePharm
    Corporation	 	Nevada	 	77-0664193	 	NV20061197204	 	SOS
    Annual reports filed in CA, TN, ID, FL, KY, NV, NJ
	 	 	 	 	 	 	 	 	 
	Canada
    MusclePharm Enterprises Corp.	 	Ontario,
    Canada	 	803898915	 	BC0918993	 	 

 

    	-4-

     

    

 

SCHEDULE
II

 

Other
Names

 

	Company	 	Present
    Names	 	Former
    Names
	 	 	 	 	 
	MusclePharm
    Corporation	 	MusclePharm;
    MSLP	 	Tone
    in Twenty (Incorporated 8/4/2006); name changed to MusclePharm Corporation 3/1/2010

 

    	-5-

     

    

 

SCHEDULE
III

 

Locations

 

	Company	 	Chief
    Executive Office	 	Chief
    Place of Business	 	Books
    and Records	 	Inventory,
    Equipment, Etc.	 	Other
    Locations During Past Fourth Months
	 	 	 	 	 	 	 	 	 	 	 
	MusclePharm
    Corporation	 	3753
    Howard Hughes Pkwy, Ste. 200-849 Las Vegas, NV 89169	 	3753
    Howard Hughes Pkwy, Ste. 200-849 Las Vegas, NV 89169	 	3753
    Howard Hughes Pkwy, Ste. 200-849 Las Vegas, NV 89169	 	601
                                            Century Parkway Suite 300 Allen, TX 75013

     

    5420
    E. La Palma Ave.

    Anaheim, CA 92807

     

    6050
    Dana Way, Ste

    300 Antioch, TN 37013
	 	4500
    Park Granada, Ste. 202, Calabasas, CA 91302
	 	 	 	 	 	 	 	 	 	 	 
	Canada
    MusclePharm Enterprises Corp.	 	170-762
    Upper James Street, Hamilton, ON, L9C 3A2	 	170-762
    Upper James Street, Hamilton, ON, L9C	 	170-762
    Upper James Street, Hamilton, ON, L9C 3A2	 	None.	 	N/A

 

    	-6-

     

    

 

SCHEDULE
IV

 

Outside
Locations of Collateral

 

	Company	 	Outside
    Locations of Collateral	 	Type
    of Collateral (e.g., Inventory, Equipment, Books and Records, etc.)1
	 	 	 	 	 
	MusclePharm
    Corporation 	 	3753
    Howard Hughes Pkwy, Ste. 200-849 Las Vegas, NV 89169	 	Books
                                            & Records. Bank Accounts and Accounts Receivable. Approx. Value = $[*]

    

	 	 	 	 	 
	MusclePharm
    Corporation 	 	JW
                                            Nutritional, LLC

    601 Century Parkway Suite 300 Allen, TX 75013
	 	Inventory.
Approx. Value = $[*]

	 	 	 	 	 
	MusclePharm
    Corporation 	 	SK
                                            Laboratories Inc.

                                            5420 E. La Palma Ave.

                                            Anaheim, CA 92807

    
	 	Inventory.
    Approx. Value = $[*]
	 	 	 	 	 
	MusclePharm
    Corporation 	 	Cimetra
                                            Warehousing & Distribution LLC

    

    6050
    Dana Way, Ste 300 Antioch, TN 37013
	 	Inventory.
Approx. Value = $[*]

    

	 	 	 	 	 
	Canada
    MusclePharm Enterprises Corp.	 	170-762
    Upper James Street,

    Hamilton, ON, L9C 3A2	 	Books
& Records. Bank Accounts and Account

    Receivable.
Approx. Value = $[*]s (Located in Canada)

 

 

1
Inventory values fluctuate and are estimates only.

 

    	-7-

     

    

 

SCHEDULE
V

Cash/Accounts

 

	Company	 	Bank
    or Broker	 	Address	 	Account
    No.	 	Account
    Type
	 	 	 	 	 	 	 	 	 
	Canada
    MusclePharm Enterprises Corp.	 	Royal
    Bank -Corp (CAD)	 	ROYAL
                                            BANK OF CANADA

    

    P.O.
BOX 4047 TERMINAL A TORONTO ON M5W 1L5
	 	[*]	 	Business
    Account –Non-US Sub and maintained at a Canadian bank Canada MusclePharm Enterprises Corp.
	 	 	 	 	 	 	 	 	 
	Canada
    MusclePharm Enterprises Corp.	 	Royal
    Bank (USD)	 	ROYAL
                                            BANK OF CANADA

    

    P.O.
BOX 4047 TERMINAL A TORONTO ON M5W 1L5
	 	[*]	 	Business
    Account - Non-US Sub and maintained at a Canadian bank Canada MusclePharm Enterprises Corp.
	 	 	 	 	 	 	 	 	 
	Canada
    MusclePharm Enterprises Corp.	 	Royal
    Bank GIC (CAD)	 	ROYAL
                                            BANK OF CANADA

    

    P.O.
BOX 4047 TERMINAL A TORONTO ON M5W 1L5
	 	[*]	 	Guaranteed
Investment Certificate - Non-US Sub and maintained at a Canadian bank

	 	 	 	 	 	 	 	 	 
	MusclePharm

    Corporation	 	Chase
    Deposit	 	JPMorgan
    Chase Bank, N.A.

    P O Box 182051

    Columbus, OH 43218 - 2051	 	[*]	 	Commercial
                                                         Money Market – US Bank Account

	 	 	 	 	 	 	 	 	 
	MusclePharm

    Corporation	 	WF
                                            - Operating

     

    (USD)
	 	Wells
    Fargo Bank, N.A. (182)

    PO Box 63020

    San Francisco, CA 94163	 	[*]	 	Operating
- US Bank Account

	 	 	 	 	 	 	 	 	 
	MusclePharm

    Corporation	 	WF
                                            - AP Account

     

    (USD)
	 	Wells
    Fargo Bank, N.A. (182)

    PO Box 63020

    San Francisco, CA 94163	 	[*]	 	AP
- US Bank Account

	 	 	 	 	 	 	 	 	 
	MusclePharm

    Corporation	 	WF
    - Payroll (USD)	 	Wells
    Fargo Bank, N.A. (182)

    PO Box 63020

    San Francisco, CA 94163	 	[*]	 	Payroll
- US Bank Account

	 	 	 	 	 	 	 	 	 
	MusclePharm

    Corporation	 	WF
                                            - Factoring

     

    (USD)
	 	Wells
    Fargo Bank, N.A. (182)

    PO Box 63020

    San Francisco, CA 94163	 	[*]	 	Factoring
- US Bank Account

 

    	-8-

     

    

 

SCHEDULE
VI

 

Investment
Property

 

	 	Owner
    of Record of such Equity Interests	 	Issuer	 	Equity

                                                                                Description
	 	No.
    of Shares (Percentage of Issuer)	 	Certificate
    (Indicate No.)
	 	 	 	 	 	 	 	 	 	 
	1.	MusclePharm
    Corporation	 	Canada
    MusclePharm Enterprises Corp.	 	Common
    Shares 	 	100,000
                                            Common Shares (100%)

    

    
	 	Not
    Certificated

 

    	-9-

     

    

 

SCHEDULE
VII

 

Securities;
Instruments; Chattel Paper None.

 

    	-10-

     

    

 

SCHEDULE
VIII

 

Intellectual
Property Trademarks

 

U.S.
Trademarks:

 

	Company	 	Trademark	 	Serial
    no.	 	Reg.
    no.	 	Filing
    Date	 	Registration
    Date	 	Status
	 	 	 	 	 	 	 	 	 	 	 	 	 
	MusclePharm
    Corporation 	 	BCAA
    3:1:2 THE FOUNDATION OF YOUR TEMPLE MP MUSCLEPHARM	 	[*]
	 	[*]	 	11/21/2013	 	5/3/2016	 	LIVE
	MusclePharm
    Corporation 	 	BIZZY
    DIET	 	[*]
	 	[*]	 	10/3/2011	 	4/10/2012	 	LIVE
	MusclePharm
    Corporation 	 	COMBAT
    100% WHEY	 	[*]
	 	[*]	 	3/23/2016	 	6/9/2020	 	LIVE
	MusclePharm
    Corporation 	 	COMBAT
    BLACK	 	[*]
	 	[*]f	 	86512633	 	n/a	 	LIVE
	MusclePharm
    Corporation 	 	COMBAT
    100% CASEIN	 	[*]
	 	[*]	 	2/21/2014	 	6/16/2015	 	LIVE
	MusclePharm
    Corporation 	 	COMBAT
    100%ISOLATE	 	[*]
	 	[*]	 	7/29/2015	 	3/8/2016	 	LIVE
	MusclePharm
    Corporation 	 	CONFIDENCE
    BUILT HERE	 	[*]
	 	[*]	 	5/4/2010	 	5/31/2011	 	LIVE
	MusclePharm
    Corporation 	 	Fitmiss	 	[*]
	 	[*]	 	1/27/2012	 	12/3/2013	 	LIVE
	MusclePharm
    Corporation 	 	Fitmiss	 	[*]
	 	[*]	 	6/23/2021	 	n/a	 	LIVE
	MusclePharm
    Corporation 	 	FITMISS
    BURN	 	[*]
	 	[*]	 	1/30/2012	 	4/7/2015	 	LIVE
	MusclePharm
    Corporation 	 	FITMISS
    DELIGHT	 	[*]
	 	[*]	 	9/7/2013	 	3/18/2014	 	LIVE
	MusclePharm
    Corporation 	 	FUEL
    THE ATHLETE INSIDE	 	[*]
	 	[*]	 	5/3/2010	 	5/31/2011	 	LIVE

 

    	-11-

     

    

 

	MusclePharm
    Corporation 	 	FUEL
    YOUR ACTIVE LIFESTYLE	 	 	 	[*]	 	4077223	 	6/9/2011	 	LIVE
	MusclePharm
    Corporation 	 	MP	 	[*]
	 	[*]	 	1/4/2012	 	8/7/2012	 	LIVE
	MusclePharm
    Corporation 	 	MP
    (stylized black and white)	 	[*]
	 	[*]	 	12/22/2016	 	5/9/2017	 	LIVE
	MusclePharm
    Corporation 	 	MP
    Essentials	 	[*]
	 	[*]	 	12/19/2017	 	5/7/2019	 	LIVE
    (REVIVE)
	MusclePharm
    Corporation 	 	MP
    Stealth	 	[*]
	 	[*]	 	12/19/2017	 	n/a	 	LIVE
	MusclePharm
    Corporation 	 	MUSCLEPHARM	 	[*]
	 	[*]	 	12/8/2009	 	3/22/2011	 	LIVE
	MusclePharm
    Corporation 	 	MUSCLEPHARM
    SPORTSWEAR	 	[*]
	 	[*]	 	6/3/2011	 	12/27/2011	 	LIVE
	MusclePharm
    Corporation 	 	 	 	 	 		 	 	 	 	 	 
	MusclePharm
    Corporation 	 	 	 	 	 	 	 	 	 	 	 	 
	MusclePharm
    Corporation 	 	MUSCLEPHARM
    ENERGY SPORT ZERO	 	[*]
	 	[*]
	 	12/23/2014	 	4/25/2017	 	LIVE
	MusclePharm
    Corporation 	 	MP
    MUSCLEPHARM	 	[*]
	 	[*]
	 	4/29/2014	 	7/7/2015	 	LIVE
	MusclePharm
    Corporation 	 	CREATINE
    BLACK	 	[*]
	 	[*]
	 	10/10/2016	 	9/12/2017	 	LIVE
	MusclePharm
    Corporation 	 	CLEAN
    MASS	 	[*]
	 	[*]
	 	2/10/2016	 	4/11/2017	 	LIVE
	MusclePharm
    Corporation 	 	VASO
    SPORT	 	[*]
	 	[*]
	 	6/22/2015	 	11/15/2016	 	LIVE
	MusclePharm
    Corporation 	 	OXYSPORT	 	[*]
	 	[*]
	 	6/18/2014	 	8/30/2016	 	LIVE

 

    	-12-

     

    

 

