Document:

Exhibit

Exhibit 10.85

LIFE INSURANCE SPLIT DOLLAR
ENDORSEMENT METHOD AGREEMENT 
	
			
	Insurers and Policy Numbers:
	 
	Massachusetts Mutual Life Insurance Company

	 
	 
	 

	 
	 
	39142810

	 
	 
	 

	Bank:
	 
	Central Valley Community Bank

	 
	 
	 

	Insured:
	 
	Teresa Gilio

	 
	 
	 

	Relationship of Insured to Bank:
	 
	EVP & Chief Administrative Officer

This Life Insurance Split Dollar Endorsement Method Agreement (the “Agreement”) is made effective as of     May 1, 2019, and is entered into by and between Central Valley Community Bank (the “Bank”) and Teresa Gilio (the “Insured”), each a “Party” and together the “Parties.”  
AGREEMENT
The respective rights and duties of the Bank and the Insured in the above-referenced policy shall be pursuant to the terms set forth below:
		
	I.
	DEFINITIONS

Refer to the policy contract for the definition of all terms in this Agreement.  
		
	II.
	POLICY TITLE AND OWNERSHIP

Title and ownership shall reside in the Bank for its use and for the use of the Insured in accordance with this Agreement.  The Bank alone may, to the extent of its interest, exercise the right to borrow or withdraw on the policy cash values.  Where the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to exercise the right to increase the coverage under the subject Split Dollar policy, then, in such event, the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of this Agreement.
		
	III.
	BENEFICIARY DESIGNATION RIGHTS

The Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive the Insured's share of the proceeds payable upon the death of the Insured, and to elect and change a payment option for such beneficiary, subject to any right or interest the Bank may have in such proceeds, as provided in this Agreement.
		
	IV.
	PREMIUM PAYMENT METHOD

The Bank intends to pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the policy in force.
		
	V.
	TAXABLE BENEFIT

Annually the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the Internal Revenue Service.  The Bank (or its administrator) will report to the Insured the amount of imputed income each year on Form W-2 or its equivalent.

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	VI.
	DIVISION OF DEATH PROCEEDS

Subject to Paragraphs VII and IX herein, the division of the death proceeds of the policy is as follows:
		
	A.
	Should the Insured be employed by the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of the Normal Retirement Benefit under that certain Executive Salary Continuation Agreement between the Bank and Insured dated of even date herewith (the “Salary Continuation Agreement”) assuming that the payments would begin on the date of death and continue for one hundred and eighty months following such Retirement (as those terms are defined in the Salary Continuation Agreement), or one hundred percent (100%) of the total proceeds of the policy, whichever amount is less.  Present value calculations shall be made using the assumptions set forth in Section X(K) of the Salary Continuation Agreement.  

		
	B.
	Should the Insured be retired from the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of one hundred percent (100%) of the sum of all remaining payments that would have been made under the Salary Continuation Agreement, but for the Insured’s death, or one hundred percent (100%) of the total proceeds of the policy, whichever amount is less.  Present value calculations shall be made using the assumptions set forth in Section X(K) of the Salary Continuation Agreement.  

		
	C.
	The Bank shall be entitled to the remainder of such proceeds.

		
	D.
	The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds, excluding any such interest.

		
	VII.
	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

During the Insured’s life, the Bank shall at all times be entitled to an amount equal to the policy’s cash value, as that term is defined in the policy contract, less any policy loans and unpaid interest or cash withdrawals previously incurred by the Bank and any applicable surrender charges.  Such cash value shall be determined as of the date of surrender.  Notwithstanding the foregoing, upon Insured’s death, the proceeds of the policy shall first be used to satisfy the obligations to Insured’s beneficiaries set forth in Paragraph VI.  
		
	VIII.
	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

In the event the policy involves an endowment or annuity element, the Bank’s right and interest in any endowment proceeds or annuity benefits, on expiration of the deferment period, shall be determined under the provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity benefits as the policy's cash value.  Such endowment proceeds or annuity benefits shall be considered to be like death proceeds for the purposes of division under this Agreement.
		
	IX.
	TERMINATION OF AGREEMENT

This Agreement shall terminate upon the occurrence of any one of the following:
		
	1.
	The Insured shall be discharged from employment with the Bank for cause.  The term for “cause” shall mean any of the following that result in an adverse effect on the Bank: (i) gross negligence or gross neglect; (ii) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or (v) a breach of fiduciary duty involving personal profit; or

		
	2.
	Surrender, lapse, or other termination of the Policy by the Bank.

2

Upon such termination, the Insured (or assignee) shall have a fifteen (15) day option to receive from the Bank an absolute assignment of the policy in consideration of a cash payment to the Bank, whereupon this Agreement shall terminate.  Such cash payment referred to above shall be the greater of:
		
	(a)
	The Bank’s share of the cash value of the policy on the date of such assignment, as defined in this Agreement; or

		
	(b)
	The amount of the premiums which have been paid by the Bank prior to the date of such assignment, plus interest.

If within said fifteen (15) day period, the Insured fails to exercise the option, fails to tender the required cash payment, or dies, then the option shall terminate, and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the policy shall terminate as of the date of the termination of this Agreement.
The Insured expressly agrees that this Agreement shall constitute sufficient written notice to the Insured of the Insured’s option to receive an absolute assignment of the policy as set forth herein.
Except as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance with Paragraph VI above.
		
	X.
	INSURED’S OR ASSIGNEE’S ASSIGNMENT RIGHTS

The Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the subject policy nor any rights, options, privileges or duties created under this Agreement.
		
	XI.
	AGREEMENT BINDING UPON THE PARTIES

This Agreement shall bind the Insured and the Bank, their heirs, successors, personal representatives and assigns.
		
	XII.
	ERISA PROVISIONS

The following provisions are part of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”):
		
	A.
	Named Fiduciary and Plan Administrator.

The “Named Fiduciary and Plan Administrator” of this Life Insurance Split Dollar Endorsement Method Agreement shall be Central Valley Community Bank.  As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control, and administration of this Agreement as established herein.  The Named Fiduciary may delegate to others certain management and operational responsibilities, including the employment of advisors and the delegation of any ministerial duties to qualified individuals.
		
