Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT
(the “Agreement”), dated as of June [ l ], 2022, is by and
among 9 Meters Biopharma, Inc., a Delaware corporation with offices located at 8480 Honeycutt Road, Suite 120, Raleigh, North Carolina
27615 (the “Company”), and each of the investors listed on the Schedule of Buyers attached hereto (individually,
a “Buyer” and collectively, the “Buyers”).

 

RECITALS

 

A.        The Company and each Buyer is executing
and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities
Act of 1933, as amended (the “1933 Act”), and Rule 506(b) of Regulation D (“Regulation D”)
as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

B.        The Company has authorized a new series
of Senior Secured Convertible Notes in the form attached hereto as Exhibit A (the “Notes”), that
it wishes to issue and sell to the Buyers at the Initial Closing (as defined below) and, at the Company’s election, any Subsequent
Closing (as defined below), upon the terms and conditions stated in this Agreement, which such Notes shall under certain circumstances
entitle the Buyers to receive shares of the Company’s common stock, par value $0.0001 per share (together with any capital
stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common
stock, the “Common Stock”) (such underlying shares of Common Stock issuable pursuant to the terms of the Notes,
the “Note Shares”).

 

C.        Each Buyer wishes to purchase, and
the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) the aggregate principal amount of Initial
Notes (as defined below) set forth opposite such Buyer’s name in column (3) and (ii) up to the aggregate principal amount
of Subsequently Purchased Notes (as defined below) set forth opposite such Buyer’s name in column (5) on the Schedule of
Buyers.

 

D.        At the Initial Closing (as defined
below), the parties hereto shall execute and deliver the Security Agreements, in the form attached hereto as Exhibit B
(the “Security Agreements”), pursuant to which the Company has agreed to grant a first priority security interest
to the Collateral Agent (as defined in the Security Agreements), as collateral agent for the holders of the Notes in all tangible
and intangible assets, now owned and hereafter created or acquired, of the Company and its Subsidiaries.

 

E.        The Notes, any Subsequently Purchased
Notes (as defined below) and Note Shares are collectively referred to herein as the “Securities.”

 

F.        At or before the Initial Closing, each
of the parties set forth on Exhibit C shall execute and deliver a Voting Agreement, in the form attached hereto as
Exhibit D (the “Voting Agreement”), pursuant to which such parties shall agree to vote their shares
of the Company’s Common Stock in favour of providing the Requisite Stockholder Approval (as defined below).

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AGREEMENT

 

NOW, THEREFORE, in consideration of the premises
and the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:

 

	1.	PURCHASE AND SALE OF PURCHASED NoteS.

 

(a)        Purchase of Initial Purchased Notes.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7(a), as applicable, the Company shall, in
reliance upon the exemptions from securities registration afforded by Section 4(a)(2) of the 1933 Act and Rule 506(b) of Regulation
D, issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Initial
Closing Date (as defined below) the aggregate principal amount of Notes as is set forth opposite such Buyer’s name in column
(3) on the Schedule of Buyers ( the “Initial Purchased Notes”).

 

(b)        Initial Closing. The closing
(the “Initial Closing”) of the purchase of the Initial Purchased Notes by the Buyers shall occur by electronic
transmission or other transmission as mutually acceptable to the parties. The date and time of the Initial Closing (the “Initial
Closing Date”) shall be 10:00 a.m., New York time, on the first (1st) Business Day on which the conditions to the Initial
Closing set forth in Sections 6 and 7(a) are satisfied or waived (or such other date as is mutually agreed to by the Company and
each Buyer). As used herein “Business Day” means any day other than a Saturday, a Sunday or any day on which
commercial banks in The City of New York are authorized or required by law or executive order to close or be closed; provided,
however, for clarification, commercial banks in The City of New York shall not be deemed to be authorized or required by law or
executive order to close or be closed due to “stay at home”, “shelter-in-place”, “non-essential employee”
or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental
authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New
York are open for use by customers on such day.

 

(c)        Initial Securities Purchase Price.
The aggregate purchase price for the Initial Purchased Notes to be purchased by each Buyer at the Initial Closing (the “Initial
Notes Purchase Price”) shall be the amount set forth opposite such Buyer’s name in column (4) on the Schedule of
Buyers.

 

(d)        Form of Payment for Initial Purchased
Notes. On the Initial Closing Date, (i) each Buyer shall pay its respective purchase price to the Company for the aggregate
number of Initial Purchased Notes to be issued and sold to such Buyer at the Initial Closing Date set forth opposite such Buyer’s
name in column (4) on the Schedule of Buyers (net of expenses payable pursuant to Section 4(g)), by wire transfer of immediately
available funds in accordance with a Flow of Funds Letter (as defined below) with respect to the Initial Purchased Notes and (ii)
the Company shall deliver to each Buyer the aggregate principal amount of the Notes as is set forth opposite such Buyer’s
name in column (3) of the Schedule of Buyers, duly executed on behalf of the Company and registered on the books and records of
the Company in the name of such Buyer or its designee.

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(e)        Purchase of Subsequently Purchased
Notes. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7(b), as applicable, during the
period from and after the date that is six (6) months following the Initial Closing Date and ending on the date that is twenty
four (24) months following the Initial Closing Date, the Company may twice per calendar quarter deliver to the Buyers a written
notice setting forth a principal amount of additional Notes, in amounts of not less than five million dollars ($5,000,000), but
in no event shall the aggregate principal amount of additional Notes issued, if any, per calendar quarter be greater than twenty
million dollars ($20,000,000) (the “Subsequently Purchased Notes” and together with the Initial Purchased Notes,
the “Purchased Notes”), that the Company is electing to issue and sell to the Buyers, in reliance upon the exemptions
from securities registration afforded by Section 4(a)(2) of the 1933 Act and Rule 506(b) of Regulation D), and certifying that
the Equity Conditions are satisfied (a “Subsequently Purchased Notes Notice”), and each Buyer severally, but
not jointly, agrees to purchase from the Company such Subsequently Purchased Notes, up to the maximum aggregate principal amount
of Subsequently Purchased Notes as is set forth opposite such Buyer’s name in column (5) on the Schedule of Buyers; provided
that, the Company may not deliver a Subsequently Purchased Notes Notice if the number of shares of Common Stock issuable pursuant
to such proposed Subsequently Purchased Notes and any outstanding Notes (calculated based on the greater of, for each of such outstanding
Notes, (i) the outstanding Principal Amount (as defined in the Notes) of all such Notes divided by the Conversion Price (as defined
in the Notes) and (ii) the Principal Amount of all such Notes divided by the Market Stock Price (as defined in the Notes)) would
exceed 19.9% of the Company’s then outstanding shares of Common Stock, unless agreed to by the Buyers. Notwithstanding anything
to the contrary contained herein or in the Notes, the aggregate number of shares of Common Stock that may be issued under the Notes
shall not exceed the maximum number of shares of Common Stock which the Company may issue (the “Aggregate Share Cap”)
without Requisite Stockholder Approval, unless and until the Requisite Stockholder Approval has been obtained. As used herein,
”Requisite Stockholder Approval” means the shareholder approval contemplated by the stockholder approval
rules of Nasdaq, including Rule 5635(a) and Rule 5635(d) of the Nasdaq Stock Market Rules, with respect to the issuance of the
Note Shares; provided, however, that the Requisite Stockholder Approval will be deemed to be obtained if, due to any amendment
or binding change in the interpretation of the applicable listing standards of Nasdaq, such stockholder approval is no longer required
for the Company to issue shares Common Stock pursuant to the Notes.

 

(f)        Subsequent Closings. Provided
that the following conditions and the conditions to such Subsequent Closing set forth in Section 7(b) are satisfied or otherwise
waived by the Buyers (the date such satisfaction or waiver occurs referred to herein as the “Subsequent Closing Determination
Date”):

 

(i)        The Company has completed
one or more Subsequent Financings (as defined in the Notes) of at least thirty million dollars ($30,000,000) in the aggregate and
made public disclosure thereof; and

 

(ii)        The Company has been, and
continues to remain, in full compliance with the terms and conditions of the Notes and no Default (as defined in the Notes) or
Event of Default (as defined in the Notes) has occurred and is continuing.

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the closing (each a “Subsequent Closing”
and together with the Initial Closing, each a “Closing”) of the purchase by the Buyers of Subsequently Purchased
Notes pursuant to a Subsequently Purchased Notes Notice shall occur by electronic transmission or other transmission as mutually
acceptable at 10:00 a.m., New York time, on the first (1st) Business Day on which the conditions to such Subsequent Closing set
forth in Sections 6 and 7(b) are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer)
(each a “Subsequent Closing Date” and together with the Initial Closing Date, each a “Closing Date”),
provided that, in any event, each Subsequent Closing Date shall occur no later than the third (3rd) day following the
relevant Subsequent Closing Determination Date.

 

(g)        Securities Purchase Price.
The aggregate purchase price for any issuance of Subsequently Purchased Notes to be purchased by the Buyers at any Subsequent Closing
(the “Subsequent Securities Purchase Price”) shall be one hundred percent (100%) of the aggregate principal
amount of Subsequently Purchased Notes set forth on the Subsequently Purchased Notes Notice and allocated among the Buyers based
on such Buyer’s pro rata portion of the aggregate principal amount of Notes purchased hereunder, but in no event will exceed
the amount set forth opposite such Buyer’s name in column (6) on the Schedule of Buyers.

 

(h)        Form of Payment for Subsequently
Purchased Notes. On each Subsequent Closing Date, (i) each Buyer shall pay its respective purchase price to the Company for
the Subsequently Purchased Notes to be issued and sold to such Buyer at the Subsequent Closing Date, by wire transfer of immediately
available funds in accordance with a Flow of Funds Letter with respect to such Subsequently Purchased Notes and (ii) the Company
shall deliver to each Buyer the aggregate principal amount of Subsequently Purchased Notes, duly executed on behalf of the Company
and registered on the books and records of the Company in the name of such Buyer or its designee.

 

	2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally and not jointly, represents
and warrants to the Company with respect to only itself that, as of the date hereof and as of the Initial Closing Date and each
Subsequent Closing Date:

 

(a)        Organization; Authority. Such
Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization
with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
(as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)        No Public Sale or Distribution.
Such Buyer (i) is acquiring its Purchased Notes, and (ii) upon exercise of, or otherwise in accordance with, its Purchased
Notes will acquire the Note Shares issuable upon exercise thereof, or otherwise in accordance therewith, in each case, for its
own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation
of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making
the representations

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herein, such Buyer does not agree, or make
any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption from registration
under the 1933 Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person
to distribute any of the Securities in violation of applicable securities laws. For purposes of this Agreement, “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and any Governmental Entity (as defined below) or any department or agency thereof.

 

(c)        Accredited Investor Status.
At the time such Buyer was offered the Securities, it was and, as of the date hereof, such Buyer is an “accredited investor”
as that term is defined in Rule 501(a) of Regulation D.

 

(d)        Reliance on Exemptions. Such
Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy
of, and such Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of
such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire
the Securities.

 

(e)        Information. Such Buyer and
its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and
materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such Buyer and its advisors,
if any, have had (i) the opportunity to review the Transaction Documents and the SEC Documents (as defined below) and has been
afforded the opportunity to ask such questions of the Company as it has deemed necessary of, and to receive answers from, representatives
of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the
Securities; (ii) access to information about the Company and its financial condition, results of operations, business, properties,
management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional
information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed
investment decision with respect to the investment. Neither such inquiries nor any other due diligence investigations conducted
by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such Buyer’s right to rely on
the Company’s representations and warranties contained herein. Such Buyer understands that its investment in the Securities
involves a high degree of risk. Such Buyer acknowledges that it can bear the economic risk and complete loss of its investment
in the Securities and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits
and risks of the investment contemplated hereby. Such Buyer did not learn of the investment in the Securities as a result of any
general solicitation or general advertising. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision with respect to its acquisition of the Securities. Such Buyer is not relying upon, and
has not relied upon, any statement, representation or warranty made by any person, except for statements, representations and

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warranties contained in this Agreement, in
making its investment or decision to invest in the Company.

 

(f)        No Governmental Review. Such
Buyer understands that no United States federal or state agency or any other government or governmental agency has passed on or
made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor
have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(g)        Transfer or Resale. Such Buyer
understands that: (i) the Securities have not been registered under the 1933 Act or any state securities laws, and may not be offered
for sale, sold, assigned or transferred by any Buyer or any other holder of such Securities unless (A) subsequently registered
thereunder, (B) such Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel, in a form reasonably
acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration, or (C) such Buyer provides the Company with reasonable assurance that such Securities
can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto)
(collectively, “Rule 144”); and (ii) any sale of the Securities made in reliance on Rule 144 may be made only
in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances
in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in
the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC promulgated
thereunder; provided, that, from and after the date that is six (6) months following (x) the date hereof with respect to the Initial
Purchased Notes and (y) each Subsequent Closing Date, as applicable, with respect to the Subsequently Purchased Notes, at the request
of any Buyer, the Company shall, if the Company is then in compliance with Section 4(c) hereof, deliver to such Buyer or the Company’s
transfer agent, as applicable, an opinion of counsel to the Company, at the Company’s expense and in a form reasonably acceptable
to such Buyer, that (A) adequate public information with respect to the Company is then available (within the meaning of Rule 144(c))
and (B) that a sale of the Securities may otherwise be made in accordance with the terms of Rule 144. Notwithstanding the foregoing,
the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the
Securities and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder,
and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make
any delivery to the Company pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)), including,
without limitation, this Section 2(g).

 

(h)        Validity; Enforcement. This
Agreement, the Security Agreements and the Security Documents (as defined in the Security Agreements) have been duly and validly
authorized, executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such
Buyer enforceable against such Buyer in accordance with their respective terms, except as such enforceability may be limited by
general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar

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laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies.

 

(i)        No Conflicts. The execution,
delivery and performance by such Buyer of this Agreement, the Security Agreements and the Security Documents and the consummation
by such Buyer of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents
of such Buyer, or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture
or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for
such conflicts, defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have
a material adverse effect on the ability of such Buyer to perform its obligations hereunder.

 

(j)        No Bad Actor Disqualification Event.
Such Buyer represents, after reasonable inquiry, that none of the “Bad Actor” disqualifying events described in
Rule 506(d)(l)(i) to (viii) under the 1933 Act (a “Disqualification Event”) is applicable to such Buyer or any
of its Rule 506(d) Related Parties (if any). “Rule 506(d) Related Party” means a person or entity that is a
beneficial owner of such Buyer’s securities for purposes of Rule 506(d).

 

	3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and warrants to each
of the Buyers that, as of the date hereof and as of the Initial Closing Date and each Subsequent Closing Date:

 

(a)        Organization and Qualification.
Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in good standing (if a good
standing concept exists in such jurisdiction) under the laws of the jurisdiction in which they are formed, and have the requisite
power and authority to own their properties and to carry on their business as now being conducted. Each of the Company and each
of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing (if a good standing concept exists
in such jurisdiction) in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes
such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably
be expected to have a Material Adverse Effect (as defined below). As used in this Agreement, “Material Adverse Effect”
means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof)
or condition (financial or otherwise) of the Company or its Subsidiaries, taken as a whole, (ii) the transactions contemplated
hereby or in any of the other Transaction Documents or any other agreements or instruments entered into in connection herewith
or therewith or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations
under any of the Transaction Documents; provided, in no event, shall a change in the market price of the Common Stock alone
constitute a Material Adverse Effect, provided that the underlying cause of such change in stock price may be considered in determining
whether there was a Material Adverse Effect; and provided further, that the effects of changes in applicable laws, ordinance
or regulations of any Governmental Entity or changes in GAAP shall not, standing alone, constitute a Material Adverse Effect, solely
to the extent that

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such change does not have a material and disproportionate
adverse impact on the Company and its Subsidiaries, taken as a whole. Other than the Persons (as defined below) set forth on Schedule
3(a), the Company has no significant Subsidiaries within the meaning of Rule 1-02(w) of Regulation S-X. “Subsidiaries”
means any Person in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity
or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration of
such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.”