	MusclePharm
    Corporation 	 	#FUELYOURGRIND	 	[*]
	 	[*]
	 	1/23/2015	 	5/31/2016	 	LIVE
	MusclePharm
    Corporation 	 	REAL
    ATHLETES. REAL SCIENCE. 	 	[*]
	 	[*]
	 	11/11/2013	 	3/29/2016	 	LIVE
	MusclePharm
    Corporation 	 	Z-CORE
    PM	 	[*]
	 	[*]
	 	7/29/2015	 	3/22/2016	 	LIVE
	MusclePharm
    Corporation 	 	CLA
    CORE	 	[*]
	 	[*]
	 	7/29/2015	 	3/8/2016	 	LIVE
	MusclePharm
    Corporation 	 	CARNITINE
    CORE	 	[*]	 	[*]
	 	7/29/2015	 	3/8/2016	 	LIVE
	MusclePharm
    Corporation 	 	THE
    FOUNDATION OF YOUR TEMPLE	 	[*]	 	[*]
	 	1/16/2014	 	1/26/2016	 	LIVE
	MusclePharm
    Corporation 	 	BUILD
    YOUR LEGACY	 	[*]	 	[*]
	 	1/13/2014	 	1/5/2016	 	LIVE
	MusclePharm
    Corporation 	 	STRONG
    IS THE NEW SEXY	 	[*]	 	[*]
	 	4/4/2014	 	3/24/2015	 	LIVE
	MusclePharm
    Corporation 	 	HYBRID
    SERIES	 	[*]	 	[*]
	 	4/25/2014	 	3/3/2015	 	LIVE
	MusclePharm
    Corporation 	 	LIVE
    SHREDDED	 	[*]	 	[*]
	 	6/9/2011	 	12/27/2011	 	LIVE
	MusclePharm
    Corporation 	 	WEAK
    ENDS HERE	 	[*]	 	[*]
	 	9/19/2012	 	4/9/2013	 	LIVE
	MusclePharm
    Corporation 	 	ENERGY
    ON THE GO	 	[*]	 	[*]
	 	8/23/2011	 	4/24/2012	 	LIVE
	MusclePharm
    Corporation 	 	RE-CON	 	[*]	 	[*]
	 	7/19/2010	 	3/22/2011	 	LIVE

 

    	-13-

     

    

 

Non-U.S.
Trademarks:

 

	Mark	 	Category	 	Owner	 	Country	 	Class(es)	 	Status	 	Filing
    Date	 	Registration
    Date	 	Renewal
    Date	 	App.
    No.	 	Reg.
    No.	 	File
    No.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Colour
    Logo	 	Musclepharm
    Corporation	 	European
    Union	 	5
    25 32	 	OPPOSED	 	14/05/2014	 	 	 	 	 	[*]
	 	 	 	[*]
	 	 	Colour
    Logo	 	Musclepharm
    Corporation	 	European
    Union	 	5
    25 32	 	REGISTERED	 	14/05/2014	 	29/06/2017	 	14/05/2024	 	[*]	 	[*]	 	[*]
		 	Colour
    Logo	 	Musclepharm
    Corporation	 	European
    Union	 	5
    25 32	 	REGISTERED	 	14/05/2014	 	09/01/2015	 	14/05/2024	 	[*]	 	[*]	 	[*]
	 	 	Colour
    Logo	 	Musclepharm
    Corporation	 	European
    Union	 	5
    32	 	REGISTERED	 	05/02/2015	 	19/06/2015	 	05/02/2025	 	[*]	 	[*]	 	[*]
	 	 	Colour
    Logo	 	Musclepharm
    Corporation	 	European
    Union	 	30	 	REGISTERED	 	15/02/2018	 	29/01/2019	 	15/02/2028	 	[*]	 	[*]	 	[*]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ASSAULT	 	Word	 	Musclepharm
    Corporation	 	European
    Union	 	5	 	OPPOSED-+	 	05/02/2015	 	 	 	 	 	[*]
	 	 	 	[*]
	ASSAULT
                                            in

    

    Class
    5
	 	Word	 	Musclepharm
    Corporation	 	European
    Union	 	5	 	ACCEPTED	 	14/11/2018	 	 	 	 	 	[*]
	 	 	 	[*]
	COMBAT
    CRUNCH BAR	 	Words	 	Musclepharm
    Corporation	 	European
    Union	 	5
    30	 	OPPOSED	 	05/02/2015	 	 	 	 	 	[*]
	 	 	 	[*]
	COMBAT
    PROTEIN POWDER	 	Words	 	Musclepharm
    Corporation	 	European
    Union	 	5	 	REGISTERED	 	05/02/2015	 	24/06/2015	 	05/02/2025	 	[*]	 	[*]
	 	[*]
	FITMISS	 	Word	 	Musclepharm
    Corporation	 	European
    Union	 	5
    25 30 32	 	REGISTERED	 	24/09/2015	 	12/02/2016	 	24/09/2025	 	[*]	 	[*]
	 	[*]
	MUSCLEPHARM	 	Word	 	Musclepharm
    Corporation	 	European
    Union	 	5
    25 32	 	REGISTERED	 	22/09/2015	 	27/04/2016	 	22/09/2025	 	[*]	 	[*]
	 	[*]
	MUSCLEPHARM	 	Word	 	Musclepharm
    Corporation	 	European
    Union	 	30	 	REGISTERED	 	15/02/2018	 	29/01/2019	 	15/02/2028	 	[*]	 	[*]
	 	[*]

 

Patents

 

None.

 

Copyrights
None.

 

Software

 

None.

 

Material
Intellectual Property License Agreements:

 

None.

 

    	-14-

     

    

 

SCHEDULE
IX

 

Real
Property

 

	Company	 	Location	 	Leasehold
    or Fee	 	Lessor
    or Mortgagee	 	Lease
    or Mortgage Term	 	Other
    Liens
	 	 	 	 	 	 	 	 	 	 	 
	MusclePharm
    Corporation 	 	4400
                                            Vanowen St. Burbank, CA 91505

    

    
	 	Lease
    – No Company assets are on premise as this is a sub-lease.	 	Landlord-
                                            PSIP

     

    SN
    Burbank LLC
	 	5
                                            year term; ends September 30, 2022.

    

    Given
we are remote, there is a sub-tenant.

    
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	MusclePharm
    Corporation 	 	4400
    Vanowen St., Burbank, CA 91505	 	Sub-Lease
- No Company assets are on premise other than Books & Records.

    
	 	Sublessor-
    MusclePharm Sublessee- LiveGlam, Inc. and Dhar Mann Studios 	 	2
year and 16 day term; ends September 30, 2022

     
	 	 

 

    	-15-

     

    

 

SCHEDULE
X

 

Motor
Vehicles

 

1.
2015 Dodge Challenger SXT 2 Door

 

[*]

 

    	-16-

     

    

 

SCHEDULE
XI

 

Other
Titled Collateral None.

 

    	-17-

     

    

 

SCHEDULE
XII

 

Commercial
Tort Claims None.

 

    	-18-

     

    

 

EXHIBIT
H

GUARANTEE

 

GUARANTEE
(this “Guarantee”), dated as of October 13, 2021, made by each of the undersigned (together with each additional Person
that becomes a party to this Agreement each a “Guarantor”, and collectively, the “Guarantors”),
in favor of the Empery Tax Efficient, LP, in its capacity as collateral agent (in such capacity, the “Collateral Agent”)
for the Buyers (as defined below) party to the Securities Purchase Agreement referenced below.

 

W
I T N E S S E T H :

 

WHEREAS,
MusclePharm Corporation, a Nevada corporation, (the “Company”), and each party listed as a “Buyer” on
the signature pages thereto (each a “Buyer”, and collectively, the “Buyers”) are parties to that
certain Securities Purchase Agreement, dated as of October 13, 2021, (the “Securities Purchase Agreement”), pursuant
to which, among other things, the Buyers shall purchase from the Company the Notes (as defined in the Securities Purchase Agreement)
(as such Notes may be amended, restated, replaced, amended and restated, supplemented or otherwise modified from time to time, the “Notes”);

 

WHEREAS,
the Buyers have requested, and the Guarantors have agreed, that all existing and future Subsidiaries of the Company shall execute and
deliver to the Buyers a guarantee guaranteeing all of the obligations of the Company under the Securities Purchase Agreement, the Notes,
the Security Documents, any Perfection Certificate, the other Transaction Documents (as defined in the Securities Purchase Agreement)
and any other agreement, instrument, certificate, report or other document executed and delivered pursuant hereto or thereto or otherwise
evidencing or securing any Note or any other obligation (collectively, the “Transaction Documents”);

 

WHEREAS,
pursuant to a Pledge and Security Agreement, dated as of October 13, 2021, (as the same has been, and may be, amended, restated, amended
and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), the Company and the
Guarantors (each, a “Transaction Party”, and collectively, the “Transaction Parties”) have granted
to the Collateral Agent, a security interest in and lien on all or substantially all of its personal property and assets to secure their
respective obligations under this Guarantee, the Securities Purchase Agreement, the Notes and the other Transaction Documents; and

 

WHEREAS,
the Company and the Guarantors are mutually dependent on each other in the conduct of their respective businesses as an integrated operation,
with the credit needed from time to time by the Guarantors often being provided through financing obtained by the Company and the ability
of the Company to obtain such financing being dependent on the successful operations of the Guarantors; and

 

WHEREAS,
each Guarantor has determined that the execution, delivery and performance of this Guarantee directly benefits, and is in the best interest
of, such Guarantor.

 

NOW,
THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyers to enter into the Securities
Purchase Agreement and to buy the Notes, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged,
each Guarantor hereby agrees with the Collateral Agent as follows:

 

    	-1-

     

    

 

SECTION
1. Definitions. Reference is hereby made to the Securities Purchase Agreement, the Notes and the Security Agreement for a statement
of the terms thereof. All terms used in this Guarantee which are defined in the Securities Purchase Agreement, the Notes or the Security
Agreement and not otherwise defined herein shall have the same meanings as set forth therein, as applicable.

 

SECTION
2. Guarantee. The Guarantors, jointly and severally, (i) hereby absolutely unconditionally and irrevocably, guarantee (a) the
punctual payment, as and when due and payable, by stated maturity or otherwise, of all Obligations (as defined in the Security Agreement),
and (b) the punctual and faithful performance, keeping, observance and fulfillment by the Company of all of the agreements, conditions,
covenants and obligations of the Company now or hereafter existing in respect of the Securities Purchase Agreement, the Notes and the
other Transaction Documents, and (ii) agree to pay any and all costs and expenses (including reasonable counsel fees and expenses), without
duplication, incurred by the Buyers or the Collateral Agent in enforcing any rights under this Guarantee or the other Transaction Documents
(all of the foregoing, collectively, the “Guaranteed Obligations”). Without limiting the generality of the foregoing,
each Guarantor’s liability hereunder shall extend to all amounts that constitute part of the Guaranteed Obligations and would be
owed by the Company to the Collateral Agent and/or the Buyers under the Securities Purchase Agreement, the Notes or any other Transaction
Document but for the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding involving any
Transaction Party.

 

SECTION
3. Guarantee Absolute; Continuing Guarantee; Assignments.

 

(a)
The Guarantors, jointly and severally, (i) guarantee that the Guaranteed Obligations will be paid strictly in accordance with the terms
of the Transaction Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Collateral Agent or the Buyers with respect thereto and (ii) agree that their guarantee constitutes
a guaranty of payment when due and not of collection and waives any right to require that any resort be made by the Collateral Agent
or the Buyers to any Collateral. The obligations of each Guarantor under this Guarantee are independent of the obligations under the
Securities Purchase Agreement, the Notes and the other Transaction Documents, and a separate action or actions may be brought and prosecuted
against any Guarantor to enforce this Guarantee, irrespective of whether any action is brought against any other Transaction Party or
whether any Transaction Party is joined in any such action or actions. The liability of any Guarantor under this Guarantee shall be irrevocable,
absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives, to the extent permitted by law, any defenses
it may now or hereafter have in any way relating to, any or all of the following:

 

(i)
any lack of validity or enforceability of any Transaction Document or any agreement or instrument relating thereto;

 

    	-2-

     

    

 

(ii)
any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other
amendment or waiver of or any consent to departure from any Transaction Document, including, without limitation, any increase in the
Guaranteed Obligations resulting from the extension of additional credit to any Transaction Party or otherwise;

 

(iii)
any taking, exchange, release or non-perfection of any lien on or security interest in any Collateral, or any taking, release or amendment
or waiver of or consent to departure from any other guarantee, for all or any of the Guaranteed Obligations;

 

(iv)
the existence of any claim (other than payment in full of the Guaranteed Obligations), set-off, defense or other right that a Guarantor
may have against any Person, including, without limitation, the Collateral Agent or any Buyer, whether in connection with this Guarantee
or any Transaction Document or the transactions contemplated herein, therein or in any unrelated transaction;

 

(v)
any change, restructuring or termination of the corporate, limited liability company or partnership structure or existence of any Transaction
Party; or

 

(vi)
any other circumstance (including any statute of limitations) or any existence of or reliance on any representation by the Collateral
Agent or any Buyer that might otherwise constitute a defense available to, or a discharge of, any Transaction Party or any other guarantor
or surety.