	B.
	Funding Policy.

The funding policy for this Agreement shall be to maintain the subject policy in force by paying, when due, all premiums required.
		
	C.
	Basis of Payment of Benefits.

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Direct payment by the Insurer is the basis of payment of benefits under this Agreement, with those benefits in turn being based on the payment of premiums as provided in this Agreement.
		
	D.
	Claim Procedures.

Claim forms or claim information as to the subject policy can be obtained by contacting Equias Alliance at (831) 373-4614.  When the Named Fiduciary has a claim which may be covered under the provisions described in the insurance policy, he or she should contact the office named above, and either complete a claim form and forward it to an authorized representative of the Insurer or advise the Named Fiduciary what further requirements are necessary.  The Insurer will evaluate and make a decision as to payment.  If the claim is payable, a benefit check will be issued in accordance with the terms of this Agreement.
In the event that a claim is not eligible under the policy, the Insurer will notify the Named Fiduciary of the denial pursuant to the requirements under the terms of the policy.  If the Named Fiduciary is dissatisfied with the denial of the claim and wishes to contest such claim denial, he or she should contact the office named above and they will assist in making inquiry to the Insurer.  All objections to the Insurer’s actions should be in writing and submitted to the office named above for transmittal to the Insurer.
		
	XIII.
	GENDER

Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.
		
	XIV.
	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement.  Payment or other performance in accordance with the policy provisions shall fully discharge the Insurer for any and all liability.
		
	XV.
	AMENDMENT OR REVOCATION

It is agreed by and between the parties hereto that, during the lifetime of the Insured, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Insured and the Bank, provided however that following a Change in Control of the Bank (as that term is defined in the Salary Continuation Agreement), this Agreement may only be modified by the mutual consent of the Bank and Insured.
		
	XVI.
	EFFECTIVE DATE

The Effective Date of this Agreement shall be the date first stated above.
		
	XVII.
	SEVERABILITY AND INTERPRETATION

If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their terms.  Further, in the event that any provision is held to be overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.
		
	XVIII.
	APPLICABLE LAW

The validity and interpretation of this Agreement shall be governed by applicable federal law and the laws of the State of California.

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	XIX.
	USE OF TRADE SECRETS AND SOLICITATION AFTER TERMINATION OF EMPLOYMENT

In further consideration of this Agreement, Executive agrees not to use Bank’s trade secrets and confidential information to compete with Bank at any time, directly or indirectly.  As further consideration, for a period of one (1) year following termination of his employment, Executive agrees not to solicit, directly or indirectly, (A) any employees of Bank or consultants to Bank who are located within the state of California to terminate such employment or consulting arrangement or to work for anyone in competition with Bank; and (B) any Bank customers who are known to Executive as a result of his employment with Bank.  In the event that Executive breaches his obligations under this section, Bank shall have the right, in its sole discretion, to not pay any benefit due Executive under this Agreement.
Executed at Fresno, California on April 24, 2019. 

	
		
	BANK:

CENTRAL VALLEY COMMUNITY BANK

By: /s/James M. Ford   
James Ford
President and Chief Executive Officer

	INSURED:

TERESA GILIO

/s/Teresa Gilio  
Teresa Gilio

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BENEFICIARY DESIGNATION FORM
FOR LIFE INSURANCE SPLIT DOLLAR
ENDORSEMENT METHOD AGREEMENT

PRIMARY DESIGNATION:
Name                Address                Relationship
                                                    
                                                    
                                                    

SECONDARY (CONTINGENT) DESIGNATION:
                                                    
                                                    
                                                    

All sums payable under the Life Insurance Split Dollar Endorsement Method Agreement by reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary.

                                                    
Teresa Gilio                        Date

6Exhibit 4.1

 

THIS NOTE AND THE SECURITIES ISSUABLE
UPON THE CONVERSION OF ANY PORTION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS, NEITHER THIS NOTE NOR ANY SUCH SECURITIES, NOR ANY INTEREST IN ANY THEREOF, MAY BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
ASSIGNED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH SECURITIES UNDER
SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS
OR BLUE SKY LAWS.

 

XPRESSPA HOLDINGS, LLC

 

FOURTH AMENDED AND RESTATED CONVERTIBLE
PROMISSORY NOTE

 

	$7,900,000.00	
        March 6, 2020

        New York, New York

 

FOR VALUE RECEIVED,
XPRESSPA HOLDINGS, LLC, a Delaware limited liability company (the “Company”), promises to pay to B3D, LLC, a
North Carolina limited liability company (as assignee and successor in interest to ROCKMORE INVESTMENT MASTER FUND LTD.) (the “Lender”),
or its registered and permitted assigns, in lawful money of the United States of America the principal sum of Seven Million Nine
Hundred Thousand and No/100 Dollars ($7,900,000.00), or, if less, the then outstanding principal amount of the Loan, together with
interest thereon as hereinafter provided. This Note evidences the Loan made to the Company under that certain Credit Agreement
dated April 22, 2015, as amended by the First Amendment to Credit Agreement and Waiver dated as of August 8, 2016, and as amended
by a Second Amendment to Credit Agreement dated as of May 10, 2017, as amended by a Third Amendment to Credit Agreement dated as
of May 11, 2018, as amended by a Fourth Amendment to Credit Agreement dated July 8, 2019, and as amended by a Fifth Amendment to
Credit Agreement dated January 9, 2020 and as amended by a Sixth Amendment to Credit Agreement dated as of the date hereof (as
further amended, restated, amended and restated, extended, renewed, replaced, supplemented or otherwise modified from time to time,
collectively, the “Credit Agreement”) between the Company and the Lender. The Company shall pay such principal
amount on the Maturity Date, whether at maturity, by acceleration or otherwise.

 

Capitalized terms used
but not defined herein shall have the meanings given them in the Credit Agreement.