 

(b)        Authorization; Enforcement; Validity.
The Company has the requisite power and authority to enter into and perform its obligations under this Agreement and the other
Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. Each Subsidiary has the requisite
power and authority to enter into and perform its obligations under the Transaction Documents to which it is a party. The execution
and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation by the Company and its
Subsidiaries of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Initial Purchased
Notes and any Subsequently Purchased Notes, and the reservation for issuance and the issuance of the Note Shares), have been duly
authorized by the Company’s board of directors (the “Board of Directors”), and (other than a Listing of
Additional Shares Notification with Nasdaq (as defined below) (the “Nasdaq Notification”)) no further filing,
consent or authorization is required by the Company, its Subsidiaries, their respective boards of directors or their stockholders
or other governing body in connection therewith. This Agreement has been, and the other Transaction Documents to which it is a
party will be prior to the Closing, duly executed and delivered by the Company, and each constitutes a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except
as rights to indemnification and to contribution may be limited by federal or state securities law. “Transaction Documents”
means, collectively, this Agreement, the Notes, the Voting Agreements, the Security Agreements, the Security Documents and the
Irrevocable Transfer Agent Instructions (as defined below) and each of the other written agreements and instruments entered into
or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended
from time to time.

 

(c)        Issuance of Securities. The
issuance of the Securities is duly authorized and when issued and delivered in accordance with the terms of the Transaction Documents,
the Securities shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages,
defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances
(collectively “Liens”) with respect to the issuance thereof. As of each Closing Date, the Company shall have
reserved for any issuance of Note Shares from its duly authorized capital stock not less than a number of shares of authorized
but unissued Common Stock equal to the sum of two hundred percent (200%) of a fraction, the numerator of which shall be the then
outstanding Principal Amount plus an amount equal to all interest accruable on such outstanding Principal Amount through the Maturity
Date (as defined in the Notes), and the denominator of which shall be the Market Stock Payment Price

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(as defined in the Notes). The Note
Shares (upon issuance in accordance with the Notes), will be validly issued, fully paid and non-assessable and free from all preemptive
or similar rights or Liens with respect to the issuance thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock.

 

(d)        No Conflicts. The execution,
delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated
hereby and thereby (including, without limitation, the issuance of the Notes and the Note Shares, and the reservation for issuance
of the Note Shares) will not (i) result in a violation of the Certificate of Incorporation (as defined below), certificate of formation,
memorandum of association, articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries,
or any capital stock or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any
of its Subsidiaries is a party, or (iii) assuming the accuracy of the representations and warranties in Section 2, result in a
violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities
laws and regulations, and the rules and regulations of The Nasdaq Stock Market (“Nasdaq”) and including all
applicable foreign, federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries or by which
any property or asset of the Company or any of its Subsidiaries is bound or affected, assuming, with respect to clauses (ii) and
(iii) above, the making of the Nasdaq Notification and except in the case of clauses (ii) and (iii) above, for such breaches, violations
or conflicts as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(e)        Consents. Neither the Company
nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with (other
than the Nasdaq Notification, filings necessary to perfect the Liens granted under the Security Agreements and such consents, authorizations,
filings or registrations the absence of which would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect), any Governmental Entity or any regulatory or self-regulatory agency or any other Person in order for it to execute,
deliver or perform any of its respective obligations under or contemplated by the Transaction Documents, in each case, in accordance
with the terms hereof or thereof. To the Company’s knowledge, other than the Nasdaq Notification, all consents, authorizations,
orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence
have been or will be obtained or effected on or prior to the Initial Closing Date, and neither the Company nor any of its Subsidiaries
are aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting
any of the registration, application or filings contemplated by the Transaction Documents. Other than as disclosed in the Company’s
Current Report on Form 8-K, as filed with the SEC on February 11, 2022, the Company is not in violation of the requirements of
Nasdaq and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common
Stock. “Governmental Entity” means any nation, state, county, city, town, village, district, or other political
jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department, official, or entity and any

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court or other tribunal), multi-national organization
or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory,
or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned
or controlled by a government or a public international organization or any of the foregoing.

 

(f)        Acknowledgment Regarding Buyer’s
Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting solely in the capacity of an arm’s
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that no Buyer
is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate” (as defined in Rule 144)
of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” (as defined for purposes
of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)) of more than 4.99% of the
shares of any voting class of the Company’s Common Stock. The Company further acknowledges that no Buyer is acting as a financial
advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in
connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s
purchase of the Securities. The Company further represents to each Buyer that the Company’s and each Subsidiary’s decision
to enter into the Transaction Documents to which it is a party has been based solely on the independent evaluation by the Company,
each Subsidiary and their respective representatives.

 

(g)        No General Solicitation; No Placement
Agent. Neither the Company, nor any of its Subsidiaries or affiliates, nor any Person acting on its or their behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or
sale of the Securities. Except for Promethean Capital Group LLC, neither the Company nor any of its Subsidiaries has engaged any
placement agent or other agent in connection with the offer or sale of the Securities. The Company shall pay, and hold each Buyer
harmless against, any liability, loss or expense (including, without limitation, attorney’s fees and reasonable and documented
out-of-pocket expenses) arising in connection with any claim for the payment of any placement agent’s fees, financial advisory
fees, or brokers’ commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions
contemplated hereby.

 

(h)        No Integrated Offering. None
of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require approval
of stockholders of the Company in connection with the offering of the Securities for purposes of the 1933 Act or under any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation
system on which any of the securities of the Company are listed or designated for quotation. None of the Company, its Subsidiaries,
their affiliates nor any Person acting on their behalf has taken or will take any action or steps that would cause the offering
of any of the Securities to be integrated with other offerings of securities of the Company.

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(i)        Dilutive Effect. The Company
understands and acknowledges that the number of Note Shares will increase in certain circumstances. The Company further acknowledges
that its obligation to issue the Note Shares pursuant to the terms of the Notes in accordance with the terms thereof and this Agreement
is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other
stockholders of the Company.

 

(j)        Application of Takeover Protections.
The Company and its Board of Directors have taken or will take prior to the Initial Closing Date all necessary action, if any,
in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill, stockholder
rights plan or other similar anti-takeover provision under the Certificate of Incorporation, bylaws or other organizational documents
or the laws of the jurisdiction of its incorporation which is or could become applicable to any Buyer as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities and any Buyer’s
ownership of the Securities.

 

(k)        Financial Statements. During
the one (1) year prior to the date hereof and the Initial Closing Date, the Company has timely filed all reports, schedules, forms,
proxy statements, statements and other documents required to be filed by it with the SEC (other than Section 16 ownership filings)
pursuant to the reporting requirements of the 1934 Act (reports filed in compliance with the time period specified in Rule 12b-25
promulgated under the 1934 Act shall be considered timely for this purpose) (all of the foregoing filed prior to the date hereof
and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated
by reference therein being hereinafter referred to as the “SEC Documents”). The Company has delivered or has
made available to the Buyers or their respective representatives true, correct and complete copies of each of the SEC Documents
not available on the EDGAR system. As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the
SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the
SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto as in effect as of the time of filing. Such financial statements have been prepared in accordance
with generally accepted accounting principles (“GAAP”), consistently applied, during the periods involved (except
(i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either
individually or in the aggregate). No other information provided by or on behalf of the Company to any of the Buyers which is not
included in the SEC Documents (including, without limitation, information referred to in the disclosure schedules to this Agreement)
contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements
therein not misleading, in the light of the circumstance under which they are or were made. The Company is not currently contemplating

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to amend or restate any of the financial statements
(including, without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included
in the SEC Documents (the “Financial Statements”), nor is the Company currently aware of facts or circumstances
which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials
Statements to be in material compliance with GAAP and the rules and regulations of the SEC. The Company has not been informed by
its independent auditors that they recommend that the Company amend or restate any of the Financial Statements or that there is
any need for the Company to amend or restate any of the Financial Statements.

 

(l)         Absence of Certain Changes.
Since the date of the Company’s most recent audited financial statements contained in the Company’s most recently filed,
prior to the date hereof, Annual Report on Form 10-K, as applicable, there has been no Material Adverse Effect. Since the date
of the Company’s most recent audited financial statements contained in the Company’s most recently filed, prior to
the date hereof, Annual Report on Form 10-K, as applicable, except as set forth on Schedule 3(l), neither the Company nor
any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, outside
of the ordinary course of business, (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary
course of business or (iv) made any revaluation of any of their respective assets, including, without limitation, writing down
the value of capitalized inventory or writing off notes or accounts receivable or any sale of assets other than in the ordinary
course of business.

 

(m)       Insolvency. Neither the Company
nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency,
reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to
believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of
any fact which would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated
basis, are not as of the date hereof and as of the Initial Closing Date and each Subsequent Closing Date, and after giving effect
to the transactions contemplated hereby to occur on the Initial Closing Date and on each Subsequent Closing Date, will not be Insolvent
(as defined below). For purposes of this Section 3(m), “Insolvent” means, (i) with respect to the Company and
its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the Company’s and its Subsidiaries’
assets is less than the amount required to pay the Company’s and its Subsidiaries’ total Indebtedness (as defined below),
(B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur or believe that they
will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company and each
Subsidiary, individually, (A) the present fair saleable value of the Company’s or such Subsidiary’s (as the case may
be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such Subsidiary (as the
case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities
become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will
incur debts that would be beyond its respective ability to pay as such debts mature.

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(n)        Listing and Trading. Other
than as disclosed in the Company’s Current Report on Form 8-K, as filed with the SEC on February 11, 2022, during the one
year prior to the date hereof and prior to each Closing Date with respect to which this representation is being made, (i) the Common
Stock has been listed or designated for quotation on Nasdaq, (ii) trading in the Common Stock has not been suspended by the SEC
or Nasdaq and (iii) the Company has received no communication, written or oral, from the SEC or Nasdaq regarding the suspension
or delisting of the Common Stock from Nasdaq.

 

(o)        Foreign Corrupt Practices.
Neither the Company, any of the Company’s Subsidiaries, nor any director, officer, employee thereof, nor, to the Company’s
knowledge, any agent or any other person acting for or on behalf of the foregoing (individually and collectively, a “Company
Affiliate”) have violated the U.S. Foreign Corrupt Practices Act or any other applicable anti-bribery or anti-corruption
laws (individually and collectively, “Anti-Corruption Laws”), nor, to the Company’s knowledge, has any
Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give,
or authorized the giving of anything of value, to any officer, employee or any other person acting in an official capacity for
any Governmental Entity to any political party or official thereof or to any candidate for political office (individually and collectively,
a “Government Official”) or to any person under circumstances where such Company Affiliate knew or was aware
of a high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly,
to any Government Official, for the purpose of:

 

(i)        (A) influencing any act or decision
of such Government Official in his/her official capacity, (B) inducing such Government Official to do or omit to do any act in
violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official to influence or
affect any act or decision of any Governmental Entity, or

 

(ii)        assisting the Company or its Subsidiaries
in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

 

Neither of the Company nor any of its Subsidiaries
will use, directly or indirectly, any part of the proceeds of the offering in any manner that would constitute a violation of Anti-Corruption
Laws.

 

(p)        Sarbanes-Oxley Act. The Company
and each of its Subsidiaries is in material compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002,
as amended, and any and all applicable rules and regulations promulgated by the SEC thereunder.

 

(q)        Transactions With Affiliates.
Except as set forth on Schedule 3(q) , no current or former employee, partner, director, officer or shareholder (direct
or indirect) of the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company, any affiliate of any thereof,
or any relative with a relationship no more remote than first cousin of any of the foregoing, is presently or has been (i) a party
to any transaction with the Company or its Subsidiaries (including any contract, agreement or other arrangement providing for the
furnishing of services by, or rental of real or personal property from, or otherwise requiring payments to, any such director,
officer or shareholder or such associate or affiliate or relative Subsidiaries (other than for ordinary course services as employees,
officers or directors of the

    	13

    	

    

Company or any of its Subsidiaries)) or (ii)
the direct or indirect owner of an interest in any corporation, firm, association or business organization which is a competitor,
supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in less than 5% of
the common stock or ordinary shares, as applicable, of a company whose securities are traded on or quoted through an Eligible Market
(as defined below)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which relates
to the business of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries. No employee, officer,
shareholder or director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the Company
or its Subsidiaries, as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make loans or
extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for
reasonable expenses incurred on behalf of the Company or its Subsidiaries, as the case may be, and (iii) for other standard employee
benefits made generally available to all employees or executives (including share option agreements outstanding under any share
option plan approved by the Board of Directors of the Company).

 

(r)        Equity Capitalization.

 

(i)        Authorized
and Outstanding Capital Stock. As of the date of this Agreement and as of the Closing, the authorized capital stock of the
Company consists of five hundred fifty million (550,000,000) shares of Common Stock, of which, 259,107,380 are issued and outstanding;
ten million (10,000,000) shares of preferred stock, par value $0.0001 per share, of which, none are issued and outstanding; and
53,962,090 shares of Common Stock are reserved for issuance pursuant to Convertible Securities (as defined below) (other than
the Notes) exercisable or exchangeable for, or convertible into, shares of Common Stock. “Convertible Securities”
means any capital stock or other security of the Company or any of its Subsidiaries that is at any time and under any circumstances
directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire,
any capital stock or other security of the Company (including, without limitation, Common Stock and any rights, warrants or options
to subscribe for or purchase shares of Common Stock or Convertible Securities (collectively, “Options”)) or
any of its Subsidiaries.

 

(ii)        Valid Issuance; Available Shares;
Affiliates. All of the Company’s outstanding shares are duly authorized and have been validly issued and are fully paid
and non-assessable. Schedule 3(r)(ii) sets forth the number of shares of each class of Common Stock that are (A) reserved
for issuance pursuant to Convertible Securities (other than the Initial Purchased Notes and the Subsequently Purchased Notes) as
of the date hereof and as of the Initial Closing and (B) as of the date hereof and as of the Initial Closing, owned by Persons
who are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers,
directors and holders of at least 10% of any class of the Company’s issued and outstanding Common Stock are “affiliates”
without conceding that any such Persons are “affiliates” for purposes of federal securities laws) of the Company or
any of its Subsidiaries. To the Company’s knowledge, as of the date hereof and the Initial Closing Date, no Person owns 10%
or more of any class of the Company’s issued and outstanding shares of Common Stock (calculated based on the assumption that
all Convertible Securities, whether or not presently

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exercisable or convertible, have been fully
exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including “blockers”)
contained therein without conceding that such identified Person is a 10% stockholder for purposes of federal securities laws).

 

(iii)        Existing Securities; Obligations.
Except as set forth on Schedule 3(r)(iii): (A) none of the Company’s or any Subsidiary’s shares, interests or
capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company or any
Subsidiary; (B) other than stock options, restricted share units and deferred share units awarded to employees, directors and consultants
of the Company under equity incentive plans adopted by the Board of Directors of the Company and described in the SEC Documents,
there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the
Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its
Subsidiaries is or may become bound to issue additional shares, interests or capital stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of
its Subsidiaries; (C) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act; (D) there are no outstanding securities or instruments of the
Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the
Company or any of its Subsidiaries; (E) there are no securities or instruments containing anti-dilution or similar provisions that
will be triggered by the issuance of the Securities; and (F) neither the Company nor any Subsidiary has any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement.

 

(iv)        Organizational Documents.
The Company has furnished to the Buyers true, correct and complete copies of the Company’s Certificate of Incorporation,
as amended, and as in effect on the date hereof and each Closing Date (the “Certificate of Incorporation”),
and the terms of all Convertible Securities and the material rights of the holders thereof in respect thereto.

