Document:

Exhibit 10.4

 

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

 

Original
Issue Date: September 29, 2017

 

$5,000,000

 

Senior
SECURED Convertible NOTE

 

THIS
SENIOR SECURED CONVERTIBLE NOTE is a duly authorized and validly issued Senior Secured Convertible Note issued at a 2% original
issue discount by Health-Right Discoveries, Inc., a Florida corporation (the “Company”) (the “Note”).

 

FOR
VALUE RECEIVED, the Company promises to pay to GPB Debt Holdings II LLC or its registered assigns (the “Holder”),
or shall have paid pursuant to the terms hereunder, the principal sum of $5,000,000 (“Original Principal Amount”)
on September 29, 2020 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid
as provided hereunder, and to pay interest (including PIK Interest) to the Holder on the aggregate unconverted and then outstanding
principal amount of this Note in accordance with the provisions hereof. This Note is subject to the following additional provisions:

 

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

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(e).

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule
1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company
or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such
case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof
is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d)
the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors, or (f) the Company or any Significant Subsidiary thereof,
by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes
any corporate or other action for the purpose of effecting any of the foregoing.

 

     

     

    

 

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

 

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

 

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

 

“Buy-In”
shall have the meaning set forth in Section 4(c)(v).

 

“Cash
Interest” has the meaning set forth in Section 2(a).

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by
an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of
in excess of 50% of the voting securities of the Company (other than by means of conversion, exercise or exchange of the Notes
or the Securities issued together with the Notes), (b) the Company merges into or consolidates with any other Person, or any Person
merges into or consolidates with the Company and, after giving effect to such transaction, the shareholders of the Company immediately
prior to such transaction own less than 50% of the aggregate voting power of the Company or the successor entity of such transaction,
(c) the Company sells or transfers all or substantially all of its assets to another Person and the shareholders of the Company
immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after
the transaction, (d) a replacement at one time or within a three year period of more than one-half of the members of the Board
of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original
Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board
of Directors was approved by a majority of the members of the Board of Directors who are members on the date hereof), or (e) the
execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events
set forth in clauses (a) through (d) above.

 

“Collateral
Agent” means the agent appointed on behalf of the Purchaser in the Security Agreement dated September 29, 2017 by and between
the Company and the Collateral Agent.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

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

 

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

 

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

 

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

 

“Default
Interest Rate” shall have the meaning set forth in Section 2(b).

 

“Dilutive
Issuance” shall have the meaning set forth in Section 5(b).

 

“Dilutive
Issuance Notice” shall have the meaning set forth in Section 5(b).

 

    2 

     

    

 

“DWAC”
means the Deposit or Withdrawal at Custodian system at The Depository Trust Company.

 

“Event
of Default” shall have the meaning set forth in Section 7(a).

 

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

 

“Mandatory
Default Amount” means the sum of (a) 120% of the outstanding principal amount of this Note, plus 120% of accrued and unpaid
interest hereon, and (b) all other amounts, costs, expenses and liquidated damages due in respect of this Note.

 

“New
York Courts” shall have the meaning set forth in Section 8(e).

 

“Note
Register” shall mean the note register maintained by the Company.

 

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

 

“Option
Value” means the value of a Common Stock Equivalent based on the Black Scholes Option Pricing model obtained from the “OV”
function on Bloomberg determined as of (A) the Trading Day prior to the public announcement of the issuance of the applicable
Common Stock Equivalent, if the issuance of such Common Stock Equivalent is publicly announced or (B) the Trading Day immediately
following the issuance of the applicable Common Stock Equivalent if the issuance of such Common Stock Equivalent is not publicly
announced, for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period
equal to the remaining term of the applicable Common Stock Equivalent as of the applicable date of determination, (ii) an expected
volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of (A) the Trading
Day immediately following the public announcement of the applicable Common Stock Equivalent if the issuance of such Common Stock
Equivalent is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Common Stock Equivalent
if the issuance of such Common Stock Equivalent is not publicly announced, (iii) the underlying price per share used in such calculation
shall be the highest VWAP of the Common Stock during the period beginning on the Trading Day prior to the execution of definitive
documentation relating to the issuance of the applicable Common Stock Equivalent and ending on (A) the Trading Day immediately
following the public announcement of such issuance, if the issuance of such Common Stock Equivalent is publicly announced or (B)
the Trading Day immediately following the issuance of the applicable Common Stock Equivalent if the issuance of such Common Stock
Equivalent is not publicly announced, (iv) a zero cost of borrow and (v) a 360 day annualization factor.

 

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

 

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

 

“Permitted
Indebtedness” means (a) Indebtedness outstanding as of the Original Issue Date, including without limitation, the Burroughs
Note, (b) the indebtedness evidenced by the Note, (c) trade debt incurred in the normal course of business, (d) capital lease
obligations and purchase money indebtedness incurred in connection with the acquisition of machinery and equipment and in accordance
with the Security Agreement; and (e) Indebtedness of up to $ 25,000, including Indebtedness incurred in connection with subsequent
acquisitions, provided such Indebtedness shall not be senior to or pari passu with the Indebtedness evidenced by the Note.

 

    3 

     

    

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by Law which were incurred in the ordinary course of the Company’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
(c) Liens incurred in connection with Permitted Indebtedness under clauses (a) and (b) of the definition of “Permitted Indebtedness,”
and (d) Liens incurred in connection with Permitted Indebtedness under clause (c) of the definition of “Permitted Indebtedness,”
provided that such Liens are not secured by assets of the Company or its Subsidiaries other than the assets so acquired or leased.

 

“PIK
Interest” has the meaning set forth in Section 2(a).

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of September 29, 2017 among the Company and the original Holder,
as amended, modified or supplemented from time to time in accordance with its terms.

 

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

 

“Security
Agreement” means the Security Agreement, dated September 29, 2017 by and between the Company and the Collateral Agent.

 

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

 

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

 

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

 

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

 

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

 

    4 

     

    

 

Section
2.          Interest.

 

(a)       Interest.
Interest shall accrue to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate
of (i) 12.75% per annum (the “Cash Interest”), calculated on the basis of a 360-day year, which shall accrue daily
commencing on the Original Issue Date and be paid monthly until payment in full of the outstanding principal (or conversion to
the extent applicable), together with all accrued and unpaid interest, liquidated damages and other amounts which may become due
hereunder, has been made plus (ii) 3% per annum payable in kind (the “PIK Interest”), compounded annually by capitalizing
such PIK interest annually, calculated on the basis of a 360-day year and shall accrue annually commencing on the Original Issue
Date until payment in full of the outstanding principal (or conversion to the extent applicable), together with all accrued and
unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Unless otherwise specifically
set forth herein, references in this Note to “interest” refer to Cash Interest and PIK Interest.

 

(b)       Interest
Following an Event of Default. If an Event of Default has occurred and is continuing, all outstanding principal of and accrued
and unpaid interest on this Note (whether Cash Interest or PIK Interest) and any other past due amounts owing hereunder will bear
interest at the amounts specified in Section 2(a) plus 5% percent per annum with respect to each of clause (i) and (ii) in Section
2(a) (the “Default Interest Rate”). In the event that such Event of Default is subsequently cured, the adjustment
referred to in the preceding sentence shall cease to be effective as of the calendar day immediately following the date of such
cure; provided that the interest as calculated and unpaid at the Default Interest 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.

 

(c)       Payments.
The Cash Interest shall accrue on a monthly basis and be due and payable in arrears in cash on the last day of each month and
the PIK Interest shall accrue on an annual basis in arrears and be added to the then outstanding principal amount of this Note
on each one year anniversary of the Original Issue Date. Whenever any payment hereunder is due on a day other than a Business
Day, such payment will be made on the immediately following Business Day.

 

(d)       Prepayment;
Success Fee. The Notes (including accrued and unpaid interest) may be prepaid, in whole or in part, so long as a minimum of
$500,000 is prepaid each time a repayment is made, at any time prior to the Maturity Date. In order to prepay the Notes (or any
portion thereof), the Company shall provide 30 days prior written notice to the Holder, during which time the Holder may convert
the Notes in whole or in part at the Conversion Price. Upon such prepayment, in whole or in part, the Company shall pay the Holder
an additional success fee equal to (i) 2% of such payments if such amounts are paid prior to the one year anniversary of the Original
Issue Date, (ii) 4% of such payments if such amounts are paid on or after the one year anniversary of the Original Issue Date
and (iii) 6% of such payments if such amounts are paid on or after the two year anniversary of the Original Issue Date and through
the Maturity Date. Any prepayments made pursuant to this Section 2(d) shall be applied first, to accrued and unpaid Cash Interest,
second to accrued and unpaid PIK Interest (whether such PIK Interest has been capitalized or not) and third, to the then aggregate
unconverted and outstanding principal amount of this Note.

 

Section
3.          Registration of Transfers and Exchanges.

 

(a)       Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations
(of no less than $1,000 in principal amount), as requested by the Holder surrendering the same. No service charge will be payable
for such registration of transfer or exchange.

 

    5 

     

    

 

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

 

(c)       Reliance
on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company
may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such
agent shall be affected by notice to the contrary.

 

Section
4.          Conversion.

 

(a)       Voluntary
Conversion. After the Original Issue Date until this Note is no longer outstanding, and provided that that the provisions
of Rule 144 under the Securities Act so permit (if applicable), this Note shall be convertible, in whole or in part, at any time,
and from time to time, into shares of Common Stock at the option of the Holder. The Holder shall effect conversions by delivering
to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”),
specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such
date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall
be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire
principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall
have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The
Holder and the Company shall maintain records showing the principal amount(s) converted in each conversion, the date of each conversion,
and the Conversion Price in effect at the time of each conversion. The Company may deliver an objection to any Notice of Conversion
within one Business Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the
Holder shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of
this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.

