Document:

GUARANTY

 

	 	TO:	Citizens
    Bank, N.A., a national banking association (the “Bank”)
	 	 	 
	 	RE:	Premier
    Packaging Corporation, a New York corporation (the “Borrower”)

 

To
induce the Bank to make or continue to make loans, advances, or grant other financial accommodations to the Borrower, in consideration
thereof and for loans, advances or financial accommodations heretofore or hereafter granted by the Bank to or for the account
of the Borrower, the undersigned Plastic Printing Professionals, Inc. (the “Guarantor”) absolutely and unconditionally
guarantees the full and punctual payment to the Bank or each Bank Affiliate (this, and other capitalized terms used herein and
not otherwise defined shall have the meaning given to such terms in the Loan and Security Agreement of even date herewith, by
and between the Borrower and the Bank) of all sums which may be presently due and owing and of all sums which shall in the future
become due and owing to the Bank or to a Bank Affiliate from the Borrower, whether direct or indirect, whether as a borrower,
guarantor, surety or otherwise, including, without limitation, interest, reasonable attorneys’ fees and other amounts accruing
after the filing of a petition in bankruptcy by or against Borrower, notwithstanding the discharge of Borrower from such obligations,
together with all costs and expenses incurred by the Bank in connection with such obligations, this Unlimited Guaranty (this “Guaranty”)
and the enforcement thereof, and also guarantees the due performance by the Borrower of all its obligations under all other present
and future contracts and agreements with the Bank or any Bank Affiliate, including, without limitation, all Hedging Contracts.
This is a guaranty of payment and not collection.

 

Guarantor
also agrees:

 

	 	(1)	to
    indemnify, defend and hold Indemnitees harmless from and against all Claims, except Guarantor shall have no obligation hereunder
    to indemnify, defend or hold harmless any Indemnitee for any Claim to the extent the Claim is determined by a final, nonappealable
    judgment by a court of competent jurisdiction to have resulted directly and proximately from the actual, but not imputed,
    gross negligence or willful misconduct of the Indemnitee;
	 	 	 
	 	(2)	that
    this Guaranty shall not be impaired by any modification, supplement, extension, renewal or amendment of any contract or agreement
    to which the parties thereto may hereafter agree, nor by any modification, increase, release or other alteration of any of
    the obligations hereby guaranteed or of any security therefor, nor by any agreements or arrangements whatsoever with the Borrower
    or anyone else, all of which may be done without notice to or consent by the Guarantor;
	 	 	 
	 	(3)	that
    the liability of the Guarantor hereunder is direct and unconditional and due immediately upon uncured default or breach of
    the Borrower without demand or notice and without requiring the Bank or any Bank Affiliate first to resort to any other right,
    remedy or security;
	 	 	 
	 	(4)	that
    Guarantor shall have no right of subrogation, reimbursement or indemnity whatsoever until the Bank and each Bank Affiliate
    is indefeasibly paid in full, nor any right of recourse to security for the debts and obligations of the Borrower to the Bank
    or any Bank Affiliate;
	 	 	 
	 	(5)	that
    the liability of the Guarantor is unlimited and shall be joint and several with the liabilities of any other guarantors;
	 	 	 
	 	(6)	that
    if the Borrower or the Guarantor or any other guarantor should at any time become insolvent or make a general assignment,
    or if a petition in bankruptcy or any insolvency or reorganization proceedings shall be filed or commenced by, against or
    in respect of the Borrower or the Guarantor, or any other guarantor of the obligations guaranteed hereby, any and all obligations
    of the Guarantor shall be immediately due and payable without notice;

 

    	 

    	 

    

 

	 	(7)	that
    the Bank’s books and records showing the account between the Bank and the Borrower shall be admissible in any action
    or proceeding, shall be binding upon the Guarantor for the purpose of establishing the items therein set forth and shall constitute
    conclusive proof thereof;
	 	 	 
	 	(8)	that
    this Guaranty is, as to the Guarantor, a continuing Guaranty that shall remain effective under successive transactions until
    expressly terminated as hereinafter provided;
	 	 	 
	 	(9)	that
    this Guaranty may be terminated as to the Guarantor only by giving the Bank sixty (60) days’ prior written notice by
    registered or certified mail, and thereupon this Guaranty shall terminate with respect to Guarantor only at the expiration
    of said sixty (60) day period, which shall then be the effective date of termination, and that such termination shall be applicable
    only to transactions having their inception after the effective date of termination and shall not affect rights and obligations
    arising out of transactions or indebtedness or extensions or renewals thereof having their inception prior to such date, including
    renewals, extensions, modifications and refinancings of such prior transactions, or arising out of extensions of credit made
    pursuant to a commitment previously made by the Bank;
	 	 	 
	 	(10)	that
    the termination or dissolution of Guarantor shall not effect the termination of this Guaranty as to Guarantor;
	 	 	 
	 	(11)	that
    termination, release or limitation of any guaranty of the obligations guaranteed hereby by any other guarantor shall not affect
    the continuing liability hereunder of the Guarantor;
	 	 	 
	 	(12)	that
    nothing shall discharge or satisfy the liability of the Guarantor hereunder except the full indefeasible payment and performance
    of all of the Borrower’s debts and obligations to the Bank and all Bank Affiliates with interest and costs of collection;
	 	 	 
	 	(13)	that
    this Guaranty shall not be affected by the illegality, invalidity or unenforceability of the obligations guaranteed, by any
    fraudulent, illegal or improper act by the Borrower, the legal incapacity or any other defense of the Borrower, the Guarantor
    or any other person obligated to the Bank consequential to transactions with the Borrower nor by the invalidation, by operation
    of law or otherwise, of all or any part of the obligations guaranteed hereby, including but not limited to any interest accruable
    on the obligations guaranteed hereby during the pendency of any bankruptcy or receivership proceeding of the Borrower;
	 	 	 
	 	(14)	that
    any and all present and future debts and obligations of the Borrower to Guarantor are hereby waived and postponed in favor
    of and subordinated to the full indefeasible payment and performance of all present and future debts and obligations of the
    Borrower to the Bank;
	 	 	 
	 	(15)	the
    Guarantor hereby grants to the Bank a continuing lien and security interest in all deposits or other sums at any time credited
    by or due from the Bank or any Bank Affiliate to the Guarantor and any property of the Guarantor at any time in the possession
    of the Bank or any Bank Affiliate whether for safekeeping or otherwise, or in transit to or from the Bank or any Bank Affiliate
    (regardless of the reason the Bank or Bank Affiliate had received the same or whether the Bank or Bank Affiliate has conditionally
    released the same) as security for the full and punctual payment and performance of all of the obligations guaranteed hereby,
    and such deposits and other sums may be applied or set off against such obligations at any time, whether or not such are then
    due, whether or not demand has been made and whether or not other collateral is then available to the Bank or any Bank Affiliate;

 

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	 	(16)	that
    if at any time payment of all or any part of the obligations guaranteed hereunder is rescinded or otherwise must be restored
    by the Bank to the Borrower or to the creditors of the Borrower or any representative of the Borrower or representative of
    the Borrower’s creditors for any reason whatsoever including as a result of a voidable preference or fraudulent transfer
    or conveyance upon the insolvency, bankruptcy or reorganization of the Borrower or the Guarantor, or to the creditors of the
    Guarantor or any representative of the Guarantor or representative of the creditors of Guarantor upon the insolvency, bankruptcy
    or reorganization of the Guarantor or otherwise, this Guaranty shall continue to be effective or be reinstated, as the case
    may be, as though such payments had not been made, and shall survive as an obligation of the Guarantor, and shall not be discharged
    or satisfied by said payment or payments, notwithstanding the return of the original of this Guaranty to the Guarantor or
    to the Borrower, or any other apparent termination of Guarantor’s obligations hereunder;
	 	 	 
	 	(17)	that
    any rights and remedies available to the Bank under this Guaranty are cumulative, and not exclusive of any rights and remedies
    otherwise available to the Bank at law or in equity;
	 	 	 
	 	(18)	that
    the Bank’s delay or omission in exercising any of the Bank’s rights and remedies shall not constitute a waiver
    of these rights and remedies, nor shall the Bank’s waiver of any right or remedy operate as a waiver of any other right
    or remedy available to the Bank. The Bank’s waiver of any right or remedy on any one occasion shall not be considered
    a waiver of same on any subsequent occasion, nor shall this be considered to be a continuing waiver;
	 	 	 
	 	(19)	that
    this Guaranty incorporates all discussions and negotiations between the Bank and the Guarantor concerning the guaranty and
    indemnification provided by the undersigned hereby, and that no such discussions or negotiations shall limit, modify, or otherwise
    affect the provisions hereof, there are no preconditions to the effectiveness of this Guaranty and that no provision hereof
    may be altered, amended, waived, canceled or modified, except by a written instrument executed and acknowledged by the Bank’s
    duly authorized officer;
	 	 	 
	 	(20)	that
    this Guaranty and all documents which have been or may be hereinafter furnished by the Guarantor to the Bank may be reproduced
    by the Bank by any photographic, photostatic, microfilm, xerographic or similar process, and that any such reproduction shall
    be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original
    is in existence and whether or not such reproduction was made in the regular course of business); and
	 	 	 
	 	(21)	Guarantor
    will furnish to Bank as soon as available to Guarantor any financial data and information as Bank may reasonably request.