 

The Company further
promises to pay interest to the Lender on the unpaid principal amount hereof from time to time outstanding from and including April
22, 2015 until paid in full (both before and after judgment and both before and after the occurrence of an Event of Default) at
the rates and on the dates determined in accordance with, and calculated in the manner set forth herein and in the Credit Agreement.
In no event shall interest exceed the maximum interest rate permitted by applicable law. This Note is secured by the Collateral
defined in the Loan Documents

 

     

     

    

 

Whenever any payment
to be made hereunder shall be stated to be due on a day that is not a Business Day, the payment shall be made on the next succeeding
Business Day (except as otherwise provided in the Credit Agreement) and such extension of time shall be included in the computation
of the amount of interest due hereunder.

 

This Note is the Note
referred to in the Credit Agreement and shall be entitled to the benefit of all terms and conditions of, and the security of all
security interests, liens and rights granted under or in connection with, the Credit Agreement and the other Loan Documents, and
is subject to optional prepayment as provided therein. Upon the occurrence of any one or more of the Events of Default specified
in the Credit Agreement, all amounts then remaining unpaid on this Note may be declared to be or may automatically become immediately
due and payable as provided herein or in the Credit Agreement.

 

The following is a
statement of the rights of Lender and the conditions to which this Note is subject, and to which Lender, by the acceptance of this
Note, agrees:

 

1.                 
Definitions. As used in this Note, the following capitalized terms have the following meanings:

 

(a)              
“Black Scholes Value” means, upon the voluntary prepayment of all or a portion of this Note, the value
of the amount subject to prepayment, based on the Black-Scholes Option Pricing Model obtained from the “OV” function
on Bloomberg Financial Markets (“Bloomberg”) determined as of the day immediately preceding such voluntary prepayment,
for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to
the remaining term of this Note as of such date of request, (ii) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of the day immediately preceding the voluntary prepayment, (iii)
the VWAP of the Prepaid Conversion Amount, (iv) a zero cost of borrow and (v) a 360 day annualization factor.

 

(b)              
“Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are required or permitted by law to close.

 

(c)              
“Common Stock” means the common stock of the Parent, par value $0.01 per share, and any other class of
securities into which such securities may hereafter be reclassified or changed.

 

(d)              
“Common Stock Equivalents” means any securities of the Parent or its 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.

 

    2 

     

    

 

(e)              
“Company” includes the limited liability company initially executing this Note and any Person which shall
succeed to or assume the obligations of the Company under this Note, with Lender’s prior written approval, at Lender’s
sole discretion.

 

(f)               
“Conversion” shall have the meaning ascribed to such term in Section 7.

 

(g)              
“Conversion Date” shall have the meaning set forth in Section 7(a).

 

(h)              
“Conversion Price” shall have the meaning set forth in Section 7(b).

 

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

 

(j)                
“Dilutive Issuance” shall have the meaning set forth in Section 8(e).

 

(k)              
“Credit Agreement” has the meaning specified in the introductory paragraph hereof.

 

(l)                
“Event of Default” has the meaning specified in the Credit Agreement.

 

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

 

(n)              
“Exempt Issuance” means the issuance of (a) shares of Common Stock and options to officers, directors,
employees or consultants of the Parent after the Note hereof pursuant to plans approved by the shareholders of the Parent and which
issuances are approved by a majority of the independent members of a committee of the board of directors, (b) securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Note, provided that such
securities and any term thereof have not been amended since the date of this Note to increase the number of such securities or
to decrease the issue price, exercise price, exchange price or conversion price of such securities and which securities and the
principal terms thereof are described in the reports, schedules, forms, statements and other documents required to be filed by
the Parent under the Securities Act and the Exchange Act, (c) securities issued pursuant to acquisitions or strategic transactions
approved by a majority of the disinterested directors of the Parent, provided that any such issuance shall only be to a Person
(or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Parent and shall be intended to provide to the Parent substantial additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Parent is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, (d) up to 25,000
shares of Common Stock, (e) securities as payment for investment banking services provided to the Parent, (f) securities issued
to third party vendors as payment for goods or services, (g) securities issued to the Parent’s Airport Concession Disadvantaged
Business Enterprise partners up to a number of shares of Common Stock equal in value, upon the issuance thereof, to $150,000, for
each Airport Concession Disadvantaged Business Enterprise partner to whom they are issued, (h) securities issued or issuable to
the Lender, and their assigns pursuant to the Credit Agreement, or the Notes, or upon exercise, conversion or exchange of any such
securities and (i) securities issued or issuable pursuant to that certain letter agreement dated as of July 8, 2019 relating to
the Company’s outstanding Class B Warrants and the potential issuance of new “reload” warrants.

 

    3 

     

    

 

(o)              
“Fundamental Transaction” shall have the meaning set forth in Section 8(e).

 

(p)              
“Interest Deferment Date” shall mean the earlier of (i) October 7, 2019 and (ii) the date on which Shareholder
Approval is obtained.

 

(q)              
“Lender” shall mean the Person specified in the introductory paragraph of this Note or, subject to the
terms and conditions of the Credit Agreement, any Person who shall at the time be the registered Lender of this Note.

 

(r)               
“Notice of Conversion” shall have the meaning set forth in Section 7(a).

 

(s)               
“Original Effective Date” shall mean April 22, 2015.

 

(t)                
“Parent” shall mean XpresSpa Group, Inc., a Delaware corporation.

 

(u)              
“Person” shall mean and include an individual, a partnership, a corporation (including a business trust),
a joint stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental
authority.

 

(v)              
“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

(w)            
“Shareholder Approval”. The consent of the Parent’s shareholders pursuant to Nasdaq Listing Rule
5635(d) that is required for the issuance of all the shares of its Common Stock that could be issued pursuant to Section 2 and
Section 7.