 

This
Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations
is rescinded or must otherwise be returned by the Collateral Agent, any Buyer or any other Person upon the insolvency, bankruptcy or
reorganization of any Transaction Party or otherwise, all as though such payment had not been made.

 

(b)
This Guarantee is a continuing guarantee and shall (i) remain in full force and effect until the indefeasible payment in full in cash
of all Guaranteed Obligations, including, without limitation, all obligations under the Notes (together with any matured indemnification
obligations as of the date of such payment, but excluding any inchoate or unmatured contingent indemnification obligations) and the payment
in full in cash of all other amounts payable under this Guarantee (excluding any inchoate or unmatured contingent indemnification obligations)
(the first date on which all of the foregoing shall have finally occurred, the “Termination Date”), (ii) be binding
upon each Guarantor and its respective successors and assigns and (iii) shall inure to the benefit of and be enforceable by the Collateral
Agent and the Buyers and their respective successors, pledgees, transferees and assigns. Without limiting the generality of the foregoing
clause (iii), the Collateral Agent and any Buyer may pledge, assign or otherwise transfer all or any portion of its rights and obligations
under and subject to the terms of any Transaction Document to any other Person, and such other Person shall thereupon become vested with
all the benefits in respect thereof granted to the Collateral Agent or such Buyer herein or otherwise, in each case as provided in the
Securities Purchase Agreement or such other Transaction Document.

 

    	-3-

     

    

 

SECTION
4. Waivers. To the extent permitted by applicable law, each Guarantor hereby waives (i) promptness and diligence, (ii) notice
of acceptance and notice of the incurrence of any Obligation by the Company, (iii) notice of any actions taken by the Collateral Agent
or any Buyer under any Transaction Document, (iv) any other notice, demand, protest, or any other formality of every kind in connection
with or with respect to any of the Obligations or the Guaranteed Obligations (including enforcement thereof) and this Guarantee, (v)
any right to compel or direct the Collateral Agent or any Buyer to seek payment or recovery of any amounts owed under this Guarantee
from any one particular fund or source, (vi) and any requirement that the Buyers or the Collateral Agent exhaust any right or take any
action against any Transaction Party or any other Person or any Collateral and (vii) any other defense available to the Guarantor. Each
Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated herein and that
the waiver set forth in this Section 4 is knowingly made in contemplation of such benefits. The Guarantors hereby waive any right
to revoke this Guarantee, and acknowledge that this Guarantee is continuing in nature and applies to all Guaranteed Obligations, whether
existing now or in the future.

 

SECTION
5. Subrogation. No Guarantor may exercise any rights that it may now or hereafter acquire against any Transaction Party or any
other guarantor that arise from the existence, payment, performance or enforcement of any Guarantor’s obligations under this Guarantee,
including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of the Buyers or the Collateral Agent against any Transaction Party or any other guarantor or any
Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from any Transaction Party or any other guarantor, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until
the Termination Date occurs. If any amount shall be paid to a Guarantor in violation of the immediately preceding sentence at any time
prior to the Termination Date, such amount shall be held in trust for the benefit of the Collateral Agent and the Buyers and shall forthwith
be paid ratably to the Collateral Agent and the Buyers to be credited and applied to the Guaranteed Obligations and all other amounts
payable under this Guarantee, whether matured or unmatured, in accordance with the terms of the Transaction Documents, or to be held
as collateral for any Guaranteed Obligations or other amounts payable under this Guarantee thereafter arising. Upon the Termination Date,
the Collateral Agent will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents,
without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest
in the Guaranteed Obligations resulting from such payment by such Guarantor.

 

SECTION
6. Representations, Warranties and Covenants.

 

(a)
Each Guarantor hereby represents and warrants as follows:

 

(i)
Each Guarantor (A) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization as set forth on the signature pages hereto, (B) has all requisite corporate, limited
liability company or limited partnership power and authority to conduct its business as now conducted and as presently contemplated and
to execute and deliver this Guarantee and each other Transaction Document to which the Guarantor is a party, and to consummate the transactions
contemplated hereby and thereby and (C) is duly qualified to do business and is in good standing in each jurisdiction in which the character
of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary except where the
failure to be so qualified would not result in a Material Adverse Effect.

 

    	-4-

     

    

 

(ii)
The execution, delivery and performance by each Guarantor of this Guarantee and each other Transaction Document to which such Guarantor
is or will be a party (A) have been duly authorized by all necessary corporate, limited liability company or limited partnership action,
(B) do not and will not contravene its charter or by-laws, its limited liability company or operating agreement or its certificate of
partnership or partnership agreement, as applicable, or any applicable law or regulation or any contractual restriction binding on the
Guarantor or its properties do not and will not result in or require the creation of any lien (other than pursuant to any Transaction
Document) upon or with respect to any of its properties, and (C) do not and will not result in any default, noncompliance, suspension,
revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to it or its operations
or any of its properties.

 

(iii)
No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required
in connection with the due execution, delivery and performance by the Guarantor of this Guarantee or any of the other Transaction Documents
to which the Guarantor is a party (other than as expressly provided for in any of the Transaction Documents).

 

(iv)
Each of this Guarantee and the other Transaction Documents to which the Guarantor is or will be a party, when executed and delivered,
is and will be a legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, suretyship or other
similar laws affecting creditor’s rights generally and equitable principles (regardless of whether enforcement is sought in equity
or at law).

 

(v)
There is no pending or, to the best knowledge of the Guarantor, threatened claim, action, suit, investigation, litigation or proceeding
(including any shareholder or derivative litigation) against the Guarantor or to which any of the properties of the Guarantor is subject,
before any court or other governmental authority or any arbitrator that (A) if adversely determined, would reasonably be expected to
have a Material Adverse Effect or (B) relates to this Guarantee or any of the other Transaction Documents to which the Guarantor is a
party or any transaction contemplated hereby or thereby.

 

    	-5-

     

    

 

(vi)
The Guarantor (A) has read and understands the terms and conditions of the Securities Purchase Agreement, the Notes and the other Transaction
Documents, and (B) now has and will continue to have independent means of obtaining information concerning the affairs, financial condition
and business of the Company and the other Transaction Parties, and has no need of, or right to obtain from the Collateral Agent or any
Buyer, any credit or other information concerning the affairs, financial condition or business of the Company or the other Transaction
Parties that may come under the control of the Collateral Agent or any Buyer.

 

(b)
The Guarantor covenants and agrees that until the Termination Date, it will comply with each of the covenants (except to the extent applicable
only to a public company) which are set forth in Sections 4.8, 4.10, 4.12, 4.13 and 4.14 of the Securities Purchase Agreement as if the
Guarantor were a party thereto.

 

SECTION
7. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, the Collateral Agent and any Buyer
may, and is hereby authorized to, at any time and from time to time, without notice to the Guarantors (any such notice being expressly
waived by each Guarantor) and to the fullest extent permitted by law, set-off and apply any and all deposits (general or special, time
or demand, provisional or final) at any time held and other indebtedness at any time owing by the Collateral Agent or any Buyer to or
for the credit or the account of any Guarantor against any and all obligations of the Guarantors now or hereafter existing under this
Guarantee or any other Transaction Document, irrespective of whether or not Collateral Agent or any Buyer shall have made any demand
under this Guarantee or any other Transaction Document and although such obligations may be contingent or unmatured. Collateral Agent
and each Buyer agrees to notify the relevant Guarantor promptly after any such set-off and application made by such Buyer, provided that
the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Collateral Agent or
any Buyer under this Section 7 are in addition to other rights and remedies (including, without limitation, other rights of set-off)
which the Collateral Agent or such Buyer may have under this Guarantee or any other Transaction Document in law or otherwise.

 

SECTION
8. Notices, Etc. All notices and other communications provided for hereunder shall be given in accordance with Section 5.4
of the Securities Purchase Agreement

 

    	-6-

     

    

 

SECTION
9. CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTEE OR ANY
OTHER TRANSACTION DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS GUARANTEE, EACH GUARANTOR HEREBY IRREVOCABLY
ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS; PROVIDED, HOWEVER, THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE COLLATERAL AGENT’S OPTION, IN THE
COURTS OF ANY JURISDICTION WHERE THE COLLATERAL AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
EACH GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS IN ANY SUIT, ACTION,
OR PROCEEDING BROUGHT IN THE UNITED STATES OF AMERICA ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTEE OR ANY OTHER TRANSACTION DOCUMENT
BY THE MAILING (BY REGISTERED MAIL OR CERTIFIED MAIL, POSTAGE PREPAID) OR DELIVERING OF A COPY OF SUCH PROCESS TO THE GUARANTORS, AT
THE COMPANY’S ADDRESS FOR NOTICES AS SET FORTH IN SECTION 5.4 OF THE SECURITIES PURCHASE AGREEMENT. EACH GUARANTOR AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTWITHSTANDING THE FOREGOING, NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL AGENT
AND THE BUYERS TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
EACH GUARANTOR IN ANY OTHER JURISDICTION. ANY GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY GUARANTOR
HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE,
ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH GUARANTOR HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTEE AND THE OTHER TRANSACTION DOCUMENTS.

 

SECTION
10. WAIVER OF JURY TRIAL, ETC. EACH GUARANTOR HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
CONCERNING ANY RIGHTS UNDER THIS GUARANTEE OR THE OTHER TRANSACTION DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT
OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR ARISING FROM ANY FINANCING
RELATIONSHIP EXISTING IN CONNECTION WITH THIS GUARANTEE OR THE OTHER TRANSACTION DOCUMENTS, AND AGREES THAT ANY SUCH ACTION, PROCEEDING
OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH GUARANTOR CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT
OR ATTORNEY OF THE COLLATERAL AGENT OR ANY BUYER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE COLLATERAL AGENT OR ANY BUYER WOULD
NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH GUARANTOR HEREBY ACKNOWLEDGES
THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COLLATERAL AGENT AND THE BUYERS ENTERING INTO THE TRANSACTION DOCUMENTS.

 

    	-7-

     

    

 

SECTION
11. Taxes.

 

(a)
All payments made by any Guarantor hereunder or under any other Transaction Document shall be made in accordance with the terms of the
respective Transaction Document and shall be made without set-off, counterclaim, deduction or other defense. All such payments shall
be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto, excluding taxes imposed on the net income of any the Collateral Agent or any Buyer by
the jurisdiction in which the Collateral Agent or such Buyer is organized or where it has its principal lending office (all such nonexcluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities, collectively or individually, “Taxes”).
If any Guarantor shall be required to deduct or to withhold any Taxes from or in respect of any amount payable hereunder or under any
other Transaction Document:

 

(i)
the amount so payable shall be increased to the extent necessary so that after making all required deductions and withholdings (including
Taxes on amounts payable to the Collateral Agent or any Buyer pursuant to this sentence) the Collateral Agent and each Buyer receives
an amount equal to the sum it would have received had no such deduction or withholding been made,

 

(ii)
such Guarantor shall make such deduction or withholding,

 

(iii)
such Guarantor shall pay the full amount deducted or withheld to the relevant taxation authority in accordance with applicable law, and

 

(iv)
as promptly as possible thereafter, such Guarantor shall send the Collateral Agent and the Buyers an official receipt (or, if an official
receipt is not available, such other documentation as shall be satisfactory to the Collateral Agent and the Buyers, as the case may be)
showing payment. In addition, each Guarantor agrees to pay any present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies that arise from any payment made hereunder or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Guarantee or any other Transaction Document (collectively, “Other Taxes”).

 

(b)
Each Guarantor hereby indemnifies and agrees to hold the Collateral Agent and each Buyer (each an “Indemnified Party”)
harmless from and against Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section 11) paid by any Indemnified Party as a result of any payment made hereunder or from the execution,
delivery, registration or enforcement of, or otherwise with respect to, this Agreement or any other Transaction Document, and any liability
(including penalties, interest and expenses for nonpayment, late payment or otherwise) arising therefrom or with respect thereto, whether
or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be paid within 30 days from the date
on which the Collateral Agent or such Buyer makes written demand therefor, which demand shall identify the nature and amount of such
Taxes or Other Taxes.

 

(c)
If any Guarantor fails to perform any of its obligations under this Section 11, such Guarantor shall indemnify the Collateral
Agent and each Buyer for any taxes, interest or penalties that become payable as a result of any such failure. The obligations of the
Guarantors under this Section 11 shall survive the termination of this Guarantee and the payment of the Obligations and all other
amounts payable hereunder.