 

Guarantor
waives: notice of acceptance hereof, presentment and protest of any instrument and notice thereof, notice of default and all other
notices to which the Guarantor might otherwise be entitled; and any and all defenses, including without limitation, any and all
defenses which the Borrower or any other party may have to the fullest extent permitted by law, any defense to this Guaranty based
on impairment of collateral or on suretyship defenses of every type; any right to exoneration or marshaling. To the maximum extent
permitted by law, Guarantor waives and terminates any homestead rights and/or exemptions respecting any premises under the provisions
of any applicable homestead law. To the extent that it lawfully may, Guarantor hereby further agrees not to invoke any law relating
to the marshaling of collateral which might cause delay in or impede the enforcement of the Bank’s rights under this Guaranty
or otherwise respecting the guaranteed obligations, and to the extent that it lawfully may do so, the Guarantor hereby irrevocably
waives the benefits of all such laws. Except as otherwise provided by applicable law, the Bank shall have no duty as to the collection
or protection of any collateral, if any, securing the guaranteed obligations beyond the safe custody thereof.

 

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Guarantor
will from time to time execute and deliver to the Bank, and take or cause to be taken, all such other further action as the Bank
may request in order to effect and confirm or vest more securely in the Bank all the rights contemplated in this Guaranty (including,
without limitation, to correct clerical errors) or respecting any of the obligations guaranteed hereby or to comply with applicable
statute or law.

 

The
execution and delivery of this Guaranty is in furtherance of the Guarantor’s limited liability company purposes, is not
contrary to or in violation of its operating agreement and the person executing this Guaranty on Guarantor’s behalf has
been duly authorized to do so.

 

This
Guaranty shall be governed by federal law applicable to the Bank and, to the extent not preempted by federal law, the laws of
the Commonwealth/State of New York, shall be binding upon the heirs, executors, administrators, successors and assigns of the
Guarantor and shall inure to the benefit of the Bank’s successors and assigns.

 

If
any provision of this Guaranty is found to be invalid, illegal or unenforceable, the validity of the remainder of the Guaranty
shall not be affected.

 

Guarantor
irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting in New York, over any suit, action
or proceeding arising out of or relating to this Guaranty. Guarantor irrevocably waives, to the fullest extent it may effectively
do so under applicable law, any objection it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that the same has been brought in an inconvenient forum. Guarantor hereby consents
to any and all process which may be served in any such suit, action or proceeding, (i) by mailing a copy thereof by registered
and certified mail, postage prepaid, return receipt requested, to the Guarantor’s address shown below or as notified to
the Bank and (ii) by serving the same upon the Guarantor in any other manner otherwise permitted by law, and agrees that such
service shall in every respect be deemed effective service upon the Guarantor.

 

GUARANTOR
AND BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, (A) WAIVE
ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS GUARANTY, THE OBLIGATIONS GUARANTEED
HEREBY, ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE
ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CAN NOT BE, OR HAS NOT BEEN WAIVED. GUARANTOR CERTIFIES THAT NEITHER
THE BANK NOR ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT IN
THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 

[Signature
page follows]

 

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Executed
as an instrument under seal and dated as of June __, 2019.

 

	 	Guarantor:   
	 	 	 
	 	By:	 
	 	 	Frank
    D. Heuszel, CEO

 

	 	Address: 	6 Framark Drive, PO Box 352,
	 	 	Victor,
    New York 14564

 

[Signature
Page to Plastic Printing Guaranty]

 

    	5Exhibit 4.1

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER
SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS SECURED CONVERTIBLE PROMISSORY NOTE SHOULD CAREFULLY
REVIEW THE TERMS OF THIS SECURED CONVERTIBLE PROMISSORY NOTE, INCLUDING SECTIONS 3(c)(iii) AND 15(a) HEREOF. THE PRINCIPAL AMOUNT
REPRESENTED BY THIS SECURED CONVERTIBLE PROMISSORY NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE
LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS SECURED CONVERTIBLE PROMISSORY NOTE.

 

DPW HOLDINGS, INC.

SECURED CONVERTIBLE PROMISSORY NOTE DUE DECEMBER
31, 2019

 

 

	Issuance Date: July 2, 2019	Principal Amount: $1,250,000

 

FOR VALUE RECEIVED, DPW Holdings,
Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of [●], or its registered
assigns (“Holder”) the amount set forth above as the original principal amount (the “Principal”)
when due, whether upon December 31, 2019 (the “Maturity Date”), or upon acceleration, prepayment or otherwise
(in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal
at the applicable Interest Rate (as defined below) from the date set forth above as the Issuance Date (the “Issuance Date”)
until the same becomes due and payable, whether upon the Maturity Date or upon acceleration, conversion, prepayment or otherwise
(in each case in accordance with the terms hereof). This Secured Convertible Promissory Note (this “Note”) is
issued to the Holder as of the Issuance Date by the Company. Certain capitalized terms used herein are defined in Section 28. The
Company acknowledges and agrees that the exchange of this Note for the Secured Promissory Note issued on August 16, 2018, as amended
on November 29, 2018 (the “Prior Note”), did not involve the payment of, or giving of a commission, or other
remuneration, directly or indirectly, in connection with, the exchange and that the exchange was exempt from registration under
Section 3(a)(9) of the 1933 Act. In addition, the Company acknowledges and agrees that the exchange of the Prior Note for this
Note, did not involve the payment of, or giving of a commission, or other remuneration, directly or indirectly, in connection with,
the exchange and that the exchange was exempt from registration under Section 3(a)(9) of the 1933 Act. Accordingly, the Company
shall at all times agree that the holding period of this Note for purposes of Rule 144 under the 1933 Act tacks back to August
10, 2018 for $550,000 in Principal, August 16, 2018 for $423,890.86 in Principal, the date of this Note for $15,000 in Principal
and the date of this Note for the Default Premium of $261,109.74 in Principal.

 

    	 	  	 

    	 

    

 

1.           PAYMENTS
OF PRINCIPAL.

 

On the Maturity Date,
the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest and accrued
and unpaid Late Charges on such Principal and Interest. Other than as specifically permitted by this Note, the Company may not
prepay any portion of the outstanding Principal, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal and
Interest, if any.

 

2.           INTEREST;
INTEREST RATE.

 

(a)       Interest
on this Note shall commence accruing on July 2, 2019 at 8% per annum subject to adjustment in accordance with the terms of this
Section 2 (the “Interest Rate”), shall be calculated on the basis of a 360-day year and twelve 30-day months,
compounded daily, and shall be payable by the Company to the Holder, in cash, on the Maturity Date.

 

(b)       From
and after the occurrence and during the continuance of any Event of Default, the Interest Rate shall automatically be increased
to the lower of 18.0% per annum or the highest amount permitted by law, shall compounded daily (the “Default Interest”),
and shall be due and payable on the first Trading Day of each calendar month during the continuance of such Event of Default (a
“Default Interest Payment Date”). In the event that such Event of Default is subsequently cured (and no other
Event of Default then exists (including, without limitation, for the Company’s failure to pay such Interest at the Default
Rate on the applicable Default Interest Payment Date), the adjustment referred to in the preceding sentence shall cease to be effective
as of the day immediately following the date of such cure; provided that the Interest as calculated and unpaid at such increased
rate during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence
of such Event of Default through and including the date of such cure of such Event of Default.