 

(s)        Indebtedness and Other Contracts.
Except as set forth on Schedule 3(s), neither the Company nor any of its Subsidiaries (i) has any outstanding debt securities,
notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company
or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii) has any financing statements
securing obligations in any amounts filed against the Company or any of its Subsidiaries or with respect to any of their respective
assets; (iii) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness,
except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or
(iv) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment
of the Company’s officers, has or is expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries
have any liabilities or obligations required to be

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disclosed in the SEC Documents which are not
so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’
respective businesses consistent with past practices and which, individually or in the aggregate, do not or could not have a Material
Adverse Effect. For purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication,
(A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property
or services (including, without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered
into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect
to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or
similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses,
(E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing,
in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and
remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property),
(F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for
the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above
secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any
Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which
owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations
in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

(t)        Litigation. There is no material
action, suit, arbitration, proceeding, inquiry or investigation before or by Nasdaq, any court, public board, other Governmental
Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company
or any of its Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors, whether
of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in Schedule 3(t). To the knowledge
of the Company, no director, officer or employee of the Company or any of its Subsidiaries has willfully violated 18 U.S.C. §1519
or engaged in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and
to the knowledge of the Company, there is not pending, contemplated or anticipated, any inquiry or investigation by the SEC involving
the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. The
SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company
under the 1933 Act or the 1934 Act. After reasonable inquiry of its officers (as defined in Rule 16a-1(f) promulgated under the
1934 Act) and members of its Board of Directors, the Company is not aware of any fact which might result in or form the basis for
any such action, suit, arbitration,

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investigation, inquiry or other proceeding.
Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction, decree, determination or award
of any Governmental Entity.

 

(u)        Insurance. The Company and
each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such
amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries
are engaged. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied for, and
neither the Company nor any of its Subsidiaries has any reason to believe that it will be unable to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not have a Material Adverse Effect.

 

(v)        Employee Relations. Neither
the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The
Company and its Subsidiaries believe that their relations with their employees are good. No executive officer (as defined in Rule
501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company
or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s
employment with the Company or any such Subsidiary. To the knowledge of the Company, no executive officer or other key employee
of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement
or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may
be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The
Company and its Subsidiaries are in material compliance with all applicable federal, state, local and foreign laws and regulations
respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except
where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

 

(w)       Title. Each of the Company
and its Subsidiaries holds good title to, or a valid leasehold interest in, all real property, leases in real property, facilities
or other interests in real property owned or held by the Company or any of its Subsidiaries that is material to the business of
the Company (the “Real Property”). The Real Property is free and clear of all Liens and is not subject to any
rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for (a) Liens
for current taxes not yet due and (b) zoning laws and other land use restrictions that do not materially impair the present or
anticipated use of the property subject thereto. Any Real Property held under lease by the Company or any of its Subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere in any
material respect with the use made and proposed to be made of such property and buildings by the Company or any of its Subsidiaries.

 

(x)        Fixtures and Equipment. Each
of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold interest in, the tangible personal
property, equipment,

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improvements, fixtures, and other personal
property and appurtenances that are used by the Company and its Subsidiaries to conduct their respective businesses (the “Fixtures
and Equipment”). The Fixtures and Equipment are structurally sound, are in good operating condition and repair (ordinary
wear and tear excepted), are adequate for the uses to which they are being put, are not in need of maintenance or repairs except
for ordinary, routine maintenance and repairs and are sufficient for the conduct of the Company’s and/or its Subsidiaries’
businesses (as applicable) in the manner as conducted prior to the date hereof and each Closing Date. Except as set forth on Schedule
3(x), each of the Company and its Subsidiaries owns all of its Fixtures and Equipment free and clear of all Liens except for
(i) Liens for current taxes not yet due, (ii) zoning laws and other land use restrictions that do not impair the present or anticipated
use of the property subject thereto and (iii) other Permitted Liens (as defined in the Notes).

 

(y)        Intellectual Property Rights.
The Company and each of its Subsidiaries owns or possesses adequate rights or licenses to use all material trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions, licenses,
approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations
therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted
and as presently proposed to be conducted. None of the Company’s or its Subsidiaries’ Intellectual Property Rights,
which are necessary to conduct their respective businesses, have expired, terminated or been abandoned, or are expected to expire,
terminate or be abandoned, within three years from the date of this Agreement. To the best knowledge of the Company, neither the
Company nor any of its Subsidiaries has, (i) infringed, misappropriated, diluted or violated the Intellectual Property Rights of
others, (ii) violated any material term or provision of any contract concerning Intellectual Property Rights, (iii) violated
any material right of any person (including any right to privacy or publicity), or (iv) conducted its business in a manner that
would constitute unfair competition or unfair trade practices under the laws of any jurisdiction. There is no claim, action or
proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the
Company or any of its Subsidiaries regarding Intellectual Property Rights of others that would reasonably be expected to have a
Material Adverse Effect on the Company. The Company is not aware of any facts or circumstances which might give rise to any of
the foregoing infringements or claims, actions or proceedings. The Company and each of its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all trade secrets within the Intellectual Property Rights of the
Company that are materially necessary to conduct their respective businesses. To the knowledge of the Company, no third party is
infringing, violating or misappropriating any Company owned Intellectual Property Rights, and there is no claim pending or proceeding
regarding any such actual or alleged infringement, misappropriation or other violation of any Company owned Intellectual Property
Rights. All former and current employees, contractors and consultants of the Company who have contributed to the creation or development
of the Company owned Intellectual Property Rights have executed a valid and enforceable agreement containing an irrevocable assignment
to the Company of all of their ownership and other rights therein, including to any invention, improvement or discovery. The Company
has not distributed, incorporated or otherwise used any “Open Source Code” (also known as “free software”
(as defined by the Free Software Foundation) or “open source software” (as defined by the Open Source Initiative) or
has not otherwise distributed publicly software under terms that

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permit modification and redistribution of
such software) in a manner that would require that any of the proprietary software owned by the Company or included in a Company
product or service: (i) be made available or distributed in source code form; (ii) be licensed for the purpose of making derivative
works; (iii) be licensed under terms that allow reverse engineering, reverse assembly or disassembly of any kind; or (iv) be redistributable
at no charge. The Company is in compliance with the terms and conditions of all licenses for free or Open Source Code.

 

(z)        Environmental Laws. (i) The
Company and its Subsidiaries (A) are in compliance with any and all Environmental Laws (as defined below), (B) have received all
permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses
and (C) are in compliance with all terms and conditions of any such permit, license or approval where, except in each of the foregoing
clauses (A), (B) and (C), where the failure to so comply or having such permits, licenses or other approval would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect. The term “Environmental Laws”
means all federal, state, local or foreign laws or regulations relating to pollution or protection of human health or the environment
(including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or
toxic or hazardous materials, substances or wastes (collectively, “Hazardous Materials”) into the environment,
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of,
or exposure to, Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(i)        No Hazardous Materials:

 

(A)        to the Company’s knowledge,
have been disposed of or otherwise released from any Real Property of the Company or any of its Subsidiaries in violation of any
Environmental Laws; or

 

(B)        to the Company’s knowledge,
are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation
of any Environmental Laws or in quantities, a manner or location that would reasonably be expected to require remedial action by
the Company or any of its Subsidiaries pursuant to any Environmental Laws. No prior use by the Company or any of its Subsidiaries
of any Real Property has occurred that violates any Environmental Laws, which violation would have a Material Adverse Effect.

 

(ii)        To the Company’s knowledge,
neither the Company nor any of its Subsidiaries knows of any other Person that has stored, treated, recycled, disposed of or otherwise
located on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and polychlorinated
biphenyls.

 

(iii)       To the Company’s knowledge,
none of the Real Property is on any federal or state “Superfund” list or Comprehensive Environmental Response, Compensation
and

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Liability Information System (“CERCLIS”)
list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related
Liens.

 

(iv)       Neither the Company nor its Subsidiaries
is subject to any pending or, to the Company’s or its Subsidiaries knowledge, threatened claim or proceeding to any Environmental
Laws, except for any claims or proceeding that would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

(aa)      Tax Status. The Company and
each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject through the date of this Agreement or have requested extensions
thereof (except where the failure to file would not, individually or in the aggregate, have a Material Adverse Effect) and (ii)
has timely paid all taxes and other governmental assessments and charges, shown or determined to be due on such returns, reports
and declarations, except those being contested in good faith and for which reserves required by GAAP have been created in the financial
statements of the Company or for cases in which the failure to pay would not have a Material Adverse Effect. There is no tax deficiency
that has been determined adversely to the Company or any of its Subsidiaries which has had a Material Adverse Effect, nor does
the Company or its Subsidiaries have any knowledge or notice of any tax deficiency which could reasonably be expected to be determined
adversely to the Company or its Subsidiaries and which could reasonably be expected to have a Material Adverse Effect.

 

(bb)      Internal Accounting and Disclosure
Controls. Except as set forth on Schedule 3(bb) the Company and each of its Subsidiaries maintains internal control
over financial reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with GAAP, including that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing
assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. The Company maintains
disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring
that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded,
processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation,
controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files
or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive
officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required
disclosure. Since the filing of the Company’s most recently filed, prior to the date hereof, Annual Report on Form 10-K,
neither the Company nor any of its Subsidiaries has received any notice or correspondence from any accountant, Governmental Entity
or other Person relating to any potential material weakness or significant deficiency in any part of the internal controls over
financial reporting of the Company or any of its Subsidiaries.

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(cc)      Off Balance Sheet Arrangements.
There is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated
or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed
or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

(dd)      Investment Company Status.
The Company is not, and upon consummation of the sale of the Securities and the application of the proceeds thereof, will not be,
an “investment company,” or a company controlled by an “investment company” as such term is defined in
the Investment Company Act of 1940, as amended.

 

(ee)      Acknowledgement Regarding Buyers’
Trading Activity. It is understood and acknowledged by the Company that (i) following the public disclosure of the transactions
contemplated by the Transaction Documents in the Press Release (as defined below), none of the Buyers have been asked by the Company
or any of its Subsidiaries to agree, nor has any Buyer agreed with the Company or any of its Subsidiaries, to desist from effecting
any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or short) any securities
of the Company, or “derivative” securities based on securities issued by the Company or to hold any of the Securities
for any specified term; (ii) any Buyer, and counterparties in “derivative” transactions to which any such Buyer is
a party, directly or indirectly, presently may have a “short” position in the Common Stock which was established prior
to such Buyer’s knowledge of the transactions contemplated by the Transaction Documents; (iii) each Buyer shall not be deemed
to have any affiliation with or control over any arm’s length counterparty in any “derivative” transaction; and
(iv) each Buyer may rely on the Company’s obligation to timely deliver shares of Common Stock as and when required pursuant
to the Transaction Documents for purposes of effecting trading in the Common Stock of the Company. The Company further understands
and acknowledges that following the public disclosure of the transactions contemplated by the Transaction Documents pursuant to
the Press Release one or more Buyers may have engaged and may after the date hereof engage in hedging and/or trading activities
(including, without limitation, the location and/or reservation of borrowable shares of Common Stock) at various times prior to
or during the period that the Securities are outstanding, including, without limitation, during the periods that the value and/or
number of the Note Shares deliverable with respect to the Securities are being determined and such hedging and/or trading activities
(including, without limitation, the location and/or reservation of borrowable shares of Common Stock), if any, can reduce the value
of the existing stockholders’ equity interest in the Company both at and after the time the hedging and/or trading activities
are being conducted. The Company acknowledges that such aforementioned hedging and/or trading activities do not constitute a breach
of this Agreement, the Notes or any other Transaction Document or any of the documents executed in connection herewith or therewith.

 

(ff)        Manipulation of Price. Neither
the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting on their behalf has, directly
or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security
of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased,
or paid any compensation for soliciting purchases of, any of the Securities, (iii) paid or agreed to pay to any Person any compensation
for soliciting another to purchase any other securities of the Company or any of its Subsidiaries or (iv) paid or

    	21

    	

    

agreed to pay any Person for research services
with respect to any securities of the Company or any of its Subsidiaries.

 

(gg)      U.S. Real Property Holding Corporation.
Neither the Company nor any of its Subsidiaries is, or has ever been, and so long as any of the Securities are held by any of the
Buyers, shall become, a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of
1986, as amended (the “Code”), and the Company and each Subsidiary shall so certify upon any Buyer’s request.

 

(hh)      Transfer Taxes. All stock
transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance, sale
and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the
Company, and all laws imposing such taxes will be or will have been complied with; 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 Note Shares pursuant
to the Notes in a name other than that of the Buyer of such Notes, and the Company shall not be required to issue or deliver such
Note Shares 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.

 

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

 

(jj)        Shell Company Status. The
Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

(kk)      Illegal or Unauthorized Payments;
Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the best of the Company’s knowledge
(after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents or other representatives
of the Company or any of its Subsidiaries or affiliates, has, directly or indirectly, made or authorized any payment, contribution
or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person
or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office to influence
official action or secure an improper advantage, except for personal political contributions not involving the direct or indirect
use of funds of the Company or any of its Subsidiaries.

 

(ll)        Money Laundering. The operations
of the Company and its Subsidiaries are and have been conducted at all times in material compliance with the USA Patriot Act of
2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations.

    	22

    	

    

(mm)    Clinical Data and Regulatory Compliance.
The preclinical tests and clinical trials, and other studies (collectively, “studies”) that are described in,
or the results of which are referred to in, the Company’s periodic reports on Forms 10-K and 10-Q and current reports of
Form 8-K filed by it with the SEC, if still pending, are being conducted in all material respects in accordance with the protocols,
procedures and controls designed and approved for such studies and with standard medical and scientific research procedures; each
description of the results of such studies is accurate and complete in all material respects and fairly presents the data derived
from such studies, and the Company and its Subsidiaries have no knowledge of any other studies the results of which are inconsistent
with, or otherwise call into question, the results described or referred to in the Company’s periodic reports on Forms 10-K
and 10-Q and current reports of Form 8-K filed by it with the SEC; the Company and its Subsidiaries have made all such filings
and obtained all such approvals certificates, authorizations and permits as may be required by the Food and Drug Administration
of the U.S. Department of Health and Human Services or any committee thereof or from any other U.S. or foreign government or drug
or medical device regulatory agency, or health care facility Institutional Review Board or other regulatory authority having jurisdiction
over the conduct of their business (collectively, the “Regulatory Agencies”); neither the Company nor any of
its Subsidiaries has received any notice of, or correspondence from, any Regulatory Agency requiring the termination, suspension
or modification of any clinical trials that are described or referred to in the Company’s periodic reports on Forms 10-K
and 10-Q and current reports of Form 8-K filed by it with the SEC; and the Company and its Subsidiaries have each operated and
currently are in compliance in all material respects with all applicable rules, regulations and policies of the Regulatory Agencies.

 

(nn)      Sanctions. None of the Company,
any of its Subsidiaries or any director, officer, employee or, to the knowledge of the Company and its Subsidiaries, agent or other
person acting for or on behalf of the foregoing is the subject or target of any economic or financial sanctions imposed, administered
or enforced by the United States (including the U.S. Department of the Treasury Office of Foreign Assets Control and the U.S. Department
of State) or other relevant sanctions authority (collectively, “Sanctions” and each such Person, a “Sanctioned
Person”). The operations of the Company and its Subsidiaries are, and have been conducted within the past five (5) years,
in compliance with applicable Sanctions. Neither the Company nor any of its Subsidiaries will, directly or indirectly, use any
part of the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other Person, to fund or facilitate any dealings or transactions with, involving or for the benefit of any Sanctioned
Person, or otherwise in any manner that would constitute or give rise to a violation of any Sanctions by any Person (including
any Person participating in the offering, whether as buyer, underwriter, advisor, investor or otherwise).