 

    	-8-

     

    

 

SECTION
12. Miscellaneous.

 

(a)
Each Guarantor will make each payment hereunder in lawful money of the United States of America and in immediately available funds to
each Buyer, at such address specified by such Buyer from time to time by notice to the Guarantors.

 

(b)
Provisions of this Guarantee may be amended and the observance thereof may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with the written consent of the Company and the Collateral Agent. Any amendment or waiver
effected in accordance with this Section 12 shall be binding upon each Buyer and the Company.

 

(c)
No failure on the part of the Collateral Agent or any Buyer to exercise, and no delay in exercising, any right hereunder or under any
other Transaction Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under
any Transaction Document preclude any other or further exercise thereof or the exercise of any other right. The rights and remedies of
the Collateral Agent and the Buyers provided herein and in the other Transaction Documents are cumulative and are in addition to, and
not exclusive of, any rights or remedies provided by law. The rights of the Collateral Agent and the Buyers under any Transaction Document
against any party thereto are not conditional or contingent on any attempt by the Collateral Agent or any Buyer to exercise any of their
respective rights under any other Transaction Document against such party or against any other Person.

 

(d)
Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

(e)
This Guarantee shall (i) be binding on each Guarantor and its respective successors and assigns, and (ii) inure, together with all rights
and remedies of the Collateral Agent and the Buyers hereunder, to the benefit of the Collateral Agent and the Buyers and their respective
successors, transferees and assigns. Without limiting the generality of clause (ii) of the immediately preceding sentence, the Collateral
Agent and any Buyer may assign or otherwise transfer its rights and obligations under the Securities Purchase Agreement or any other
Transaction Document to any other Person in accordance with the terms thereof, and such other Person shall thereupon become vested with
all of the benefits in respect thereof granted to the Collateral Agent or such Buyer, as the case may be, herein or otherwise. None of
the rights or obligations of any Guarantor hereunder may be assigned or otherwise transferred without the prior written consent of each
Buyer.

 

(f)
This Guarantee reflects the entire understanding of the transaction contemplated hereby and shall not be contradicted or qualified by
any other agreement, oral or written, entered into before the date hereof.

 

(g)
Section headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.

 

(h)
This Guarantee may be executed by each party hereto on a separate counterpart, each of which when so executed and delivered shall be
an original, but all of which together shall constitute one agreement. Delivery of an executed counterpart by facsimile or other method
of electronic transmission shall be equally effective as delivery of an original executed counterpart. The parties hereto irrevocably
and unreservedly agree that this Guarantee may be executed by way of electronic signatures and the parties agree that neither this Guarantee,
nor any part hereof, shall be challenged or denied any legal effect, validity and/or enforceability solely on the ground that it is in
the form of an electronic record

 

(i)
THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	-9-

     

    

 

IN
WITNESS WHEREOF, each Guarantor has caused this Guarantee to be executed by its respective duly authorized officer, as of the date first
above written.

 

	 	MUSCLEPHARM
    CORPORATION
	 	 	 
	 	By:
    	 
	 	Name:	Sabina
    Rizvi
	 	Title:	President
    and Chief Financial Officer
	 	 	 
	 	CANADA
    MUSCLEPHARM ENTERPRISES CORP.
	 	 	 
	 	By:
    	 
	 	Name:	Sabina
    Rizvi
	 	Title:	Chief
    Financial Officer

 

    	-10-

     

    

 

EXHIBIT
I

 

JOINDER
AGREEMENT

 

Reference
is hereby made to that certain Securities Purchase Agreement by and among MusclePharm Corporation, a Nevada corporation, with headquarters
located at 6728 W. Sunset Rd., Ste. 130, Las Vegas, NV 89118 (the “Company”), and the Initial Purchasers (as defined
therein), dated as of October 13, 2021, as amended and restated on June 3, 2022 and attached hereto as Exhibit A (as amended and
restated to date, the “Securities Purchase Agreement”). Capitalized terms not defined herein shall be as defined in
the Securities Purchase Agreement.

 

(a)
The party signatory hereto as a “Subsequent Purchaser” (the “Subsequent Purchaser”), desires to purchase
a Subsequent Note and Subsequent Warrant for the Subsequent Purchase Price, as set forth under the signature line of the Subsequent Purchasers
attached hereto. The date of the Subsequent Closing (the “Subsequent Closing Date”) shall occur on or prior to June
10, 2022.

 

(b)
The Subsequent Purchaser acknowledges, represents and warrants that it has reviewed the Securities Purchase Agreement, and subject to
the satisfaction (or waiver) of the conditions of Sections 2.2(a), 2.3(a) and 2.3(b) as of the Subsequent Closing Date, the Subsequent
Purchaser shall be a “Purchaser” and a “Subsequent Purchaser”, in each case, as defined in the Securities Purchase
Agreement, with all the rights and obligations of a “Purchaser” and a “Subsequent Purchaser” set forth therein.

 

(c)
Having read the representations in Section 2 of the Securities Purchase Agreement, the Subsequent Purchaser hereby makes the representations
and warranties contained in Section 2 of the Securities Purchase Agreement, as set forth therein, to the Company as of the date hereof
and as of the Subsequent Closing Date.

 

(d)
With regards to the Company’s representations and warranties in Section 3 of the Securities Purchase Agreement, the Company hereby
makes the representations and warranties contained in Section 3 of the Securities Purchase Agreement, as set forth therein, to the Subsequent
Purchaser as of the date hereof and as of the Subsequent Closing Date, as modified or affected by the schedules attached to the Securities
Purchase Agreement.

 

(e)
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile or
“.pdf” electronic format signature shall be considered due execution and shall be binding upon the signatory thereto with
the same force and effect as if the signature were an original, not a facsimile or “.pdf” electronic format signature.

 

    	1

     

    

 

(f)
The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser,
and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under
any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or
the transactions contemplated by the Transaction Documents. Each Purchaser 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 Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been
represented by its own separate legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to
provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required
or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement
and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers
collectively and not between and among the Purchasers.

 

(g)
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State
of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New
York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. 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 to such party at the address for
such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

[Signature
Page Follows]

 

    	2

     

    

 

IN
WITNESS WHEREOF, the Subsequent Purchaser and the Company have caused their respective signature page to this Agreement to be duly
executed, in counterparts, as of the date set forth below.

 

	 	SUBSEQUENT
    PURCHASER:

    

	 	 	                
	 	By:	 
	 	Name:	
	 	Title:	
	 	 
	 	 
	 	Aggregate
    Principal Amount of Subsequent Note Purchased:
	 	 
	 	Number
    of Subsequent Warrant Shares:
	 	 
	 	Subsequent
    Subscription Amount :
	 	 
	 	 
	 	Address:
	 	 
	 	 
	 	 
	 	 
	 	Attention:
	 	 
	 	 
	 	Facsimile:
	 	 
	 	 
	 	Telephone:
	 	 
	 	 
	 	Email:
	 	 

 

    	3

     

    

 

Accepted
by:

 

	 	COMPANY:	 
	 	 	 
	 	MUSCLEPHARM
    CORPORATION	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 Sabina Rizvi	 
	 	Title:	President and Chief Financial Officer	 

 

    	4

     

    

 

EXHIBIT
J

FORM
OF SUBSEQUENT NOTE

 

See
Exhibit 10.3 of the Company’s Current Report on Form 8-K filed with the SEC on June 6, 2022

 

    	 

     

    

 

EXHIBIT
K

FORM
OF SUBSEQUENT WARRANT

 

See
Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on June 6, 2022

 

    	 

     

    

 

MUSCLEPHARM
CORP. DISCLOSURE SCHEDULES

 

Schedule
3.1(a)

Subsidiaries

 

Canada
MusclePharm Enterprises Corporation (2012) Ontario, Canada Registered

 

Schedule
3.1(g)

Capitalization

 

		1.	Common
                                            Stock Outstanding

 

The
number of shares of common stock, par value $0.001 per share, outstanding as of the date hereof is as follows:

 

	Shares of common stock outstanding (excluding shares held in treasury)	 	 	33,479,886	 
	Shares of common stock held in treasury	 	 	869,005	 
	Total Shares of common stock outstanding	 	 	34,348,891	 

 

		2.	Beneficial
                                            Ownership

 

The
following table sets forth information with respect to the beneficial ownership of shares of our common stock as of May 10, 2022 by (i)
each person known to beneficially own more than 5% of our outstanding common stock, (ii) each of our directors, (iii) each of our named
executive officers and (iv) all of our directors and named executive officers as a group. Except as otherwise indicated, the persons
named in the table below have sole voting and investment power with respect to all shares beneficially owned, subject to community property
laws, where applicable.

 

	 	 	Shares Beneficially Owned	 
	 	 	Common Stock	 
	Name of Beneficial Owner (1) 	 	 	Shares	 	 	 	% (2)	
	Directors and Named Executive Officers 	 	 	 	 	 	 	 	 
	Ryan Drexler 	 	 	34,533,456 	(3)	 	 	50.13	%
	Sabina Rizvi 	 	 	1,811,000	(4)	 	 	5.01	%
	Paul Karr 	 	 	—	 	 	 	—	 
	Michael Heller 	 	 	—	 	 	 	—	 
	All Named Executive Officers and Directors as a Group (4 persons) 	 	 	35,163,802	 	 	 	54.27	%
	5% or Greater Stockholders 	 	 	 	 	 	 	 	 

 

	(1)	The
    address of each person is c/o MusclePharm Corporation, 6728 W. Sunset Rd., Suite 130, Las Vegas, NV 89119, USA unless otherwise indicated
    herein.
	 	 
	(2)	The
    calculation in this column is based upon 34,348,891 shares of common stock outstanding on May 10, 2022. Beneficial ownership is determined
    in accordance with the rules of the SEC and generally includes voting or investment power with respect to the subject securities.
    Shares of common stock that are currently exercisable or convertible within 60 days of May 10, 2022 are deemed to be beneficially
    owned by the person holding such securities for the purpose of computing the percentage beneficial ownership of such person, but
    are not treated as outstanding for the purpose of computing the percentage beneficial ownership of any other person.

 

    	1

     

    

 

	(3)
    	Includes
    16,154,795 shares of the Company’s common stock issuable upon conversion of notes and 1,499,408 shares of the Company’s
    common stock held indirectly through Consac LLC, to which Mr. Drexler is the Chief Executive Officer..
	 	 
	(4)	Includes
    option to purchase 1,811,000 shares of the Company’s common stock.

 

		3.	Potentially
                                            Dilutive Securities 

 

	 	 	2021	 
	Stock options	 	$	5,399,795	 
	Warrants	 	 	17,355,700	 
	Convertible notes	 	 	16,154,795	 
	Total common stock equivalents	 	$	38,910,290	 

 

Schedule
3.1(i)

Material
Changes, Undisclosed Events, Liabilities or Developments

 

Related
Party Financing

 

On
March 8, 2022, the Company entered into an Unsecured Revolving Promissory Note (the “Note”) with the Chairman of the Board
and Chief Executive Officer of the Company (the “Lender”). The Company expects to initially borrow approximately $3 million
under the Note. Under the terms of the Note, proceeds may be used solely to finance the production of orders from its largest customer
or any of its affiliates or subsidiaries. The Note does not contain a cap on borrowings thereunder. However, further advances under the
Note are at the discretion of the Lender. Outstanding balances under the Note accrue interest at the rate of 18% per annum. Prior to
maturity, the Company generally may pay down principal balances and re-borrow under the Note, subject to the discretion of the Lender
to advance funds under the Note. The Note contains customary events of default and acceleration provisions.

 

The
Note is subordinate to the 14% Original Issue Discount Senior Secured Notes previously issued by the Company. Under the terms of the
First Amendment to Intercreditor and Subordination Agreement, dated as of March 8, 2022, between the Company, Ryan Drexler and Empery
Tax Efficient, LP (the “Amendment”), principal but not interest due under the Note generally may be repaid out of payments
received by the Company in respect of accounts receivable financed pursuant to the Note.

 

    	2

     

    

 

Bakery
Barn, LLC v. MusclePharm Corporation

 

On
January 24, 2022, Bakery Barn (“Bakery Barn”) filed suit against Company in Allegheny County, Pennsylvania court. Company
received the Complaint on February 16, 2022. Bakery Barn alleges that the Company owes Bakery Barn over $1.9 million dollars for breach
of contract. Parties operated on an open account basis with payment terms established by mutual verbal agreement, custom and usage. Beginning
in late 2020, Bakery Barn resumed production for Company and operated under a verbal agreement until August 2021. Bakery Barn contends
that Company is required to reimburse Bakery Barn for foil wraps ordered by Bakery Barn in the amount of $77,800, specific ingredients
totaling $42,400, and products manufactured under purchase order Invoice no. 59192 delivered to Company in the amount of $1,816,017.