 

(b)       Conversion
Price. The “Conversion Price” in effect on any Conversion Date means, as of any Conversion Date or other date
of determination, $0.44.

 

(c)       Mechanics
of Conversion or Prepayment.

 

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

 

    (ii)        Delivery
of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery
Date”), the Company shall deliver, or cause to be delivered, to the Holder any certificate or certificates required to be
delivered by the Company under this Section 4(c).

 

    6 

     

    

 

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

 

    (iv)       Partial
Liquidated Damages. If the Company fails for any reason to deliver to the Holder such certificate or certificates pursuant
to Section 4(c)(ii) by the Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as
a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per Trading Day on the
tenth Trading Day after such Conversion Date) for each Trading Day after such Share Delivery Date until such certificates are
delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or declare
an Event of Default pursuant to Section 7 hereof for the Company’s failure to deliver Conversion Shares or, if applicable,
cash, within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder,
at Law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of
any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable
Law.

 

    (v)        Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Holder,
if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number
of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of
the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(c)(ii).
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and evidence of the amount of such loss. Nothing herein shall limit a 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 upon conversion of this Note as required pursuant to the terms hereof.

 

    7 

     

    

 

    (vi)       Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will reserve and keep available out of its authorized and
unissued shares of Common Stock for the purpose of issuances upon conversion of this Note and the issued with this Note, free
from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders
of the Notes), not less than the amount of shares of Common Stock as shall from time to time be sufficient to effect the conversion
of the outstanding principal amount of this Note; and if at any time the number of authorized but unissued shares of Common Stock
shall be insufficient to effect such conversion, the Company shall take such corporate action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purpose. The Company covenants that all shares of Common Stock that shall be issuable upon conversion of this Note shall,
upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

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

 

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

 

    8 

     

    

 

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

 

Section
5.          Certain Adjustments.

 

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

 

(b)       Subsequent
Equity Sales. If, at any time, for so long as the Note or any amounts accrued and payable thereunder remain outstanding, the
Company or any Subsidiary, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise
disposes of or issues, any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at
an effective price per share that is lower than the Conversion Price then in effect (such lower price, the “Base Conversion
Price” and each such issuance a “Dilutive Issuance”), then the Conversion Price shall be immediately reduced
to equal the Base Conversion Price.

 

    9 

     

    

 

If
the holder of Common Stock or Common Stock Equivalents outstanding on the Original Issue Date or issued thereafter shall at any
time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or
otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, receive or be entitled
to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price then in effect, such
issuance shall be deemed to have occurred for less than the Conversion Price on such date and such issuance shall be deemed to
be a Dilutive Issuance.

 

If
after any Dilutive Issuance of Common Stock Equivalents, the price per share for which shares of Common Stock may be issuable
thereafter is amended or adjusted, and such price as so amended shall be less than the Conversion Price in effect at the time
of such amendment or adjustment, then the Conversion Price shall be adjusted upon each such issuance or amendment as provided
in this Section 5(b). In the event of any Dilutive Issuance involving tranches or other multiple closings, the Conversion Price
shall be adjusted as if all Common Stock Equivalents were issued at the first closing.

 

In
case any Common Stock Equivalent is issued in connection with the issue or sale of other securities of the Company, together comprising
one integrated transaction, (x) the Common Stock Equivalents will be deemed to have been issued for the Option Value of such Common
Stock Equivalents and (y) the other securities issued or sold in such integrated transaction shall be deemed to have been issued
or sold for the difference of (I) the aggregate consideration received by the Company less any consideration paid or payable by
the Company pursuant to the terms of such other securities of the Company, less (II) the Option Value. If any shares of Common
Stock or Common Stock Equivalents are issued or sold or deemed to have been issued or sold for cash, the amount of such consideration
received by the Company will be deemed to be the net amount received by the Company therefor. If any shares of Common Stock or
Common Stock Equivalents are issued or sold for a consideration other than cash, the amount of such consideration received by
the Company 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 will be the VWAP of such public traded securities on the date
of receipt. If any shares of Common Stock or Common Stock Equivalents 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 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 or Common Stock Equivalents, as the case may be.

 

If
the Company enters into a Variable Rate Transaction despite the prohibition set forth in the Purchase Agreement, the Company shall
be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion price at which such securities
may be converted or exercised under the terms of such Variable Rate Transaction.

 

The
Company shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common
Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance price, or applicable reset price, exchange
price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification,
whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon the occurrence of any Dilutive
Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the
date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice
of Conversion.

 

    10 

     

    

 

The
provisions of this Section 5(b) shall apply each time a Dilutive Issuance occurs after the Original Issue Date for so long as
the Note or any amounts accrued and payable thereunder remain outstanding, but any adjustment of the Conversion Price pursuant
to this Section 5(b) shall be downward only.

 

Notwithstanding
anything in this Section 5(b), no adjustment will be made under this Section 5(b) in respect of an Exempt Issuance.

 

(c)       Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company grants, issues
or sells any Common Stock, Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the 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 (without regard to
any limitations on conversion hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date
as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would
result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such
Purchase Right to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to
such extent)).

 

(d)       Pro
Rata Distributions. During such time as this Note is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets or rights or warrants to acquire its assets, or subscribe for or purchase any security other than Common
Stock, to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution
of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Note,
then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would
have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this
Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided,
however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder
exceeding the Beneficial Ownership Limitation with respect to the Company or any other publicly-traded corporation subject to
Section 13(d) of the Exchange Act, then the Holder shall not be entitled to participate in such Distribution to such extent (or
in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent)).) and the portion
of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would
not result in the Holder exceeding the Beneficial Ownership Limitation with respect to the Company or any other publicly-traded
corporation subject to Section 13(d) of the Exchange Act).).

 

    11 

     

    

 

(e)       Fundamental
Transaction. If, at any time while this Note is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making
or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or
other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Note,
the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately
prior to the occurrence of such Fundamental Transaction (without regard to any limitation on the conversion of this Note), the
number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior to such Fundamental Transaction
(without regard to any limitation on the conversion of this Note). For purposes of any such conversion, the determination of the
Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Note following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3
under the Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a Trading Market, the Company
or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable concurrently with the consummation
of the Fundamental Transaction, purchase this Note from the Holder by paying to the Holder the product of (a) the number of Conversion
Shares issuable upon full conversion of this Note (without regard to any limitation on conversion of this Note) and (b) the positive
difference between the cash per share paid in such Fundamental Transaction minus the then in effect Conversion Price. The Company
shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”)
to assume in writing all of the obligations of the Company under this Note and the other Transaction Documents in accordance with
the provisions of this Section 5(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder
and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the
holder of this Note, deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Note which is convertible for a corresponding number of shares
of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable
upon conversion of this Note (without regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction,
and with a conversion price which applies the Conversion Price hereunder to such shares of capital stock (but taking into account
the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value
of this Note immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form
and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the other
Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every
right and power of the Company and shall assume all of the obligations of the Company under this Note and the other Transaction
Documents with the same effect as if such Successor Entity had been named as the Company herein. Notwithstanding anything in this
Section 5(e), an Exempt Issuance shall not be deemed a Fundamental Transaction.

 

    12 

     

    

 

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

 

(g)       Notice
to the Holder.

 

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

 

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

 

Section
6.          Negative Covenants. As long as any portion of this Note remains outstanding, unless the holders of a majority
in principal amount of the then outstanding Notes shall have otherwise given prior written consent, the Company shall not, and
shall not permit any of the Subsidiaries to, directly or indirectly:

 

    13 

     

    

 

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

 

(b)      other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

(c)       amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

(d)      other
than pursuant to an Exempt Issuance, repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis
number of shares of its Common Stock or Common Stock Equivalents other than as to the Conversion Shares or Warrant Shares
as permitted or required under the Transaction Documents;

 

(e)       repay,
repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Notes if on a pro-rata basis, other
than regularly scheduled principal and interest payments as such terms are in effect as of the Original Issue Date including,
without limitation the indebtedness of the Company to Hunter Burroughs included in Permitted Indebtedness, provided that such
payments shall not be permitted if, at such time, or after giving effect to such payment, any Event of Default exist or occur
provided, however, this covenant shall not apply with respect to the exercise of any Holder’s conversion under
Section 4;

 

(f)       other
than pursuant to an Exempt Issuance, pay cash dividends or distributions on any equity securities of the Company;

 

(g)      enter
into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with the SEC
assuming that the Company is subject to the Securities Act or the Exchange Act, unless such transaction is made on an arm’s-length
basis and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise
required for board approval) or except for repayment of the indebtedness of the Company to Hunter Burroughs included in Permitted
Indebtedness; or

 

(h)      enter
into any agreement with respect to any of the foregoing.

 

Section
7.          Events of Default.