 

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

 

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

 

(z)              
“Variable Rate Transaction” means (i) any equity line of credit (which shall include any transaction
involving a written agreement between the Parent and an investor or underwriter whereby the Parent has the right to “put”
its securities to the investor or underwriter over an agreed period of time and at an agreed price or price formula) or similar
agreement or (ii) any floating or variable priced equity linked instruments (which shall include (A) any debt or equity securities
which are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock or
Common Stock Equivalents or any of the foregoing at a price that can be reduced either (1) at any conversion, exercise or exchange
rate or other price that is based upon and/or varies with the trading prices of or quotations for Common Stock at any time after
the initial issuance of such debt or equity security, or (2) with a fixed conversion, exercise or exchange price that is subject
to being reset at some future date at any time after the initial issuance of such debt or equity security due to a change in the
market price of the Parent’s Common Stock since date of initial issuance, or upon the issuance of any debt, equity or Common
Stock Equivalent, and (B) any amortizing convertible security which amortizes prior to its maturity date, where the Parent is required
or has the option to (or any investor in such transaction has the option to require the Parent to) make such amortization payments
in shares of Common Stock which are valued at a price that is based upon and/or varies with the trading prices of or quotations
for Common Stock at any time after the initial issuance of such debt or equity security (whether or not such payments in stock
are subject to certain equity conditions).

 

    4 

     

    

 

(aa)           
“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 any of
the NASDAQ markets or exchanges is not a Trading Market, the volume weighted average price of the Common Stock for such date (or
the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the
OTC Bulletin Board and if prices for the Common Stock are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained
by the OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the volume
weighted average price of the Common Stock on the first such facility (or a similar organization or agency succeeding to its functions
of reporting prices), or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent
appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably
acceptable to Lender, the fees and expenses of which shall be paid by Lender.

 

2.                 
Interest. 

 

(a)              
This Note shall bear interest at the rate of 9.00% per annum. Except as provided in Section 2(b) and in Section 2(c) below,
interest only on the Loan shall be calculated on a monthly basis, which shall be payable in arrears on the last Business Day of
each month (the “Monthly Interest”). All interest hereunder shall be computed on the basis of a year of 360
days, and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(b)              
Notwithstanding Section 2(a) above, from the date hereof until the Interest Deferment Date, the Monthly Interest shall continue
to accrue, shall be compounded monthly, and all unpaid amounts thereof shall be due and payable on the Interest Deferment Date.

 

(c)              
At Company’s option, exercisable in writing by notice to the Company at any time, (i) not more than thirty (30) but
not less than five (5) Business Days, prior to the Interest Deferment Date, at Company’s sole discretion, all or any portion
of the Monthly Interest that is payable on the Interest Deferment Date, or (ii) after the Interest Deferment Date, not more than
twenty-one (21) Business Days but not less than five (5) Business Days, prior to the date upon which each payment of Monthly Interest
is due, at Company’s sole discretion, all or any portion of the Monthly Interest that is payable on such payment date (in
each case, the “Share Portion”), shall be paid by way of issuance of duly authorized, validly issued, fully
paid and non-assessable and tradeable shares of Common Stock (such number of Common Stock to be issued instead of cash payment,
the “Interest Share Amount”). Notwithstanding anything to the contrary contained in this Section 2(b), until
the Shareholder Approval is obtained, the Monthly Interest on $900,000 of the principal of this Note, shall be payable by cash
payment alone in accordance with Section 2(a) and may not be included in the Share Portion. The Interest Share Amount will be determined
by dividing the amount of the Share Portion set forth in Lender’s exercise notice by a price per share of Common Stock equal
to ninety percent (90%) of the VWAP on the Trading Date immediately preceding the date of the exercise notice (the “Initial
Interest Share Price”). The Parent shall deliver to Lender certificates evidencing the Interest Share Amount within two
(2) Business Days after the date of the exercise notice. If ninety percent (90%) of the average VWAP for the 30 Trading Days prior
to and including the applicable interest payment date or, if the applicable interest payment date is not a Trading Day, on the
next succeeding Trading Day (such price, the “Make Whole Price”), is less than the Initial Interest Share Price, then
the Lender shall be entitled to additional shares of Common Stock as partial (and additional) payment of the Interest Share Amount
(such shares, the “Make Whole Shares”). The quantity of Make Whole Shares will be determined by (y) dividing
the amount of the Share Portion set forth in Lender’s exercise notice by the Make Whole Price, and (z) subtracting therefrom
the Interest Share Amount. The Parent shall deliver to Lender certificates evidencing the Make Whole Shares within two (2) Business
Days after the Interest Deferment Date. The Lender shall have the same rights and remedies with respect to the delivery of any
such Interest Share Amount and the Make Whole Shares as if such shares were being issued pursuant to a voluntary conversion pursuant
to Section 7(a).

 

    5 

     

    

 

(d)              
All Monthly Interest arising and accruing from and after the Interest Deferment Date, shall be paid in accordance with Section
2(a) above (except as set forth in Section 2(c) above).

 

3.                 
Default Rate. Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of
Default, then, so long as such Event of Default is continuing, all principal of this Note and each fee and other amount then due
and payable by the Company hereunder or under the Credit Agreement (whether at the stated maturity thereof, by acceleration or
otherwise) shall bear interest at a rate per annum equal to six percent (6.00%) plus the rate otherwise applicable to this Note.

 

4.                 
Voluntary Prepayments. The Company may, at its option, prepay this Note in full or in part at any time and
from time to time by notifying the Lender in writing not later than the date of such prepayment specifying the principal amount
of this Note to be prepaid and the date of prepayment. Each such notice shall be irrevocable and the amount specified in each such
notice shall be due and payable on the date specified. Each partial prepayment of this Note pursuant to this Subsection shall be
in an aggregate principal amount of $100,000 or an integral multiple of $50,000 in excess thereof, or, if less than $100,000, the
outstanding principal balance of this Note. In the event the Company prepays this Note in full before the date that is fifteen
(15) Business Days prior to the Maturity Date, the Company shall pay a premium equal to the greater of (i) four percent (4%) or
(ii) the Black Scholes Value of the outstanding principal amount subject to such prepayment. Notwithstanding anything to the contrary
in the foregoing or in any other Loan Document, there shall be no premium or penalty payable by the Company in the event that the
Company either (y) prepays this Note in full on or after the date that is fifteen (15) Business Days prior to the Maturity Date
and before the Maturity Date or (z) repays this Note in full on the Maturity Date. Simultaneously with each prepayment of this
Note, the Company shall prepay all accrued and unpaid interest on the amount prepaid through the date of prepayment. If no Event
of Default exists and if the proceeds arising out of any insurance claim or series of related claims do not exceed $250,000, loss
payments in each instance will be applied by the applicable Credit Party to the repair and/or replacement of property with respect
to which the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the
extent not so applied, shall be payable to the applicable Credit Party; provided, however, that payments received by any Credit
Party after an Event of Default occurs and is continuing or in excess of $250,000 for any occurrence or series of related occurrences
shall be paid to the Lender for itself and on behalf of the secured parties under the Security Agreement and, if received by such
Credit Party, shall be held in trust for the secured parties under the Security Agreement and immediately paid over to the Lender
unless otherwise directed in writing by the Lender.