 

On
February 24, 2022, Flaherty Fardo Rogel & Amick, LLC (“Company Counsel”) filed a Request for Appearance on behalf of
the Company. On February 28, 2022, Company Counsel filed Preliminary Objections to Complaint and Brief In Support Thereof. Bakery Barn
filed an Amended Complaint in Civil Action on March 14, 2022. Company Counsel is in the process of filing Preliminary Objections to this
Amended Complaint. The Company intends to continue to vigorously litigate the matter.

 

Bar
Bakers, LLC v. CFC/Flavor Producers, LLC. Vs MusclePharm

 

On
March 18, 2022, the Company retained Barnes & Thornburg to represent it in connection with a Cross-Complaint filed Superior Court
of California, County of Orange, Case No. 30-2019-01073098-CU-BC-CJC in the matter Bar Bakers LLC v. Creative Flavor Concepts, Inc. et
al.. According to the pleadings, the matter arises from an agreement between the plaintiffs and defendants in which the plaintiff agreed
to manufacturer energy bars and sell them to the defendants. The defendants then sold the energy bars to various retailers, including
the Company. On May 29, 2019, the plaintiff sued the defendants alleging that the defendants were responsible for unpaid invoices –
nine for bars actually manufactured and delivered to the Company and one invoice for raw materials. According to the pleadings, the unpaid
invoices total $885,163.72. The invoice for the raw materials is allegedly $4,658,593.02. On January 31, 2022, one of the defendants,
Flavor Producers LLC, filed and served a cross claim against the Company alleging that it was partially responsible for any damages that
may befall on it. Specifically, Flavor Producers is asking the Court to award it $389,989.60 in compensatory damages. On March 25, 2022,
the Company filed an answer to that that cross claim denying the factual allegations and Flavor Producers’ assertion that it is
entitled to any damages, including but not limited to, compensatory damages.

 

White
Winston Select Asset Fund Series MP-18, LLC et al., v MusclePharm Corp., et al., (Mass. Super. Ct.)

 

The
Company and its Chief Executive Officer have been named as defendants in a new lawsuit filed on February 8, 2022 by White Winston Select
Asset Funds, LLC and White Winston Select Asset Fund Series Fund MP-18, LLC (collectively, “White Winston”) in the Superior
Court of Suffolk County Massachusetts. White Winston is bringing claims alleging unfair trade practices, abuse of process, malicious
prosecution, breach of duty of loyalty and, in the alternative, for breach of the settlement agreement relating to the prior action filed
by White Winston in Nevada. The Company has not yet responded to complaint and at this time cannot reasonably estimate any loss that
may arise from this matter.

 

    	3

     

    

 

Senior
Notes Payable

 

On
April 12, 2022, the maturity date of the Senior Notes was extended to May 28, 2022 as no event of default has occurred and the Company’s
cash flows from operating and investing activities (but not cash flows from financing activities) was positive for March 2022 and no
event of default is reasonably expected to occur on or before April 30, 2022 and the sum of cash flows from operating and investing activities
(but not from financing activities) of the Company and its subsidiaries will be positive for April 2022.

 

ThermoLife
International

 

On
May 4, 2022, the Arizona Supreme Court denied the Company’s petition for review of the decision of the appellate court and granted
ThermoLife’s request for attorney’s fees. Should ThermoLife seek to enforce its judgment against the Company, the collection
of such judgment would have a Material Adverse Effect on the Company.

 

Settlement
Agreements

 

Since
its most recent periodic report, the Company entered into the settlement agreements and releases set forth on Schedule 3.1(j)
herein.

 

Intellectual
Property

 

Since
its most recent periodic report, the Company has abandoned the trademarks set forth on Schedule 3.1(p) herein.

 

Changes
to Capitalization

 

Certain
financial items included in Schedule 3.1(g) herein, have been revised with respect to the number of shares of common stock, shares
of common stock held in treasury, warrants, stock options and convertible notes outstanding as of March 31, 2021 and December 31, 2021,
respectively from the registrant’s Quarterly Report on Form 10-Q for the three months ended March 31, 2022 and Annual Report on
Form 10-K for the fiscal year ended December 31, 2021. These revisions correct certain typographical errors.

 

    	4

     

    

 

Schedule
3.1(j)

Litigation

 

White
Winston Select Asset Fund Series MP-18, LLC et al., v MusclePharm Corp., et al., (Nev. Dist. Ct.; Cal. Superior Court; Colorado Dist.
Ct.; Mass. Super. Ct.)

 

On
August 21, 2018, White Winston Select Asset Fund Series MP-18, LLC and White Winston Select Asset Fund, LLC (together “White Winston”)
initiated a derivative action against the Company and its directors (the “director defendants”). White Winston alleges that
the director defendants breached their fiduciary duties by improperly approving the refinancing of three promissory notes issued by the
Company to Mr. Drexler (the “Amended Note”) in exchange for $18.0 million in loans. White Winston alleges that this refinancing
improperly diluted their economic and voting power and constituted an improper distribution in violation of Nevada law. In its complaint,
White Winston sought the appointment of a receiver over the Company, a permanent injunction against the exercise of Mr. Drexler’s
conversion right under the Amended Note, and other unspecified monetary damages. On September 13, 2018, White Winston filed an amended
complaint, which added a former executive of the Company, as a plaintiff (together with White Winston, the “White Winston Plaintiffs”).
On December 9, 2019, the White Winston Plaintiffs filed a Second Amended Complaint, in which they added allegations relating to the resignation
of the Company’s auditor, Plante & Moran PLLC (“Plante Moran”). the Company has moved to dismiss the Second Amended
Complaint. That motion has not yet been fully briefed.

 

Along
with its complaint, White Winston also filed a motion for a temporary restraining order (“TRO”) and preliminary injunction
enjoining the exercise of Mr. Drexler’s conversion right under the Amended Note. On August 23, 2018, the Nevada district court
issued an ex parte TRO. On September 14, 2018, the court let the TRO expire and denied White Winston’s request for a preliminary
injunction, finding, among other things, that White Winston did not show a likelihood of success on the merits of the underlying action
and failed to establish irreparable harm. Following the court’s decision, the Company filed a motion seeking to recoup the legal
fees and costs it incurred in responding to the preliminary injunction motion. On October 31, 2019, the court awarded the Company $56,000
in fees and costs.

 

Due
to the uncertainty associated with determining our liability, if any, and due to our inability to ascertain with any reasonable degree
of likelihood, as of the date of this report, the outcome of the trial, the Company has not recorded an estimate for its potential liability.

 

On
June 17, 2019, White Winston moved for the appointment of a temporary receiver over the Company, citing Plante Moran’s resignation.
The court granted White Winston’s request to hold an evidentiary hearing on the motion, but subsequently stayed the action pending
the parties’ attempts to resolve their dispute. Although the parties have been unable to reach a resolution, the litigation has
not yet resumed. On July 30, 2019, White Winston filed an action in the Superior Court of the State of California in and for the County
of Los Angeles, seeking access to the Company’s books and records and requesting the appointment of an independent auditor for
the Company. On February 25, 2021, the court ordered the Company to produce certain documents, denied White Winston’s request for
an auditor, and ordered the Company to pay a $1,500 penalty. On July 20, 2021 the California court awarded White Winston $93,000 in attorneys’
fees and cost relating to the books-and-records action. The Company paid the amounts due on July 30, 2021, and on August 4, 2021 White
Winston submitted a filing acknowledging that the California court’s judgment has been fully satisfied.

 

    	5

     

    

 

The
Company and its Chief Executive Officer have been named as defendants in a new lawsuit filed on February 8, 2022 by White Winston Select
Asset Funds, LLC and White Winston Select Asset Fund Series Fund MP-18, LLC (collectively, “White Winston”) in the Superior
Court of Suffolk County Massachusetts. White Winston is bringing claims alleging unfair trade practices, abuse of process, malicious
prosecution, breach of duty of loyalty and, in the alternative, for breach of the settlement agreement relating to the prior action filed
by White Winston in Nevada. The Company has not yet responded to complaint and at this time cannot reasonably estimate any loss that
may arise from this matter.

 

Bakery
Barn, LLC v. MusclePharm Corporation

 

On
January 24, 2022, Bakery Barn (“Bakery Barn”) filed suit against Company in Allegheny County, Pennsylvania court. Company
received the Complaint on February 16, 2022. Bakery Barn alleges that the Company owes Bakery Barn over $1.9 million dollars for breach
of contract. Parties operated on an open account basis with payment terms established by mutual verbal agreement, custom and usage. Beginning
in late 2020, Bakery Barn resumed production for Company and operated under a verbal agreement until August 2021. Bakery Barn contends
that Company is required to reimburse Bakery Barn for foil wraps ordered by Bakery Barn in the amount of $77,800, specific ingredients
totaling $42,400, and products manufactured under purchase order Invoice no. 59192 delivered to Company in the amount of $1,816,017.

 

On
February 24, 2022, Flaherty Fardo Rogel & Amick, LLC (“Company Counsel”) filed a Request for Appearance on behalf of
the Company. On February 28, 2022, Company Counsel filed Preliminary Objections to Complaint and Brief In Support Thereof. Bakery Barn
filed an Amended Complaint in Civil Action on March 14, 2022. Company Counsel is in the process of filing Preliminary Objections to this
Amended Complaint. The Company intends to continue to vigorously litigate the matter.

 

Bar
Bakers, LLC v. CFC/Flavor Producers, LLC. Vs MusclePharm

 

On
March 18, 2022, the Company retained Barnes & Thornburg to represent it in connection with a Cross-Complaint filed in the Superior
Court of California, County of Orange, Case No. 30-2019-01073098-CU-BC-CJC in the matter Bar Bakers LLC v. Creative Flavor Concepts,
Inc. et al.. According to the pleadings, the matter arises from an agreement between the plaintiffs and defendants in which the plaintiff
agreed to manufacturer energy bars and sell them to the defendants. The defendants then sold the energy bars to various retailers, including
the Company. On May 29, 2019, the plaintiff sued the defendants alleging that the defendants were responsible for unpaid invoices –
nine for bars manufactured and delivered to the Company and one invoice for raw materials. According to the pleadings, the unpaid invoices
total $885,163.72. The invoice for the raw materials is allegedly $4,658,593.02. On January 31, 2022, one of the defendants, Flavor Producers
LLC, filed and served a cross claim against the Company alleging that it was partially responsible for any damages that may befall on
it. Specifically, Flavor Producers is asking the Court to award it $389,989.60 in compensatory damages. On March 25, 2022, the Company
filed an answer to that cross claim denying the factual allegations and Flavor Producers’ assertion that it is entitled to any
damages, including but not limited to, compensatory damages.

 

    	6

     

    

 

ThermoLife
International

 

In
January 2016, ThermoLife International LLC (“ThermoLife”), a supplier of nitrates to the Company, filed a complaint against
the Company in Arizona state court. ThermoLife alleged that the Company failed to meet minimum purchase requirements contained in the
parties’ supply agreement. The court held a bench trial on the issue of damages in October 2019, and on December 4, 2019, the court
entered judgment in favor of ThermoLife and against the Company in the amount of $1.6 million, comprised of $0.9 million in damages,
interest in the amount of $0.3 million and attorneys’ fees and costs in the amount of $0.4 million. The Company recorded $1.6 million
in accrued expenses in 2018. The Company has filed an appeal and posted bonds in the total amount of $0.6 million in order to stay execution
on the judgment pending appeal. Of the $0.6 million, $0.25 million (including fees) was paid by Mr. Drexler on behalf of the Company.
See “Note 7. Debt” for additional information. The balance of $0.35 million was secured by a personal guaranty from Mr. Drexler,
the associated fees of $12,500 and $2,500 have been paid by the Company. On April 27, 2021, the appellate court issued a decision largely
affirming the trial court judgement, except vacating the judgement’s $0.3 million prejudgment interest award and remanding for
a recalculation of prejudgment interest. On May 18, 2021, ThermoLife filed a motion asking the trial court to increase the Company’s
appeal bond to the full amount of the judgment, or $1.9 million, which the Court denied on June 2, 2021.

 

As
of March 31, 2022, the total amount accrued, including interest, was $1.9 million. For the three months ended March 31, 2022 and 2021,
interest expense recognized on the awarded damages was $0.022 million and $0.022 million, respectfully.