 

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

 

    (i)         any
default in the payment of (A) the principal amount of any Note or (B) interest, late fees, liquidated damages and other amounts
owing to a Holder on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity
Date or by acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B)
above, is not cured within the greater of three Trading Days or five calendar days;

 

    (ii)        the
Company shall fail to observe or perform any other covenant or agreement contained in the Notes (other than a breach by the Company
of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (xi) below)
or any Transaction Document which failure is not cured, if possible to cure, within the earlier to occur of (A) 10 Trading Days
after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 20 Trading Days after the Company
has become aware of such failure;

 

    14 

     

    

 

    (iii)       [RESERVED];

 

    (iv)       any
representation or warranty made in this Note, any other Transaction Document, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any other Holder pursuant hereto or
thereto shall be untrue or incorrect in any material respect as of the date when made or deemed made;

 

    (v)        the
Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event;

 

    (vi)       the
Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced,
any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation
greater than $25,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable and such default
is not cured within 10 Trading Days;

 

    (vii)      once
listed or quoted, the Common Stock shall not be eligible for listing or quotation for trading on its Trading Market for a period
longer than 10 Trading Days;

 

    (viii)     the
Company shall have consummated a Change of Control Transaction or/Fundamental Transaction without the Lead Investors consent without
paying in full all amounts owed under the Note at or prior to such consummation;

 

    (ix)        a
final judgment for the payment of money aggregating in excess of $25,000 is rendered against the Company and/or any of its Subsidiaries
and which judgment is not, within 45 days after the entry thereof, bonded, discharged or stayed pending appeal, or is not discharged
within 60 days after the expiration of such stay; provided, however, any judgment that is covered by insurance or an indemnity
from a credit-worthy party will not be included in calculating the amount of the judgment so long as the Company provides the
Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to
the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company or such Subsidiary (as the
case may be) will receive the proceeds of such insurance or indemnity within 30 days of the issuance of such judgment; or

 

    (x)         the
Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company’s intention
to not honor requests for conversions of any Notes in accordance with the terms hereof.

 

(b)       Remedies
Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Note, plus accrued but unpaid
interest (including Cash Interest and PIK Interest), liquidated damages and other amounts owing in respect thereof through the
date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the Mandatory Default
Amount. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed
by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives,
any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace
period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable Law. Such
acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights
as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 7(b). No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

    15 

     

    

 

(c)       Interest
Rate Upon Event of Default. Commencing on the occurrence of any Event of Default and until such Event of Default is cured,
this Note shall accrue interest at an interest rate equal to the Default Interest Rate.

 

(d)       Conversion
Price Upon Event of Default. Commencing on the occurrence of any Event of Default, all amounts due under the Note shall be
increased by 20%.

 

Section
8.          Miscellaneous.

 

(a)       No
Rights as Stockholder Until Conversion. This Note does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the conversion hereof other than as explicitly set forth in Section 4.

 

(b)       Notices.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by Federal Express or similar receipted next business day delivery, as follows:

 

	If to the Company:	Health-Right Discoveries,
    Inc.
	 	18851 NE 29th Avenue
	 	Suite 700
	 	Aventura, Florida 33180 
	 	Telephone No.:  305.705.3247
	 	Facsimile No.:  
	 	Attention:  David Hopkins, President
	 	E-mail:  dhopkins@health-right.com
	 	 
	with a copy to:	Gutiérrez Bergman Boulris, PLLC
	 	100 Almeria Avenue
	 	Suite 340
	 	Coral Gables, FL 33140
	 	 
	 	Telephone No.:  305.358.5100
	 	Facsimile No.:  888.281.1829
	 	Attention:  Dale S. Bergman, Esq.
	 	E-mail:  dale.bergman@gbbpl.com
	 	 
	If to Holder:	Address on signature
    page
	 	 
	with a copy to:	Sichenzia Ross Ference
    Kesner LLP
	 	61 Broadway, 32nd
    Floor
	 	New York, NY 10006
	 	Telephone No.: (212) 930-9700
	 	Facsimile No.: (212) 930-9725
	 	Attention: Harvey
    Kesner
	 	E-mail: hkesner@srfkllp.com

 

or
to such other address as any of them, by notice to the other may designate from time to time. Time shall be counted to, or from,
as the case may be, the date of delivery.

 

    16 

     

    

 

(c)       Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest and late fees, as applicable,
on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation
of the Company. This Note ranks pari passu with all other Notes now or hereafter issued under the Purchase Agreement.

 

(d)       Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company. The applicant
for a new Note under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated
with the issuance of the new Note.

 

(e)       Exclusive
Jurisdiction; Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement
and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its
respective Affiliates, directors, officers, shareholders, employees or agents) shall only be commenced in the state and federal
courts sitting in New York, New York (the “New York Courts”). Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents),
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to
such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by applicable Law. Each party hereto hereby irrevocably waives, to the fullest extent permitted
by applicable Law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions
contemplated hereby.

 

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

 

(g)       Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, as long as
the essential terms and conditions of this Note for each party remain valid, binding, and enforceable. If it shall be found that
any interest or other amount deemed interest due hereunder violates the applicable Law governing usury, the applicable rate of
interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable Law.

 

    17 

     

    

 

(h)       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.
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 would 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 an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic
loss and without any bond or other security being required. The Company shall provide all information and documentation to the
Holder that is reasonably requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms
and conditions of this Note.

 

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

 

(Signature
Pages Follow)

 

    18 

     

    

 

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

	 	 	 
	 	HEALTH-RIGHT
    DISCOVERIES, Inc.
	 	 	 
	 	By:	/s/ David Hopkins	 
	 	 	David Hopkins, President

 

     

     

    

 

ANNEX
A

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Senior Convertible Note due September 29, 2020 issued by Health-Right
Discoveries, Inc., a Florida corporation (the “Company”), into shares of common stock (the “Common Stock”),
of the Company according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in
the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and
is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will
be charged to the holder for any conversion, except for such transfer taxes, if any.

 

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

 

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

	 	 
	Conversion calculations:	 
	 	 
	 	Date to Effect Conversion:
	 	 
	 	Principal Amount of Note to be Converted:
	 	 
	 	Payment
    of Interest in Common Stock __ yes __ no 

    If yes, $_____ of Interest Accrued on Account of Conversion at Issue.
	 	 
	 	Number
    of shares of Common Stock to be issued:
	 	 
	 	Signature:
	 	 
	 	Name:
	 	 
	 	DWAC Instructions:
	 	 
	 	Broker No:___________________
	 	Account No:____________________________________________________

 

     

     

    

 

Schedule
1

CONVERSION
SCHEDULE

 

The
Senior Convertible Note due on September 29, 2020 in the original principal amount of $5,000,000 is issued by Health-Right Discoveries,
Inc., a Florida corporation. This Conversion Schedule reflects conversions made under Section 4 of the above referenced Note.

 

Dated:

 

	Date
of 

Conversion

        (or
for first 

entry, Original 

Issue Date)
	Amount
of 

Converted 

Principal
	 

                                                                                                                                        Aggregate
Principal 

Amount Remaining 

Subsequent to 

Conversion

        (or
original Principal 

Amount)
	 

                                                                                                                                                         Applicable

Conversion Price
	Company
AttestExhibit 10.5

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT
(as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) dated as of September
29, 2017 by and among Health-Right Discoveries, Inc., a Florida corporation (the “Company”, and together with each
other Person who becomes a party to this Agreement by execution of a joinder in the form of Exhibit A attached hereto being
hereinafter sometimes referred to individually as a “Debtor” and, collectively, as the “Debtors”), and
GPB Debt Holdings II LLC, a limited liability company, in its capacity as Collateral Agent and Purchaser (together with its successors
and assigns, the “Secured Party”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to
the Purchase Agreement (as hereafter defined), the Secured Party will purchase from the Company certain senior secured notes each
issued by the Company (such notes, together with any promissory notes or other securities issued in exchange or substitution therefor
or replacement thereof, and as any of the same may be amended, supplemented, restated or modified and in effect from time to time,
the “Notes”);

 

AND WHEREAS, the Notes
are being acquired by the Secured Party, and the Secured Party has made certain financial accommodations to the Company pursuant
to a Securities Purchase Agreement dated as of the date hereof by and between the Company and the Secured Party (as the same may
be amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”);

 

AND WHEREAS, each Debtor
will derive substantial benefit and advantage from the financial accommodations to the Company set forth in the Purchase Agreement
and the Notes, and it will be to each such Debtor’s direct interest and economic benefit to assist the Company in procuring
said financial accommodations from the Secured Party;

 

AND WHEREAS, to induce
the Secured Party to enter into the Purchase Agreement and purchase the Notes, each Debtor will pledge and grant a security interest
in all of its right, title and interest in and to the Collateral (as hereinafter defined) as security for its Obligations for the
benefit of the Secured Party and its successors and assigns;

 

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

 

Section
1.          Definitions. Capitalized terms used herein without definition and defined in the Purchase Agreement are used
herein as defined therein. In addition, as used herein:

 

“Accounts”
means any “account,” as such term is defined in the UCC, and, in any event, shall include, without limitation, “supporting
obligations” as defined in the UCC.

 

“Chattel Paper”
means any “chattel paper,” as such term is defined in the UCC.

 

“Collateral”
shall have the meaning ascribed thereto in Section 3 hereof.

 

“Commercial Tort
Claims” means “commercial tort claims”, as such term is defined in the UCC.

 

     

     

    

 

“Contracts”
means all contracts, undertakings, or other agreements (other than rights evidenced by Chattel Paper, Documents or Instruments)
in or under which a Debtor may now or hereafter have any right, title or interest, including, without limitation, with respect
to an Account, any agreement relating to the terms of payment or the terms of performance thereof.

 

“Copyrights”
means any copyrights, rights and interests in copyrights, works protectable by copyrights, copyright registrations and copyright
applications, including, without limitation, the copyright registrations and applications listed on Schedule III attached
hereto (if any), and all renewals of any of the foregoing, all income, royalties, damages and payments now and hereafter due and/or
payable under or with respect to any of the foregoing, including, without limitation, damages and payments for past, present and
future infringements of any of the foregoing and the right to sue for past, present and future infringements of any of the foregoing.

 

“Deposit Accounts”
means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of a Debtor.

 

“Documents”
means any “documents,” as such term is defined in the UCC, and shall include, without limitation, all documents of
title (as defined in the UCC), bills of lading or other receipts evidencing or representing Inventory or Equipment.

 

“Equipment”
means any “equipment,” as such term is defined in the UCC and, in any event, shall include, Motor Vehicles.