 

(oo)      Management. During the past
five-year period, no current or former officer or director, to the knowledge of the Company, has been the subject of:

 

(i)         a petition under bankruptcy laws or
any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal agent or similar officer for such Person,
or any partnership in which such person was a general partner at or within two years before the filing of such petition or such
appointment, or any corporation or business association of which such person was an executive officer at or within two years before
the time of the filing of such petition or such appointment;

    	23

    	

    

(ii)        a conviction in a criminal proceeding
or a named subject of a pending criminal proceeding (excluding traffic violations that do not relate to driving while intoxicated
or driving under the influence);

 

(iii)       any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining any such
person from, or otherwise limiting, the following activities:

 

(1)        Acting as a futures commission
merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant,
any other person regulated by the United States Commodity Futures Trading Commission or an associated person of any of the foregoing,
or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any
investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice
in connection with such activity;

 

(2)        Engaging in any particular
type of business practice; or

 

(3)        Engaging in any activity
in connection with the purchase or sale of any security or commodity or in connection with any violation of securities laws or
commodities laws;

 

(iv)       any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise limiting for more than sixty (60)
days the right of any such person to engage in any activity described in the preceding sub paragraph, or to be associated with
persons engaged in any such activity;

 

(v)        a finding by a court of competent
jurisdiction in a civil action or by the SEC or other authority to have violated any securities law, regulation or decree and the
judgment in such civil action or finding by the SEC or any other authority has not been subsequently reversed, suspended or vacated;
or

 

(vi)       a finding by a court of competent
jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and
the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated.

 

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

    	24

    	

    

(qq)      Cybersecurity. The information
technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases used or
owned by, or leased or licensed to, the Company or any of its Subsidiaries (collectively, “IT Systems”) are
adequate for, and operate and perform in all material respects as required in connection with the operation of the business of
the Company and its Subsidiaries as currently conducted, and to the Company’s knowledge, free and clear of all material bugs,
errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its Subsidiaries have implemented and
maintained commercially reasonable physical, technical and administrative controls, policies, procedures, and safeguards to maintain
and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT
Systems and data, including “Personal Data,” used in connection with their businesses. “Personal Data”
means (i) a natural person’s name, street address, telephone number, e-mail address, photograph, social security number or
tax identification number, driver’s license number, passport number, credit card number, bank information, or customer or
account number; (ii) any information which would qualify as “personally identifying information” under the Federal
Trade Commission Act, as amended; (iii) “personal data” as defined by the European Union General Data Protection Regulation
(“GDPR”) (EU 2016/679); (iv) any information which would qualify as “protected health information”
under the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic
and Clinical Health Act (collectively, “HIPAA”); and (v) any other piece of information that allows the identification
of such natural person, or his or her family, or permits the collection or analysis of any data related to an identified person’s
health or sexual orientation. There have been no breaches, violations, outages or unauthorized uses of or accesses to same, except
for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents
under internal review or investigations relating to the same. The Company and its Subsidiaries are presently in material compliance
with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental
or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal
Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

 

(rr)       Compliance with Data Privacy Laws.
The Company and its Subsidiaries are, and at all prior times were, in material compliance with all applicable state and federal
data privacy and security laws and regulations, including without limitation HIPAA, and the Company and its Subsidiaries have taken
commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been and currently are in compliance with,
the GDPR (EU 2016/679) (collectively, the “Privacy Laws”). To ensure compliance with the Privacy Laws, the Company
and its Subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in all material
respects with their policies and procedures relating to data privacy and security and the collection, storage, use, disclosure,
handling, and analysis of Personal Data (the “Policies”). The Company and its Subsidiaries have at all times
made all disclosures to users or customers required by applicable laws and regulatory rules or requirements, and none of such disclosures
made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of any applicable laws and
regulatory rules or requirements in any material respect. Neither the Company nor any Subsidiary: (i) has received notice of any
actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge
of any event or

    	25

    	

    

condition that would reasonably be expected
to result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation,
or other corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any
obligation or liability under any Privacy Law.

 

(ss)       No Disqualification Event.
With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933 Act (“Regulation
D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering contemplated hereby, or, to the Company’s knowledge, any beneficial
owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor
any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of
sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject
to any Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised
reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied,
to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures
provided thereunder.

 

(tt)        Other Covered Persons. The
Company is not aware of any Person that has been or will be paid (directly or indirectly) remuneration for solicitation of Buyers
or potential purchasers in connection with the sale of any Regulation D Securities.

 

(uu)      Margin Stock. The application
of the proceeds received by the Company from the issuance, sale and delivery of the Notes as described in the Transaction Documents
will not violate Regulation T, U or X of the Board of Governors of the Federal Reserve system or any other regulation of such Board
of Governors.

 

(vv)      Disclosure. The Company confirms
that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents or counsel with any information
that constitutes or could reasonably be expected to constitute material, non-public information concerning the Company or any of
its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other Transaction Documents.
The Company understands and confirms that each of the Buyers has relied on and will rely on the foregoing representations in effecting
transactions in securities of the Company. All disclosure provided by the Company to the Buyers regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf
of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which
they were made, not misleading. All of the written information furnished after the date hereof by or on behalf of the Company or
any of its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the other Transaction Documents, taken
as a whole, will be true and correct in all material respects as of the date on which such information is so provided and will
not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
made therein, in the light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees
that no Buyer makes or has made any

    	26

    	

    

representations or warranties with respect
to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

(ww)    Compliance with Health Care Laws.
The Company and its Subsidiaries are, and at all times have been, in compliance with all Health Care Laws. For purposes of this
Agreement, “Health Care Laws” means: (i) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 et
seq.), the Public Health Service Act (42 U.S.C. Section 201 et seq.), and the regulations promulgated thereunder; (ii) all applicable
federal, state, local and foreign health care fraud and abuse laws, including, without limitation, the Anti-Kickback Statute (42
U.S.C. Section 1320a-7b(b)), the Civil False Claims Act (31 U.S.C. Section 3729 et seq.), the criminal false statements law (42
U.S.C. Section 1320a-7b(a)), 18 U.S.C. Sections 286 and 287, the health care fraud criminal provisions under HIPAA, the Stark Law
(42 U.S.C. Section 1395nn), the civil monetary penalties law (42 U.S.C. Section 1320a-7a), the exclusion law (42 U.S.C. Section
1320a-7), the Physician Payments Sunshine Act (42 U.S.C. Section 1320-7h), and applicable laws governing government funded or sponsored
healthcare programs; (iii) HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (42 U.S.C.
Section 17921 et seq.); (iv) the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education
Reconciliation Act of 2010; (v) licensure, quality, safety and accreditation requirements under applicable federal, state, local
or foreign laws or regulatory bodies; and (vi) all other local, state, federal, national, supranational and foreign laws, relating
to the regulation of the Company or its Subsidiaries, and (vii) the directives and regulations promulgated pursuant to such statutes
and any state or non-U.S. counterpart thereof. Neither the Company nor any of its Subsidiaries has received written notice of any
claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any court or arbitrator
or governmental or regulatory authority or third party alleging that any product operation or activity is in violation of any Health
Care Laws nor, to the Company’s knowledge, is any such claim, action, suit, proceeding, hearing, enforcement, investigation,
arbitration or other action threatened. The Company and its Subsidiaries have filed, maintained or submitted all material reports,
documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Health Care
Laws, and all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments
were complete and accurate on the date filed in all material respects (or were corrected or supplemented by a subsequent submission).
Neither the Company nor any of its Subsidiaries is a party to any corporate integrity agreements, monitoring agreements, consent
decrees, settlement orders, or similar agreements with or imposed by any governmental or regulatory authority. Additionally, neither
the Company, any of its Subsidiaries nor any of their respective employees, officers, directors, or agents has been excluded, suspended
or debarred from participation in any U.S. federal health care program or human clinical research or, to the knowledge of the Company,
is subject to a governmental inquiry, investigation, proceeding, or other similar action that could reasonably be expected to result
in debarment, suspension, or exclusion.

 

(xx)      No
Additional Agreements. The Company does not have any agreement or understanding with any Buyer with respect to the transactions
contemplated by the Transaction Documents other than as specified in the Transaction Documents.

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	4.	COVENANTS.

 

(a)        Best Efforts. Each Buyer shall
use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section
6 of this Agreement. The Company shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to
be satisfied by it as provided in Section 7 of this Agreement.

 

(b)        Blue Sky. The Company shall,
on or before the Initial Closing Date, take such action as the Company shall reasonably determine is necessary in order to obtain
an exemption for, or to, qualify the Securities for sale to the Buyers at the Initial Closing and each Subsequent Closing pursuant
to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an
exemption from such qualification), and shall provide evidence of any such action so taken to the Buyers on or prior to the Initial
Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely make all filings
and reports relating to the offer and sale of the Securities required under all applicable securities laws (including, without
limitation, all applicable federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply
with all applicable foreign, federal, state and local laws, statutes, rules, regulations and the like relating to the offering
and sale of the Securities to the Buyers.

 

(c)        Reporting Status. Until the
earlier of such date that is at least both twenty four (24) months following the Initial Closing Date and (i) upon which the Buyers
shall have sold all of the Securities or (ii) that is the one-year anniversary, or more, of the termination of the Notes (the “Reporting
Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act (reports
filed in compliance with the time period specified in Rule 12b-25 promulgated under the 1934 Act shall be considered timely for
this purpose), and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if
the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination.

 

(d)        Use
of Proceeds. The Company will use the net proceeds from the sale of the Securities to develop and commercialize Vurolenatide
for short bowel syndrome and for other corporate purposes, but not, directly or indirectly, for (i) the redemption or repurchase
of any securities of the Company or any of its Subsidiaries or repayment of any Indebtedness, other than as permitted under this
Agreement, or (ii) the settlement of any outstanding litigation.

 

(e)        Financial Information. The
Company agrees to send the following to each Buyer during the Reporting Period (i) unless the following are filed with the SEC
through EDGAR and are available to the public through the EDGAR system, within one (1) Business Day after the filing thereof with
the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any interim reports or any consolidated
balance sheets, income statements, stockholders’ equity statements and/or cash flow statements for any period other than
annual, any Current Reports on Form 8-K and any registration statements (other than on Form S-8 or Form S-4) or amendments filed
pursuant to the 1933 Act, (ii) unless the following are either filed with the SEC through EDGAR or are otherwise widely disseminated
via a recognized news release service (such as PR Newswire), on the same day as the release thereof, email copies of all press
releases issued by the Company or any of its Subsidiaries and (iii) unless the following are filed with the SEC through EDGAR,
copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously
with the making available or giving thereof to the stockholders.

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(f)        Listing. The Company shall
promptly secure the listing or designation for quotation (as the case may be) of all of the Note Shares upon each national securities
exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the
case may be) (subject to official notice of issuance) and shall maintain such listing or designation for quotation (as the case
may be) of all Note Shares from time to time issuable under the terms of the Transaction Documents on such national securities
exchange or automated quotation system. The Company shall maintain the Common Stock’s listing or authorization for quotation
(as the case may be) on Nasdaq, The New York Stock Exchange, the NYSE American, the Nasdaq Global Market or the Nasdaq Global Select
Market (each, an “Eligible Market”). Neither the Company nor any of its Subsidiaries shall take any action
which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market. The
Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(f).

 

(g)        Fees. The Company shall
pay for the reasonable and documented due diligence and legal fees and expenses incurred by the Buyers in connection with the structuring,
documentation, negotiation, and closing of the transactions contemplated by the Transaction Documents (and the enforcement thereof
by the Buyers), including, without limitation, all consultant fees, all reasonable legal fees and disbursements of Latham &
Watkins LLP, counsel to the Buyers, and due diligence and regulatory filings in connection therewith (the “Transaction
Expenses”) and such Transaction Expenses, to the extent they have not already been paid to the Buyer, may be withheld
by the Buyers from its Purchase Price at the Initial Closing and each Subsequent Closing. The Company shall be responsible for
the payment of any placement agent’s fees, financial advisory fees, transfer agent fees, The Depository Trust Company (“DTC”)
fees or broker’s commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions
contemplated hereby. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including,
without limitation, reasonable attorneys’ fees and reasonable and documented out-of-pocket expenses) arising in connection
with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents, each party to this
Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyers.

 

(h)        No Short Sales. While any Notes
issued hereunder are outstanding unless an Event of Default has occurred , (x) the Buyers will not, and will not agree to, enter
into any short, hedge, forward contract, derivative or similar transaction relating to the Common Stock (but not including any
sale marked “short exempt”) and (y) the Buyers will cause any of its affiliates not to maintain a Net Short Position
(as defined below). For the purposes of determining compliance with the foregoing, the following shall apply:

 

(i)         For purposes hereof, a “Net
Short Position” by a person means a position whereby such Person has executed one or more sales of Common Stock that is marked
as a short sale (but not including any sale marked “short exempt”) and that is executed at a time when such Person
has no equivalent offsetting “long” position in the Common Stock (or is deemed to have a long position in accordance
with Regulation SHO of the 1934 Act); provided, that, for purposes of such calculations, any short sales either (x) that is a result
of a bona-fide trading error on behalf of such Person (or its Affiliates (as defined in the Notes)) or required to be marked “short”
by the broker of such Person at such time as such trade is not required to be marked “short” pursuant to Regulation
SHO of the 1934 Act or (y) that would otherwise be marked as a “long” sale, but for the occurrence of a breach of any
term or condition of any security or agreement, in each case, by the Company or its transfer agent, as applicable, shall be excluded
from such calculations.

 

(ii)        For purposes of determining
whether a Person has an equivalent offsetting “long” position in the Common Stock, (A) all Common Stock that is owned
by such Person shall be deemed held “long” by such Person, (B) any shares of Common Stock issuable upon conversion
and/or exercise of any convertible security, warrant and/or option of the Company (without regard to any limitations on conversion
or exercise thereof) shall be deemed held “long” by such Person, until such time as such Person shall no longer own
such convertible security, warrant or option, (C) any shares of Common Stock that the Company has elected to issue to the Buyers
pursuant to the terms of this Agreement shall be deemed held “long” by the Buyers from and after the date that is two
(2) Trading Days (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the
settlement of a trade of such Common Stock initiated on the applicable issuance date) prior to the deadline for delivery of such
Common Stock to the Buyers, as set forth in this Agreement, and (D) any shares issuable under the Notes because the Company has
elected, in accordance with the terms thereof, to satisfy a payment of Stated Interest, a Total Amortization Payment or an Accelerated
Principal Payment (each as defined in the Notes) thereunder through the issuance of Common Stock, shall be deemed held “long”
by the holders of such Notes that are entitled to receive such shares.

 

(i)        Pledge of Securities. Notwithstanding
anything to the contrary contained in this Agreement, the Company acknowledges and agrees that the Securities may be pledged by
a Buyer in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The
pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting
a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company
pursuant to this Agreement or any other Transaction Document. The Company hereby agrees to execute and deliver such documentation
as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

 

(j)         Disclosure of Transactions and
Other Material Information.

 

(i)         Disclosure
of Transaction. No later than 9:30 a.m., New York time, on the day after the date of this Agreement,

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the Company shall issue a press
release (the “Press Release”) reasonably acceptable to the Buyers disclosing all the material terms of the
transactions contemplated by the Transaction Documents. No later than 5:30 p.m., New York time, on the fourth (4th)
Business Day after the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the material
terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the
material Transaction Documents (the “8-K Filing”). From and after the issuance of the Press Release, the
Company shall have disclosed all material, non-public information (if any) provided to any of the Buyers by the Company or any
of its Subsidiaries or any of their respective officers, directors, employees or agents. In addition, effective upon the
issuance of the Press Release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under
any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors,
affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall have
terminated and none of the Buyers have been subject to any such obligation since the issuance of the Press Release.