 

3.           CONVERSION
OF NOTES. Provided that the Common Stock is listed on the NYSE American as of the time of any conversion and the NYSE American
has approved the issuance, this Note shall be convertible into validly issued, fully paid and non-assessable shares (the “Conversion
Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), on
the terms and conditions set forth in this Section 3. For avoidance of doubt, if the Common Stock is not listed on the NYSE American,
no approval to issue Common Stock is required. Upon receipt of a Conversion Notice, as defined herein, if the Common Stock is listed
on the NYSE American, the Company shall promptly file an application to list the Common Stock on the NYSE American.

 

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(a)         Conversion
Right. Subject to the provisions of Section 3(d), at any time following the Issuance Date, the Holder shall be entitled to
convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into Conversion Shares in accordance with
Section 3(b), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a Conversion Share upon any
conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such
fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp, issuance
and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent (as defined below))
that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount.

 

(b)         Conversion
Rate. The number of Conversion Shares issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).

 

(i)        “Conversion
Amount” means the sum of (x) portion of the Principal to be converted, prepaid or otherwise with respect to which this
determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued
and unpaid Late Charges with respect to such portion of such Principal and such Interest, if any.

 

(ii)       “Conversion
Price” means $0.22. The Conversion Price shall be subject to equitable adjustments resulting from any stock splits, stock
dividends, combinations, recapitalizations or similar events. The Company shall issue irrevocable instructions to its Transfer
Agent regarding conversions such that the transfer agent shall be authorized and instructed to issue shares of Common Stock upon
its receipt of a Conversion Notice without further approval or authorization from the Company.

 

(c)         Mechanics
of Conversion.

 

(i)        Optional
Conversion. To convert any Conversion Amount into Conversion Shares on any date (a “Conversion Date”), the
Holder shall deliver to the Company (whether via facsimile, electronic mail or otherwise), for receipt on or prior to 11:59 p.m.,
New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”). If required pursuant to Section 3(c)(iii) hereof, within two Trading Days following a conversion of this Note
as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to the Company
(or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated by Section
15(b)). On or before the first Trading Day following the date of receipt of a Conversion Notice, the Company shall transmit by
facsimile or electronic mail an acknowledgment of confirmation and representation as to whether such Conversion Shares may then
be resold pursuant to Rule 144 or an effective and available registration statement, in the form attached hereto as Exhibit
II, of receipt of such Conversion Notice to the Holder and the Transfer Agent which confirmation shall constitute an instruction
to the Transfer Agent to process such Conversion Notice in accordance with the terms herein. On or before the second Trading Day
following the date on which the Company has received a Conversion

 

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Notice (or such earlier date
as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the
applicable Conversion Date of such shares of Common Stock issuable pursuant to such Conversion Notice) (the “Share Delivery
Deadline”), the Company shall (1) provided that the Transfer Agent is participating in the DTC Fast Automated Securities
Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled pursuant to such
conversion to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system
or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, upon the request of the
Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a certificate,
registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled
pursuant to such conversion. If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding
Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as
soon as practicable and in no event later than two Trading Days after receipt of this Note and at its own expense, issue and deliver
to the Holder (or its designee) a new Note (in accordance with Section 15(d)) representing the outstanding Principal not converted.
The Person or Persons entitled to receive the Conversion Shares shall be treated for all purposes as the record holder or holders
of such shares of Common Stock on the Conversion Date.

 

(ii)       Company’s
Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, on or prior to the applicable Share
Delivery Deadline, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, to issue and
deliver to the Holder (or its designee) a certificate for the number of shares of Common Stock to which the Holder is entitled
and register such shares of Common Stock on the Company’s share register or, if the Transfer Agent is participating in the
DTC Fast Automated Securities Transfer Program, to credit the balance account of the Holder or the Holder’s designee with
DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of this Note (as
the case may be) (a “Conversion Failure”), then, in addition to all other remedies available to the Holder,
(1) the Company shall pay in cash to the Holder on each day after such Share Delivery Deadline that the issuance of such shares
of Common Stock is not timely effected an amount equal to 2% of the product of (A) the sum of the number of shares of Common Stock
not issued to the Holder on or prior to the Share Delivery Deadline and to which the Holder is entitled, multiplied by (B) any
trading price of the Common Stock selected by the Holder in writing as in effect at any time during the period beginning on the
applicable Conversion Date and ending on the applicable Share Delivery Deadline and (2) the Holder, upon written notice to the
Company, may void its Conversion Notice with respect to, and retain or have returned (as the case may be) any portion of this Note
that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion Notice shall not affect
the Company’s obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section
3(c)(ii) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Deadline, if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver to the Holder
(or its designee) a certificate and register such shares of Common Stock on the Company’s share register or, if the Transfer

 

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Agent is participating in
the DTC Fast Automated Securities Transfer Program, the Transfer Agent shall fail to credit the balance account of the Holder or
the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s
conversion hereunder or pursuant to the Company’s obligation pursuant to clause (II) below, and if on or after such Share
Delivery Deadline the Holder purchases (in an open market transaction or otherwise) shares of Common Stock corresponding to all
or any portion of the number of shares of Common Stock issuable upon such conversion that the Holder is entitled to receive from
the Company and has not received from the Company in connection with such Conversion Failure or Notice Failure, as applicable (a
“Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall, within two Trading
Days after receipt of the Holder’s request and in the Holder’s discretion, either: (I) pay cash to the Holder in an
amount equal to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any)
for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or on behalf, of the
Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate
(and to issue such shares of Common Stock) or credit the balance account of such Holder or such Holder’s designee, as applicable,
with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder
(as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its obligation to so issue
and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit the balance account
of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common Stock to which the Holder
is entitled upon the Holder’s conversion hereunder (as the case may be) and pay cash to the Holder in an amount equal to
the excess (if any) of the Buy-In Price over the product of (x) such number of shares of Common Stock multiplied by (y) the lowest
Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Conversion
Notice and ending on the date of such issuance and payment under this clause (II) (the “Buy-In Payment Amount”).
Nothing shall limit the Holder’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 the Company’s failure to timely
deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon
the conversion of this Note as required pursuant to the terms hereof.

 

(iii)      Registration;
Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and
addresses of the Holder of the Note and the principal amount of the Note (the “Registered Note”). The entries
in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holder or holders of
the Note shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without
limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary. The Registered
Note may, subject to Section 27 hereof, be assigned, transferred or sold in whole or in part only by registration of such assignment
or sale on the Register. Upon its receipt of a written request to assign, transfer or sell all or part of the Registered Note by
the holder thereof, the Company shall record the information contained therein in the Register and issue one or more new Registered
Notes in the same aggregate principal

 

    	 	5 	 

    	 

    

 

amount as the principal amount
of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 15, provided that if the Company
does not so record an assignment, transfer or sale (as the case may be) of all or part of any Registered Note within two Trading
Days of such a request, then the Register shall be automatically deemed updated to reflect such assignment, transfer or sale (as
the case may be). Notwithstanding anything to the contrary set forth in this Section 3, following conversion of any portion
of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company
unless (A) the full Conversion Amount represented by this Note is being converted (in which event this Note shall be delivered
to the Company following conversion thereof) or (B) the Holder has provided the Company with prior written notice (which notice
may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and
the Company shall maintain records showing the Principal, Interest and Late Charges converted and/or paid (as the case may be)
and the dates of such conversions, and/or payments (as the case may be) or shall use such other method, reasonably satisfactory
to the Holder and the Company, so as not to require physical surrender of this Note upon conversion. If the Company does not update
the Register to record such Principal, Interest and Late Charges converted and/or paid (as the case may be) and the dates of such
conversions, and/or payments (as the case may be) within two Trading Days of such occurrence, then the Register shall be automatically
deemed updated to reflect such occurrence.