 

“Event of Default”
shall have the meaning set forth in the Notes.

 

“Excluded Assets”
means any lease, license or other agreement or any property subject to a capital lease, purchase money security interest or similar
arrangement, to the extent that a grant of a Lien thereon in favor of Secured Party would violate or invalidate such lease, license,
agreement or capital lease, purchase money security interest or similar arrangement or create a right of termination in favor of
any other party thereto (other than the Debtors), so long as such provision exists and so long as such lease, license or agreement
was not entered into in contemplation of circumventing the obligation to provide Collateral hereunder or in violation of the Purchase
Agreement, other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or
9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law including
the bankruptcy code, or principles of equity.

 

“General Intangibles”
means any “general intangibles,” as such term is defined in the UCC, and, in any event, shall include, without limitation,
all right, title and interest in or under any Contract, models, drawings, materials and records, claims, literary rights, goodwill,
rights of performance, Copyrights, Trademarks, Patents, warranties, rights under insurance policies and rights of indemnification.

 

“Goods” means
any “goods”, as such term is defined in the UCC, including, without limitation, fixtures and embedded Software to the
extent included in “goods” as defined in the UCC.

 

    2 

     

    

 

“Governmental Authority”
means the government of the United States of America or any other nation, or any political subdivision thereof, whether state or
local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administration powers or functions of or pertaining to government over any Debtor or any of its
subsidiaries, or any of their respective properties, assets or undertakings.

 

“Instruments”
means any “instrument,” as such term is defined in the UCC, and shall include, without limitation, promissory notes,
drafts, bills of exchange, trade acceptances, letters of credit, letter of credit rights (as defined in the UCC), and Chattel Paper.

 

“Inventory”
means any “inventory,” as such term is defined in the UCC.

 

“Investment Property”
means any “investment property”, as such term is defined in the UCC.

 

“Obligations”
means all obligations, liabilities and indebtedness of every nature of Debtors from time to time owed or owing under or in respect
of this Agreement, the Purchase Agreement, the Notes, any of the other Security Documents and any of the other Transaction Documents,
as the case may be, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid
interest and all fees, costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now
and/or from time to time hereafter owing, due or payable whether before or after the filing of a bankruptcy, insolvency or similar
proceeding under applicable federal, state, foreign or other law and whether or not an allowed claim in any such proceeding.

 

“Lien” has
the meaning set forth in the Purchase Agreement.

 

“Motor Vehicles”
shall mean motor vehicles, tractors, trailers and other like property, whether or not the title thereto is governed by a certificate
of title or ownership.

 

“Mortgage”
has the meaning set forth in Section 2(h).

 

“Patents”
means any patents and patent applications, including, without limitation, the inventions and improvements described and claimed
therein, all inventions subject to the patents and patent applications listed on Schedule IV attached hereto (if any), and
the reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing, and all income,
royalties, damages and payments now or hereafter due and/or payable under or with respect to any of the foregoing, including, without
limitation, damages and payments for past, present and future infringements of any of the foregoing and the right to sue for past,
present and future infringements of any of the foregoing.

 

“Permitted Indebtedness”
has the meaning set forth in the Notes.

 

“Proceeds”
means “proceeds,” as such term is defined in the UCC and, in any event, includes, without limitation, (a) any and all
proceeds of any insurance, indemnity, warranty or guaranty payable with respect to any of the Collateral, (b) any and all payments
(in any form whatsoever) made or due and payable from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any person acting under color of Governmental
Authority), and (c) any and all other amounts from time to time paid or payable under, in respect of or in connection with any
of the Collateral.

 

    3 

     

    

 

“Representative”
means any Person acting as agent, representative or trustee on behalf of the Secured Party from time to time.

 

“Security Documents”
means this Agreement and any other documents securing the Liens of the Secured Party hereunder.

 

“Software”
means all “software” as such term is defined in the UCC, now owned or hereafter acquired by a Debtor, other than software
embedded in any category of Goods, including, without limitation, all computer programs and all supporting information provided
in connection with a transaction related to any program.

 

“Trademarks”
means any trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service
marks, logos, other business identifiers, prints and labels on which any of the foregoing have appeared or appear, all registrations
and recordings thereof, and all applications in connection therewith, including, without limitation, the trademarks and applications
listed in Schedule V attached hereto (if any) and renewals thereof, and all income, royalties, damages and payments now
or hereafter due and/or payable under or with respect to any of the foregoing, including, without limitation, damages and payments
for past, present and future infringements of any of the foregoing and the right to sue for past, present and future infringements
of any of the foregoing.

 

“Transaction Documents”
means the Purchase Agreement, the Notes, the Security Documents, the Warrants and any other related agreements.

 

“UCC” shall
mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, that to the extent that the
Uniform Commercial Code is used to define any term herein and such term is defined differently in different Articles or Divisions
of the Uniform Commercial Code, the definition of such term contained in Article or Division 9 shall govern.

 

Section
2.          Representations, Warranties and Covenants of Debtors. Each Debtor represents and warrants to, and covenants
with, the Secured Party as follows:

 

(a)          Such
Debtor has or will have rights in and the power to transfer the Collateral in which it purports to grant a security interest pursuant
to Section 3 hereof (subject, with respect to after acquired Collateral, to such Debtor acquiring the same) and no Lien other than
Permitted Indebtedness exists or will exist upon such Collateral at any time.

 

(b)         This
Agreement is effective to create in favor of Secured Party a valid security interest in and Lien upon all of such Debtor’s
right, title and interest in and to the Collateral upon (i) the filing of appropriate UCC financing statements in the jurisdictions
listed on Schedule I attached hereto, (ii) the execution of a deposit account control agreement (iii) filings in the United
States Patent and Trademark Office, or United States Copyright Office with respect to Collateral that is Patents and Trademarks,
or Copyrights, as the case may be, (iv) the filing of the Mortgages in the jurisdictions listed on Schedule I hereto, (v)
the security interest created hereby being noted on each certificate of title evidencing the ownership of any Motor Vehicle in
accordance with Section 4.1(d) hereof and (vi) delivery to the Secured Party or its Representative of Instruments duly endorsed
by such Debtor or accompanied by appropriate instruments of transfer duly executed by such Debtor with respect to Instruments not
constituting Chattel Paper, such security interest will be a duly perfected first priority perfected security interest (subject
to Permitted Indebtedness) in all of the Collateral.

 

    4 

     

    

 

(c)          All
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on Schedule I attached
hereto. Except as disclosed on Schedule I, none of the Collateral is in the possession of any bailee, warehousemen, processor
or consignee. Schedule I discloses such Debtor’s name as of the date hereof as it appears in official filings in the
state or province, as applicable, of its incorporation, formation or organization, the type of entity of such Debtor (including
corporation, partnership, limited partnership or limited liability company), organizational identification number issued by such
Debtor’s state of incorporation, formation or organization (or a statement that no such number has been issued), such Debtor’s
state or province, as applicable, of incorporation, formation or organization and the chief place of business, chief executive
office and the office where such Debtor keeps its books and records and the states in which such Debtor conducts its business.
Such Debtor has only one state or province, as applicable, of incorporation, formation or organization. Such Debtor does not do
business and has not done business during the past five (5) years under any trade name or fictitious business name except as disclosed
on Schedule II attached hereto.

 

(d)         Schedules
III, IV and V contain complete and accurate lists as of the date hereof of all (i) registered copyrights and
applications therefor; (ii) patents and pending applications therefor; (iii) registered trademarks and service marks and applications
therefor; and (iv) all unregistered trademarks and service marks that are material to the operations of the business of such Debtor;
in each case owned by such Debtor. No Copyrights, Patents or Trademarks listed on Schedules III, IV and V, respectively,
if any, have been adjudged invalid or unenforceable or have been canceled, in whole or in part, or are not presently subsisting.
Each of such Copyrights, Patents and Trademarks (if any) is valid and enforceable. Such Debtor is the sole and exclusive owner
of the entire and unencumbered right, title and interest in and to each of such Copyrights, Patents and Trademarks, identified
on Schedules III, IV and V, as applicable, as being owned by such Debtor, free and clear of any liens, charges and encumbrances,
including without limitation licenses, shop rights and covenants by such Debtor not to sue third persons. Such Debtor has adopted,
used and is currently using, or has a current bona fide intention to use, all of such Trademarks. Such Debtor has no notice of
any suits or actions commenced or threatened with reference to the Copyrights, Patents or Trademarks owned by it.

 

(e)         Each
Debtor agrees to deliver to the Secured Party an updated Schedule I, II, III, IV and/or V within five (5) Business Days
of any change thereto.

 

(f)          All
depositary and other accounts including, without limitation, Deposit Accounts, securities accounts, brokerage accounts and other
similar accounts, maintained by each Debtor are described on Schedule VI hereto, which description includes for each such
account the name of the Debtor maintaining such account, the name, address and telephone and telecopy numbers of the financial
institution at which such account is maintained, the account number and the account officer, if any, of such account. No Debtor
shall open any new Deposit Accounts, securities accounts, brokerage accounts or other accounts unless such Debtor shall have given
Secured Party ten (10) Business Days’ prior written notice of its intention to open any such new accounts. Each Debtor shall
deliver to Secured Party a revised version of Schedule VI showing any changes thereto within five (5) Business Days of any
such change. Each Debtor hereby authorizes the financial institutions at which such Debtor maintains an account to provide Secured
Party with such information with respect to such account as Secured Party from time to time reasonably may request, and each Debtor
hereby consents to such information being provided to Secured Party. In addition, all of such Debtor’s depositary, security,
brokerage and other accounts including, without limitation, Deposit Accounts shall be subject to the provisions of Section 4.5
hereof.