 

(ii)        Limitations on Disclosure. Other
than as required under the Transaction Documents (but subject to any other disclosure obligations of the Company with respect thereto),
the Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their respective officers, directors,
employees and agents not to, provide any Buyer with any material, non-public information regarding the Company or any of its Subsidiaries
from and after the date hereof unless prior thereto such Buyer shall have consented in writing to the receipt of such information
and agreed with the Company to keep such information confidential. If any material, non-public information is required to
be provided by the Company or any of its Subsidiaries to any Buyer pursuant to the Transaction Documents, the Company shall obtain
each Buyer’s prior written consent prior to providing such information to such Buyer, and if any Buyer fails to provide such
written consent, the Company shall not be deemed to be in breach of any of the Transaction Documents as a result of the failure
to provide such information. To the extent that the Company delivers any material, non-public information to a Buyer without such
Buyer’s prior written consent in breach of the foregoing sentence, the Company hereby covenants and agrees that such Buyer
shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public information,
provided that the Buyer shall remain subject to applicable law. Subject to the foregoing, neither the Company, its Subsidiaries
nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby;
provided, however, the Company shall be entitled, without the prior approval of any Buyer, to make any press release or other public
disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and (ii) as is required
by applicable law and regulations (provided that in the case of clause (i) above, each Buyer shall be consulted by the Company
in connection with any such press release or other public disclosure prior to its release). Without the prior written consent
of the applicable Buyer (which may be granted or withheld in such Buyer’s sole discretion), the

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Company shall not (and shall cause
each of its Subsidiaries and affiliates to not) disclose the name of such Buyer in any filing, announcement, release or otherwise,
except in the 8-K Filing and as otherwise may be required by applicable law or regulations. Notwithstanding anything contained
in this Agreement to the contrary and without implication that the contrary would otherwise be true, the Company expressly acknowledges
and agrees that no Buyer shall have (unless expressly agreed to by a particular Buyer after the date hereof in a written definitive
and binding agreement executed by the Company and such particular Buyer (it being understood and agreed that no Buyer may bind
any other Buyer with respect thereto)), any duty of confidentiality with respect to, or a duty not to trade on the basis of, any
material, non-public information regarding the Company or any of its Subsidiaries.

 

(k)        Additional Issuance of Securities. 

 

(i)         The Company agrees that for
the period commencing on the date hereof and ending on the date immediately following the 45th calendar day after the Initial Closing
Date and each Subsequent Closing Date, (the “Restricted Period”), neither the Company nor any of its Subsidiaries
shall directly or indirectly issue, offer, sell, grant any option or right to purchase, or otherwise dispose of (or register or
amend any outstanding registration statements or file any shelf registration statements or announce any issuance, offer, sale,
grant of any option or right to purchase or other disposition of) any equity security or any equity-linked or related security
(including, without limitation, any “equity security” (as that term is defined under Rule 405 promulgated under the
1933 Act), any Convertible Securities, any preferred stock or any purchase rights). Notwithstanding the foregoing, this Section
4(k)(i) shall not apply during the Restricted Period in respect of (A) the Common Offering (as defined below), (B) the issuance
of Options or Convertible Securities issued under any Approved Stock Plan, so long as the aggregate number of shares issued and
issuable pursuant thereto does not exceed 5% of the Common Stock issued and outstanding immediately prior to the date hereof or
(C) the issuances of Note Shares. An “Approved Stock Plan” means any security-based compensation plan which
has been approved by the Board of Directors of the Company prior to the date hereof, or any security-based compensation plan which
is approved by the Board of Directors or the compensation committee thereof and the stockholders of the Company after the date
hereof, pursuant to which shares of Common Stock, options to purchase Common Stock and other incentive equity awards may be issued
to any employee, officer, consultant or director for services provided to the Company in their capacity as such, and not for the
purpose of raising capital, pursuant to any consulting agreement, advisory agreement or independent contractor agreement approved
by the Board of Directors or the compensation committee thereof.

 

(ii)        So long as any Notes remain
outstanding and in no event prior to the date that is twenty four (24) months following the Initial Closing Date, the Company and
each Subsidiary shall be prohibited from effecting, or entering into an agreement directly or indirectly to effect a Variable Rate
Transaction. “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary (i) issues
or sells any Convertible Securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations for the shares of Common

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Stock at any time after the initial
issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at
some future date after the initial issuance of such Convertible Securities or upon the occurrence of specified or contingent events
directly or indirectly related to the business of the Company or the market for the Common Stock, other than pursuant to customary
adjustments for stock splits, stock dividends, stock combinations, recapitalizations and similar events or (ii) enters into any
agreement (including, without limitation, an equity line of credit) whereby the Company or any Subsidiary may sell securities at
a future determined price (other than standard and customary “preemptive” or “participation” rights); provided
that, for avoidance of doubt, the entry into any “at-the-market” offering within the meaning of Rule 415(a)(4) of the
Securities Act (an “ATM Issuance”) whereby the Company or any Subsidiary may sell securities at a future determined
price and any issuance of any securities pursuant thereto, shall not be considered a “Variable Rate Transaction”.

 

(iii)       So long as any Notes remain
outstanding, the Company will not, without the prior written consent of the Required Holders (as defined below), issue any Notes
(other than to the Buyers as contemplated hereby) and the Company shall not issue any other securities that would cause a breach
or default under the Notes.

 

(iv)       Each Buyer shall be entitled
to obtain injunctive relief against the Company and its Subsidiaries to preclude any issuance prohibited by this Section 4(k),
which remedy shall be in addition to any right to collect damages.

 

(l)         Requisite
Stockholder Approval. On or before [ l ]1,
2022, the Company agrees to use best efforts to obtain the Requisite Stockholder Approval at a special meeting of the stockholders
(a “Special Stockholder Meeting”). The Company will prepare and file with the SEC a proxy statement to be sent
to the Company’s stockholders in connection with the Special Stockholder Meeting (the “Proxy Statement”).
The Proxy Statement shall include the Board of Directors’ recommendation that the holders of shares of the Company’s
Common Stock vote in favor of the Requisite Stockholder Approval. If the Requisite Stockholder Approval is not obtained on or
prior to [ l ]2, 2022, the Company will hold additional
Special Stockholder Meetings for the purposes of obtaining such Requisite Stockholder Approval no less often than every ninety
(90) days following [ l ]3, 2022 until the Requisite Stockholder
Approval is obtained, and the Board of Directors will recommend that the holders of shares of the Company’s Common Stock
vote in favor of the Requisite Stockholder Approval at each such meeting. As used herein, “Requisite Stockholder
Approval” means the shareholder approval contemplated by Nasdaq Listing Rule 5635(d) with respect to the issuance
and potential issuance of the Notes pursuant to this Agreement; provided, however, that the Requisite Stockholder Approval will
be deemed to be obtained if, due to any amendment or binding change in the interpretation of the applicable listing standards
of Nasdaq, such stockholder approval is no longer required for the Company to issue

 

 

 

	1	NTD: To be 90 days post-closing.
	 	 
	2	NTD: To be 90 days post-closing.
	 	 
	3	NTD: To be 90 days post-closing.

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shares Common Stock
pursuant to the Notes.

 

(m)       Compliance with Laws. None
of the Company or any of its Subsidiaries shall violate any law, ordinance or regulation of any Governmental Entity, except where
such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect.

 

(n)       Passive Foreign Investment Company. The
Company shall conduct its business, and shall cause its Subsidiaries to conduct their respective businesses, in such a manner as
will ensure that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297
of the Code.

 

(o)       Restriction
on Redemption and Cash Dividends. So long as any of the Notes are outstanding, except as otherwise permitted under
the Notes, the Company shall not, directly or indirectly, redeem, or declare or pay any cash dividend or distribution on, any
securities of the Company without the prior express written consent of the Required Holders (other than as required by the
Notes or as required by the terms thereof as in effect on the date hereof); provided, however, that such written consent
shall not be required for any repurchases, forfeitures, withholdings or transfers of securities pursuant to (i) a net
exercise of a Convertible Security to cover the payment of the exercise prices or the payment of withholding of taxes
associated with the exercise or vesting of equity awards under any equity compensation plan of the Company, or (ii)
retirement of unvested shares of restricted stock upon termination of the holder’s relationship with the Company.

 

(p)        Corporate Existence. So
long as any Notes remain outstanding, the Company shall not be party to any Fundamental Change (as defined in the Notes) unless
the Company is in compliance with the applicable provisions governing Fundamental Changes set forth in the Notes.

 

(q)        Conversion Procedures. The
terms of the Notes set forth the totality of the procedures required of the Buyers in order to receive shares of Common Stock pursuant
to the Notes. Except as set forth in Sections 5(c) and 5(d), no additional legal opinion, other information or instructions
shall be required of the Buyers to receive shares of Common Stock pursuant to the Notes, as applicable. The Company shall
honor an election by a Buyer to receive shares of Common Stock pursuant to the Notes, and shall deliver the Note Shares in accordance
with the terms, conditions and time periods set forth in the Notes. Except as explicitly set forth in the Notes, no legal opinion,
information or instructions shall be required of the Buyers to receive Note Shares pursuant to the Notes.

 

(r)        Regulation M. The Company
will not take any action prohibited by Regulation M under the 1934 Act, in connection with the distribution of the Securities contemplated
hereby.

 

(s)        General Solicitation. None
of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act) or any person acting on behalf of the Company
or such affiliate will solicit any offer to buy or offer to sell the Securities by means of any form of general solicitation or
general advertising within the meaning of Regulation D, including: (i) any

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advertisement, article, notice or other communication
published in any newspaper, magazine or similar medium or broadcast over television or radio; and (ii) any seminar or meeting whose
attendees have been invited by any general solicitation or general advertising.

 

(t)        Integration. None of the
Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting on behalf of the
Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in the 1933 Act) which will be integrated with the sale of the Securities in a manner which would require stockholder
approval under the rules and regulations of Nasdaq and the Company will take all action that is appropriate or necessary to
assure that its offerings of other securities will not be integrated for purposes of the rules and regulations of Nasdaq,
with the issuance of Securities contemplated hereby.

 

(u)        Right to Participate. So long
as any Notes remain outstanding, the Company will not, directly or indirectly, offer, sell, grant any option to purchase, or otherwise
dispose of (or announce any offer, sale, grant or any option to purchase or other disposition of) any of its or any Subsidiaries’
debt, equity, equity-linked or equity equivalent securities, including without limitation any debt, preferred stock or other instrument
or security (any such offer, sale, grant, disposition or announcement being referred to as a “Subsequent Placement”),
unless the Company shall have first complied with this Section 4(u).

 

(A)       The Company shall deliver
to each Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or
sale or exchange (the “Offer”) of the securities being offered (the “Offered Securities”)
in a Subsequent Placement, which Offer Notice shall (v) include any offering documents and definitive documentation in connection
with such Offer, (w) identify and describe the Offered Securities, (x) describe the price and other terms upon which they
are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (y) identify
the persons or entities to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (z) offer
to issue and sell to or exchange with such Buyers up to an aggregate of twenty five percent (25%) of the Offered Securities, allocated
among such Buyers based on such Buyer’s pro rata portion of the aggregate principal amount of Notes purchased hereunder (the
“Basic Amount”). The terms and conditions upon which any Offer of the Offered Securities pursuant to any Offer
Notice shall be identical for each Buyer. For the avoidance of doubt, each Buyer hereby acknowledges that any Offer Notice may
constitute or contain material, non-public information, and each Buyer hereby consents to the receipt of any Offer Notice and any
material, non-public information that may be included in an Offer Notice. If a Buyer notifies the Company that it does not consent
to the receipt of an Offer Notice and any material, non-public information that may be included in an Offer Notice, then such Buyer
shall be deemed to have waived its right to participate in such Subsequent Placement, and the Company shall be deemed to have complied
with this Section 4(u).

 

(B)       To accept an Offer, in whole
or in part, such Buyer must deliver a written notice to the Company prior to the end of the second (2nd) Trading Day
(as defined in the Notes) after such Buyer’s receipt of the Offer Notice (the “Offer Period”), setting
forth the portion of such Buyer’s Basic Amount that such Buyer, or an affiliate of

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such Buyer that it designates, elects
to purchase and, if such Buyer or its designee shall elect to purchase all of its Basic Amount, the amount, if any, of the other
Buyers’ allocations that such Buyer is offering to purchase in the event that such other Buyers do not elect to purchase
their full Basic Amounts (in either case, the “Notice of Acceptance”). Notwithstanding anything to the contrary
contained herein, if the Company desires to modify or amend the terms and conditions of the Offer prior to the expiration of the
Offer Period, the Company may deliver to the Buyers a new Offer Notice and the Offer Period shall expire at the end of the second
(2nd) Trading Day following such Buyer’s receipt of such new Offer Notice.

 

(C)       The Company shall have two
(2) Trading Days from the expiration of the Offer Period to offer, issue, sell or exchange all or any part of such Offered Securities
as to which a Notice of Acceptance has not been given by the Buyers (the “Refused Securities”) pursuant to a
definitive agreement (the “Subsequent Placement Agreement”), but only to the offerees described in the Offer
Notice (if so described therein) and only upon terms and conditions (including, without limitation, prices and interest rates)
that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer
Notice and to publicly announce (a) the execution of such Subsequent Placement Agreement and (b) either (x) the consummation of
the transactions contemplated by such Subsequent Placement Agreement or (y) the termination of such Subsequent Placement Agreement,
which shall be filed with the SEC on a Current Report on Form 8-K with such Subsequent Placement Agreement and any documents contemplated
therein filed as exhibits thereto.

 

(D)       In the event the Company
shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section
4(u)(C) above), then each Buyer may, at its sole option and in its sole discretion, reduce the number or amount of the Offered
Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities
that such Buyer or its designee elected to purchase pursuant to Section 4(u)(B) above multiplied by a fraction, (i) the numerator
of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including
Offered Securities to be issued or sold to Buyers or their designees pursuant to Section 4(u)(C) above prior to such reduction,
but giving effect to the Refused Securities that the Company has determined not to issue, sell or exchange) and (ii) the denominator
of which shall be the original amount of the Offered Securities. In the event that any Buyer so elects to reduce the number or
amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced
number or amount of the Offered Securities unless and until such securities have again been offered to the Buyers in accordance
with Section 4(u)(A) above.

 

(E)        Upon the closing of the issuance,
sale or exchange of all or less than all of the Refused Securities, the Buyers or their designees shall acquire from the Company,
and the Company shall issue to the Buyers, the number or amount of Offered Securities specified in the Notices of Acceptance, as
reduced pursuant to Section 4(u)(D) above if the Buyers have so elected, upon the terms and conditions specified in the Offer.
Notwithstanding anything to the contrary contained in this Agreement, if the Company

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does not consummate the closing of
the issuance, sale or exchange of all or less than all of the Refused Securities, within two (2) Business Days of the expiration
of the Offer Period, the Company shall issue to the Buyers or their designees, the number or amount of Offered Securities specified
in the Notice of Acceptance, as reduced pursuant to Section 4(u)(D) above if the Buyers have so elected, upon the terms and conditions
specified in the Offer. The purchase by the Buyers of any Offered Securities is subject in all cases to the preparation, execution
and delivery by the Company and the Buyers of a purchase agreement relating to such Offered Securities reasonably satisfactory
in form and substance to the Buyers and their respective counsel.

 

(F)        Any Offered Securities not
acquired by the Buyers or other persons in accordance with Section 4(u)(C) above may not be issued, sold or exchanged until they
are again offered to the Buyers under the procedures specified in this Section 4(u).

 

(G)       The Company and the Buyers
agree that if any Buyer elects to participate in the Offer, (x) neither the Subsequent Placement Agreement with respect to such
Offer nor any other transaction documents related thereto shall include any term or provisions whereby any Buyer shall be required
to agree to any restrictions in trading as to any securities of the Company owned by such Buyer prior to such Subsequent Placement
and (y) the Buyers or their designees shall be entitled to the same registration rights provided to other investors in the Subsequent
Placement. Furthermore, no Subsequent Placement Agreement shall include any term or provisions more restrictive to the investors
than those contained in the Transaction Documents. In addition, the Company and each Buyer agree that, in connection with a Subsequent
Placement, the transaction documents related to the Subsequent Placement shall include a requirement for the Company to issue a
widely disseminated press release by 9:30 a.m. (New York City time) on the Trading Day of execution of the transaction documents
in such Subsequent Placement (or, if the date of execution is not a Trading Day, or if the time of execution is after 4:00 p.m.
(New York City time) on a Trading Day, on the immediately following Trading Day) that discloses the material terms of the transactions
contemplated by the transaction documents in such Subsequent Placement.