 

    6 

     

    

 

5.                 
Events of Default.

 

Each of the following
shall constitute an "Event of Default" hereunder:

 

(a)              
The failure of the Company to make any payment of principal on the Loan on the date when due and payable; or

 

(b)              
The failure of the Company to make any payment of interest, Fees, expenses or other amounts payable under any Loan Document
which failure shall have continued unremedied for a period of three Business Days after the date when due and payable; or

 

(c)              
The failure of the Company or the Parent to observe or perform any covenant or agreement contained in Article 7 of the Credit
Agreement; or

 

(d)              
The failure of any Credit Party to observe or perform any other term, covenant, or agreement contained in any Loan Document
to which it is a party, which failure shall have continued unremedied for a period of 30 days after the occurrence thereof; or

 

(e)              
Any representation, warranty, certification or statement made by any Credit Party (or any of its officers) in any Loan Document
to which it is a party, or in any certificate, financial statement or other document delivered or to be delivered by it pursuant
thereto, shall prove to have been incorrect or misleading in any material respect when made or deemed made; or

 

(f)               
(i) Any Indebtedness of the Company, the Parent or any Subsidiary Guarantor (other than its obligations hereunder) in an
amount in excess of $100,000, whether as principal, guarantor, surety or other obligor (x) shall become or shall be declared to
be due and payable prior to the expressed maturity thereof, or (y) shall not be paid when due or within any grace period for the
payment thereof, or (ii) any holder of any obligation referred to in clause (i) of this Subsection (f) shall have the right to
declare such obligation due and payable prior to the expressed maturity thereof; or

 

    7 

     

    

 

(g)              
The Company, the Parent or any Subsidiary Guarantor shall (i) except as permitted by Section 7.03 or 7.07 of the Credit
Agreement, suspend or discontinue its business, (ii) make an assignment for the benefit of creditors, (iii) generally not be paying
its debts as such debts become due, (iv) admit in writing its inability to pay its debts as they become due, (v) file a voluntary
petition in bankruptcy, (vi) become insolvent (however such insolvency shall be evidenced), (vii) file any petition or answer seeking
for itself any reorganization, arrangement, composition, readjustment of debt, liquidation or dissolution or similar relief under
any present or future statute, law or regulation of any jurisdiction, (viii) petition or apply to any tribunal for any receiver,
custodian or any trustee for any substantial part of its Property, (ix) be the subject of any such proceeding filed against it
which remains undismissed for a period of 60 days, (x) file any answer admitting or not contesting the material allegations of
any such petition filed against it or any order, judgment or decree approving such petition in any such proceeding, (xi) seek,
approve, consent to, or acquiesce in, any such proceeding, or in the appointment of any trustee, receiver, sequestrator, custodian,
liquidator, or fiscal agent for it, or any substantial part of its Property, or an order is entered appointing any such trustee,
receiver, custodian, liquidator or fiscal agent and such order remains in effect for 60 days, or (xii) take any formal action for
the purpose of effecting any of the foregoing or looking to the liquidation or dissolution of the Company or any Subsidiary Guarantor;
or

 

(h)              
(i) An order for relief is entered under the United States bankruptcy laws, or (ii) any other decree or order is entered
by a court having jurisdiction (A) adjudging the Company, the Parent or any Subsidiary Guarantor bankrupt or insolvent, (B) approving
as properly filed a petition seeking reorganization, liquidation, arrangement, adjustment or composition of or in respect of the
Company, the Parent or any Subsidiary Guarantor under the United States bankruptcy laws or any other applicable Federal or state
law, (C) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Company,
the Parent or any Subsidiary Guarantor or of any substantial part of the Property thereof, or (D) ordering the winding up or liquidation
of the affairs of the Company, the Parent or any Subsidiary Guarantor, and any such decree or order under this clause (ii) continues
unstayed and in effect for a period of 60 days; or

 

(i)                
Judgments or other orders for the payment of money aggregating in excess of $150,000 shall be rendered against the Company
or any Subsidiary Guarantor and shall remain unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of
30 days; or

 

(j)                
Any Loan Document shall cease, for any reason, to be in full force and effect, or the Company or any obligor thereunder
shall so assert in writing or shall disavow any of its obligations thereunder or hereunder; or

 

(k)              
An ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably
be expected to result in a Material Adverse Effect; or

 

(l)                
A Material Adverse Change shall have occurred; or

 

(m)            
A Change in Control shall have occurred; or

 

    8 

     

    

 

(n)              
A Change in Management shall have occurred; or

 

(o)              
Parent does not meet the current public information requirements under Rule 144; or

 

(p)              
Parent shall fail for any reason to deliver certificates to the Lender evidencing the Interest Share Amount pursuant to
Section 2(b), or Parent shall provide at any time notice to the Lender, including by way of public announcement, of Parent’s
intention to not honor such obligation in accordance with the terms hereof; or

 

(q)              
Parent shall fail for any reason to deliver certificates to the Lender prior to the fifth Trading Day after a Conversion
Date pursuant to Section 7(c) or Parent shall provide at any time notice to the Lender, including by way of public announcement,
of Parent’s intention to not honor requests for conversions of any Notes in accordance with the terms hereof; or not

 

(r)               
an event resulting in the Common Stock of the Parent no longer being listed or quoted on a Trading Market, or notification
from a Trading Market that the Parent is not in compliance with the conditions for such continued quotation and such non-compliance
continues for twenty (20) days following such notification; or

 

(s)               
a Commission or judicial stop trade order or suspension from the Parent’s principal Trading Market; or

 

(t)                
the Parent effectuates a reverse split of its Common Stock without ten (10) days prior written notice to the Lender.