 

4.           RIGHTS
UPON EVENT OF DEFAULT.

 

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

 

(i)        the
suspension from trading or the failure of the Common Stock to be trading or listed (as applicable) on a Principal Market for a
period of five consecutive Trading Days. For the avoidance of doubt, the delisting of the Common Stock from the NYSE American shall
be an event of Default;

 

(ii)       the
Company’s default under this Note or the other Transaction Documents, including a failure to pay to the Holder any amount
of Principal, Interest, Late Charges or other amounts when and as due under this Note, the other Transaction Documents, subject
to a cure period of ten (10) Trading Days;

 

(iii)      the
Company or any Material Subsidiary’s default under any indebtedness;

 

(iv)      the
Company fails to issue Common Stock without any restrictive legend or to remove any restrictive legend on any certificate (including
by book entry) for any shares of Common Stock issued to the Holder pursuant to this Note within two (2) Trading Days after (A)
receipt by the Company of an executed Conversion Notice or (B) if the Holder has shares with a restrictive legend upon written
notice to remove such legend, in either case together with an opinion of counsel to the Holder that no restrictive legend is required;
provided, that the Company shall have two (2) Trading Days to cure any such failure, unless otherwise then prohibited by
applicable federal securities laws;

 

    	 	6 	 

    	 

    

 

(v)      bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or
against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed
within 30 days of their initiation;

 

(vi)     the
commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company or
any Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the
consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence
of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts
generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any such action
or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under
federal, state or foreign law;

 

(vii)    the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary
or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other
similar law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or
insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition
of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (iii) a decree, order,
judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or any Subsidiary of any substantial part of its property, or ordering the winding up or liquidation of
its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order,
judgment or other similar document unstayed and in effect for a period of 10 consecutive days;

 

(viii)   other
than as specifically set forth in another clause of this Section 4(a), the Company or any Subsidiary breaches any representation
or warranty in any material respect (other than representations or warranties subject to materiality limitations, which may not
be breached in any respect) or any covenant or other term or condition of this Note or any other Transaction Document, except,
in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period
of ten (10) consecutive Trading Days;

 

    	 	7 	 

    	 

    

 

(ix)      a
false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether any Event
of Default has occurred, subject to a cure period of ten (10) Trading Days;

 

(x)       any
Material Adverse Effect occurs and remains uncured for a period of ten (10) Trading Days;

 

(xi)      any
provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof) cease
to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having
jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary
shall deny in writing that it has any liability or obligation purported to be created under any Transaction Document, subject to
a cure period of ten (10) Trading Days;

 

(xii)     the
Company fails to file any reports required under the 1934 Act, subject to a cure period of ten (10) Trading Days.

 

(b)         Notice
of an Event of Default; Holder Right to Compel Prepayment upon Event of Default. Upon the occurrence of an Event of Default
with respect to this Note, the Company shall within one Trading Day deliver written notice thereof via facsimile or electronic
mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to the Holder.
At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event
of Default and ending (such ending date, the “Event of Default Right Expiration Date”) on the 20th
Trading Day after the later of (x) the date such Event of Default is cured and (y) the Holder’s receipt of an Event of Default
Notice that includes (I) a reasonable description of the applicable Event of Default, (II) a certification as to whether, in the
opinion of the Company, such Event of Default is capable of being cured and, if applicable, a reasonable description of any existing
plans of the Company to cure such Event of Default and (III) a certification as to the date the Event of Default occurred and,
if cured on or prior to the date of such Event of Default Notice, the applicable Event of Default Right Expiration Date, the Holder
may require the Company to prepay (regardless of whether such Event of Default has been cured on or prior to the Event of Default
Right Expiration Date) all or any portion of this Note by delivering written notice thereof (the “Event of Default Prepayment
Notice”) to the Company, which Event of Default Prepayment Notice shall indicate the portion of this Note the Holder
is electing to have prepaid. Each portion of this Note (which may include all outstanding Principal, accrued and unpaid Interest
and accrued and unpaid Late Charges on such Principal and Interest) subject to prepayment by the Company pursuant to this Section
4(b) shall be prepaid by the Company at a price equal to the product of: (i) the portion of this Note being prepaid; multiplied
by (ii) the Prepayment Premium. To the extent prepayments required by this Section 4(b) are deemed or determined by a court of
competent jurisdiction to be prepayments of this Note by the Company, such prepayments shall be deemed to be voluntary prepayments.
In the event of the Company’s prepayment of any portion of this Note under this Section 4(b), the Holder’s damages
would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty
of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any Prepayment Premium due under
this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss
of its investment opportunity and not as a penalty. Any prepayment upon an Event of Default shall not constitute an election of
remedies by the Holder, and all other rights and remedies of the Holder shall be preserved.

 

    	 	8 	 

    	 

    

 

5.           RIGHTS
UPON CHANGE OF CONTROL. The Company shall not enter into or consummate a transaction constituting a Change of Control unless:
(i) No sooner than 20 Trading Days nor later than 10 Trading Days prior to the consummation of a Change of Control, but not prior
to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile or electronic
mail and overnight courier to the Holder; (ii) the Successor Entity assumes in writing all of the obligations of the Company
under this Note and the other Transaction Documents in accordance with the provisions of this Section 5 pursuant to written agreements
in form and substance satisfactory to the Holder and approved by the Holder prior to such Change of Control, including agreements
to deliver to each holder of the Note in exchange for such Note a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to the Note, including, without limitation, having a principal amount and interest
rate equal to the principal amounts then outstanding and the interest rates of the Note held by such holder, having similar conversion
rights as the Note and having similar ranking and security to the Note, and satisfactory to the Holder and (iii) the Successor
Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on
a Principal Market. Upon the occurrence of any Change of Control, the Successor Entity shall succeed to, and be substituted for
(so that from and after the effective date of such Change of Control, the provisions of this Note and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this Note and the other Transaction Documents with the
same effect as if such Successor Entity had been named as the Company herein. Upon consummation of a Change of Control, the Successor
Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or prepayment of this Note at any time
after the consummation of such Change of Control, in lieu of the shares of Common Stock (or other securities, cash, assets or other
property (except such items still issuable under Sections 6 and 15, which shall continue to be receivable thereafter) issuable
upon the conversion or prepayment of the Note prior to such Change of Control, such shares of the publicly-traded common stock
(or their equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive
upon the happening of such Change of Control had this Note been converted immediately prior to such Change of Control (without
regard to any limitations on the conversion of this Note), as adjusted in accordance with the provisions of this Note. Notwithstanding
the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 5 to
permit the Change of Control to occur without the assumption of this Note. The provisions of this Section 5 shall apply similarly
and equally to successive transactions constituting a Change of Control and shall be applied without regard to any limitations
on the conversion of this Note.

 

    	 	9 	 

    	 

    

 

6.           RIGHTS
UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

 

(a)         Purchase
Rights. In addition to any adjustments pursuant to Section 7 below, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially
all of the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note immediately prior
to 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.

 

(b)         Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect
to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to ensure that the Holder will thereafter have the right to receive upon a conversion of this Note, at the Holder’s option
(i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which the Holder
would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon
the consummation of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of
this Note) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets
received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as
the Holder would have been entitled to receive had this Note initially been issued with conversion rights for the form of such
consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion
Rate. Provision made pursuant to the preceding sentence shall be in a form and substance satisfactory to the Holder. The provisions
of this Section 6 shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations
on the conversion or prepayment of this Note.

 

7.           RIGHTS
UPON ISSUANCE OF OTHER SECURITIES.

 

(a)         Adjustment
of Conversion Price upon Issuance of Common Stock. If and whenever the Company issues or sells, or in accordance with this
Section 7(a) is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock
owned or held by or for the account of the Company, but excluding any Excluded Securities issued or sold or deemed to have been
issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to the Conversion
Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such Conversion Price then in effect is
referred to herein as the “Applicable Price”) (the foregoing, a “Dilutive Issuance”), then,
immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance
Price. For all purposes of the foregoing (including, without limitation, determining the adjusted Conversion Price and the New
Issuance Price under this Section 7(a)), the following shall be applicable:

 

    	 	10 	 

    	 

    

 

(i)        Issuance
of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of
Common Stock is at any time issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible
Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such Option for such price per share. For purposes of this Section 7(a)(i), the “lowest price per
share for which one share of Common Stock is at any time issuable upon the exercise of any such Option or upon conversion, exercise
or exchange of any Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof”
shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to any one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option and upon conversion,
exercise or exchange of any Convertible Security issuable upon exercise of such Option or otherwise pursuant to the terms thereof
and (y) the lowest exercise price set forth in such Option for which one share of Common Stock is issuable (or may become issuable
assuming all possible market conditions) upon the exercise of any such Options or upon conversion, exercise or exchange of any
Convertible Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof, minus (2) the sum
of all amounts paid or payable to the holder of such Option (or any other Person) upon the granting or sale of such Option, upon
exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option
or otherwise pursuant to the terms thereof plus the value of any other consideration received or receivable by, or benefit conferred
on, the holder of such Option (or any other Person). Except as contemplated below, no further adjustment of the Conversion Price
shall be made upon the actual issuance of such share of Common Stock or of such Convertible Securities upon the exercise of such
Options or otherwise pursuant to the terms thereof or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities.