 

On
May 4, 2022, the Arizona Supreme Court denied the Company’s petition for review of the decision of the appellate court and granted
ThermoLife’s request for attorney’s fees. Should ThermoLife seek to enforce its judgment against the Company, the collection
of such judgment would have a Material Adverse Effect on the Company.

 

SK
Laboratories

 

On
February 3, 2022, MusclePharm sued SK Laboratories in Washoe County (Nevada) District Court. According to the complaint, MusclePharm
alleges SK Laboratories (1) breach its contract, (1) breach an implied covenant of good faith and fair dealing, and (3) unjustly enriched
itself by artificially inflating its costs and passing those costs onto MusclePharm in breach of its agreement, as well as failing to
provide product that complied with Japanese import regulations. There has not been substantial activity in this case given
its early stage.

 

    	7

     

    

 

On
May 3, 2022, SK Laboratories sued MusclePharm and Ryan Drexler in Los Angeles County Superior Court. In its lawsuit, it is alleging (1)
breach of contract, (2) breach of personal guaranty, (3) fraud, (4) unfair business practices, (5) intentional interference with prospective
economic advantage, (6) negligent interference with prospective economic advantage, and (7) common count on book account claim. According
to the Complaint, SK Laboratories was a contract manufacturer for MusclePharm for approximately nine years manufacturing “a variety
of nutritional supplement products.” Further, according to the complaint, SK Laboratories alleges that MusclePharm has defaulted
on payments due on purchase orders totaling approximately $4,608,980.12, and a breach of personal guaranty of approximately $500,000
against Ryan Drexler for purchases of whey protein SK made on MusclePharm’s behalf. There has not been substantial activity in
this case given its early stage. MusclePharm’s answer is due on approximately June 6, 2022.

 

Beacon
Resources, LLC v. MusclePharm

 

On
April 13, 2022, Beacon Resources, LLC (“Beacon”) filed a Complaint against MusclePharm in Clark County District Court, State
of Nevada (Case No. A-22-851083-C).  Therein, Beacon, a staffing firm specializing in finance and accounting, alleges that MusclePharm
failed to complete payment on invoices for services rendered.  Beacon represents that the unpaid principal balance amounts to $32,105.37. 
On May 11, 2022, MusclePharm filed its Answer, denying all allegations of wrongdoing.  The parties are contemplating a potential
settlement.

 

1111
Group Inc. v. MusclePharm (letter sending check in satisfaction of judgment attached)

 

On
January 25, 2021, 1111 Group, Inc. (“1111 Group”) filed a Complaint against MusclePharm in Los Angeles Superior Court, State
of California (Case No. 21VESC00124). Therein, 1111 Group claimed it was owed $1,846.35 in unpaid commissions. MusclePharm did not actively
defend this matter. Ultimately, the Court issued a judgment on November 19, 2021, against MusclePharm and in favor of 1111 Group for
the principal amount of $1,200, and costs of $90 for a total of $1,290. MusclePharm paid the judgment on March 1, 2022.

 

After
the judgment was satisfied, 1111 Group continued to insist it was owed two additional commission payments, totaling $20,694.05. On April
11, 2022, counsel for MusclePharm requested by letter that 1111 Group provide documentation substantiating its position. As of this date,
1111 Group has not responded or otherwise contacted MusclePharm.

 

True
North

 

On
April 5, 2022, True North Nutrition Ltd. (“TNN”) has commenced a claim against MusclePharm Corporation (“MusclePharm”)
and Sportika Export, Inc. (“Sportika”) for breach of a distribution agreement regarding the exportation of nutritional supplements
to Canada.

 

○
TNN alleges that in 2018 Sportika, acting as the Exporter, exported products to TNN, as the Distributor, accompanied by a Certificate
of Origin which represented that the products qualified for NAFTA preferential treatment.

 

    	8

     

    

 

○
Subsequently, on September 7, 2021, the Canada Border Services Agency (“CBSA”) advised TNN that it had determined that the
nutritional supplements supplied by MusclePharm and exported by Sportika during the period of January 1, 2018 to December 31, 2018 had
not been shown to meet the requirements of the NAFTA Rules of Origin Regulations, and CBSA thereafter imposed additional custom duties,
interest and penalties.

 

○
TNN is suing MusclePharm (and Sportika) for supplying a deficient Certificate of Origin and/or breach of MusclePharm’s agreement
to indemnify TNN and/or for negligence in responding to the CBSA inquiries, in an amount equal to the additional custom duties and interest
that the Canada Border Services Agency imposed on TNN.

 

The
amount in controversy is $273,807.05, plus pre- and post-judgment interest, plus costs and all applicable taxes. A Statement of Claim
has been served and Defenses will be due in mid-June. 

 

Daniel
Metague v. MusclePharm

 

On
May 13, 2022, Daniel Metague (“Metague”) filed a Class Action Complaint (“Complaint”) against MusclePharm in
the United States District Court for the District of Maryland Greenbelt Division (Case No. 8:22-cv-01153-DLB). Therein, MusclePharm alleges
violations of the Maryland Consumer Protection Act, as well as asserts claims for breach of implied warranty, breach of express warranty,
fraud by omission, equitable injunctive and declaratory relief, and unjust enrichment. Metague’s claims for relief are based on
allegations concerning MusclePharm’s manufacturing and sale of “Essentials BCAA.” Metague represents that MusclePharm
purposely misbranded the calorie content of “Essentials BCAA” as “Zero Calories” or otherwise omitted the caloric
information, when the actual calorie estimate for “Essentials BCAA” is 30 calories, depending on formulation and use guidance.
While the Complaint has not yet been served on MusclePharm, MusclePharm has undertaken efforts to engage local counsel to aggressively
defend this action.

 

Carlo
Garcia

 

On
April 4, 2022, MusclePharm received a Pre-Suit Notice from Carlo Garcia (“Garcia”), advising that Garcia intends to pursue
a class action lawsuit against MusclePharm based on alleged violations of California’s Consumers Legal Act. Garcia claims that
on or around January 2018, Garcia purchased MusclePharm product from Amazon, and that such product was advertised as “calorie-free.”
Garcia further claims that the product actually contained approximately 30 calories per serving. As of this date, Garcia has not commenced
litigation.

 

    	9

     

    

 

Robert
Wendt v. MusclePharm

 

On
March 29, 2022, Robert Wendt sued MusclePharm in Los Angeles County Superior Court alleging that MusclePharm failed to comply with California’s
Unruh Civil Rights Act. The plaintiff alleges that MusclePharm’s website denies equal access to the visually impaired because it
is not “fully accessible to screen-reading technology.” The plaintiff seeks injunctive relief requiring MusclePharm to “take
the steps necessary to make their Website readily and fully accessible to and usable by blind and visually impaired individuals,”
and statutory damages of approximately $4,000 per violation. There has not been substantial activity in this case given its early stage.
MusclePharm’s answer is due on approximately June 15, 2022 and counsel has engaged plaintiff’s counsel in settlement negotiations.

 

Joseph
Gallo 

 

MusclePharm
is considering initiating litigation against Joseph Gallo Farms alleging breach of contract and intentional interference with business
relationships. The claims arise from an allegation Joseph Gallo Farms reneged on an offer to sell certain raw materials to MusclePharm
after the cost of those raw materials rose significantly. Further, Joseph Gallo Farms – when it sold those raw materials to another
buyer – did so under the condition that the customer not resell the materials, or otherwise do business with MusclePharm. In doing
so, Joseph Gallo Farms may have unlawfully exercised its commercial power to the detriment of MusclePharm. MusclePharm is not aware of
any potential counterclaims that could be brought by Joseph Gallo Farms.

 

Club
Consulting 

 

We
have no information or notice a claim has been filed. Club Consulting 101 threatened to file a lawsuit, but our law firm refused to accept
service of a lawsuit and we are not aware of any filing as of this date. Club Consulting 101 previously stated in settlement negotiations
that the amount in controversy was $67,500.00.

Based on the settlement negotiations, the amount
in controversy was stated by Club Consulting 101 to be $67,500.00 Settlement negotiations were not successful and have concluded. MusclePharm
Corporation intends to defend any lawsuit that may be commenced.

 

Janice
McCarthy

 

On
April 21, 2022, former MusclePharm employee, Janice
McCarthy filed a complaint in the New Jersey Superior Court against MusclePharm, Ryan Drexler and Sabina Rizvi, alleging retaliation
under New Jersey’s Conscientious Employee Protection Act and fraud in the inducement. Ms. McCarthy also alleges fraud in the inducement
in connection with the hiring process that caused her to leave another position. MusclePharm believes that the claims are without
merit and intends to vigorously defend the matter

 

    	10

     

    

  

Edgar
Walters and Derek Habash

 

On April 13, 2022, MusclePharm commenced
an action against Derek Walters (“Walters”) MusclePharm’s former Vice President of Sales-Specialty, and Edgar
Habash (“Habash”), MusclePharm’s former Human Resources Manager, as well as another former MusclePharm employee,
Janice McCarthy, by filing a Verified Complaint in the United States District Court, District of Nevada (Case No. 3:22-cv-00170),
alleging claims for breach of contract, breach of fiduciary duty, breach of duty of loyalty, breach of duty of good faith and fair dealing,
conspiracy to commit fraud, tortious interference, tortious interference with prospective business opportunities, defamation and defamation
per se, unjust enrichment, and declaratory judgment. 

 

While counsel for Walters and Habash had represented
that they intend to file a lawsuit against MusclePharm in Texas, no such lawsuit has been filed.

 

Prior to their termination of employment
with MusclePahrm, Walters and Habash had made certain allegations regarding inflating of sales and the creation of false accounts. In
addition, Walters and Habash had legal counsel send a document preservation notice to MusclePharm advising that said counsel was in the
process of evaluating claims and causes of action under 18 USC § 1514A (SOX), and other laws relating to shareholder fraud. Following
receipt of the allegations, MusclePharm investigated the claims and determined that they were meritless.

 

    	11

     

    

 

Settlements

 

Manchester
City Football Group

 

The
Company was engaged in a dispute with City Football Group Limited (“CFG”), the owner of Manchester City Football Group, concerning
amounts allegedly owed by the Company under a sponsorship agreement with CFG (the “Sponsorship Agreement”). In August 2016,
CFG commenced arbitration in the United Kingdom against the Company, seeking approximately $8.3 million for the Company’s purported
breach of the Sponsorship Agreement.

 

On
July 28, 2017, the Company approved a Settlement Agreement (the “CFG Settlement Agreement”) with CFG effective July 7, 2017
providing for a cash settlement. The CFG Settlement Agreement represents a full and final settlement of all litigation between
the parties.

  

Nutrablend
Matter

 

On
February 27, 2020, Nutrablend, a manufacturer of MusclePharm products, filed an action against the Company in the United States District
Court for the Eastern District of California, claiming approximately $3.1 million in allegedly unpaid invoices. These invoices relate
to the third and fourth quarter of 2019, and a liability has been recorded for the related periods.

 

On September 25, 2020, the parties successfully mediated
the case to a settlement (the “Nutrablend Agreement”) and the Company agreed to, among other things, (i) pay a
set cash amount and (ii) issue monthly purchase orders (“Purchase Orders”) at minimum amounts accepted by Nutrablend.

  

    	12

     

    

 

On July 7, 2021, the Company commenced an action against
Nutrablend in the Central District of California, seeking (i) a declaration that the Nutrablend Agreement purchase order provisions have
been terminated due to Nutrablend’s failure to provide the Company with reasonable assurances of its ability to fulfill its purchase
orders; (ii) a declaration that purchase orders that the Company placed in July and August 2020 were intended to and do count towards
the minimums set forth in the Nutrablend Agreement; and (iii) damages based on Nutrablend’s failure to fulfill purchase orders.
The case is ongoing.

 

As of March 31, 2022, the Company determined that
amounts were owed and has made certain payments.

 

On September 23, 2021, the Company entered into an Amendment to a
Settlement Agreement that was originally entered into on September 25, 2020. Pursuant to the Amended Agreement, the Company is no longer
obligated to issue Purchase Orders to Nutrablend as stated in the Settlement Agreement.

 

4Excelsior
Matter

 

On
March 18, 2019, Excelsior Nutrition, Inc. (“4Excelsior”), a manufacturer of MusclePharm products, filed an action against
the Company in the Superior Court of the State of California for the County of Los Angeles, claiming approximately $6.2 million in damages
relating to allegedly unpaid invoices, as well as approximately $7.8 million in consequential damages.

 

On December 16, 2020, the Company and 4Excelsior entered
into a Settlement Agreement and Mutual Release (“the Agreement”), pursuant to which the parties resolved and settled the civil
action pending in the Superior Court of the State of California for the County of Los Angeles and pursuant to which the Company agreed
to pay 4Excelsior a cash payment, in various installments.