 

6.                 
Remedies.

 

Upon the occurrence
of an Event of Default or at any time thereafter during the continuance thereof, (a) if such event is an Event of Default specified
in Section 8.01(g) or Section 8.01(h) of the Credit Agreement, (i) the Loan, all accrued and unpaid interest thereon and all other
amounts owing under the Loan Documents shall immediately become due and payable, (ii) the Commitment shall immediately terminate
and (iii) the Lender may exercise any and all remedies and other rights provided in the Loan Documents, and (b) if such event is
any other Event of Default, any or all of the following actions may be taken: (i) the Lender may by notice to the Company, (x)
declare the Loan, all accrued and unpaid interest thereon and all other amounts owing under any Loan Documents to be due and payable,
whereupon the same shall immediately become due and payable, and (y) declare the Commitment to be immediately terminated, and (ii)
the Lender may exercise any and all remedies and other rights provided in the Loan Documents, presentment, demand, protest and
all other notices of any kind being in each case hereby expressly waived by the Company.

 

7.                 
Conversion.

 

(a)              
Voluntary Conversion. At any time until this Note is no longer outstanding, all or any portion of the outstanding
principal amount of this Note, plus any accrued and unpaid interest on such amount that is outstanding on the Conversion Date shall
be convertible, in whole or in part, into shares of Common Stock at the option of the Lender, at any time and from time to time
(subject to the conversion limitations set forth in Section 7(d) hereof); provided, however, that until Shareholder
Approval is obtained, the Lender shall only be permitted to convert up to $7,000,000, plus any accrued and unpaid interest on such
$7,000,000, into shares of Common Stock. The Lender shall effect conversions by delivering to Parent a Notice of Conversion, the
form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying therein the
principal amount of this Note and accrued interest, if any, to be converted and the date on which such conversion shall be effected
(each such date, a “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion
Date shall be the date that such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, the Lender
shall not be required to physically surrender this Note to Parent unless the entire principal amount of this Note has been so converted.
Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the
applicable conversion. The Lender and Parent shall maintain records showing the principal amount(s) converted and the date of such
conversion(s). Parent may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice
of Conversion. In the event of any dispute or discrepancy, the records of the Lender shall be controlling and determinative in
the absence of manifest error. The Lender, and any assignee by acceptance of this Note, acknowledge and agree that, by reason
of the provisions of this paragraph, following conversion of a portion of the Note, the unpaid and unconverted principal amount
of this Note may be less than the amount stated on the face hereof.

 

    9 

     

    

 

(b)              
Conversion Price. The conversion price for the principal and interest, if any, in connection with voluntary conversions
by the Lender pursuant to clause (a) above shall be $0.56 per share of Common Stock, subject to adjustment herein (the “Conversion
Price”).

 

(c)              
Mechanics of Conversion.

 

(i)                
Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion
hereunder shall be determined by the quotient obtained by dividing (x) the amount to be converted plus interest, if any, elected
by the Lender to be converted by (y) the Conversion Price.

 

(ii)             
Delivery of Certificate Upon Conversion. Not later than two (2) Trading Days after each Conversion Date (the “Share
Delivery Date”), Parent shall deliver, or cause to be delivered, to the Lender a certificate or certificates representing
the Conversion Shares, which, on the Share Delivery Date shall be free of restrictive legends and trading restrictions representing
the number of Conversion Shares being acquired upon the conversion of this Note. Parent shall use its best efforts to deliver any
certificate or certificates required to be delivered by Parent under this Section 7(c) electronically through the Depository Trust
Company or another established clearing corporation performing similar functions.

 

(iii)           
Failure to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are
not delivered to or as directed by the applicable Lender by the Share Delivery Date, the Lender shall be entitled to elect by written
notice to Parent at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which
event Parent shall promptly return to the Lender any original Note delivered to Parent and the Lender shall promptly return to
Parent the Common Stock certificates issued to such Lender pursuant to the rescinded Conversion Notice.

 

(iv)            
Obligation Absolute; Partial Liquidated Damages. Parent’s obligations to issue and deliver the Conversion Shares
upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Lender to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment
against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any
breach or alleged breach by the Lender or any other Person of any obligation to Parent or any violation or alleged violation of
law by the Lender or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of
Parent to the Lender in connection with the issuance of such Conversion Shares; provided, however, that such delivery
shall not operate as a waiver by Parent of any such action Parent may have against the Lender. In the event the Lender of this
Note shall elect to convert any or all of the outstanding principal amount hereof, Parent may not refuse conversion based on any
claim that the Lender or anyone associated or affiliated with the Lender has been engaged in any violation of law, agreement or
for any other reason, unless an injunction from a court, on notice to Lender, restraining and or enjoining conversion of all or
part of this Note shall have been sought and obtained, and Parent posts a surety bond for the benefit of the Lender in the amount
of 150% of the outstanding principal amount of this Note, which is subject to the injunction, which bond shall remain in effect
until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to the Lender
to the extent it obtains judgment. In the absence of such injunction, Parent shall issue Conversion Shares or, if applicable, cash,
upon a properly noticed conversion. If Parent fails for any reason to deliver to the Lender such certificate or certificates pursuant
to Section 7(c)(ii) by the Share Delivery Date, Parent shall pay to the Lender, in cash, as liquidated damages and not as a penalty,
for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per Trading Day on the fifth (5th)
Trading Day after such liquidated damages being to accrue) for each Trading Day after such Share Delivery Date until such certificates
are delivered or Lender rescinds such conversion. Nothing herein shall limit a Lender’s right to pursue actual damages or
declare an Event of Default pursuant to Section 8 hereof for Parent’s failure to deliver Conversion Shares within the period
specified herein and the Lender shall have the right to pursue all remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit
the Lender from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