 

    5 

     

    

 

(g)         Such
Debtor does not own any Commercial Tort Claim except for those disclosed on Schedule VII hereto (if any).

 

(h)         Such
Debtor does not have any interest in real property with respect to real property except as disclosed on Schedule VIII (if
any). Each Debtor shall deliver to Secured Party a revised version of Schedule VIII showing any changes thereto within ten
(10) Business Days of any such change. Except as otherwise agreed to by Secured Party, all such interests in real property with
respect to such real property are subject to a mortgage and deed of trust (in form and substance satisfactory to Secured Party)
in favor of Secured Party (hereinafter, a “Mortgage”).

 

(i)          Each
Debtor shall duly and properly record each interest in real property held by such Debtor except with respect to easements, rights
of way, access agreements, surface damage agreements, surface use agreements or similar agreements that such Debtor, using prudent
customs and practices in the industry in which it operates, does not believe are of material value or material to the operation
of such Debtor’s business or, with respect to state and federal rights of way, are not capable of being recorded as a matter
of state and federal law.

 

(j)          All
Equipment (including, without limitation, Motor Vehicles) owned by a Debtor and subject to a certificate of title or ownership
statute is described on Schedule IX hereto.

 

Section
3.          Collateral. As collateral security for the prompt payment in full when due (whether at stated maturity, by
acceleration or otherwise) of the Obligations, each Debtor hereby pledges and grants to the Secured Party a Lien on and security
interest in and to all of such Debtor’s right, title and interest in the following properties and assets of such Debtor,
whether now owned by such Debtor or hereafter acquired and whether now existing or hereafter coming into existence and wherever
located (all being collectively referred to herein as “Collateral”):

 

(a)          all
Instruments, together with all payments thereon or thereunder:

 

(b)         all
Accounts;

 

(c)         all
Inventory;

 

(d)         all
General Intangibles (including payment intangibles (as defined in the UCC) and Software);

 

(e)         all
Equipment;

 

(f)          all
Documents;

 

(g)         all
Contracts;

 

(h)         all
Goods;

 

    6 

     

    

 

(i)          all
Investment Property, including without limitation all equity interests now owned or hereafter acquired by such Debtor;

 

(j)          all
Deposit Accounts, including, without limitation, the balance from time to time in all bank accounts maintained by such Debtor;

 

(k)         all
Commercial Tort Claims specified on Schedule VII;

 

(l)          all
Trademarks, Patents and Copyrights;

 

(m)        all
books and records pertaining to the other Collateral; and

 

(n)         all
other tangible and intangible property of such Debtor, including, without limitation, all interests in real property, Proceeds,
tort claims, products, accessions, rents, profits, income, benefits, substitutions, additions and replacements of and to any of
the property of such Debtor described in the preceding clauses of this Section 3 (including, without limitation, any proceeds of
insurance thereon, insurance claims and all rights, claims and benefits against any Person relating thereto), other rights to payments
not otherwise included in the foregoing, and all books, correspondence, files, records, invoices and other papers, including without
limitation all tapes, cards, computer runs, computer programs, computer files and other papers, documents and records in the possession
or under the control of such Debtor, any computer bureau or service company from time to time acting for such Debtor.

 

Notwithstanding anything to the contrary
contained herein or in any Transaction Document, in no event shall the security interest granted herein or therein attach to any
Excluded Assets.

 

Section
4.         Covenants; Remedies. In furtherance of the grant of the pledge and security interest pursuant to Section 3
hereof, each Debtor hereby agrees with the Secured Party as follows:

 

4.1      Delivery
and Other Perfection; Maintenance, etc.

 

(a)       Delivery
of Instruments, Documents, Etc. Each Debtor shall deliver and pledge to the Secured Party or its Representative any and all
Instruments, negotiable Documents, Chattel Paper and certificated securities (accompanied by stock powers executed in blank, which
stock powers may be filled in and completed at any time upon the occurrence of any Event of Default) duly endorsed and/or accompanied
by such instruments of assignment and transfer executed by such Debtor in such form and substance as the Secured Party or its Representative
may request; provided, that so long as no Event of Default shall have occurred and be continuing, each Debtor may retain
for collection in the ordinary course of business any Instruments, negotiable Documents and Chattel Paper received by such Debtor
in the ordinary course of business, and the Secured Party or its Representative shall, promptly upon request of a Debtor, make
appropriate arrangements for making any other Instruments, negotiable Documents and Chattel Paper pledged by such Debtor available
to such Debtor for purposes of presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate
by the Secured Party or its Representative, against a trust receipt or like document). If a Debtor retains possession of any Chattel
Paper, negotiable Documents or Instruments pursuant to the terms hereof, such Chattel Paper, negotiable Documents and Instruments
shall be marked with the following legend: “This writing and the obligations evidenced or secured hereby are subject to the
security interest of GPB Debt Holdings II LLC, in its capacity as Collateral Agent for the benefit of the Purchaser, as secured
party.”

 

    7 

     

    

 

(b)       Other
Documents and Actions. Subject to the rights of holders of permitted Liens, each Debtor shall give, execute, deliver, file
and/or record any financing statement, registration, notice, instrument, document, agreement, Mortgage or other papers that may
be necessary or desirable (in the reasonable judgment of the Secured Party or its Representative) to create, preserve, perfect
or validate the security interest granted pursuant hereto (or any security interest or mortgage contemplated or required hereunder,
including with respect to Section 2(h) of this Agreement) or to enable the Secured Party or its Representative to exercise and
enforce the rights of the Secured Party hereunder with respect to such pledge and security interest, provided that notices
to account debtors in respect of any Accounts or Instruments shall be subject to the provisions of clause (e) below. Notwithstanding
the foregoing each Debtor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any filing
office in any jurisdiction any initial financing statements (and other similar filings or registrations under other applicable
laws and regulations pertaining to the creation, attachment, or perfection of security interests) and amendments thereto that (a)
indicate the Collateral (i) as all assets of such Debtor or words of similar effect, regardless of whether any particular asset
comprised in the Collateral falls within the scope of Article 9 of the UCC, or (ii) as being of an equal or lesser scope or with
greater detail, and (b) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing
office acceptance of any financing statement or amendment, including (i) whether such Debtor is an organization, the type of organization
and any organization identification number issued to such Debtor, and (ii) in the case of a financing statement filed as a fixture
filing, a sufficient description of real property to which the Collateral relates. Each Debtor agrees to furnish any such information
to the Secured Party promptly upon request. Each Debtor also ratifies its authorization for the Secured Party to have filed in
any jurisdiction any like initial financing statements or amendments thereto if filed prior to the date hereof.

 

(c)       Books
and Records. Each Debtor (or a Company on behalf of a Debtor) shall maintain at its own cost and expense complete and accurate
books and records of the Collateral, including, without limitation, a record of all payments received and all credits granted with
respect to the Collateral and all other dealings with the Collateral. Upon the occurrence and during the continuation of any Event
of Default, each Debtor shall deliver and turn over any such books and records (or true and correct copies thereof) to the Secured
Party or its Representative at any time on demand. Each Debtor shall permit any Representative of the Secured Party to inspect
such books and records at any time during reasonable business hours and will provide photocopies thereof at such Debtor’s
expense to the Secured Party upon request of the Secured Party.

 

(d)       Motor
Vehicles. Each Debtor shall, promptly upon acquiring same, cause the Secured Party to be listed as the lienholder on each certificate
of title or ownership covering any items of Equipment, including Motor Vehicles, having a value in excess of $50,000 individually
or in the aggregate for all such items of Equipment of the Debtor, or otherwise comply with the certificate of title or ownership
laws of the relevant jurisdiction issuing such certificate of title or ownership in order to properly evidence and perfect Secured
Party’s security interest in the assets represented by such certificate of title or ownership.

 

    8 

     

    

 

(e)       Notice
to Account Debtors; Verification. (i) Subject to the rights of holders of Permitted Liens, upon the occurrence and during the
continuance of any Event of Default or if any rights of set-off (other than set-offs against an Account arising under the Contract
giving rise to the same Account) or contra accounts may be asserted, upon request of the Secured Party or its Representative, each
Debtor shall promptly notify (and each Debtor hereby authorizes the Secured Party and its Representative so to notify) each account
debtor in respect of any Accounts or Instruments or other Persons obligated on the Collateral that such Collateral has been assigned
to the Secured Party hereunder, and that any payments due or to become due in respect of such Collateral are to be made directly
to the Secured Party, and (ii) the Secured Party and its Representative shall have the right at any time or times to make direct
verification with the account debtors or other Persons obligated on the Collateral of any and all of the Accounts or other such
Collateral.

 

(f)       Intellectual
Property. If such Debtor shall (i) obtain rights to any new patentable inventions, any registered Copyrights or any Patents
or Trademarks, or (ii) become entitled to the benefit of any registered Copyrights or any Patents or any registered Trademarks
or unregistered Trademarks material to the operations of the business of such Debtor or any improvement on any Patent, the provisions
of this Agreement above shall automatically apply thereto and such Debtor shall give to Secured Party prompt written notice thereof.
Each Debtor hereby authorizes Secured Party to modify this Agreement by amending Schedules III, IV and V, as applicable,
to include any such registered Copyrights or any such Patents and Trademarks. Each Debtor shall have the duty (i) to prosecute
diligently any patent, trademark, or service mark applications pending as of the date hereof or hereafter, (ii) to preserve and
maintain all rights in the Copyrights, Patents and Trademarks, to the extent material to the operations of the business of such
Debtor and (iii) to ensure that the Copyrights, Patents and Trademarks are and remain enforceable, to the extent material to the
operations of the business of such Debtor. Any expenses incurred in connection with such Debtor’s obligations under this
Section 4.1(f) shall be borne by such Debtor. Except for any such items that a Debtor reasonably believes (using prudent industry
customs and practices) are no longer necessary for the on-going operations of its business, no Debtor shall abandon any material
right to file a patent, trademark or service mark application, or abandon any pending patent, trademark or service mark application
or any other Copyright, Patent or Trademark without the prior written consent of Secured Party, which consent shall not be unreasonably
withheld.