 

(H)       Notwithstanding anything
to the contrary in this Section 4(u) and unless otherwise agreed to by the Buyers, the Company shall either confirm in writing
to the Buyers that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention
to issue the Offered Securities, in either case in such a manner such that such Buyer will not be in possession of any material,
non-public information, by the second (2nd) Trading Day following the date of delivery of the Offer Notice. If by such
second (2nd) Trading Day no public disclosure regarding a transaction with respect to the Offered Securities has been
made, and no notice regarding the abandonment of such transaction has been received by the Buyers, such transaction shall be deemed
to have been abandoned and the Buyers shall not be deemed to be in possession of any material, nonpublic information with respect
to the Company. Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall
provide each Buyer with another Offer Notice and each Buyer will again have the right of participation set forth in this Section
4(u). The Company shall not be permitted to deliver to the Buyers, in any 30-day period, more than one such Offer

    	36

    	

    

Notice, other than the Offer Notices
contemplated by the last sentence of Section 4(u)(B) of this Agreement.

 

(I)         The
restrictions contained in this Section 4(u) shall not apply in connection with any of the following: (w) an issuance
of solely Company Common Stock for aggregate gross proceeds of not less than fifteen million ($15,000,000) nor greater
than thirty million ($30,000,000) in a transaction announced concurrently with the issuance of the Press Release and
the Company’s public disclosure of clinical trial data related to its Phase 2 Trial of Vurolenatide in Short
Bowel Syndrome (the “Common Offering”); provided that the Common Offering is completed no later
than two Trading Days after the Initial Closing Date (x) Common Stock issued pursuant to any ATM Issuance, other than
an ATM Issuance in which a single investor or group of related investors purchases in excess of five million dollars
($5,000,000) in the aggregate of Common Stock or warrants exercisable for any class of Common Stock, (y) Options or
Convertible Securities issued under any Approved Stock Plan, or (z) the issuance of Common Stock upon the exercise of Options
or warrants, the settlement or vesting of restricted stock units, stock appreciation rights or restricted stock awards
(including shares of Common Stock withheld by the Company for the purpose of paying on behalf of the holder thereof the
exercise price of stock options or for paying taxes due as a result of such exercise or lapse of forfeiture restrictions), or
the conversion of outstanding Convertible Securities which are outstanding on the Initial Closing Date or granted pursuant to
an Approved Stock Plan after the Initial Closing Date; provided, that, in the case of (z), such issuance of Common Stock upon
exercise of such Options or Convertible Securities is made pursuant to the terms of either: (I) such Approved Stock Plan or
(II) such Options or Convertible Securities in effect on the Initial Closing Date and, in the case of (II), such Options
or Convertible Securities are not amended, modified or changed on or after the Initial Closing Date to increase the number
of such securities or to decrease the exercise price, exchange price or conversion price of such securities.

 

(v)        Rule 144. The Company
shall cause the Securities and any shares of Common Stock issuable pursuant to the Notes to be eligible to be offered, sold or
otherwise transferred by the Buyers pursuant to Rule 144 under the Securities Act, without any requirements as to volume, manner
of sale, availability of current public information (whether or not then satisfied) or notice under the Securities Act and without
any requirement for registration under any state securities or “blue sky” law, on and after the date that is six (6)
months following the (A) Initial Closing Date with respect to the Initial Purchased Notes and the Note Shares with respect thereto
and (B) each Subsequent Closing with respect to any Subsequently Purchased Notes and the Note Shares with respect thereto.

 

(w)       Press Releases. The Company
shall not, and shall not permit any of its Subsidiaries to, issue or disseminate to the public (by advertisement, press release
or otherwise), submit for publication or otherwise cause or seek to publish any information naming any of the Buyers without the
prior written consent of such Buyer; provided that, nothing in the foregoing shall be construed to prohibit the Company from making
any submission or filing (i) which it is required to make by applicable law or pursuant to judicial process, (ii) as required by
federal securities law in connection with the filing of final Transaction Documents with the SEC, or (iii) to the extent such disclosure
is required by law or Nasdaq regulations; provided further, that (i)

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such filing or submission shall contain only
such information as is necessary to comply with applicable law or judicial process and (ii) unless specifically prohibited by applicable
law or court order, the Company shall promptly notify the Buyers of the requirement to make such submission or filing and provide
the Buyers with a copy thereof.

 

(x)        Share Reserve. So long as any
of the Notes remain outstanding, the Company shall at all times have no less than a number of shares of authorized but unissued
Common Stock reserved for any issuance of Note Shares equal to two hundred percent (200%) of a fraction, the numerator of which
shall be the then outstanding Principal Amount plus an amount equal to all interest accruable on such outstanding Principal Amount
through the Maturity Date (as defined in the Notes), and the denominator of which shall be the Market Stock Payment Price (as defined
in the Notes) (collectively, the “Required Reserve Amount”); provided that at no time shall the number of shares
of Common Stock reserved pursuant to this Section 4(w) be reduced other than in connection with any stock combination, reverse
stock split or other similar transaction. The amounts set forth in the definition of Required Reserve Amount (including, without
limitation, each increase in the number of shares so reserved) shall be allocated pro rata among the holders of the Notes based
on the number of shares of Common Stock issuable upon conversion of the Notes held by each holder thereof on the date of issuance
of the Notes (without regards to any limitations on conversion) (collectively, the “Authorized Share Allocation”).
In the event that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee shall be allocated
a pro rata portion of such holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any
Person which ceases to hold any Notes shall be allocated to the remaining holders of the Notes, pro rata based on the number of
shares of Common Stock issuable upon conversion of the Notes then held by such holders thereof (without regard to any limitations
on conversion). If at any time the number of shares of Common Stock authorized and reserved for issuance is not sufficient to meet
the Required Reserve Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient
number of shares, including, without limitation, calling a special meeting of stockholders to authorize additional shares to meet
the Company’s obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized shares,
obtain stockholder approval (if required) of an increase in such authorized number of shares, and voting the management shares
of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is
sufficient to meet the Required Reserve Amount.

 

(y)        Registration
Rights. The Company shall:

 

(i)         file registration statements
with the SEC as soon as practicable but in no event later than (A) thirty (30) days after the Initial Closing Date with respect
to the Initial Purchased Notes and (B) thirty (30) days after any Subsequent Closing Date with respect to any Subsequently Purchased
Notes (each such date, a “Filing Date”) to register all Shares underlying the Initial Purchased Notes and any
Subsequently Purchased Notes, respectively (the “Registrable Shares”) on Form S-1 or Form S-3 under the Securities
Act (providing for shelf registration of such Registrable Shares under SEC Rule 415) (each such registration statement, including
any preliminary prospectus, final prospectus, exhibit or amendment included in or relating to such registration statement being
the “Resale Registration Statement”);

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(ii)        use its commercially reasonable
efforts to cause each such Resale Registration Statement to be declared effective as soon as practicable and in any event within
30 days of the filing thereof (or, in the event the staff of the SEC (the “Staff”) reviews and has written comments
to such Resale Registration Statement, within 60 days of the filing thereof), such efforts to include, without limiting the generality
of the foregoing, preparing and filing with the SEC any financial statements or other information that is required to be filed
prior to the effectiveness of such Resale Registration Statement;

 

(iii)        not less than two (2) Trading
Days prior to the filing of each such Resale Registration Statement or any related prospectus or any amendment or supplement thereto,
furnish via email to the Buyers copies of all such documents proposed to be filed, which documents (other than any document that
is incorporated or deemed to be incorporated by reference therein) will be subject to the review of the Buyers. The Company shall
reflect in each such document when so filed with the SEC such comments regarding the Buyers and the plan of distribution as the
Buyers may reasonably and promptly propose no later than two (2) Trading Days after the Buyers has been so furnished with copies
of such documents as aforesaid;

 

(iv)       promptly prepare and file
with the SEC such amendments and supplements to each such Resale Registration Statement and the prospectus used in connection therewith
as may be necessary to keep such Resale Registration Statement continuously effective and free from any material misstatement or
omission to state a material fact therein until termination of such obligation as provided in Section 4(cc) below, subject to the
Company’s right to suspend pursuant to Section 4(bb) below;

 

(v)        furnish to the Buyers such
number of copies of prospectuses in conformity with the requirements of the Securities Act and such other documents as the Buyers
may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Registrable Shares by
the Buyers;

 

(vi)       file such documents as may
be required of the Company for normal securities law clearance for the resale of the Registrable Shares in such states of the United
States as may be reasonably requested by the Buyers and use its commercially reasonable efforts to maintain such blue sky qualifications
during the period the Company is required to maintain effectiveness of each such Resale Registration Statement; provided, however,
that the Company shall not be required in connection with this Section 4(x)(vi) to qualify as a foreign corporation or execute
a general consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented;

 

(vii)       upon notification by the
SEC that a Resale Registration Statement will not be reviewed or is not subject to further review by the SEC, the Company shall
within three (3) Trading Days following the date of such notification request acceleration of such Resale Registration Statement
(with the requested effectiveness date to be not more than two (2) Trading Days later);

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(viii)      upon notification by the
SEC that a Resale Registration Statement has been declared effective by the SEC, the Company shall file the final prospectus under
Rule 424 of the Securities Act (“Rule 424”) within the applicable time period prescribed by Rule 424;

 

(ix)       advise the Buyers promptly
(and in any event within two (2) Trading Days thereof):

 

(A)       of the effectiveness of a
Resale Registration Statement or any post-effective amendments thereto;

 

(B)       of any request by the SEC
for amendments to a Resale Registration Statement or amendments to the prospectus or for additional information relating thereto;

 

(C)       of the issuance by the SEC
of any stop order suspending the effectiveness of a Resale Registration Statement under the Securities Act or of the suspension
by any state securities commission of the qualification of the Registrable Shares for offering or sale in any jurisdiction, or
the initiation of any proceeding for any of the preceding purposes; and

 

(D)       of the existence of any fact
and the happening of any event that makes any statement of a material fact made in a Resale Registration Statement, the prospectus
and amendment or supplement thereto, or any document incorporated by reference therein, untrue, or that requires the making of
any additions to or changes in a Resale Registration Statement or the prospectus in order to make the statements therein not misleading;

 

(x)        cause all Registrable Shares
to be listed on each securities exchange, if any, on which equity securities by the Company are then listed; and

 

(xi)       bear all expenses in connection
with the procedures in paragraphs (i) through (x) of this Section 4(x) and the registration of the Registrable Shares on each such
Resale Registration Statement and the satisfaction of the blue sky laws of such states.

 

(z)       
Private Placement. Neither the Company nor any Subsidiary or affiliate thereof shall identify any Buyer as being an underwriter
or potentially being an "underwriter" in any disclosure to, or filing with, the SEC, Nasdaq or any other Eligible Market. No
Buyer shall be required to agree or admit that it is, or may be, acting as an "underwriter" in connection with the transactions
contemplated hereby or agree to be named as an underwriter or as potentially being an underwriter in any public disclosure or filing with
the SEC, the Nasdaq or any other Eligible Market, nor shall any Buyer be required to make any representations to, or undertake any obligations
to, the SEC in connection with any Resale Registration Statement. Any Buyer being deemed an underwriter, or potentially to be an underwriter,
by the SEC shall not relieve the Company of any obligations it has under this Agreement or any other Transaction Document.

 

(aa)        Registration
Rights Indemnification.

 

(i)         The Company agrees to indemnify
and hold harmless the Buyers and their respective affiliates, partners, members, officers, directors, agents and representatives,
and each person, if any, who controls a Buyer within the meaning of Section 15 of the Securities Act or Section 20 the 1934 Act
(each, a “Purchaser Party” and collectively the “Purchaser Parties”), to the fullest extent
permitted by applicable law, from and against any losses, claims, damages or liabilities (collectively, “Losses”)
to which they may become subject (under the Securities Act or otherwise) insofar as such Losses (or actions or proceedings in respect
thereof) arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in a Resale
Registration Statement or any omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein, in light of the

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circumstances under which they were
made, not misleading or arise out of any failure by the Company to fulfill any undertaking included in a Resale Registration Statement
and the Company will, as incurred, reimburse the Purchaser Parties for any legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim; provided, however, that the Company shall not be liable
in any such case to the extent that such Loss arises out of, or is based upon an untrue statement or omission or alleged untrue
statement or omission made in a Resale Registration Statement in reliance upon and in conformity with written information furnished
to the Company by or on behalf of the Buyers specifically for use in preparation of a Resale Registration Statement; provided further,
however, that the Company shall not be liable to any Purchaser Party (or any partner, member, officer, director or controlling
person of a Buyer) to the extent that any such Loss is caused by an untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus if either (i) (A) the Buyers failed to send or deliver a copy of the final prospectus
with or prior to, or the Buyers failed to confirm that a final prospectus was deemed to be delivered prior to (in accordance with
Rule 172 of the Securities Act), the delivery of written confirmation of the sale by the Buyers to the person asserting the claim
from which such Loss resulted and (B) the final prospectus corrected such untrue statement or omission, or (ii) (X) such untrue
statement or omission is corrected in an amendment or supplement to the prospectus and (Y) having previously been furnished by
or on behalf of the Company with copies of the prospectus as so amended or supplemented or notified by the Company that such amended
or supplemented prospectus has been filed with the SEC, in accordance with Rule 172 of the Securities Act, the Buyers thereafter
fails to deliver such prospectus as so amended or supplemented, with or prior to or the Buyers fails to confirm that the prospectus
as so amended or supplemented was deemed to be delivered prior to (in accordance with Rule 172 of the Securities Act), the delivery
of written confirmation of the sale by the Buyers to the person asserting the claim from which such Loss resulted.

 

(ii)        The Buyers agree to indemnify
and hold harmless the Company and its officers, directors, affiliates, agents and representatives and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the 1934 Act (each a “Company
Party” and collectively the “Company Parties”), to the fullest extent permitted by applicable law,
from and against any Losses to which the Company Parties may become subject (under the Securities Act or otherwise), insofar as
such Losses (or actions or proceedings in respect thereof) arise out of, or are based upon, any untrue statement or alleged untrue
statement of a material fact contained in a Resale Registration Statement (or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading in each case, on the effective date thereof), if, and only to the extent, such untrue statement
or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written information furnished
by or on behalf of the Buyers specifically for use in preparation of a Resale Registration Statement, and the Buyers will, as incurred,
reimburse each Company Party for any legal or other expenses reasonably incurred in investigating, defending or preparing to defend
any such action, proceeding or claim; provided, however, that in no event shall any indemnity under this Section 4(y) be greater

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in amount than the dollar amount
of the net proceeds received by the Buyers upon their sale of the Registrable Shares included in the Resale Registration Statement
giving rise to such indemnification obligation.

 

(iii)       Promptly after receipt
by any indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against
an indemnifying person pursuant to this Section 4(y), such indemnified person shall notify the indemnifying person in writing of
such claim or of the commencement of such action, and, subject to the provisions hereinafter stated, in case any such action shall
be brought against an indemnified person and such indemnifying person shall have been notified thereof, such indemnifying person
shall be entitled to participate therein, and, to the extent that it shall wish, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to
assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently
incurred by such indemnified person in connection with the defense thereof; provided, however, that if there exists or shall exist
a conflict of interest that would make it inappropriate in the reasonable judgment of the indemnified person for the same counsel
to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the indemnified person
shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, further, that no indemnifying
person shall be responsible for the fees and expense of more than one separate counsel for all indemnified parties. The indemnifying
party shall not settle an action without the consent of the indemnified party, which consent shall not be unreasonably withheld.

 

(iv)       If after proper notice of
a claim or the commencement of any action against the indemnified party, the indemnifying party does not choose to participate,
then the indemnified party shall assume the defense thereof and upon written notice by the indemnified party requesting advance
payment of a stated amount for its reasonable defense costs and expenses, the indemnifying party shall advance payment for such
reasonable defense costs and expenses (the “Advance Indemnification Payment”) to the indemnified party. In the
event that the indemnified party’s actual defense costs and expenses exceed the amount of the Advance Indemnification Payment,
then upon written request by the indemnified party, the indemnifying party shall reimburse the indemnified party for such difference;
in the event that the Advance Indemnification Payment exceeds the indemnified party’s actual costs and expenses, the indemnified
party shall promptly remit payment of such difference to the indemnifying party.