(v)              
Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights
available to the Lender, if Parent fails for any reason to deliver to the Lender such certificate or certificates by the Share
Delivery Date pursuant to Section 7(c)(ii), and if after such Share Delivery Date the Lender is required by its brokerage firm
to purchase (in an open market transaction or otherwise), or the Lender or Lender’s brokerage firm otherwise purchases, shares
of Common Stock to deliver in satisfaction of a sale by the Lender of the Conversion Shares which the Lender was entitled to receive
upon the conversion relating to such Share Delivery Date (a “Buy-In”), then Parent shall (A) pay in cash to
the Lender (in addition to any other remedies available to or elected by the Lender) the amount, if any, by which (x) the Lender’s
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the
aggregate number of shares of Common Stock that the Lender was entitled to receive from the conversion at issue multiplied by (2)
the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions)
and (B) at the option of the Lender, either reissue (if surrendered) this Note in a principal amount equal to the principal amount
of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Lender the number of shares
of Common Stock that would have been issued if Parent had timely complied with its delivery requirements under Section 7(c)(ii).
For example, if the Lender purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
Parent shall be required to pay the Lender $1,000. The Lender shall provide Parent written notice indicating the amounts payable
to the Lender in respect of the Buy-In and, upon request of Parent, evidence of the amount of such loss. Nothing herein shall limit
a Lender’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to Parent’s failure to timely deliver certificates
representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

    10 

     

    

 

(vi)            
Reservation of Shares Issuable Upon Conversion. Parent covenants that it will at all times reserve and keep available
out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note as herein
provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Lender (and the
other holders of the Notes), not less than 125% of the aggregate number of shares of the Common Stock as shall be issuable (taking
into account the adjustments and restrictions of Section 8) upon the conversion of the then outstanding principal amount of this
Note and interest which has accrued and would accrue on such principal amount assuming such principal amount was not converted
through the Maturity Date. Parent covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly
authorized, validly issued, fully paid and nonassessable.

 

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

 

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

 

8.                 
Certain Adjustments.

 

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

 

(b)              
Subsequent Equity Sales. If, at any time while this Note is outstanding, the Parent or any Subsidiary, as applicable,
sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces
any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person
to acquire Common Stock at an effective price per share that is lower than the Conversion Price (such lower price, the “Base
Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common
Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued
in connection with such issuance, be entitled to receive Common Stock at an effective price per share that is lower than the Conversion
Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance),
then the Conversion Price shall be reduced to equal the Base Conversion Price, subject to adjustment for reverse and forward stock
splits and the like. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding
the foregoing, no adjustment will be made under this Section 8(b) in respect of an Exempt Issuance. If the Parent enters into a
Variable Rate Transaction, the Parent shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible
conversion price at which such securities may be converted or exercised. Notwithstanding anything herein to the contrary, this
Section 8(b) shall not apply until receipt of the Shareholder Approval pursuant to Nasdaq Listing Rule 5635(d) unless the
Parent is not then subject to Nasdaq Listing Rule 5635(d). The Company and the Parent shall notify the Lender in writing,
no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 8(b),
indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Parent
provides a Dilutive Issuance Notice pursuant to this Section 8(b), upon the occurrence of any Dilutive Issuance, the Lender is
entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance,
regardless of whether the Lender accurately refers to the Base Conversion Price in the Notice of Conversion.

 

    11 

     

    

 

(c)              
Subsequent Rights Offerings. In addition to any adjustments pursuant to Sections 8(a) and (b) above, if at any time
Parent grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Lender
will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Lender
could have acquired if the Lender had held the number of shares of Common Stock acquirable upon complete conversion of this Note
(without regard to any limitations on exercise hereof, if any) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of
Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(d)              
Pro Rata Distributions. During such time as this Note is outstanding, if Parent shall declare or make any dividend
whether or not permitted, or makes any other distribution of its assets (or rights to acquire its assets) to holders of shares
of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement
or other similar transaction) (a “Distribution”), at any time after the issuance of this Note, then, in each
such case, the Lender shall be entitled to participate in such Distribution to the same extent that the Lender would have participated
therein if the Lender had held the number of shares of Common Stock acquirable upon complete exercise of this Note (without regard
to any limitations on exercise hereof, if any) immediately before the date of which a record is taken for such Distribution, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation
in such Distribution.

 

(e)              
Fundamental Transaction. If, at any time while this Note is outstanding, (i) Parent, directly or indirectly, in one
or more related transactions effects any merger or consolidation of Parent with or into another Person, (ii) Parent, directly or
indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all
of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by Parent or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender
or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) Parent, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, (v) Parent, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Note,
the Lender shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately
prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 7(d) on the conversion of
this Note), the number of shares of Common Stock of the successor or acquiring corporation or of Parent, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 7(d) on the conversion of this Note). For purposes
of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction,
and Parent shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Lender shall be given the same choice as to the Alternate
Consideration it receives upon any conversion of this Note following such Fundamental Transaction. Parent shall cause any successor
entity in a Fundamental Transaction in which Parent is not the survivor (the “Successor Entity”) to assume in
writing all of the obligations of Parent under this Note, the Credit Agreement, the Security Agreement, the Parent Guaranty, and
the other Loan Documents (as defined in the Credit Agreement) in accordance with the provisions of this Section 8(e) pursuant to
written agreements in form and substance reasonably satisfactory to the Lender and approved by the Lender (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Lender in exchange
for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Note which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard to any
limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies the
conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common
Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Lender. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Parent”
shall refer instead to the Successor Entity), and may exercise every right and power of Parent and shall assume all of the obligations
of Parent under this Note and the other Transaction Documents with the same effect as if such Successor Entity had been named as
Parent herein.

 

    12 

     

    

 

(f)               
Calculations. All calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 8, the number of shares of Common Stock deemed to be issued and outstanding
as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of Parent) issued and
outstanding.

 

(g)              
Notice to the Lender.

 

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

 

(ii)             
Notice to Allow Conversion by Lender. If (A) Parent shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) Parent shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock,
(C) Parent shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any
shares of capital stock of any class or of any rights, (D) the approval of any stockholders of Parent shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which Parent is a party, any sale or transfer of
all or substantially all of the assets of Parent, or any compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property or (E) Parent shall authorize the voluntary or involuntary dissolution, liquidation or winding up
of the affairs of Parent, then, in each case, Parent shall cause to be filed at each office or agency maintained for the purpose
of conversion of this Note, and shall cause to be delivered to the Lender at its last address as it shall appear upon the Note
Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or
if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required
to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public
information regarding Parent or any of the Subsidiaries, Parent shall simultaneously file such notice with the Commission pursuant
to a Current Report on Form 8-K. The Lender shall remain entitled to convert this Note during the 20-day period commencing on the
date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth
herein.