 

(g)       Further
Identification of Collateral. Each Debtor will, when and as often as requested by the Secured Party or its Representative,
furnish to the Secured Party or such Representative, statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Secured Party or its Representative may reasonably request, all
in reasonable detail.

 

(h)       Investment
Property. Each Debtor will take any and all actions required or reasonably requested by the Secured Party, from time to time,
to (i) cause the Secured Party to obtain exclusive control of any Investment Property owned by such Debtor in a manner acceptable
to the Secured Party and (ii) obtain from any issuers of Investment Property and such other Persons, for the benefit of the Secured
Party, written confirmation of the Secured Party’s control over such Investment Property. For purposes of this Section 4.1(h),
the Secured Party shall have exclusive control of Investment Property if (i) such Investment Property consists of certificated
securities and a Debtor delivers such certificated securities to the Secured Party (with appropriate endorsements if such certificated
securities are in registered form); (ii) such Investment Property consists of uncertificated securities and either (x) a Debtor
delivers such uncertificated securities to the Secured Party or (y) the issuer thereof agrees, pursuant to documentation in form
and substance satisfactory to the Secured Party, that it will comply with instructions originated by the Secured Party without
further consent by such Debtor, and (iii) such Investment Property consists of security entitlements and either (x) the Secured
Party becomes the entitlement holder thereof or (y) the appropriate securities intermediary agrees, pursuant to the documentation
in form and substance satisfactory to the Secured Party, that it will comply with entitlement orders originated by the Secured
Party without further consent by any Debtor.

 

    9 

     

    

 

(i)         Commercial
Tort Claims. Each Debtor shall promptly notify Secured Party of any Commercial Tort Claim acquired by it that concerns a claim
in excess of $50,000 and unless otherwise consented to by Secured Party, such Debtor shall enter into a supplement to this Agreement
granting to Secured Party a Lien on and security interest in such Commercial Tort Claim.

 

4.2      Other
Liens. Debtors will not create, permit or suffer to exist, and will defend the Collateral against and take such other action
as is necessary to remove, any Lien on the Collateral except Permitted Liens, and will defend the right, title and interest
of the Secured Party in and to the Collateral and in and to all Proceeds thereof against the claims and demands of all Persons
whatsoever, except holders of Permitted Liens.

 

4.3      Preservation
of Rights. Whether or not any Event of Default has occurred or is continuing, the Secured Party and its Representative may,
but shall not be required to, take any steps the Secured Party or its Representative deems necessary or appropriate to preserve
any Collateral or any rights against third parties to any of the Collateral, including obtaining insurance for the Collateral at
any time when such Debtor has failed to do so, and Debtors shall promptly pay, or reimburse the Secured Party for, all expenses
incurred in connection therewith.

 

4.4      Formation
of Subsidiaries; Name Change; Location; Bailees.

 

(a)       No
Debtor shall form or acquire any subsidiary unless (i) such Debtor pledges all of the stock or equity interests of such subsidiary
to the Secured Party pursuant to an agreement in a form agreed to by the Secured Party, (ii) such subsidiary becomes a party to
this Agreement and all other applicable Security Documents and (iii) the formation or acquisition of such Subsidiary is not prohibited
by the terms of the Transaction Documents.

 

(b)       No
Debtor shall (i) reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction in which it
is incorporated or organized as of the date hereof, or (ii) otherwise change its name, identity or corporate structure, in each
case, without the prior written consent of Secured Party, which consent shall not be unreasonably withheld. Each Debtor will notify
Secured Party promptly in writing prior to any such change in the proposed use by such Debtor of any tradename or fictitious business
name other than any such name set forth on Schedule II attached hereto.

 

(c)       Except
for the sale of Inventory in the ordinary course of business and other sales of assets expressly permitted by the terms of the
Purchase Agreement, each Debtor will keep the Collateral at the locations specified in Schedule I. Each Debtor will give
Secured Party thirty (30) day’s prior written notice of any change in such Debtor’s chief place of business or of any
new location for any of the Collateral.

 

    10 

     

    

 

(d)       If
any Collateral is at any time in the possession or control of any warehousemen, bailee, consignee or processor, such Debtor shall,
upon the request of Secured Party or its Representative, notify such warehousemen, bailee, consignee or processor of the Lien and
security interest created hereby and shall instruct such Person to hold all such Collateral for Secured Party’s account subject
to Secured Party’s instructions.

 

(e)       Each
Debtor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect
to any financing statement relating to Secured Party’s security interests hereunder without the prior written consent of
Secured Party and agrees that it will not do so without the prior written consent of Secured Party, subject to such Debtor’s
rights under Section 9-509(d)(2) to the UCC.

 

(f)        Subject
to the rights of holders of Permitted Liens, no Debtor shall enter into any Contract that restricts or prohibits the grant to Secured
Party of a security interest in Accounts, Chattel Paper, Instruments or payment intangibles or the proceeds of the foregoing.

 

4.5      Events
of Default, Etc. During the period during which an Event of Default shall have occurred and be continuing, subject to the
rights of holders of Permitted Liens:

 

(a)       each
Debtor shall, at the request of the Secured Party or its Representative, assemble the Collateral and make it available to Secured
Party or its Representative at a place or places designated by the Secured Party or its Representative which are reasonably convenient
to Secured Party or its Representative, as applicable, and such Debtor;

 

(b)       the
Secured Party or its Representative may make any reasonable compromise or settlement deemed desirable with respect to any of the
Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the
Collateral;

 

(c)       the
Secured Party shall have all of the rights and remedies with respect to the Collateral of a secured party under the UCC (whether
or not said UCC is in effect in the jurisdiction where the rights and remedies are asserted) and such additional rights and remedies
to which a secured party is entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may be
asserted, including, without limitation, the right, to the maximum extent permitted by law, to: (i) exercise all voting, consensual
and other powers of ownership pertaining to the Collateral as if the Secured Party were the sole and absolute owner thereof (and
each Debtor agrees to take all such action as may be appropriate to give effect to such right) and (ii) to the appointment of a
receiver or receivers for all or any part of the Collateral or business of a Debtor, whether such receivership be incident to a
proposed sale or sales of such Collateral or otherwise and without regard to the value of the Collateral or the solvency of any
person or persons liable for the payment of the Obligations secured by such Collateral. Each Debtor hereby consents to the appointment
of such receiver or receivers, waives any and all defenses to such appointment and agrees that such appointment shall in no manner
impair, prejudice or otherwise affect the rights of Secured Party under this Agreement. Each Debtor hereby expressly waives notice
of a hearing for appointment of a receiver and the necessity for bond or an accounting by the receiver;

 

    11 

     

    

 

(d)       the
Secured Party or its Representative in its discretion may, in the name of the Secured Party or in the name of a Debtor or otherwise,
demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so;

 

(e)       the
Secured Party or its Representative may take immediate possession and occupancy of any premises owned, used or leased by a Debtor
and exercise all other rights and remedies which may be available to the Secured Party;

 

(f)        the
Secured Party may, upon reasonable notice (such reasonable notice to be determined by Secured Party in its sole and absolute discretion,
which shall not be less than ten (10) days), with respect to the Collateral or any part thereof which shall then be or shall thereafter
come into the possession, custody or control of the Secured Party or its Representative, sell, lease, license, assign or otherwise
dispose of all or any part of such Collateral, at such place or places as the Secured Party deems best, and for cash or for credit
or for future delivery (without thereby assuming any credit risk), at public or private sale, without demand of performance or
notice of intention to effect any such disposition or of the time or place thereof (except such notice as is required above or
by applicable statute and cannot be waived), and the Secured Party or anyone else may be the purchaser, lessee, licensee, assignee
or recipient of any or all of the Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private
sale) and thereafter hold the same absolutely, free from any claim or right of whatsoever kind, including any right or equity of
redemption (statutory or otherwise), of Debtors, any such demand, notice and right or equity being hereby expressly waived and
released. The Secured Party may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned
from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which
the sale may be so adjourned;

 

(g)       the
rights, remedies and powers conferred by this Section 4.5 are in addition to, and not in substitution for, any other rights, remedies
or powers that the Secured Party may have under any Transaction Document, at law, in equity or by or under the UCC or any other
statute or agreement. The Secured Party may proceed by way of any action, suit or other proceeding at law or in equity and no right,
remedy or power of the Secured Party will be exclusive of or dependent on any other. The Secured Party may exercise any of its
rights, remedies or powers separately or in combination and at any time; and

 

(h)       each
Debtor, Secured Party and each Debtor’s bank shall enter into a deposit account control agreement in form and substance satisfactory
to Secured Party that is sufficient to give Secured Party “control” (for purposes of Articles 8 and 9 of the Uniform
Commercial Code) over such account and which directs such bank to transfer such funds so deposited on a daily basis, or at other
times acceptable to Secured Party, to Secured Party, either to any account maintained by Secured Party at said bank or by wire
transfer to appropriate account(s) at Secured Party. All funds deposited in such Deposit Accounts shall immediately become subject
to the security interest of Secured Party for its own benefit, and Secured Party shall obtain the agreement by such bank to waive
any offset rights against the funds so deposited. Secured Party shall apply all funds received by it from the Deposit Accounts
to the satisfaction of the Obligations.

 

    12 

     

    

 

The proceeds of each collection, sale or
other disposition under this Section 4.5 shall be applied in accordance with Section 4.8 hereof.