 

(v)        If the indemnification provided
for in this Section 4(y) is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to
any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified
party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified
party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other, as well as any other relevant equitable considerations;
provided, that in no event shall any contribution by an indemnifying party hereunder be greater in amount

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than the dollar amount of the proceeds
received by such indemnifying party upon the sale of such Registrable Shares.

 

(bb)      Suspensions. The Buyers acknowledge
that there may be times when the Company must suspend the use of the prospectus forming a part of a Resale Registration Statement
until such time as an amendment to such Resale Registration Statement has been filed by the Company and declared effective by the
SEC, or until such time as the Company has filed an appropriate report with the SEC pursuant to the Exchange Act. The Buyers hereby
covenant that they will not sell any Registrable Shares pursuant to said prospectus during the period commencing at the time at
which the Company gives the Buyers notice of the suspension of the use of said prospectus and ending at the time the Company gives
the Buyers notice that the Buyers may thereafter effect sales pursuant to said prospectus; provided, that such suspension periods
shall in no event exceed 30 days in any 12 month period and that, in the good faith judgment of the Board of Directors, the Company
would, in the absence of such delay or suspension hereunder, be required under state or federal securities laws to disclose any
corporate development, a potentially significant transaction or event involving the Company, or any negotiations, discussions,
or proposals directly relating thereto, in either case the disclosure of which would reasonably be expected to have a Material
Adverse Effect upon the Company or its stockholders.

 

(cc)      Termination
of Registration Rights. The obligations of the Company pursuant to Section 4(x) hereof shall cease and terminate,
with respect to any Holder’s Registrable Securities, upon such time as such Registrable Securities have been resold in
a transaction pursuant to which all restrictive legends were removed from such securities.

 

		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS.

 

(a)        Register. The Company
shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice
to each holder of Securities), a register for the registration of the Securities in which the Company shall record the name and
address of the Person in whose name the Purchased Notes have been issued (including the name and address of each transferee), the
aggregate amount of the Notes held by such Person and the number of Note Shares issuable pursuant to the terms of the Notes held
by such Person. The Company shall keep the register open and available at all times during business hours for inspection of
any Buyer or its legal representatives. This provision shall be construed such that the Securities and the Notes are at all times
maintained in “registered form” within the meanings of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any
Treasury Regulations promulgated thereunder.

 

(b)        Transfer Agent Instructions. The
Company shall issue irrevocable instructions to its transfer agent and any subsequent transfer agent (as applicable) (the “Transfer
Agent”) in a form acceptable to each of the Buyers (the “Irrevocable Transfer Agent Instructions”)
to credit shares to each such Buyer’s (or its designee’s) account at DTC through its Deposit/Withdrawal At Custodian
(“DWAC”) System, provided that the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program (“FAST”) and the shares are then eligible for transfer through the DWAC System, or, if the Transfer
Agent is not participating in FAST or if the shares are not then eligible for transfer through the DWAC system, issue and dispatch
by overnight courier to the address as specified in (x) the conversion notice of the Notes or (y) the notice that the Company is
electing to issue shares of Common Stock pursuant to the terms of the Notes or that the Buyers are electing to receive shares of
Common Stock pursuant to the Notes, a certificate, registered in the name of such Buyer or its designee, for the applicable number
of Note Shares to which the Buyer is entitled, for the

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applicable Note Shares in such amounts as
specified from time to time by the Company or the Buyers, as the case may be, pursuant to the terms of the Notes. The Company represents
and warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b) will
be given by the Company to the Transfer Agent with respect to the Securities, and that the Securities shall otherwise be freely
transferable on the books and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction
Documents. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to a Buyer. Accordingly,
the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(b) will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5(b), that a Buyer
shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring
immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required.
Any fees (with respect to the Transfer Agent, counsel to the Company or otherwise) associated with the removal of any legends on
any of the Securities shall be borne by the Company.

 

(c)        Legends. Each Buyer understands
that the Securities have been issued (or will be issued in the case of the Note Shares) pursuant to an exemption from registration
or qualification under the 1933 Act and applicable state securities laws, and except as set forth herein, the Securities shall
bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

Note Legend

 

THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS. UNTIL THE DATE THAT IS ONE (1) YEAR AFTER THE ISSUE DATE (AS DEFINED ON THE REVERSE OF THIS NOTE),
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION AND PROSPECTUS-DELIVERY
REQUIREMENTS OF THE SECURITIES ACT.

 

Note Shares Legend

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE
COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY,

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THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES.

 

(d)        Removal of Legends. Certificates
evidencing Securities shall not be required to contain the legend set forth in Section 5(c) or any other legend (i) while a registration
statement covering the resale of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant
to Rule 144 (assuming the transferor is not an affiliate of the Company), provided that a Buyer furnishes the Company with reasonable
assurances that such Securities are eligible for sale, assignment or transfer under Rule 144, which shall not include an opinion
of Buyer’s counsel, (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 free of the
current public information reporting requirement contained in Rule 144(c)(1), (iv) in connection with a sale, assignment or other
transfer (other than under Rule 144), provided that such Buyer provides the Company with an opinion of counsel to such Buyer, in
a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration
under the applicable provisions of the 1933 Act or (v) if such legend is not required under applicable requirements of the 1933
Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is
not required pursuant to the foregoing, the Company shall no later than two (2) Business Days (or such earlier date as required
pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the date such Buyer
delivers such legended certificate representing such Securities to the Company) following the delivery by a Buyer to the Company
or the Transfer Agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock
powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable),
together with any other deliveries from such Buyer as may be reasonably required above in this Section 5(d) (such date, the “Legend
Removal Date”), as directed by such Buyer, either: (A) provided that the Transfer Agent is participating in FAST, credit
the applicable number of shares of Common Stock to which such Buyer shall be entitled to such Buyer’s or its designee’s
balance account with DTC through its DWAC system or (B) if the Transfer Agent is not participating in FAST, issue and deliver (via
reputable overnight courier) to such Buyer, a certificate representing such Securities that is free from all restrictive and other
legends, registered in the name of such Buyer or its designee. The Company shall be responsible for any transfer agent fees or
DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities in accordance
herewith and the Buyer shall not be required to deliver or cause to be delivered a legal opinion in connection with a sale of such
Securities pursuant to Rule 144.

 

(e)        If the Company or the Transfer Agent
fails to deliver shares to a Buyer or an applicable assignee or transferee (as the case may be) without any restrictive legend
in accordance with Section 5(b) or Section 5(d), then in addition to such Buyer’s other available remedies hereunder, the
Company shall pay to such Buyer, in cash, (1) as partial liquidated damages and not as a penalty, for each $1,000 of Note Shares
(based on the Daily VWAP on the date that the Buyer delivered notice of its entitlement to such shares of the Common Stock on the
date such Buyer delivers notice or a legended certificate, as applicable, to the Company or the

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Transfer Agent) for which the Company or the
Transfer Agent fails to deliver shares without any restrictive legend an amount equal to $10 per Trading Day (increasing to $20
per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date
until such undelivered shares are delivered without a legend; and (2) if the Company is obligated to remove the restrictive legends
pursuant to Section 5(d) but fails to (a) issue and deliver (or cause to be delivered) shares to a Buyer by the Legend Removal
Date that are free from all restrictive and other legends and (b) if after the Legend Removal Date a Buyer purchases (in an open
market transaction or otherwise) shares of Common Stock to deliver in settlement of a sale by the Buyer of all or any portion of
the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number
of shares of Common Stock, that the Buyer anticipated receiving from the Company without any restrictive legend, then an amount
equal to the excess of the Buyer’s total purchase price (including brokerage commissions and other out-of-pocket expenses,
if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses, if any)
over the product of (A) such number of shares of Common Stock that the Company was required to deliver to the Buyer by the Legend
Removal Date multiplied by (B) the price at which the sell order giving rise to such purchase obligation was executed. For avoidance
of doubt, this Section 5(e) shall not be duplicative with any provisions in the Notes addressing any failure to deliver shares
without restrictive legends.

 

(f)         FAST Compliance. While
any Notes remain outstanding, the Company shall maintain a transfer agent that participates in FAST.

 

		6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL the purchased Notes.

 

(a)        The obligation of the Company hereunder
to issue and sell the Purchased Notes to each Buyer at the Initial Closing and each Subsequent Closing is subject to the satisfaction,
at or before the Initial Closing Date and each Subsequent Closing Date of each of the following conditions, provided that these
conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing
each Buyer with prior written notice thereof:

 

(i)         Such Buyer shall have executed
each of the other Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)        Such Buyer and each other
Buyer shall have delivered to the Company the purchase price for the Purchased Notes being purchased by such Buyer at such Closing
by wire transfer of immediately available funds in accordance with a Flow of Funds Letter with respect to the Purchased Notes to
be purchased at such Closing.

 

(iii)        The representations and
warranties of such Buyer shall be true and correct in all material respects (except for such representations and warranties that
are qualified by materiality or material adverse effect, which shall be true and correct in all respects) as of the date when made
and as of the date of each such Closing as though originally made at that time (except for representations and warranties that
speak as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have

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performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or
complied with by such Buyer at or prior to the date of such Closing.

 

		7.	CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE the purchased Notes.

 

(a)        The obligation of each Buyer hereunder
to purchase its Purchased Notes at the Initial Closing is subject to the satisfaction, at or before the Initial Closing Date, of
each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such
Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)         The Company and each Subsidiary
(as the case may be) shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party
and the Company shall have duly executed and delivered to such Buyer the Initial Purchased Notes set forth across from such Buyer’s
name on the Schedule of Buyers at the Initial Closing pursuant to this Agreement.

 

(ii)        Such Buyer shall have received
the opinion of Wyrick Robbins Yates & Ponton LLP, the Company’s counsel, dated as of the Initial Closing Date, in
the form acceptable to such Buyer.

 

(iii)       The Company shall have
delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, dated as of the Initial Closing Date, in the form
acceptable to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Transfer Agent.

 

(iv)       The Company shall have delivered
to such Buyer a certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in each such
entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation
as of a date within ten (10) days of the Initial Closing Date.

 

(v)        The Company shall have delivered
to such Buyer a certified copy of the Certificate of Incorporation of the Company as certified by the Delaware Secretary of State
within ten (10) days of the Initial Closing Date.

 

(vi)       The Company shall have delivered
to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the Company and dated as of the
Initial Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s Board of Directors
or a committee thereof in a form reasonably acceptable to such Buyer, (ii) the Certificate of Incorporation of the Company
and (iii) the bylaws of the Company, each as in effect at the Initial Closing.

 

(vii)      Each and every representation
and warranty of the Company shall be true and correct in all material respects (except for such representations and warranties
that are qualified by materiality or material adverse effect, which shall be true and correct in

    	47

    	

    

all respects) as of the date when
made and as of the Initial Closing Date as though originally made at that time (except for representations and warranties that
speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied
and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with
by the Company at or prior to the Initial Closing Date. Such Buyer shall have received a certificate, duly executed by the
Chief Executive Officer or Chief Financial Officer of the Company, dated as of the Initial Closing Date, to the foregoing effect
and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

 

(viii)     The Company shall have
delivered to such Buyer a letter from the Transfer Agent certifying the number of shares of Common Stock outstanding on the Initial
Closing Date immediately prior to the Initial Closing.

 

(ix)       The Common Stock (A) shall
be designated for quotation or listed (as applicable) on Nasdaq and (B) shall not have been suspended, as of the Initial Closing
Date, by the SEC or Nasdaq from trading on Nasdaq nor shall suspension by the SEC or Nasdaq have been threatened, as of the Initial
Closing Date, either (1) in writing by the SEC or Nasdaq or (2) by falling below the minimum maintenance requirements
of Nasdaq, other than as disclosed in the Company’s Current Report on Form 8-K, as filed with the SEC on February 11, 2022.

 

(x)        The Company shall have obtained
all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Initial Purchased Notes,
including without limitation, those required by Nasdaq, if any.

 

(xi)       No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental
Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

 

(xii)      Since the date of execution
of this Agreement, no event or series of events shall have occurred that would have or result in a Material Adverse Effect. 

 

(xiii)      The Company shall have
submitted a Listing of Additional Shares Notification Form with Nasdaq relating to the issuance of the Notes and the Note Shares
as contemplated hereby.

 

(xiv)     Such Buyer shall have received
a letter on the letterhead of the Company, duly executed by the Chief Executive Officer or Chief Financial Officer of the Company,
setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company (a “Flow of Funds Letter”)
with respect to the Initial Purchased Notes.

 

(xv)      The Company shall have delivered
to such Buyer the results of a recent lien, bankruptcy and judgment search in each relevant jurisdiction with respect to the Company
and its Subsidiaries and such search shall reveal no Liens on any of the Collateral (as such term is defined in the Security Agreements)
or other assets of the

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Company and its Subsidiaries except,
in the case of assets other than Collateral, for Permitted Liens (as such term is defined in the Notes) and except for Liens to
be discharged on or prior to the Initial Closing Date pursuant to documentation reasonably satisfactory to the Buyer.

 

(xvi)     The Company shall have
delivered to Buyer a duly completed and executed perfection certificate dated no earlier than five (5) days prior to the Initial
Closing Date, in the form attached hereto as Exhibit E.

 

(xvii)     All costs, fees, expenses
(including, without limitation, legal fees and expenses) contemplated hereby to be payable to the Buyers shall have been paid to
the extent due and, in the case of expenses of the Buyers that are reimbursable in accordance herewith, invoiced at least one day
prior to the Initial Closing Date.

 

(xviii)    The Company shall have
delivered to such Buyer executed copies of the Voting Agreements executed by each of the parties set forth on Exhibit C.

 

(xix)      The Company and its Subsidiaries
shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated
by the Transaction Documents as such Buyer or its counsel may reasonably request.

 

(b)        The obligation of each Buyer hereunder
to purchase the Subsequently Purchased Notes at each Subsequent Closing is subject to the satisfaction, at or before each Subsequent
Closing Date, of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may
be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)         The Equity Conditions shall
be then satisfied and the Buyers shall have received a certificate, duly executed by the Chief Executive Officer or Chief Financial
Officer of the Company, dated as of such Subsequent Closing Date, to the foregoing effect. “Equity Conditions”
will be deemed to be satisfied as of any date if all of the following conditions are satisfied as of such date and on each of the
twenty (20) previous Trading Days: (i) the Buyers are not in possession of any material non-public information provided by or on
behalf of the Company; (ii) the issuance of shares pursuant to the Initial Notes and any Subsequently Issued Notes will not be
limited by Section 7(I) of the Notes; (iii) no public announcement of a pending, proposed or intended Fundamental Change (as defined
in the Notes) has occurred that has not been abandoned, terminated or consummated; (iv) the Market Price of the Company’s
Common Stock is not less than one hundred thirty percent (130%) of the Conversion Price (as defined in the Note) of the Initial
Purchased Notes calculated as of the date of this Agreement and automatically adjusted without duplication for any stock splits,
stock dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common Stock
after the date of this Agreement; (v) the daily dollar trading volume (as reported on Bloomberg) of the Common Stock on Nasdaq
is not less than five hundred thousand dollars ($500,000); (vi) no Default or Event of Default (as defined in the Notes) will have
occurred or be continuing; and (vii) there shall be no limitations on issuance of the Note

    	49

    	

    

Shares under the Company’s
organizational documents, stock exchange rules or other applicable regulatory requirements.

 

(ii)        The Company and each Subsidiary
(as the case may be) shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party
and the Company shall have duly executed and delivered to the Buyers the Subsequently Purchased Notes set forth on the Subsequently
Purchased Notes Notice.

 

(iii)       Such Buyer shall have received
the opinion of Wyrick Robbins Yates & Ponton LLP, the Company’s counsel, dated as of each Subsequent Closing Date,
in the form acceptable to such Buyer.

 

(iv)       The Company shall have delivered
to such Buyer a copy of the Irrevocable Transfer Agent Instructions, dated as of each Subsequent Closing Date, in the form acceptable
to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Transfer Agent.

 

(v)        The Company shall have delivered
to such Buyer a certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in each such
entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation
as of a date within ten (10) days of each Subsequent Closing Date.