 

(h)              
Voluntary Adjustment by the Company. The Company may at any time during the term of this Note reduce the then current
Conversion Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

9.                 
 [Reserved]

 

    13 

     

    

 

10.             
Lender Voting Rights; Rights to Receive Distributions. Except as otherwise specifically provided herein, prior
to the issuance to the Lender of the Conversion Shares to which the Lender is then entitled to receive upon the due exercise of
the Conversion Right, the Lender shall not be entitled to vote or receive distributions or dividends or be deemed the holder of
Common Stock of the Parent for such purposes, nor shall anything contained herein be construed to confer upon the Lender, as such,
any right to vote, give or withhold consent to any action, receive notice of meetings or other actions by stock holders of Parent,
receive distributions, dividends or subscription rights, or otherwise. In addition, nothing contained herein shall be construed
as imposing any liabilities on the Lender to purchase any securities (upon exercise of the Conversion Right or otherwise) or as
a stockholder of the Parent, whether such liabilities are asserted by the Company or by creditors of the Parent or the Company.
Notwithstanding this Section 10, the Parent shall provide the Lender with copies of the same notices and other information
given to the stockholders of the Parent generally, contemporaneously with the giving thereof to its stockholders.

 

11.             
Successors and Assigns. Subject to the restrictions on transfer described in Sections 13 and 14
hereof, the rights and obligations of the Company and Lender shall be binding upon and benefit the successors, permitted assigns
and transferees of the parties.

 

12.             
Waiver and Amendment. Any provision of this Note may be amended, waived or modified only upon the written
consent of the Company and the Lender.

 

13.             
Transfer of this Note by Lender. Subject to the transfer conditions referred to in the legend endorsed hereon,
this Note may be transferred by Lender only in accordance with Section 9.03 of the Credit Agreement.

 

14.             
Assignment by the Company. Neither this Note nor any of the rights, interests or obligations hereunder may
be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of Lender.

 

15.             
Notices. All notices, requests, demands, consents, instructions or other communications pursuant to this Note
shall be in writing, either by letter (delivered by nationally recognized overnight courier service or sent by registered or certified
mail, return receipt requested), facsimile transmission or other electronic means to each party at the respective addresses, facsimile
numbers and email addresses of the parties as set forth in the Credit Agreement. Any notice, request, demand or other communication
hereunder shall be deemed to have been given on: (x) the day on which it is sent by facsimile transmission or other electronic
means to such party at its facsimile number or email address specified above (provided such notice shall be effective only if followed
by one of the other methods of delivery set forth herein) or delivered by a nationally recognized overnight courier service to
such party at its address specified above, or (y) on the third Business Day after the day deposited in the mail, postage prepaid,
if sent by mail. Any party hereto may change the Person, address or facsimile number to whom or which notices are to be given hereunder,
by notice duly given hereunder; provided that any such notice shall be deemed to have been given hereunder only when actually received
by the party to which it is addressed.

 

16.             
Payment. Payment shall be made in lawful tender of the United States.

 

    14 

     

    

 

17.             
Expenses. If action is instituted to collect this Note after the occurrence of any Event of Default, the Company
promises to pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred in
connection with such action, in each case to the extent required by Section 9.06 of the Credit Agreement.

 

18.             
Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed
by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions of the
State of New York, or of any other state.

 

19.       Amendment
and Restatement of Existing Note. This Note amends and restates that certain Third Amended And Restated Promissory Note
issued to the Lender by the Company on January 9, 2020 in the original principal amount of $7,150,000 (the “Existing Note”)
in its entirety. Upon the issuance of this Note, the Existing Note shall be deemed superseded by this Note without any further
action by the Lender or the Company. The indebtedness evidenced by the Existing Note is continuing indebtedness, and nothing in
this Note shall be deemed to constitute a payment, settlement or novation of the Existing Note, or the release of, or otherwise
adversely affect any lien or security interest securing such indebtedness or any rights of Lender against the undersigned, or any
guarantor of this Note or the Existing Note. Upon receipt of this Note Lender, at the Company’s request shall surrender the
Existing Note to the Company. All of the obligations of the Company and all Guarantors and the Parent shall, from and after execution
and delivery of this Note by the Company, continue in full force and effect as set forth herein.

 

(Signature Page Follows)

 

    15 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be issued as of the date first written above.

 

	 	XPRESSPA HOLDINGS, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Douglas Satzman
	 	Name:	Douglas Satzman
	 	Its: 	President

 

[Signature Page to Fourth Amended
 & Restated Convertible Promissory Note]

 

    16 

     

    

 

[FORM OF NOTICE OF CONVERSION]

 

The undersigned hereby
elects to convert principal under the Fourth Amended And Restated Convertible Promissory Note dated March 6, 2020, of XPRESSPA
HOLDINGS, LLC, a Delaware limited liability company (the “Company”), promises to pay to B3D, LLC, a North Carolina
limited liability company, into shares of common stock (the “Common Stock”), of the Company’s Parent XpresSpa
Group, Inc., a Delaware corporation (the “Parent”), according to the conditions hereof, as of the date written
below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay
all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested
by Parent in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if
any.

  

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

 

	 	Date to Effect Conversion: ____________________________
	 	 
	 	Principal Amount of Note to be Converted: $__________________
	 	 
	 	Accrued Interest to be Converted, if any: $______________
	 	 
	 	Conversion Price: $_________________
	 	 
	 	Number of shares of Common Stock to be issued: ______________
	 	 
	 	Signature: _________________________________________
	 	 
	 	Name: ____________________________________________
	 	 
	 	Address for Delivery of Common Stock Certificates: __________
	 	_____________________________________________________
	 	Or
	 	DWAC Instructions: _________________________________
	 	 
	 	Broker No:_____________
	 	Account No: _______________

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