 

    	13

     

    

 

Since
its last periodic report, the Company entered into the following settlement agreements:

 

		1.	Settlement
                                            Agreement and Release made by and between Feldkamp Marketing Inc. and MusclePharm Corporation
                                            dated April 15, 2022 pursuant to which the Company agreed to make cash payments to Feldkamp
                                            Marketing Inc. in certain installments.

  

		2.	First
                                            Amendment to Settlement Agreement and Release between Priority-1, Inc. and MusclePharm Corporation
                                            dated March 8, 2022 pursuant to which the Company agreed to make cash payments to Priority-1
                                            in certain installments.

  

		3.	Settlement
                                            Agreement, Covenant Not to Sue, and General Release between (a) Richard Estaella; (b) MusclePharm
                                            Corporation; (c) Timothy K. Bradely, CPA, the Bradley Consulting Group, P.C. and Stratagem,
                                            P.C., and (d) Applied Economics, LLC dated November 2, 2021.

 

    	14

     

    

 

		4.	Settlement
                                            Agreement and Release between Brewin & Associates Inc. and MusclePharm Corporation dated
                                            March 29, 2022 pursuant to which the Company agreed to make a cash payment to Brewin &
                                            Associates Inc.

  

		5.	Settlement
                                            and Mutual Release Agreement between MusclePharm Corporation and John Paul Hutchins dated
                                            February 7, 2022 pursuant to which the Company agreed to make a cash payment to pursuant
                                            to which the Company agreed to make a cash payment to.

  

		6.	Settlement
                                            Agreement by and between Sichenzia Ross Ference LLP and MusclePharm Corporation dated October
                                            11, 2021.

 

		a.	Pursuant
                                            to the agreement, SRFK and MusclePharm filed with the Court a stipulation dismissing the
                                            Action (including all Claims and Counterclaims), as defined in the Agreement, within five
                                            (5) business days.

 

Schedule
3.1 (p)

Intellectual
Property

 

Since
October 2021, the Company has abandoned, or expects to abandon, the below trademarks, the abandonment of which has not been previously
reported on a periodic report.

 

	No	 	Word Mark	 	Serial No.	 	Reg. No.	 	Class(Es)	 	STATUS
	1	 	BCAA 3:1:2 THE FOUNDATION OF YOUR TEMPLE MP MUSCLEPHARM	 	86125946	 	4948843	 	5	 	ABANDONED
	2	 	BIZZY DIET	 	85437820	 	4125619	 	41	 	ABANDONED
	3	 	BUILD YOUR LEGACY	 	86164245	 	4879294	 	5	 	ABANDONED
	4	 	CARNITINE CORE	 	86708691	 	4913160	 	5	 	ABANDONED
	5	 	CLA CORE	 	86708729	 	4913163	 	5	 	ABANDONED
	6	 	COMBAT 100% ISOLATE	 	86708823	 	4913165	 	5	 	ABANDONED
	7	 	ENERGY ON THE GO	 	85404559	 	4131623	 	5	 	ABANDONED
	8	 	FUEL YOUR ACTIVE LIFESTYLE	 	85342497	 	 	 	 	 	ABANDONED
	9	 	LIVE SHREDDED	 	85341869	 	4077218	 	 	 	ABANDONED
	10	 	MP Stealth	 	87726506	 	 	 	 	 	ABANDONED
	11	 	MUSCLEPHARM ENERGY SPORT ZERO	 	86489535	 	5191681	 	5	 	ABANDONED
	12	 	REAL ATHLETES. REAL SCIENCE.	 	86115518	 	4924979	 	5	 	ABANDONED
	13	 	STRONG IS THE NEW SEXY	 	86242785	 	4062119	 	25	 	ABANDONED
	14	 	THE FOUNDATION OF YOUR TEMPLE	 	86167804	 	4891161	 	5	 	ABANDONED
	15	 	Z-CORE PM	 	86708656	 	4922324	 	5	 	ABANDONED
	16	 	#FUELYOURGRIND	 	86978759	 	4970643	 	5	 	ABANDONED
	17	 	OXYSPORT 	 	86313881	 	5032380	 	5	 	ABANDONED

 

    	15

     

    

 

Schedule
3.1(r)

Transactions
with Affiliates and Employees

 

November
2020 Convertible Note, Related Party

 

On
November 29, 2020, the Company entered into a refinancing agreement with Mr. Ryan Drexler, (the “November 2020 Refinancing”),
in which the Company issued to Mr. Drexler a convertible secured promissory note (the November 2020 “Convertible Note”) in
the original principal amount of $2.9 million, which amended and restated a convertible secured promissory note dated as of August 21,
2020. The $2.9 million November 2020 Convertible Note bears interest at the rate of 12% per annum. Unless earlier converted or repaid,
all outstanding principal and any accrued but unpaid interest under the November 2020 Convertible Note shall be due and payable on July
1, 2021, however the Company and Mr. Drexler agreed to an extension on August 13, 2021 until July 14, 2022. Any interest not paid when
due shall be capitalized and added to the principal amount of the November 2020 Convertible Note and bear interest on the applicable
interest payment date along with all other unpaid principal, capitalized interest, and other capitalized obligations.

 

Mr.
Drexler may, at any time, and from time to time, upon written notice to the Company, convert the outstanding principal and accrued interest
into shares of Common Stock, at a conversion price of $0.23 per share. At the election of the Company, one-sixth of the interest may
be paid in kind (“PIK Interest”) by adding such amount to the principal amount of the note, or through the issuance of shares
of the Company’s common stock to Mr. Drexler. The PIK Interest is convertible to common stock at the closing price per share on
the last business day of each calendar quarter. In no event will the conversion price of such PIK Interest be less than $0.10. The Company
may prepay the Note by giving Mr. Drexler between 15-days’ and 60-days’ notice depending upon the specific circumstances,
subject to Mr. Drexler’s conversion right.

 

The
November 2020 Convertible Note contains customary restrictions on the ability of the Company to, among other things, grant liens or incur
indebtedness other than certain obligations incurred in the ordinary course of business. The restrictions are also subject to certain
additional qualifications and carveouts, as set forth in the November 2020 Convertible Note. The November 2020 Convertible Note is subordinated
to certain other indebtedness of the Company held by Prestige Capital Corporation (“Prestige”) and the Senior Notes.

 

For
the three months ended March 31, 2022 and 2021, interest expense related to the related party convertible secured promissory note was
$0.085 million and $0.085 million, respectively. During the three months ended March 31, 2022, no interest was paid in cash to Mr. Drexler;
during the three months ended March 31, 2021 $0.085 million of interest was paid in cash to Mr. Drexler.

 

August
2021 Convertible Note, Related Party

 

On
October 15, 2020, the Company entered into a secured revolving promissory note (the “Revolving Note”) with Mr. Ryan Drexler.
Under the terms of the Revolving Note, the Company can borrow up to $3.0 million. The Revolving Note bears interest at the rate of 12%
per annum. The funds were used for the purchase of whey protein and other general corporate purposes. Both the outstanding principal,
if any, and all accrued interest under the Revolving Note were due on March 31, 2021, which was not paid.

 

On
August 13, 2021, the Company issued to Ryan Drexler (the “Holder”) a convertible secured promissory note (the “August
2021 Convertible Note”) in the original principal amount of $2.5 million, replacing the Revolving Note.

 

The
August 2021 Convertible Note bears interest at the rate of 12% per annum. Interest payments are due on the last day of each calendar
quarter. At the Company’s option (as determined by its independent directors), the Company may repay up to one sixth of any interest
payment by either adding such amount to the principal amount of the August 2021 Convertible Note or by converting such interest amount
into an equivalent amount of the Company’s common stock, $0.001 par value per share (the “Common Stock”). Any interest
not paid when due shall be capitalized and added to the principal amount of the August 2021 Convertible Note and bear interest on the
applicable interest payment date along with all other unpaid principal, capitalized interest, and other capitalized obligations. Both
the principal and any accrued but unpaid interest under the August 2021 Convertible Note will be due on July 14, 2022, unless converted
or repaid earlier.

 

The
Holder may, at any time, and from time to time, upon written notice to the Company, convert the outstanding principal and accrued interest
into shares of Common Stock, at a conversion price equal to the closing price of the common stock on October 15, 2021. The Company may
prepay the August 2021 Convertible Note by giving the Holder between 15 and 60 days’ notice depending upon the specific circumstances,
subject to the Holder’s conversion right.

 

    	16

     

    

 

The
August 2021 Convertible Note contains customary events of default, including, among others, the failure by the Company to make a payment
of principal or interest when due. Following an event of default, at the option of the Holder and upon written notice to the Company,
or automatically under certain circumstances, all outstanding principal and accrued interest will become due and payable. The August
2021 Convertible Note also contains customary restrictions on the ability of the Company to, among other things, grant liens or incur
indebtedness other than certain obligations incurred in the ordinary course of business. The restrictions are also subject to certain
additional qualifications and carveouts, as set forth in the August 2021 Convertible Note. The August 2021 Convertible Note is subordinated
to certain other indebtedness of the Company held by Prestige Corporation (“Prestige”) and the Senior Notes.

 

For
the three months ended March 31, 2022, interest expense related to the related party convertible secured promissory note was $0.122 million
and there was no interest expense related to this note for the three months ended March 31, 2021. During the three months ended March
31, 2022 and 2021 no interest was paid in cash to Mr. Drexler.

 

Revolving
Line of Credit, Related Party

 

On
March 8, 2022, the Company entered into an Unsecured Revolving Promissory Note (the “Note”) with the Mr. Ryan Drexler. Under
the terms of the Note, proceeds may be used solely to finance the production of orders from its largest customer or any of its affiliates
or subsidiaries. The Note does not contain a cap on borrowings thereunder. However, further advances under the Note are at the discretion
of the Lender. Outstanding balances under the Note accrue interest at the rate of 18% per annum. Prior to maturity, the Company generally
may pay down principal balances and re-borrow under the Note, subject to the discretion of the Lender to advance funds under the Note.
The Note contains customary events of default and acceleration provisions.

 

The
Note is subordinate to the 14% Original Issue Discount Senior Secured Notes previously issued by the Company. Under the terms of the
First Amendment to Intercreditor and Subordination Agreement, dated as of March 8, 2022, between the Company, Ryan Drexler and Empery
Tax Efficient, LP (the “Amendment”), principal but not interest due under the Note generally may be repaid out of payments
received by the Company in respect of accounts receivable financed pursuant to the Note.

 

The
related party revolving line of credit balance as of March 31, 2022 was $2.7 million and was zero on at March 31, 2021.

 

For
the three months ended March 31, 2022 and 2021 total related party debt was $8.1 million and $4.6 million, respectively.

 

For
the three months ended March 31, 2022, interest expense related to the revolving line of credit, related party was $0.106 million.

Schedule
3.1 (w)

Registration
Rights

 

None.

 

    	17

     

    

 

Schedule
3.1 (bb)

Indebtedness

 

As
of March 31, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands):

 

	 	 	March 31,

                                                                                2022
	 	 	December 31,

                                                                                2021
	 
	Senior notes payable	 	$	7,798	 	 	$	5,034	 
	Debt issue costs, net	 	 	(60	)	 	 	(479	)
	Refinanced convertible note, related party	 	 	5,330	 	 	 	5,330	 
	Revolving line of credit, related party	 	 	2,747	 	 	 	-	 
	Obligations under secured borrowing arrangement	 	 	6,592	 	 	 	6,446	 
	Total current debt	 	$	22,407	 	 	$	16,331	 

 

Senior
Notes Payable

 

On
October 13, 2021, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain
institutional investors as purchasers (the “Investors”). Pursuant to the Securities Purchase Agreement, the Company sold,
and the Investors purchased, $8,197,674 million (the “Purchase Price”) in principal amount of senior notes (the “Senior
Notes”) and warrants (the “Warrants”).

 

The
Senior Notes were issued with an original discount of 14%, bearing no interest and with an original maturity date of April 13, 2022.
The Company extended the maturity date of the Senior Notes to May 28, 2022 as provided for in the Securities Purchase Agreement. To secure
its obligations thereunder and under the Securities Purchase Agreement, the Company has granted a security interest over substantially
all of its assets to the collateral agent for the benefit of the Investors, pursuant to a pledge and security agreement. Following the
extension of the maturity date, interest began to accrue on and from April 13, 2022 at 18% per annum until the Senior Notes are paid
in full.