 

(ii)       Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is at any time issuable upon the conversion, exercise or exchange thereof or otherwise
pursuant to the terms thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding
and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price
per share. For the purposes of this Section 7(a)(ii), the “lowest price per share for which one share of Common Stock is
at any time issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof” shall
be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to one share of Common Stock upon the issuance or sale of

 

    	 	11 	 

    	 

    

 

the Convertible Security
and upon conversion, exercise or exchange of such Convertible Security or otherwise pursuant to the terms thereof and (y) the lowest
conversion price set forth in such Convertible Security for which one share of Common Stock is issuable (or may become issuable
assuming all possible market conditions) upon conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof
minus (2) the sum of all amounts paid or payable to the holder of such Convertible Security (or any other Person) upon the issuance
or sale of such Convertible Security plus the value of any other consideration received or receivable by, or benefit conferred
on, the holder of such Convertible Security (or any other Person). Except as contemplated below, no further adjustment of the Conversion
Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible
Securities or otherwise pursuant to the terms thereof, and if any such issuance or sale of such Convertible Securities is made
upon exercise of any Options for which adjustment of the Conversion Price has been or is to be made pursuant to other provisions
of this Section 7(a), except as contemplated below, no further adjustment of the Conversion Price shall be made by reason of such
issuance or sale.

 

(iii)      Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exercisable or exchangeable for shares of Common Stock decreases at any time (other than proportional
changes in conversion or exercise prices, as applicable, in connection with an event referred to in Section 7(b) below), the Conversion
Price in effect at the time of such decrease shall be adjusted to the Conversion Price which would have been in effect at such
time had such Options or Convertible Securities provided for such decreased purchase price, additional consideration or decreased
conversion rate (as the case may be) at the time initially granted, issued or sold. For purposes of this Section 7(a)(iii), if
the terms of any Option or Convertible Security that was outstanding as of the Issuance Date are decreased in the manner described
in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable
upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such decrease. No adjustment
pursuant to this Section 7(a) shall be made if such adjustment would result in an increase of the Conversion Price then in effect.

 

(iv)      Calculation
of Consideration Received. If any Option and/or Convertible Security and/or Adjustment Right is issued in connection with the
issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the Holder, the “Primary
Security”, and such Option and/or Convertible Security and/or Adjustment Right, the “Secondary Securities”),
together comprising one integrated transaction (or one or more transactions if such issuances or sales or deemed issuances or sales
of securities of the Company either (A) have at least one investor or purchaser in common, (B) are consummated in reasonable proximity
to each other and/or (C) are consummated under the same plan of financing), the aggregate consideration per share of Common Stock
with respect to such Primary Security shall be deemed to be equal to the difference of (x) the lowest price per share for which
one share of Common Stock was issued (or was deemed to be issued pursuant to Section 7(a)(i) or 7(a)(ii) above, as

 

    	 	12 	 

    	 

    

 

applicable) in such integrated
transaction solely with respect to such Primary Security, minus (y) with respect to such Secondary Securities, the sum of (I) the
Black Scholes Consideration Value of each such Option, if any, (II) the fair market value (as determined by the Holder in good
faith) or the Black Scholes Consideration Value, as applicable, of such Adjustment Right, if any, and (III) the fair market value
(as determined by the Holder) of such Convertible Security, if any, in each case, as determined on a per share basis in accordance
with this Section 7(a)(iv). If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have
been issued or sold for cash, the consideration received therefor (for the purpose of determining the consideration paid for such
Common Stock, Option or Convertible Security, but not for the purpose of the calculation of the Black Scholes Consideration Value)
will be deemed to be the net amount of consideration received by the Company therefor. If any shares of Common Stock, Options or
Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the
Company (for the purpose of determining the consideration paid for such Common Stock, Option or Convertible Security, but not for
the purpose of the calculation of the Black Scholes Consideration Value) will be the fair value of such consideration, except where
such consideration consists of publicly traded securities, in which case the amount of consideration received by the Company for
such securities will be the arithmetic average of the VWAPs of such security for each of the five Trading Days immediately preceding
the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving
entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor (for the
purpose of determining the consideration paid for such Common Stock, Option or Convertible Security, but not for the purpose of
the calculation of the Black Scholes Consideration Value) will be deemed to be the fair value of such portion of the net assets
and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities (as
the case may be). The fair value of any consideration other than cash or publicly traded securities will be determined jointly
by the Company and the Holder. If such parties are unable to reach agreement within 10 days after the occurrence of an event requiring
valuation (the “Valuation Event”), the fair value of such consideration will be determined within five Trading Days
after the 10th day following such Valuation Event by an independent, reputable appraiser jointly selected by the Company and the
Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and
expenses of such appraiser shall be borne by the Company.

 

(v)      Record
Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for
or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the
issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the
making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may be).

 

    	 	13 	 

    	 

    

 

(b)         Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date
subdivides (by any stock split, stock dividend, recapitalization or other similar transaction) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will
be proportionately reduced. If the Company at any time on or after the Issuance Date combines (by any reverse stock split, or stock
combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common Stock into
a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased.
Any adjustment pursuant to this Section 7(a) shall become effective immediately after the effective date of such subdivision or
combination. If any event requiring an adjustment under this Section 7(a) occurs during the period that a Conversion Price is calculated
hereunder, then the calculation of such Conversion Price shall be adjusted appropriately to reflect such event.

 

(c)          Holder’s
Right of Adjusted Conversion Price. In addition to and not in limitation of the other provisions of this Section 7, if the Company
in any manner issues or sells or enters into any agreement to issue or sell, any Common Stock, Options or Convertible Securities
(any such securities, “Variable Price Securities”), after the Issuance Date that are issuable pursuant to such agreement
or convertible into or exchangeable or exercisable for shares of Common Stock at a price which varies or may vary with the market
price of the shares of Common Stock, including by way of one or more reset(s) to a fixed price, but exclusive of such formulations
reflecting customary anti-dilution provisions (such as share splits, share combinations, share dividends and similar transactions)
(each of the formulations for such variable price being herein referred to as, the “Variable Price”), the Company shall
provide written notice thereof via facsimile or email and overnight courier to the Holder on the date of such agreement and the
issuance of such Convertible Securities or Options. From and after the date the Company enters into such agreement or issues any
such Variable Price Securities, the Holder shall have the right, but not the obligation, in its sole discretion to substitute the
Variable Price for the Conversion Price upon conversion of this Note by designating in the Conversion Notice delivered upon any
conversion of this Note that solely for purposes of such conversion the Holder is relying on the Variable Price rather than the
Conversion Price then in effect. The Holder’s election to rely on a Variable Price for a particular conversion of this Note
shall not obligate the Holder to rely on a Variable Price for any future conversion of this Note.

 

(d)         Other
Events. In the event that the Company (or any Subsidiary) shall take any action to which the provisions hereof are not strictly
applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated
by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation, the granting
of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s board of directors
shall in good faith determine and implement an appropriate adjustment in the Conversion Price so as to protect the rights of the
Holder, provided that no such adjustment pursuant to this Section 7(d) will increase the Conversion Price as otherwise determined
pursuant to this Section 7, provided further that if the Holder does not accept such adjustments as appropriately protecting its
interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith,
upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination
shall be final and binding absent manifest error and whose fees and expenses shall be borne by the Company.

 

    	 	14 	 

    	 

    

 

(e)          Calculations.
All calculations under this Section 7 shall be made by rounding to the nearest cent or the nearest 1/100th of a
share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held
by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(f)          Voluntary
Adjustment by Company. The Company may at any time during the term of this Note, with the prior written consent of the Holder,
reduce the then current Conversion Price of the Note to any amount and for any period of time deemed appropriate by the board of
directors of the Company.

 

(g)         In
no event shall this Section 7 cause the Conversion Price to be reduced below $0.10 per share, subject to adjustment under Section
7(b).