 

4.6      Deficiency.
If the proceeds of sale, collection or other realization of or upon the Collateral are insufficient to cover the costs and expenses
of such realization and the payment in full of the Obligations, Debtors shall remain jointly and severally liable for any deficiency.

 

4.7      Private
Sale. Each Debtor recognizes that the Secured Party may be unable to effect a public sale of any or all of the Collateral consisting
of securities by reason of certain prohibitions contained in the Securities Act of 1933, as amended (the “Act”),
and applicable state securities laws, but may be compelled to resort to one or more private sales thereof to a restricted group
of purchasers who will be obliged to agree, among other things, to acquire such Collateral for their own account for investment
and not with a view to the distribution or resale thereof. Each Debtor acknowledges and agrees that any such private sale may result
in prices and other terms less favorable to the seller than if such sale were a public sale and each Debtor agrees that it is not
commercially unreasonable for Secured Party to engage in any such private sales or dispositions under such circumstances. The Secured
Party shall be under no obligation to delay a sale of any of the Collateral to permit a Debtor to register such Collateral for
public sale under the Act, or under applicable state securities laws, even if Debtors would agree to do so. The Secured Party shall
not incur any liability as a result of the sale of any such Collateral, or any part thereof, at any private sale provided for in
this Agreement conducted in a commercially reasonable manner, and so long as Secured Party conducts such sale in a commercially
reasonable manner each Debtor hereby waives any claims against the Secured Party arising by reason of the fact that the price at
which the Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public
sale or was less than the aggregate amount of the Obligations, even if the Secured Party accepts the first offer received and does
not offer the Collateral to more than one offeree.

 

Each Debtor further agrees
to do or cause to be done all such other acts and things as may be necessary to make such sale or sales of any portion or all of
any such Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions,
decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction
over any such sale or sales, all at such Debtor’s expense. Each Debtor further agrees that a breach of any of the covenants
contained in this Section 4.7 will cause irreparable injury to the Secured Party, that the Secured Party has no adequate remedy
at law in respect of such breach and, as a consequence, agrees that each and every covenant contained in this Section 4.7 shall
be specifically enforceable against Debtors, and each Debtor hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants except for a defense that no Event of Default has occurred and is continuing.

 

4.8      Application
of Proceeds. The proceeds of any collection, sale or other realization of all or any part of the Collateral, and any other
cash at the time held by the Secured Party under this Agreement, shall be applied to the Obligations in such order as Secured Party
shall elect.

 

    13 

     

    

 

4.9      Attorney-in-Fact.
Each Debtor hereby irrevocably constitutes and appoints the Secured Party, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and stead of such Debtor and in the name of such Debtor
or in its own name, from time to time in the discretion of the Secured Party, for the purpose of carrying out the terms of this
Agreement, to take any and all appropriate action and to execute and deliver any and all documents and instruments which may be
necessary or desirable to perfect or protect any security interest granted hereunder, to maintain the perfection or priority of
any security interest granted hereunder, or to otherwise accomplish the purposes of this Agreement, and, without limiting the generality
of the foregoing, hereby gives the Secured Party the power and right, on behalf of such Debtor, without notice to or assent by
such Debtor (to the extent permitted by applicable law), subject to the rights of holders of Permitted Liens, to do the
following:

 

(a)       to
take any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement;

 

(b)       upon
the occurrence and during the continuation of an Event of Default, to ask, demand, collect, receive and give acquittance and receipts
for any and all moneys due and to become due under any Collateral and, in the name of such Debtor or its own name or otherwise,
to take possession of and endorse and collect any checks, drafts, notes, acceptances or other Instruments for the payment of moneys
due under any Collateral and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Secured Party for the purpose of collecting any and all such moneys due under any Collateral whenever
payable and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise deemed appropriate
by the Secured Party for the purpose of collecting any and all such moneys due under any Collateral whenever payable;

 

(c)       to
pay or discharge charges or liens levied or placed on or threatened against the Collateral, to effect any insurance called for
by the terms of this Agreement and to pay all or any part of the premiums therefor;

 

(d)       to
direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due, and to become due
thereunder, directly to the Secured Party or as the Secured Party shall direct, and to receive payment of and receipt for any and
all moneys, claims and other amounts due, and to become due at any time, in respect of or arising out of any Collateral;

 

(e)       upon
the occurrence and during the continuation of an Event of Default, to sign and indorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with
accounts and other Documents constituting or relating to the Collateral;

 

(f)        upon
the occurrence and during the continuation of an Event of Default, to commence and prosecute any suits, actions or proceedings
at law or in equity in any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other
right in respect of any Collateral;

 

(g)       upon
the occurrence and during the continuation of an Event of Default, to defend any suit, action or proceeding brought against a Debtor
with respect to any Collateral;

 

    14 

     

    

 

(h)       upon
the occurrence and during the continuation of an Event of Default, to settle, compromise or adjust any suit, action or proceeding
described above and, in connection therewith, to give such discharges or releases as the Secured Party may deem appropriate;

 

(i)        to
the extent that a Debtor’s authorization given in Section 4.1(b) of this Agreement is not sufficient to file such financing
statements with respect to this Agreement, with or without such Debtor’s signature, or to file a photocopy of this Agreement
in substitution for a financing statement, as the Secured Party may deem appropriate and to execute in such Debtor’s name
such financing statements and amendments thereto and continuation statements which may require such Debtor’s signature;

 

(j)        upon
the occurrence and during the continuation of an Event of Default, generally to sell, transfer, pledge, make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely as though the Secured Party were the absolute owners
thereof for all purposes; and

 

(k)       to
do, at the Secured Party’s option and at such Debtor’s expense, at any time, or from time to time, all acts and things
which the Secured Party reasonably deems necessary to protect or preserve or, upon the occurrence and during the continuation of
an Event of Default, realize upon the Collateral and the Secured Party’s lien therein, in order to effect the intent of this
Agreement, all as fully and effectively as such Debtor might do.

 

Each Debtor hereby
ratifies, to the extent permitted by law, all that such attorneys lawfully do or cause to be done by virtue hereof provided the
same is performed in a commercially reasonable manner. The power of attorney granted hereunder is a power coupled with an interest
and shall be irrevocable until the Obligations are indefeasibly paid in full in cash and this Agreement is terminated in accordance
with Section 4.11 hereof.

 

Each Debtor also authorizes
the Secured Party, at any time from and after the occurrence and during the continuation of any Event of Default, (x) to communicate
in its own name with any party to any Contract with regard to the assignment of the right, title and interest of such Debtor in
and under the Contracts hereunder and other matters relating thereto and (y) to execute, in connection with any sale of Collateral
provided for in Section 4.5 hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to
the Collateral.

 

4.10    Perfection.
Prior to or concurrently with the execution and delivery of this Agreement, each Debtor shall:

 

(a)       file
such financing statements, assignments for security and other documents in such offices as may be necessary or as the Secured Party
or the Representative may request to perfect the security interests granted by Section 3 of this Agreement;

 

(b)       at
Secured Party’s request, deliver to the Secured Party or its Representative the originals of all Instruments together with,
in the case of Instruments constituting promissory notes, allonges attached thereto showing such promissory notes to be payable
to the order of a blank payee;

 

    15 

     

    

 

(c)       deliver
to the Secured Party or its Representative the originals of all Motor Vehicle Titles, duly endorsed indicating the Secured Party’s
interest therein as a lienholder, together with such other documents as may be required consistent with Section 4.1(d) hereof to
perfect the security interest granted by Section 3 in all such Motor Vehicles (if any).

 

4.11    Termination;
Partial Release of Collateral. This Agreement and the Liens and security interests granted hereunder shall not terminate until
the termination of the Purchase Agreement and the Notes and the full and complete performance and indefeasible satisfaction of
all the Obligations (i) in respect of the Transaction Documents (including, without limitation, the indefeasible payment in full
in cash of all such Obligations) and (ii) with respect to which claims have been asserted by the Collateral Agent/ and or Purchaser,
whereupon the Secured Party shall forthwith cause to be assigned, transferred and delivered, against receipt but without any recourse,
warranty or representation whatsoever, any remaining Collateral to or on the order of Debtors. The Secured Party shall also execute
and deliver to Debtors upon such termination and at Debtors’ expense such UCC termination statements, certificates for terminating
the liens on the Motor Vehicles (if any) and such other documentation as shall be reasonably requested by Debtors to effect the
termination and release of the Liens and security interests in favor of the Secured Party affecting the Collateral.

 

4.12    Further
Assurances. At any time and from time to time, upon the written request of the Secured Party or its Representative, and at
the sole expense of Debtors, subject to the rights of holders of Permitted Liens, Debtors will promptly and duly execute
and deliver any and all such further instruments, documents and agreements and take such further actions as the Secured Party or
its Representative may reasonably require in order for the Secured Party to obtain the full benefits of this Agreement and of the
rights and powers herein granted in favor of the Secured Party, including, without limitation, using Debtors’ best efforts
to secure all consents and approvals necessary or appropriate for the assignment to the Secured Party of any Collateral held by
Debtors or in which a Debtor has any rights not heretofore assigned, the filing of any financing or continuation statements under
the UCC with respect to the liens and security interests granted hereby, transferring Collateral to the Secured Party’s possession
(if a security interest in such Collateral can be perfected by possession), placing the interest of the Secured Party as lienholder
on the certificate of title of any Motor Vehicle, and obtaining waivers of liens from landlords and mortgagees. Each Debtor also
hereby authorizes the Secured Party and its Representative to file any such financing or continuation statement without the signature
of such Debtor to the extent permitted by applicable law.