 

The
Warrants are exercisable for five (5) years to purchase 17,355,700 shares of the Company’s common stock, par value $0.001 per share,
at an exercise price of $0.78, subject to adjustment under certain circumstances described in the Warrants. The Warrants have a face
value of $4.4 million which is recorded in Additional Paid-In Capital.

 

In
conjunction with the private placement of Senior Notes and Warrants, each of the directors and officers of the Company entered into lock-up
agreements, which prohibited sales of the Common Stock until after April 11, 2022, subject to certain exceptions.

 

The
issuance of the Senior Notes and Warrants was made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of
1933, as amended (the “Securities Act”), for the offer and sale of securities not involving a public offering, and Regulation
D promulgated under the Securities Act. In accordance with ASC 470-20-25-2, proceeds from the sale of a debt instrument with stock purchase
warrants (detachable call options) are allocated to the two elements based on the relative fair values of the debt instrument without
the warrants and of the warrants themselves at time of issuance. The portion of the proceeds so allocated to the warrants shall be accounted
for as additional paid-in capital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction.

 

    	18

     

    

 

November
2020 Convertible Note, Related Party

 

On
November 29, 2020, the Company entered into a refinancing agreement with Mr. Ryan Drexler, (the “November 2020 Refinancing”),
in which the Company issued to Mr. Drexler a convertible secured promissory note (the November 2020 “Convertible Note”) in
the original principal amount of $2.9 million, which amended and restated a convertible secured promissory note dated as of August 21,
2020. The $2.9 million November 2020 Convertible Note bears interest at the rate of 12% per annum. Unless earlier converted or repaid,
all outstanding principal and any accrued but unpaid interest under the November 2020 Convertible Note shall be due and payable on July
1, 2021, however the Company and Mr. Drexler agreed to an extension on August 13, 2021 until July 14, 2022. Any interest not paid when
due shall be capitalized and added to the principal amount of the November 2020 Convertible Note and bear interest on the applicable
interest payment date along with all other unpaid principal, capitalized interest, and other capitalized obligations.

 

Mr.
Drexler may, at any time, and from time to time, upon written notice to the Company, convert the outstanding principal and accrued interest
into shares of Common Stock, at a conversion price of $0.23 per share. At the election of the Company, one-sixth of the interest may
be paid in kind (“PIK Interest”) by adding such amount to the principal amount of the note, or through the issuance of shares
of the Company’s common stock to Mr. Drexler. The PIK Interest is convertible to common stock at the closing price per share on
the last business day of each calendar quarter. In no event will the conversion price of such PIK Interest be less than $0.10. The Company
may prepay the Note by giving Mr. Drexler between 15-days’ and 60-days’ notice depending upon the specific circumstances,
subject to Mr. Drexler’s conversion right.

 

The
November 2020 Convertible Note contains customary restrictions on the ability of the Company to, among other things, grant liens or incur
indebtedness other than certain obligations incurred in the ordinary course of business. The restrictions are also subject to certain
additional qualifications and carveouts, as set forth in the November 2020 Convertible Note. The November 2020 Convertible Note is subordinated
to certain other indebtedness of the Company held by Prestige Capital Corporation (“Prestige”) and the Senior Notes.

 

For
the three months ended March 31, 2022 and 2021, interest expense related to the related party convertible secured promissory note was
$0.085 million and $0.085 million, respectively. During the three months ended March 31, 2022, no interest was paid in cash to Mr. Drexler;
during the three months ended March 31, 2021 $0.085 million of interest was paid in cash to Mr. Drexler.

 

August
2021 Convertible Note, Related Party

 

On
October 15, 2020, the Company entered into a secured revolving promissory note (the “Revolving Note”) with Mr. Ryan Drexler.
Under the terms of the Revolving Note, the Company can borrow up to $3.0 million. The Revolving Note bears interest at the rate of 12%
per annum. The funds were used for the purchase of whey protein and other general corporate purposes. Both the outstanding principal,
if any, and all accrued interest under the Revolving Note were due on March 31, 2021, which was not paid.

 

    	19

     

    

 

On
August 13, 2021, the Company issued to Ryan Drexler (the “Holder”) a convertible secured promissory note (the “August
2021 Convertible Note”) in the original principal amount of $2.5 million, replacing the Revolving Note.

 

The
August 2021 Convertible Note bears interest at the rate of 12% per annum. Interest payments are due on the last day of each calendar
quarter. At the Company’s option (as determined by its independent directors), the Company may repay up to one sixth of any interest
payment by either adding such amount to the principal amount of the August 2021 Convertible Note or by converting such interest amount
into an equivalent amount of the Company’s common stock, $0.001 par value per share (the “Common Stock”). Any interest
not paid when due shall be capitalized and added to the principal amount of the August 2021 Convertible Note and bear interest on the
applicable interest payment date along with all other unpaid principal, capitalized interest, and other capitalized obligations. Both
the principal and any accrued but unpaid interest under the August 2021 Convertible Note will be due on July 14, 2022, unless converted
or repaid earlier.

 

The
Holder may, at any time, and from time to time, upon written notice to the Company, convert the outstanding principal and accrued interest
into shares of Common Stock, at a conversion price equal to the closing price of the common stock on October 15, 2021. The Company may
prepay the August 2021 Convertible Note by giving the Holder between 15 and 60 days’ notice depending upon the specific circumstances,
subject to the Holder’s conversion right.

 

The
August 2021 Convertible Note contains customary events of default, including, among others, the failure by the Company to make a payment
of principal or interest when due. Following an event of default, at the option of the Holder and upon written notice to the Company,
or automatically under certain circumstances, all outstanding principal and accrued interest will become due and payable. The August
2021 Convertible Note also contains customary restrictions on the ability of the Company to, among other things, grant liens or incur
indebtedness other than certain obligations incurred in the ordinary course of business. The restrictions are also subject to certain
additional qualifications and carveouts, as set forth in the August 2021 Convertible Note. The August 2021 Convertible Note is subordinated
to certain other indebtedness of the Company held by Prestige Corporation (“Prestige”) and the Senior Notes.

 

For
the three months ended March 31, 2022, interest expense related to the related party convertible secured promissory note was $0.122 million
and there was no interest expense related to this note for the three months ended March 31, 2021. During the three months ended March
31, 2022 and 2021 no interest was paid in cash to Mr. Drexler.

 

Revolving
Line of Credit, Related Party

 

On
March 8, 2022, the Company entered into an Unsecured Revolving Promissory Note (the “Note”) with the Mr. Ryan Drexler. Under
the terms of the Note, proceeds may be used solely to finance the production of orders from its largest customer or any of its affiliates
or subsidiaries. The Note does not contain a cap on borrowings thereunder. However, further advances under the Note are at the discretion
of the Lender. Outstanding balances under the Note accrue interest at the rate of 18% per annum. Prior to maturity, the Company generally
may pay down principal balances and re-borrow under the Note, subject to the discretion of the Lender to advance funds under the Note.
The Note contains customary events of default and acceleration provisions.

 

    	20

     

    

 

The
Note is subordinate to the 14% Original Issue Discount Senior Secured Notes previously issued by the Company. Under the terms of the
First Amendment to Intercreditor and Subordination Agreement, dated as of March 8, 2022, between the Company, Ryan Drexler and Empery
Tax Efficient, LP (the “Amendment”), principal but not interest due under the Note generally may be repaid out of payments
received by the Company in respect of accounts receivable financed pursuant to the Note.

 

The
related party revolving line of credit balance as of March 31, 2022 was $2.7 million and was zero on at March 31, 2021.

 

For
the three months ended March 31, 2022 and 2021 total related party debt was $8.1 million and $4.6 million, respectively.

 

For
the three months ended March 31, 2022, interest expense related to the revolving line of credit, related party was $0.106 million.

 

Obligations
Under Secured Borrowing Arrangement

 

In
January 2016, the Company entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Prestige, pursuant
to which the Company agreed to sell and assign, and Prestige agreed to buy and accept, certain accounts receivable owed to the Company
(“Accounts”). Under the terms of the Purchase and Sale Agreement, upon the receipt and acceptance of each assignment of Accounts,
Prestige will pay the Company 80% of the net face amount of the assigned Accounts, up to a maximum total borrowing of $12.5 million subject
to sufficient amounts of accounts receivable to secure the loan. The remaining 20% will be paid to the Company upon collection of the
assigned Accounts, less any chargebacks (including chargebacks for any customer amounts that remain outstanding for over 90 days), disputes,
or other amounts due to Prestige. Prestige’s purchase of the assigned Accounts from the Company will be at a discount fee which
varies from 0.7% to 4%, based on the number of days outstanding from the assignment of Accounts to collection of the assigned Accounts.
In addition, the Company granted Prestige a continuing security interest in and first priority lien upon all accounts receivable, inventory,
fixed assets, general intangibles, and other assets. Prestige will have no recourse against the Company if payments are not made due
to the insolvency of an account debtor within 90 days of invoice date, with the exception of international and certain domestic customers.
On April 10, 2019, the Company and Prestige amended the terms of the agreement. The agreement was extended until April 1, 2020 and automatically
renews for one (1) year periods unless either party receives written notice of cancellation from the other, at minimum, thirty (30) days
prior to the expiration date thereafter.

 

    	21

     

    

 

On
June 14, 2021, Prestige advanced the Company $1.0 million with a six-month term, 15% interest rate and 2% accommodation fee.

 

On
July 26, 2021, Prestige advanced the Company $1.0 million with a six-month term and a 15% interest rate. In addition, there was an accommodation
fee equal to 1% of the amount advanced plus 18,750 stock options.

 

On
October 12, 2021, the June 14, 2021 and July 26, 2021 the total Prestige advance $2.0 million was extended to the date of the termination
of the senior secured note offering, which is in April 2022, and was extended to May 28 2022.

 

For
the three months ended March 31, 2022 and 2021, the Company assigned Prestige accounts with an aggregate face amount of approximately
$6.3 million and $11.4 million, respectively. For the three months ended March 31, 2022 and 2021, the Company made payments to Prestige
in the amounts of $6.1 million and $13.8 million, respectively, in cash. As of March 31, 2022 and December 31, 2021, we had outstanding
borrowings of approximately $6.6 million and $6.4 million, respectively.

 

On
May 19, 2022, Canada MusclePharm Enterprises Corp. (“CMP”), one of the Financing Parties to that certain Intercreditor Agreement
dated as of October 13, 2021 (the “Agreement”), and a wholly-owned subsidiary of the Company, requested that Prestige factor
its accounts under the terms of a Purchase and Sale Agreement dated May 19, 2022 (the “Canada Factoring Agreement”). In order
for Prestige to enter into the Canada Factoring Agreement and factor the accounts of CMP, Prestige requires that CMP and its assets be
the subject of the Agreement as if they were a part of the Agreement from inception. Accordingly Prestige, Empery and the Financing Parties
agreed that the Canada Factoring Agreement will be treated the same as the Existing Factoring Agreement, that the Factoring Collateral
and the Factoring Priority Collateral shall include the assets described therein of both the Company and CMP and the term Factored Accounts
shall refer to those accounts of both the Company and CMP factored by Prestige.

 

Paycheck
Protection Program Loan

 

Due
to economic uncertainty as a result of the ongoing pandemic (“COVID-19”), on May 14, 2020, the Company received an aggregate
principal amount of $964,910 pursuant to the borrowing arrangement (“Note”) with Harvest Small Business Finance, LLC (“HSBF”)
and agreed to pay the principal amount plus interest at a 1% fixed interest rate per year, on the unpaid principal balance. The Note
includes forgiveness provisions in accordance with the requirements of the Paycheck Protection Program, Section 1106 of the CARES Act.

 

The
Note was expected to mature on May 16, 2025. Payments were due by November 16, 2020 (the “Deferment Period”) and interest
was accrued during the Deferment Period. However, the Flexibility Act, which was signed into law on June 5, 2020, extended the Deferment
Period to the date that the forgiven amount is remitted by the United States Small Business Administration (“SBA”) to HSBF.

 

    	22

     

    

 

On
October 25, 2021, the Company received a letter from HSBF indicating the Company’s SBA PPP loan has been forgiven in full by HSBF
and was recorded as a $964,910 gain on forgiveness of debt located in other income-loan forgiveness.

 

Schedule
3.1 (ff)

Accountants

 

Company’s
Accounting Firm:

 

Moss
Adams LLP

2040
Main Street, Suite 900

Irvine,
CA 92614

(949)
221-400

 

Schedule
4.9

Use
of Proceeds

 

The
Company currently expects to use the net proceeds from this offering for working capital, general corporate purposes and marketing and
advertising the Company’s new energy line.

 

    	23

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