 

8.           NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of the Company’s Certificate of Incorporation
or other charter documents, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action
as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other
provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of any shares
of Common Stock receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the conversion of this Note. Notwithstanding anything herein to the contrary, if the Holder is not
permitted to convert this Note in full for any reason (other than pursuant to restrictions set forth in Section 3(d) hereof), the
Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals
as necessary to permit such conversion into shares of Common Stock.

 

9.           RESERVATION
OF AUTHORIZED SHARES.

 

(a)         Reservation.
So long as the Note remains outstanding, the Company shall at all times reserve 5 million shares of its Common Stock, subject to
adjustment for stock splits, stock dividends, combinations and similar events (the “Required Reserve Amount”).

 

    	 	15 	 

    	 

    

 

(b)         Insufficient
Authorized Shares. If, notwithstanding Section 9(a), and not in limitation thereof, at any time while any of the Note remains
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation
to reserve for issuance upon conversion of the Note at least a number of shares of Common Stock equal to the Required Reserve Amount
(an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the
Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve
Amount for the portion of the Note then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than 60 days after the occurrence of such
Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of
authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement
and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock
and to cause its board of directors to recommend to the stockholders that they approve such proposal. In the event that the Company
is prohibited from issuing shares of Common Stock pursuant to the terms of this Note due to the failure by the Company to have
sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such unavailable number
of shares of Common Stock, the “Authorized Failure Shares”), in lieu of delivering such Authorized Failure Shares
to the Holder, the Company shall pay cash in exchange for the prepayment of such portion of the Conversion Amount convertible into
such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and
(y) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date the Holder
delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the Company and ending on the date
of such issuance and payment under this Section 9(b); and (ii) to the extent the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorized Failure Shares, any brokerage
commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith.

 

10.         OPTIONAL
PREPAYMENT. At any time during the period beginning on the Issuance Date and expiring upon the Maturity Date, the Company shall
have the right, exercisable on not less than thirty (30) days prior written notice to the Holder of the Note and subject to prior
conversion, to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 10. Any notice
of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note by email
and FedEx or other reputable delivery service, next business day delivery and shall state: that the Company is exercising its right
to prepay the Note. On the date fixed for prepayment (the “Optional Prepayment Date”), the Company shall make
payment of the Optional Prepayment Amount (as defined below) by wire transfer as specified by the Holder in writing to the Company
at least three (3) Trading Days prior to the Optional Prepayment Date. If the Company exercises its right to prepay the Note, the
Company shall make payment to the Holder of an amount in cash (the “Optional Prepayment Amount”) equal to the
Multiple (as hereinafter defined), multiplied by the sum of: (w) the then outstanding Principal of this Note plus (x) accrued and
unpaid interest on the unpaid Principal of this Note to the Optional Prepayment Date plus (y) if applicable, Default Interest,
if any, on the amounts referred to in clauses (w) and (x). For purposes hereof, the “Multiple” shall be: (i)
105% if the Optional Prepayment Notice is delivered within three (3) months of the Issuance Date, and (ii) 110% if the Optional
Prepayment Notice is delivered at any time thereafter.

 

11.         COVENANTS.
Until all of the principal amount of and accrued but unpaid interest under Note has been repaid, prepaid or otherwise satisfied
in accordance with their terms:

 

(a)         Rank.
All payments due under this Note (a) shall rank senior to all other notes of the Company issued prior to the Closing Date and (b)
shall be senior to all other Indebtedness of the Company and its Subsidiaries, except as provided on Schedule 11(a).

 

    	 	16 	 

    	 

    

 

(b)         Preservation
of Existence, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its
existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified
and 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.

 

(c)         Maintenance
of Properties, Etc. The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all
of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary
wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases
to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

(d)         Maintenance
of Intellectual Property. The Company will, and will cause each of its Subsidiaries to, take all action necessary or advisable
to maintain all of the rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service
names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations,
trade secrets and other intellectual property rights and all applications and registrations therefor of the Company and/or any
of its Subsidiaries that are necessary or material to the conduct of its business in full force and effect.

 

(e)         Maintenance
of Insurance. The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such
amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is
carried generally in accordance with sound business practice by companies in similar businesses similarly situated.

 

12.         DISTRIBUTION
OF ASSETS. In addition to any adjustments pursuant to Section 7, if the Company shall declare or make any dividend or other
distributions of its assets (or rights to acquire its assets) to any or all 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)
(the “Distributions”), then the Holder will be entitled to such Distributions as if the Holder had held the
number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations
or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at the greater of
(a) the Conversion Price or (b) 80% of the lowest daily VWAP after the Closing Date) on the date immediately prior to the date
on which a record is taken for such Distribution or, if no such record is taken, the date as of which the record holders of Common
Stock are to be determined for such Distributions.

 

    	 	17 	 

    	 

    

 

13.         AMENDING
THE TERMS OF THIS NOTE. The prior written consent of the Holder shall be required for any change, waiver or amendment to this
Note. Any change, waiver or amendment so approved shall be binding upon all existing and future holders of this Note; provided,
however, that no such change, waiver or, as applied to the Note held by any particular holder of the Note, shall, without the written
consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest, or extend
the Maturity Date, of the Note, (ii) disproportionally and adversely affect any rights under the Note of any holder of any other
portion of the Note; or (iii) modify any of the provisions of, or impair the right of any holder of the Note under this Section
13.

 

14.         RESERVED.

 

15.         REISSUANCE
OF THIS NOTE.

 

(a)          Transfer.
If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Section 15(d)), registered as the Holder may request, representing
the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred,
a new Note (in accordance with Section15(d)) to the Holder representing the outstanding Principal not being transferred. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following
conversion or prepayment of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal
stated on the face of this Note.

 

(b)         Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice
as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company
in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall
execute and deliver to the Holder a new Note (in accordance with Section 15(d)) representing the outstanding Principal. The Holder
shall not be required to deliver a bond or other security.

 

(c)          Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Note or Notes (in accordance with Section 15(d) and in principal amounts of at least $1,000) representing
in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(d)         Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 15(a) or Section 15(c), the Principal designated by the Holder which
does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of a new Note), (iii) shall
have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall
have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest and Late Charges on the Principal
and Interest of this Note, from the Issuance Date.

 

    	 	18 	 

    	 

    

 

16.         REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that,
in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent
jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The
Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm
the Company’s compliance with the terms and conditions of this Note (including, without limitation, compliance with Section
7).

 

17.         PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay
the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements. The Company expressly
acknowledges and agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price
paid for this Note was less than the original Principal amount hereof.

 

18.         CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed
against any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part
of, or affect the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed
to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Note
instead of just the provision in which they are found. Unless expressly indicated otherwise, all section references are to sections
of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have
the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing
by the Holder.

 

    	 	19 	 

    	 

    

 

19.         FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and
signed by an authorized representative of the waiving party. Notwithstanding the foregoing, nothing contained in this Section 19
shall permit any waiver of any provision of Section 3(d).

 

20.         DISPUTE
RESOLUTION.

 

(a)          Submission
to Dispute Resolution.

 

(i)        In
the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, a Black-Scholes Consideration
Value, a VWAP or a fair market value or the arithmetic calculation of a Conversion Rate, or the applicable Prepayment Price (as
the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company
or the Holder (as the case may be) shall submit the dispute to the other party via facsimile or electronic mail (A) if by the Company,
within two Trading Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder at any time
after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly
resolve such dispute relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price, such Redemption Conversion
Price, such Black-Scholes Consideration Value, such VWAP or such fair market value, or the arithmetic calculation of such Conversion
Rate or such applicable Prepayment Price (as the case may be), at any time after the second Trading Day following such initial
notice by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then
the Holder may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

(ii)       The
Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in
accordance with the first sentence of this Section 20 and (B) written documentation supporting its position with respect to such
dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth Trading Day immediately following the date on which
the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the
immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”)
(it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation
by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer
be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment
bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation
that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by
both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled
to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other
than the Required Dispute Documentation).

 

    	 	20 	 

    	 

    

 

(iii)      The
Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and
the Holder of such resolution no later than 10 Trading Days immediately following the Dispute Submission Deadline. The fees and
expenses of such investment bank shall be borne solely by the Company and the Holder in equal parts, and such investment bank’s
resolution of such dispute shall be final and binding upon all parties absent manifest error.