 

4.13    Limitation
on Duty of Secured Party. The powers conferred on the Secured Party under this Agreement are solely to protect the Secured
Party’s interest in the Collateral and shall not impose any duty upon it to exercise any such powers. The Secured Party shall
be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither the Secured
Party nor its Representative nor any of their respective officers, directors, employees or agents shall be responsible to Debtors
for any act or failure to act, except for gross negligence or willful misconduct. Without limiting the foregoing, the Secured Party
and any Representative shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in their
possession if such Collateral is accorded treatment substantially equivalent to that which the relevant Secured Party or any Representative,
in its individual capacity, accords its own property consisting of the type of Collateral involved, it being understood and agreed
that neither the Secured Party nor any Representative shall have any responsibility for taking any necessary steps (other than
steps taken in accordance with the standard of care set forth above) to preserve rights against any Person with respect to any
Collateral.

 

    16 

     

    

 

Also without limiting
the generality of the foregoing, neither the Secured Party nor any Representative shall have any obligation or liability under
any Contract or license by reason of or arising out of this Agreement or the granting to the Secured Party of a security interest
therein or assignment thereof or the receipt by the Secured Party or any Representative of any payment relating to any Contract
or license pursuant hereto, nor shall the Secured Party or any Representative be required or obligated in any manner to perform
or fulfill any of the obligations of Debtors under or pursuant to any Contract or license, or to make any payment, or to make any
inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under
any Contract or license, or to present or file any claim, or to take any action to collect or enforce any performance or the payment
of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

Section
5.          Miscellaneous.

 

5.1      No
Waiver. No failure on the part of the Secured Party or any of its Representatives to exercise, and no course of dealing with
respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise by the Secured Party or any of its Representatives of any right, power or remedy hereunder preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. The rights and remedies hereunder provided are
cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law.

 

5.2      Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of New York.

 

5.3      Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Purchase Agreement; provided, that, to the extent any such communication
is being made or sent to a Debtor that is not the Company, such communication shall be effective as to such Debtor if made or sent
to any Company in accordance with the foregoing. Debtors and Secured Party may change their respective notice addresses by written
notice given to each other party five (5) days prior to the effectiveness of such change.

 

5.4      Amendments,
Etc. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Debtor
sought to be charged or benefited thereby and the Secured Party. Any such amendment or waiver shall be binding upon the Secured
Party and the Debtor sought to be charged or benefited thereby and their respective successors and assigns.

 

5.5      Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of each
of the parties hereto, provided, that no Debtor shall assign or transfer its rights hereunder without the prior written consent
of the Secured Party. Secured Party may assign its rights hereunder without the consent of Debtors, in which event such assignee
shall be deemed to be Secured Party hereunder with respect to such assigned rights; provided, so long as no Event of Default has
occurred and is continuing, the Secured Party shall not assign any of its rights hereunder to a competitor of any Company.

 

    17 

     

    

 

5.6      Counterparts;
Headings. This Agreement may be authenticated in any number of counterparts, all of which taken together shall constitute one
and the same instrument and any of the parties hereto may authenticate this Agreement by signing any such counterpart. This Agreement
may be authenticated by manual signature or facsimile, .pdf or similar electronic signature, all of which shall be equally valid.
The headings in this Agreement are for convenience of reference only and shall not alter or otherwise affect the meaning hereof.

 

5.7      Severability.
If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the
other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Secured Party and its Representative in order to carry out the intentions of the parties hereto as nearly as may be possible
and (b) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability
of such provision in any other jurisdiction.

 

5.8      SUBMISSION
TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS. EACH DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT AND EACH DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING
HEREIN SHALL LIMIT THE RIGHT OF SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF ANY OTHER JURISDICTION.
ANY JUDICIAL PROCEEDING BY A DEBTOR AGAINST SECURED PARTY OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK
(AND SECURED PARTY HEREBY SUBMITS TO THE JURISDICTION OF SUCH COURT). NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY
WAY ANY RIGHT OF SECURED PARTY TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

 

5.9      WAIVER
OF RIGHT TO TRIAL BY JURY. EACH DEBTOR AND SECURED PARTY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING
OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT
CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH DEBTOR AND SECURED PARTY AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY
A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL
BY JURY IS WAIVED BY OPERATION OF THIS SECTION 5.9 AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR
IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

 

    18 

     

    

 

5.10    Joint
and Several. The obligations, covenants and agreements of Debtors hereunder shall be the joint and several obligations, covenants
and agreements of each Debtor, whether or not specifically stated herein without preferences or distinction among them.

 

5.11    Concerning
Collateral Agent. Collateral Agent shall act in accordance with the terms of the Purchase Agreement.
The Collateral Agent may exercise or refrain from exercising any rights (including making demands and giving notices) and take
or refrain from taking any action, in accordance with this Agreement and the Purchase Agreement. The Collateral Agent may employ
agents and attorneys-in-fact in connection herewith and shall not be liable for the negligence or misconduct of any such agents
or attorneys-in-fact selected by it in good faith. The Collateral Agent may resign and a successor Collateral Agent may be appointed
by the Purchaser. On the acceptance of appointment as the successor Collateral Agent, that successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent under this Agreement,
and the retiring Collateral Agent shall thereupon be discharged from its duties and obligations under this Agreement. After any
retiring Collateral Agent’s resignation, the provisions hereof shall inure to its benefit as to any actions taken or omitted
to be taken by it under this Agreement while it was the Collateral Agent.

 

5.12    No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

5.13    ENTIRE
AGREEMENT; AMENDMENT. THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, SUPERSEDES ALL OTHER PRIOR ORAL OR WRITTEN
AGREEMENTS BETWEEN SECURED PARTY, THE DEBTORS, THEIR AFFILIATES AND PERSONS ACTING ON THEIR BEHALF WITH RESPECT TO THE MATTERS
DISCUSSED HEREIN, AND THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS AND THE OTHER INSTRUMENTS REFERENCED HEREIN
AND THEREIN, CONTAIN THE ENTIRE UNDERSTANDING OF THE PARTIES WITH RESPECT TO THE MATTERS COVERED HEREIN AND THEREIN AND, EXCEPT
AS SPECIFICALLY SET FORTH HEREIN OR THEREIN, NEITHER THE SECURED PARTY NOR ANY DEBTOR MAKES ANY REPRESENTATION, WARRANTY, COVENANT
OR UNDERTAKING WITH RESPECT TO SUCH MATTERS. AS OF THE DATE OF THIS AGREEMENT, THERE ARE NO UNWRITTEN AGREEMENT BETWEEN THE PARTIES
WITH RESPECT TO THE MATTERS DISCUSSED HEREIN. NO PROVISION OF THIS AGREEMENT MAY BE AMENDED, MODIFIED OR SUPPLEMENTED OTHER THAN
BY AN INSTRUMENT IN WRITING SIGNED BY THE DEBTORS AND THE SECURED PARTY.

 

[Remainder
of Page Intentionally Left Blank; Signature Page Follows]

 

    19 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Security Agreement to be duly executed and delivered as of the day and year first above written.

 

DEBTORS:

 

	 	HEALTH-RIGHT DISCOVERIES, INC., a Florida
corporation
	 	 
	 	By:	/s/ David Hopkins

	 	 	Name: David Hopkins
Title: President

 

     

     

    

 

	 	SECURED PARTY:
	 	 
	 	GPB Debt HOLDINGS II
    LLC
	 	 	 
	 	 By:	 /s/
    David Gentile

	 	 Name:  	David Gentile

	 	 Title:	Manager

 

	 	Notice Address:
	 	 	GPB Debt Holdings II, LLC
	 	 	535 W 24th Street, 4th Floor
	 	 	New York, NY, 10011

 

     

     

    

 

EXHIBIT A

Form of Joinder

Joinder to Security Agreement

 

The undersigned, ______________________________,
hereby joins in the execution of that certain Security Agreement dated as of September 29, 2017 (as amended, restated, supplemented
or otherwise modified from time to time, the “Security Agreement”) by Health-Right Discoveries, Inc., a Florida corporation,
GPB Debt Holdings II LLC, a limited liability company, and each other Person that becomes a Debtor or a Secured Party (as defined
therein) thereunder after the date thereof and hereof and pursuant to the terms thereof, to and in favor of the Secured Party.
By executing this Joinder, the undersigned hereby agrees that it is a Debtor thereunder and agrees to be bound by all of the terms
and provisions of the Security Agreement. The undersigned represents and warrants that the representations and warranties set forth
in the Security Agreement are, with respect to the undersigned, true and correct as of the date hereof.

 

The undersigned represents
and warrants to Secured Party that:

 

(a)      all
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on Schedule I and such
Debtor conducts business in the jurisdiction set forth on Schedule I;

 

(b)      except
as disclosed on Schedule I, none of such Collateral is in the possession of any bailee, warehousemen, processor or consignee;

 

(c)      the
chief place of business, chief executive office and the office where such Debtor keeps its books and records are located at the
place specified on Schedule I;

 

(d)      such
Debtor (including any Person acquired by such Debtor) does not do business or has not done business during the past five years
under any tradename or fictitious business name, except as disclosed on Schedule II;

 

(e)      all
Copyrights, Patents and Trademarks owned or licensed by the undersigned are listed in Schedules III, IV and V,
respectively;

 

(f)       all
Deposit Accounts, securities accounts, brokerage accounts and other similar accounts maintained by such Debtor, and the financial
institutions at which such accounts are maintained, are listed on Schedule VI;

 

(g)      all
Commercial Tort Claims of such Debtor are listed on Schedule VII;

 

(h)      all
interests in real property and mining rights held by such Debtor are listed on Schedule VIII;

 

(i)       all
Equipment (including Motor Vehicles) owned by such debtor are listed on Schedule IX.

 

	 	 	 	, a	 
	 	 	 
		By:	

		Title:	

		FEIN:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]