 

(b)         Miscellaneous.
The Company expressly acknowledges and agrees that (i) this Section 20 constitutes an agreement to arbitrate between the Company
and the Holder (and constitutes an arbitration agreement) under the New York  Civil
Practice Law and Rules, as amended, (ii) the terms of this Note and each other applicable Transaction Document shall serve
as the basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be entitled
(and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines are
required to be made by such investment bank in connection with its resolution of such dispute and in resolving such dispute such
investment bank shall apply such findings, determinations and the like to the terms of this Note and any other applicable Transaction
Documents, (iii) the Holder (and only the Holder), in its sole discretion, shall have the right to submit any dispute described
in this Section 20 to any state or federal court sitting in New York County, New York in lieu of utilizing the procedures set forth
in this Section 20 and (iv) nothing in this Section 20 shall limit the Holder from obtaining any injunctive relief or other equitable
remedies (including, without limitation, with respect to any matters described in this Section 20).

 

21.         NOTICES.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in writing
with an e-mail copy to the last address provided by the Holder or its agents in writing to the Company. The Company shall provide
the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description
of such action and the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice
to the Holder (i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying,
the calculation of such adjustment and (ii) at least 15 days prior to the date on which the Company closes its books or takes a
record (A) with respect to any dividend or distribution upon the Common Stock, or (B) for determining rights to vote with respect
to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the Holder.

 

22.        
CANCELLATION. After all Principal, accrued Interest, Late Charges and other amounts at any time owed on this Note have been
paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall
not be reissued.

 

23.         WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

    	 	21 	 

    	 

    

 

24.         GOVERNING
LAW. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note 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. Except as otherwise required by Section
20 above, the Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York
County, New York, 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. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law. Nothing contained herein (i) shall be deemed or operate
to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect
on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court ruling in favor of the Holder or (ii) shall limit, or shall be deemed or construed to limit,
any provision of Section 20. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

25.         SEVERABILITY.
If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

26.         MAXIMUM
PAYMENTS. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed
by the Company to the Holder and thus refunded to the Company.

 

27.         ASSIGNMENT.
Neither this Note nor the rights contained herein may be assigned, by operation of law or otherwise, by either party without the
prior written consent of the other; provided, however, that this Note and/or the rights contained herein may be assigned without
the Company’s consent by the Holder to any other entity who controls, is controlled by or is under common control with the
Holder.

 

    	 	22 	 

    	 

    

 

28.         CERTAIN
DEFINITIONS. For purposes of this Note, the following words and terms shall have the following meanings:

 

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

 

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

 

(c)         “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that “control” of a Person means the
power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors
of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(d)         “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(e)         “Black
Scholes Consideration Value” means the value of the applicable Option, Convertible Security or Adjustment Right (as the
case may be) as of the date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg utilizing (i) an underlying price per share equal to the Closing Sale Price of the Common Stock on the Trading
Day immediately preceding the public announcement of the execution of definitive documents with respect to the issuance of such
Option, Convertible Security or Adjustment Right (as the case may be), (ii) a risk-free interest rate corresponding to the U.S.
Treasury rate for a period equal to the remaining term of such Option, Convertible Security or Adjustment Right (as the case may
be) as of the date of issuance of such Option, Convertible Security or Adjustment Right (as the case may be), (iii) a zero cost
of borrow and (iv) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the “HVT”
function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the date
of issuance of such Option, Convertible Security or Adjustment Right (as the case may be).

 

(f)          “Bloomberg”
means Bloomberg, L.P., or any successor.

 

    	 	23 	 

    	 

    

 

(g)         “Change
of Control” means any Fundamental Transaction other than (i) any merger of the Company or any of its, direct or indirect,
wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization or reclassification
of the shares of Common Stock in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization
or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities
and, directly or indirectly, are, in all material respects, the holders of the voting power of the surviving entity (or entities
with the authority or voting power to elect the members of the board of directors (or their equivalent if other than a corporation)
of such entity or entities) after such reorganization, recapitalization or reclassification, (iii) pursuant to a migratory merger
effected solely for the purpose of changing the jurisdiction of incorporation of the Company or any of its Subsidiaries, or (iv)
a reorganization or other change in the composition in the Company’s board of directors.

 

(h)         “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
by OTC Markets Group Inc. If the closing bid price or the closing sale price cannot be calculated for a security on a particular
date on any of the foregoing bases, the closing bid price or the closing sale price (as the case may be) of such security on such
date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable
to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in
Section 20. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock combinations,
recapitalizations or other similar transactions during such period.

 

(i)          “Closing
Date” shall mean the date the Company initially issued the Note

 

(j)          “Common
Stock” means (i) the Company’s shares of Class A common stock, $0.001 par value per share, and (ii) any capital
stock into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

(k)          “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any
shares of Common Stock.

 

(l)          “Current
Subsidiary” means any Person in which the Company on the Issuance Date, directly or indirectly, (i) owns any of the outstanding
capital stock or holds any equity or similar interest of such Person or (ii) controls or operates all or any part of the business,
operations or administration of such Person, and all of the foregoing, collectively, “Current Subsidiaries”.

 

    	 	24 	 

    	 

    

 

(m)         “Exchange
Agreement” means that certain Exchange Agreement, dated as of July 2, 2019, by and between the Company and the Holder.

 

(n)         “Excluded
Securities” means (i) shares of Common Stock or standard Options to purchase Common Stock issued to directors, officers
or employees of the Company for services rendered to the Company in their capacity as such pursuant to an Approved Stock Plan (as
defined above), provided that (A) all such issuances (taking into account the shares of Common Stock issuable upon exercise of
such Options) after the Issuance Date pursuant to this clause (i) do not, in the aggregate, exceed more than 10% of the Common
Stock issued and outstanding immediately prior to the Issuance Date and (B) the exercise price of any such Options is not lowered,
none of such Options are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any
such Options are otherwise materially changed in any manner that adversely affects the Holder; (ii) shares of Common Stock issued
upon the conversion or exercise of Convertible Securities (other than standard Options to purchase Common Stock issued pursuant
to an Approved Stock Plan that are covered by clause (i) above) issued prior to the Issuance Date, provided that the conversion
price of any such Convertible Securities (other than standard Options to purchase Common Stock issued pursuant to an Approved Stock
Plan that are covered by clause (i) above) is not lowered, none of such Convertible Securities (other than standard Options to
purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are amended to increase the
number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard
Options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are otherwise
materially changed in any manner that adversely affects the Holder; and (iii) the shares of Common Stock issuable upon conversion
of the Note or otherwise pursuant to the terms of the Note; provided, that the terms of the Note are not amended, modified or changed
on or after the Issuance Date (other than antidilution adjustments pursuant to the terms thereof in effect as of the Issuance Date).

 

(o)         “Fundamental
Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or
otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving
corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of
the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation
S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be
subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange
offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding
shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated
with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number
of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party
to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934
Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with
one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least
50% of the outstanding shares of

 

    	 	25 	 

    	 

    

 

Common Stock, (y) at least 50% of the
outstanding shares of Common Stock calculated as if any shares of Common Stock held by all the Subject Entities making or party
to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement or other business combination were
not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities become collectively the beneficial
owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (v) reorganize,
recapitalize or reclassify its Common Stock, (B) that the Company shall, directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in
the aggregate to be or become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly,
whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares
of Common Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement,
reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate
ordinary voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power
represented by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Note calculated
as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary
voting power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient
to allow such Subject Entities to effect a statutory short form merger or other transaction requiring other shareholders of the
Company to surrender their shares of Common Stock without approval of the shareholders of the Company or (C) directly or indirectly,
including through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into
any other instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in
which case this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms of
this definition to the extent necessary to correct this definition or any portion of this definition which may be defective or
inconsistent with the intended treatment of such instrument or transaction.

 

(p)         “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(q)         “Group”
means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

(r)          “Indebtedness”
means (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price
of property or services (including, without limitation, “capital leases” in accordance with GAAP) (other than trade
payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations
with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures
or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses,
(E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing,
in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and
remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property),
(F) all monetary obligations under any leasing or similar arrangement which, in

 

    	 	26 	 

    	 

    

 

connection with GAAP, consistently
applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through
(F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person
that owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent
Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or
intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability
that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders
of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(s) 
       “Late Charge” means any amount of Principal or other amounts due under
the Transaction Documents which is not paid when due which shall result in a late charge being incurred and payable by the
Company in an amount equal to interest on such amount at the rate of 18% per annum from the date such amount was due until
the same is paid in full.

 

(t)          “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including
results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a
whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other agreements or instruments
to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company or any of its Subsidiaries
to perform any of their respective obligations under any of the Transaction Documents (as defined below). As of the date hereof
and as of the Closing Date, the Company has no Subsidiaries.

 

(u)         “Material
Subsidiary” shall mean each Subsidiary identified as a subsidiary in Exhibit 21 to the Annual Report of Form 10-K
for the year ended December 31, 2018.

 

(v)         “Maturity
Date” shall mean the date listed in the preamble hereto as the Maturity Date; provided, however, the Maturity Date may
be extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default shall have occurred and
be continuing or any event shall have occurred and be continuing that with the passage of time and the failure to cure would result
in an Event of Default or (ii) through the date that is 20 Trading Days after the consummation of a Fundamental Transaction in
the event that a Fundamental Transaction is publicly announced or a Change of Control Notice is delivered prior to the Maturity
Date, provided further that if a Holder elects to convert some or all of this Note pursuant to Section 3 hereof, and the Conversion
Amount would be limited pursuant to Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as
such provision shall not limit the conversion of this Note.

 

(w)         “New
Subsidiary” means, as of any date of determination, any Person in which the Company after the Issuance Date, directly
or indirectly, (i) owns or acquires any of the outstanding capital stock or holds any equity or similar interest of such Person
or (ii) controls or operates all or any part of the business, operations or administration of such Person, and all of the foregoing,
collectively, “New Subsidiaries”

 

    	 	27 	 

    	 

    

 

(x)          “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(y)         “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(z)          “Permitted
Indebtedness” means (i) Indebtedness evidenced by this Note, (ii) Indebtedness set forth on Schedule 2.12 of the
Exchange Agreement, as in effect as of the Issuance Date and (iii) Indebtedness secured by Permitted Liens or unsecured but as
described in clauses (iv) and (v) of the definition of Permitted Liens.

 

(aa)        “Permitted Liens”
means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course of business by operation
of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation of law, such as materialmen’s
liens, mechanics’ liens and other similar liens, arising in the ordinary course of business with respect to a liability that
is not yet due or delinquent or that are being contested in good faith by appropriate proceedings, (iv) Liens (A) upon or in any
equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price of such equipment or Indebtedness
incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing on such equipment at the
time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the
proceeds of such equipment, in either case, with respect to Indebtedness in an aggregate amount not to exceed $50,000, (v) Liens
incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described in
clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the
existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced does not increase, (vi) Liens
in favor of customs and revenue authorities arising as a matter of law to secure payments of custom duties in connection with the
importation of goods, and (vii) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event
of Default under Section 4(a).

 

(bb)       “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(cc)       “Prepayment Premium”
means 125%.

 

(dd)       “Principal Market”
means any of The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select Market, the Nasdaq
Global Market, the OTCQB or the OTCQX or any successors of any of these exchanges or markets.

 

    	 	28 	 

    	 

    

 

(ee)        “Security Agreement”
means that certain Security and Pledge Agreement, dated as of August 16, 2018, by and among the Holder, the Company, and the Company’s
Subsidiaries, which secures the obligations of the Company under this Note and the other Transaction Documents.

 

(ff)         “Subsidiaries”
means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries, and each of the foregoing,
individually, a “Subsidiary.”

 

(gg)       “Subject Entity”
means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(hh)       “Successor Entity”
means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction
or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered
into.

 

(ii)          “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock,
any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on
such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in
writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock, any
day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(jj)          “Transaction Documents”
means this Note, the Exchange Agreement, the Security Agreement and any other documents relating to the issuance of this Note by
the Company to the Holder.

 

(kk)        “VWAP” means,
for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or, if the
Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities
market on which such security is then traded) during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m.,
New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported
by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average
of the highest Closing Bid Price and the lowest closing ask price of any of the market makers for such security as reported by
OTC Markets Group Inc. If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP
of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company
and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance
with the procedures in Section 20. All such determinations shall be appropriately adjusted for any stock dividend, stock split,
stock combination, recapitalization or other similar transaction during such period.

 

    	 	29 	 

    	 

    

 

29.         DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries, the Company shall within one Trading Day after any such receipt or delivery publicly disclose such
material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to
the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries. If the Company or any of its Subsidiaries provides material non-public information to the Holder that
is not simultaneously filed in a Current Report on Form 8-K and the Holder has not agreed to receive such material non-public information,
the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, Affiliates or agents with respect to, or a duty to any of the foregoing
not to trade on the basis of, such material non-public information.

 

30.         TRUE-UP.
In the event the Holder’s proceeds from the sale of all the shares of Common Stock received by the Holder pursuant to the
Conversion Notice(s) under this Note, do not equal at least 100% of the sum of the deemed outstanding Principal balance of this
Note and the interest accrued thereon, the Company shall owe the difference to the Holder (the “True-Up Amount”).
Upon notice from the Holder (the “True-Up Notice”), the Company shall within two (2) Trading Days have the option
to pay the True-Up Amount to the Holder in cash or through the delivery of free trading shares of Common Stock; provided,
however, that if the approval of the Principal Market is required for the Common Stock to be issued for the True-Up Amount,
the two (2) Trading Days shall be delayed until the Company has obtained such approval, which the Company shall use its best efforts
to obtain as promptly as practicable. The number of shares of Common Stock to be issued for the True-Up Amount shall be determined
using the average closing price of the Common Stock on the Principal Market for the ten (10) Trading Days immediately preceding
the date of the True-Up Notice.

 

[signature page follows]

 

    	 	30 	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed as of the Issuance Date set out above.

 

 

	 	
        DPW HOLDINGS, INC.

         

         
	 
	 	By: 	 	 
	 	 	 	 
	 	
        Name: Milton C. Ault, III

         

        Title: Chief Executive Officer
	 

 

    	 	 31	 

     

    

 

EXHIBIT
I

 

DPW HOLDINGS, INC.

 

CONVERSION NOTICE

 

 

Reference is made to the Secured Convertible
Promissory Note (the “Note”) issued to the undersigned by DPW Holdings, Inc., a Delaware corporation (the “Company”).
In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the
Note) of the Note indicated below into shares of Class A Common Stock, $0.001 par value per share (the “Common Stock”),
of the Company, as of the date specified below. Capitalized terms not defined herein shall have the meaning as set forth in the
Note.

 

	Date of Conversion:	 
	 	 
	Aggregate Principal to be converted:	 
	 	 
	Aggregate accrued and unpaid Interest and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest to be converted:	 
	 	 
	AGGREGATE CONVERSION AMOUNT

 TO BE CONVERTED:	 
	 
	Please confirm the following information:
	 	 
	Conversion Price:	 
	 	 
	Number of shares of Common Stock to be issued:	 
	 
	
        Please issue the Common Stock into which
        the Note is being converted to Holder, or for its benefit, as follows:

         

        o          Check
        here if requesting delivery as a certificate to the following name and to the following address:

	 
	Issue to:	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	o         Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows: 
	 
	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account Number:	 
	 	 	 	 	 	 

 

    	 	 1	 

     

    

  

Date: _____________ __,                              

	 	 
	 	 
	Name of Registered Holder	 
	 	 

	By: 	 	 
	 	
        Name:

        Title:
	 
	 	 	 
	 	 	 
	 	Tax ID:	 	 
	 	 	 
	 	Facsimile:	 	 
	 	 	 
	E-mail Address:	 

 

    	 	 2	 

     

    

 

EXHIBIT II

ACKNOWLEDGMENT

 

The Company hereby
(a) acknowledges this Conversion Notice, (b) certifies that the above indicated number of shares of Common Stock [are][are not]
eligible to be resold by the Holder either (i) pursuant to Rule 144 (subject to the Holder’s execution and delivery to the
Company of a customary 144 representation letter) or (ii) an effective and available registration statement and (c) hereby directs
_________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions
dated _____________, 20__ from the Company and acknowledged and agreed to by ________________________.

 

	 	DPW HOLDINGS,
                    INC.

         

         
	 
	 	By: 	 	 
	 	 	 	 
	 	Name:

         

        Title:

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