 

(vi)       The Company shall have delivered
to such Buyer a certified copy of the Certificate of Incorporation of the Company as certified by the Delaware Secretary of State
within ten (10) days of each Subsequent Closing Date.

 

(vii)      The Company shall have
delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the Company and dated
as of each Subsequent Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s
Board of Directors or a committee thereof in a form reasonably acceptable to such Buyer, (ii) the Certificate of Incorporation
of the Company and (iii) the Bylaws of the Company, each as in effect at such Subsequent Closing Date.

 

(viii)      Each and every representation
and warranty of the Company shall be true and correct in all material respects (except for such representations and warranties
that are qualified by materiality or material adverse effect, which shall be true and correct in all respects) as of the date when
made and as of each Subsequent Closing Date as though originally made at that time (except for representations and warranties that
speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied
and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with
by the Company at or prior to each Subsequent Closing Date. Such Buyer shall have received a certificate, duly executed by
the Chief Executive Officer or Chief Financial Officer of the Company, dated as of each Subsequent Closing Date, to the foregoing
effect and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

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(ix)       The Company shall have delivered
to such Buyer a letter from the Transfer Agent certifying the number of shares of Common Stock outstanding on each Subsequent Closing
Date immediately prior to each Subsequent Closing.

 

(x)        The Common Stock (A) shall
be designated for quotation or listed (as applicable) on Nasdaq and (B) shall not have been suspended, as of each Subsequent
Closing Date, by the SEC or Nasdaq from trading on Nasdaq nor shall suspension by the SEC or Nasdaq have been threatened, as of
each Subsequent Closing Date, either (1) in writing by the SEC or Nasdaq or (2) by falling below the minimum maintenance
requirements of Nasdaq, other than as disclosed in the Company’s Current Report on Form 8-K, as filed with the SEC on February
11, 2022.

 

(xi)       The Company shall have obtained
all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Subsequently Purchased
Notes, including without limitation, those required by Nasdaq, if any.

 

(xii)      No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental
Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

 

(xiii)     Since the date of execution
of this Agreement, no event or series of events shall have occurred that would have or result in a Material Adverse Effect.

 

(xiv)     The Company shall have
submitted a Listing of Additional Shares Notification Form with Nasdaq relating to the issuance of the Notes and the Note Shares
as contemplated hereby.

 

(xv)      Such Buyer shall have received
a Flow of Funds Letter with respect to the Subsequently Purchased Notes.

 

(xvi)     The Company shall have
delivered to such Buyer the results of a recent lien, bankruptcy and judgment search in each relevant jurisdiction with respect
to the Company and its Subsidiaries and such search shall reveal no Liens on any of the Collateral or other assets of the Company
and its Subsidiaries except, in the case of assets other than Collateral, for Permitted Liens.

 

(xvii)     The Company shall have
delivered to Buyer a duly completed and executed perfection certificate dated no earlier than five (5) days prior to each Subsequent
Closing Date, in the form attached hereto as Exhibit E.

 

(xviii)    All costs, fees, expenses
(including, without limitation legal fees and expenses) contemplated hereby to be payable to the Buyers shall have been paid to
the extent due and, in the case of expenses of the Buyers that are reimbursable in accordance herewith, invoiced at least one day
prior to each Subsequent Closing Date.

 

(xix)     The Requisite Stockholder
Approval shall have been obtained.

    	51

    	

    

(xx)      The
Company shall (A) have filed a Resale Registration Statement, which has become and remains effective (and, with respect to
the initial Resale Registration Statement filed hereunder, has been reviewed by the SEC), registering all Shares underlying the
Initial Purchased Notes and, (B) if any Subsequently Purchased Notes have been previously issued and have been outstanding
for at least sixty (60) days, filed a Resale Registration Statement, which has become and remains effective, registering
all Shares underlying such Subsequently Purchased Notes.

 

(xxi)     The Company and its Subsidiaries
shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated
by the Transaction Documents as such Buyer or its counsel may reasonably request.

 

		8.	TERMINATION.

 

In the event that the Initial Closing shall
not have occurred with respect to a Buyer within five (5) Business Days of the date hereof, then such Buyer shall have
the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business
on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement
under this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement
to have been consummated by such date is the result of such Buyer’s breach of this Agreement and (ii) the abandonment
of the sale and purchase of the Initial Purchased Notes shall be applicable only to such Buyer providing such written notice; provided
further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the
expenses described in Section 4(g) above. Nothing contained in this Section 8 shall be deemed to release any party
from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents
or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or
the other Transaction Documents.

 

		9.	MISCELLANEOUS.

 

(a)        Governing Law; Jurisdiction; Jury
Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of Delaware. The Company hereby irrevocably submits to the exclusive jurisdiction of the
Court of Chancery of the State of Delaware, for the adjudication of any dispute hereunder or in connection herewith or under any
of the other Transaction Documents or with any transaction contemplated hereby or thereby, 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 court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner

    	52

    	

    

permitted by law. Nothing contained herein
shall be deemed or operate to preclude any Buyer from bringing suit or taking other legal action against the Company in any other
jurisdiction to collect on the Company’s obligations to such Buyer or to enforce a judgment or other court ruling in favor
of such Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS
AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

(b)        Counterparts; Electronic Signatures. This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an
executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof. A party’s
electronic signature (complying with the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309),
as amended from time to time, or other applicable law) of this Agreement shall have the same validity and effect as a signature
affixed by the party’s hand.

 

(c)        Headings; Gender; Interpretation. The
headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Unless
the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular
and plural forms thereof. The terms “including,” “includes,” “include” and words of like
import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Schedules and Exhibits
mean the Articles and Sections of, and Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other
document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent
permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor
legislation thereto and any regulations promulgated thereunder.

 

(d)        Severability; Maximum Payment Amounts. If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be

    	53

    	

    

conferred upon the parties. The parties
will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). Notwithstanding
anything to the contrary contained in this Agreement or any other Transaction Document (and without implication that the following
is required or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or
any of its Subsidiaries (as the case may be), or payable to or received by any of the Buyers, under the Transaction Documents (including
without limitation, any amounts that would be characterized as “interest” under applicable law) exceed amounts permitted
under any applicable law. Accordingly, if any obligation to pay, payment made to any Buyer, or collection by any Buyer pursuant
the Transaction Documents is finally judicially determined to be contrary to any such applicable law, such obligation to pay, payment
or collection shall be deemed to have been made by mutual mistake of such Buyer, the Company and its Subsidiaries and such amount
shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as
would not be so prohibited by the applicable law. Such adjustment shall be effected, to the extent necessary, by reducing
or refunding, at the option of such Buyer, the amount of interest or any other amounts which would constitute unlawful amounts
required to be paid or actually paid to such Buyer under the Transaction Documents. For greater certainty, to the extent that
any interest, charges, fees, expenses or other amounts required to be paid to or received by such Buyer under any of the Transaction
Documents or related thereto are held to be within the meaning of “interest” or another applicable term to otherwise
be violative of applicable law, such amounts shall be pro-rated over the period of time to which they relate.

 

(e)        Entire Agreement; Amendments. This
Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein supersede all other prior oral or written agreements between the Buyers, the Company, its Subsidiaries, their
affiliates and Persons acting on their behalf, including, without limitation, any transactions by any Buyer with respect to Common
Stock or the Securities, and the other matters contained herein and therein, and this Agreement, the other Transaction Documents,
the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein contain the entire understanding
of the parties solely with respect to the matters covered herein and therein; provided, however, nothing contained in this Agreement
or any other Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has entered
into with, or any instruments any Buyer has received from, the Company or any of its Subsidiaries prior to the date hereof with
respect to any prior investment made by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any
obligations of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer or any other Person, in any agreement
entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Buyer, or any instruments
any Buyer received from the Company and/or any of its Subsidiaries prior to the date hereof, and all such agreements and instruments
shall continue in full force and effect. Except as specifically set forth herein or therein, neither the Company nor any Buyer
makes any representation, warranty, covenant or undertaking. For clarification purposes, the Recitals are part of this Agreement. No
provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Holders,
and any amendment to any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall
be binding

    	54

    	

    

on all Buyers and holders of Securities, as
applicable; provided that no such amendment shall be effective to the extent that it (A) applies to less than all of the holders
of the Securities then outstanding or (B) imposes any obligation or liability on any Buyer without such Buyer’s prior
written consent (which may be granted or withheld in such Buyer’s sole discretion). No waiver shall be effective unless
it is in writing and signed by an authorized representative of the waiving party, provided that the Required Holders may waive
any provision of this Agreement, and any waiver of any provision of this Agreement made in conformity with the provisions of this
Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable, provided that no such waiver shall
be effective to the extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless
a party gives a waiver as to itself only) or (2) imposes any obligation or liability on any Buyer without such Buyer’s
prior written consent (which may be granted or withheld in such Buyer’s sole discretion). No consideration (other than
reimbursement of legal fees) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision
of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents
and all holders of the Purchased Notes. From the date hereof and while any Purchased Notes are outstanding, the Company shall
not be permitted to receive any consideration from a Buyer or a holder of Purchased Notes that is not otherwise contemplated by
the Transaction Documents in order to, directly or indirectly, induce the Company or any Subsidiary (i) to treat such Buyer
or holder of Purchased Notes in a manner that is more favorable than to other similarly situated Buyers or holders of Purchased
Notes, or (ii) to treat any Buyer(s) or holder(s) of Purchased Notes in a manner that is less favorable than the
Buyer or holder of Purchased Notes that is paying such consideration; provided, however, that the determination of whether a Buyer
has been treated more or less favorably than another Buyer shall disregard any securities of the Company purchased or sold by any
Buyer. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions
of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting
the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or
has any other obligation to provide any financing to the Company, any Subsidiary or otherwise. As a material inducement for
each Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x) no due diligence or other
investigation or inquiry conducted by a Buyer, any of its advisors or any of its representatives shall affect such Buyer’s
right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and
warranties contained in this Agreement or any other Transaction Document and (y) nothing contained in any of the SEC Documents
shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s
representations and warranties contained in this Agreement or any other Transaction Document. “Required Holders”
means (I) prior to the Initial Closing Date, each Buyer entitled to purchase Initial Purchased Notes at the Initial Closing,
and (II) on or after the Initial Closing Date, holders of a majority of the Note Shares in the aggregate as of such time issued
or issuable hereunder or pursuant to the Notes, as applicable; provided that such majority must include High Trail Special Situations
LLC, so long as High Trail Special Situations LLC or any of its affiliates hold any Notes.

 

(f)        Notices. Any notices,
consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent

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by electronic mail (provided that such sent
email is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically
generated message from the recipient’s email server that such e-mail could not be delivered to such recipient); or (iii) one
(1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly
addressed to the party to receive the same. The addresses and e-mail addresses for such communications shall be:

 

If to the Company:

 

	 	[ l ]	 

 

With a copy (for informational purposes only) to:

 

	 	[ l ]	 

 

If to the Transfer Agent:

 

	 	[ l ]	 

 

If to a Buyer, to (i) its e-mail address set forth on the Schedule
of Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of Buyers and (ii) to Eric Helenek, High
Trail Capital, 80 River Street, Suite 4C, Hoboken, NJ 07030 (telephone: (917) 414-1733).

 

with a copy (for informational purposes only) to:

 

	 	[ l ]	 

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or to such other address, e-mail address and/or to the attention
of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior
to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) electronically generated by the sender’s e-mail or (C) provided by an overnight
courier service shall be rebuttable evidence of personal service, receipt by e-mail or receipt from an overnight courier service
in accordance with clause (i), (ii) or (iii) above, respectively.

 

(g)        Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including
any purchasers of any of the Purchased Notes. The Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Required Holders, including, without limitation, by way of a Fundamental Change (as defined
in the Notes) (unless the Company is in compliance with the applicable provisions governing Fundamental Changes set forth in the
Notes). A Buyer may assign some or all of its rights hereunder in connection with any transfer of any of its Securities without
the consent of the Company, provided such assignee agrees in writing to be bound by the provisions hereof that apply to Buyers
in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

 

(h)        No Third Party Beneficiaries. This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees referred to in Section
9(k). 

 

(i)        Survival. The representations,
warranties, agreements and covenants shall survive the Initial Closing and each Subsequent Closing. Each Buyer shall be responsible
only for its own representations, warranties, agreements and covenants hereunder.

 

(j)        Further Assurances. Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)        Indemnification. 

 

(i)         In consideration of each
Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all
of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold
harmless each Buyer and each holder of any Securities and all of their stockholders, partners, members, officers, directors, employees
and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is

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sought), and including reasonable
attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result
of, or arising out of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company
or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation of the Company
or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding or claim brought
or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company
or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery,
performance or enforcement of any of the Transaction Documents (including, without limitation, any hedging or similar activities
in connection therewith), or (B) the status of such Buyer or holder of the Securities either as an investor in the Company
pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation,
any hedging or similar activities in connection therewith or as a party in interest or otherwise in any action or proceeding for
injunctive or other equitable relief); provided, however, that the Company will not be liable in any such case to a Buyer or its
related Indemnitees to the extent that any such claim, loss, damage, liability or expense arise primarily out of or is based primarily
upon the inaccuracy of any representations and warranties made by such Buyer herein, violation hereof by such Buyer or violation
of law by such Buyer. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the
Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. 

 

(ii)        Promptly after receipt by
an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including, without limitation,
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof
is to be made against any indemnifying party under this Section 9(k), deliver to the indemnifying party a written notice of the
commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnitee; provided, however, that an Indemnitee shall have the right
to retain its own counsel with the fees and expenses of such counsel to be paid by the indemnifying party if: (i) the indemnifying
party has agreed in writing to pay such fees and expenses; (ii) the indemnifying party shall have failed promptly to assume the
defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified
Liability; or (iii) the named parties to any such Indemnified Liability (including, without limitation, any impleaded parties)
include both such Indemnitee and the indemnifying party, and such Indemnitee shall have been advised by counsel that a conflict
of interest is likely to exist if the same counsel were to represent such Indemnitee and the indemnifying party (in which case,
if such Indemnitee notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying
party, then the indemnifying party shall not have the right to assume the defense thereof and such counsel shall be at the expense
of the indemnifying party), provided further that in the case of clause (iii) above the indemnifying party shall not be responsible
for the reasonable fees and expenses of more than one (1) separate

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legal counsel for such Indemnitee.
The Indemnitee shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of any such
action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the
Indemnitee which relates to such Indemnified Liability. The indemnifying party shall keep the Indemnitee reasonably apprised at
all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable
for any settlement of any action, claim or proceeding effected without its prior written consent; provided, however, the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect
to such Indemnified Liability, and such settlement shall not include any admission as to fault on the part of the Indemnitee. Following
indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnitee with respect
to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnitee under this Section 9(k), except to the extent that the indemnifying party
is materially and adversely prejudiced in its ability to defend such action. The indemnification required by this Section 9(k)
shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are
received or Indemnified Liabilities are incurred. The indemnity and contribution agreements contained herein shall be in addition
to (i) any cause of action or similar right of the Indemnitees against the indemnifying party or others, and (ii) any liabilities
the indemnifying party may be subject to pursuant to the law. 

 

(l)         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. No specific representation or warranty shall limit the generality or
applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common Stock
and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock splits, stock
dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common Stock after
the date of this Agreement. Notwithstanding anything in this Agreement to the contrary, for the avoidance of doubt, nothing
contained herein shall constitute a representation or warranty against, or a prohibition of, any actions with respect to the borrowing
of, arrangement to borrow, identification of the availability of, and/or securing of, securities of the Company in order for such
Buyer (or its broker or other financial representative) to effect short sales or similar transactions in the future.

 

(m)       Remedies. Each Buyer and
in the event of assignment by Buyer of its rights and obligations hereunder, each holder of Securities, shall have all rights and
remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under
any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights
under any provision of this Agreement shall be

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entitled to enforce such rights specifically
(without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it or any Subsidiary
fails to perform, observe, or discharge any or all of its or such Subsidiary’s (as the case may be) obligations under the
Transaction Documents, any remedy at law would be inadequate relief to the Buyers. The Company therefore agrees that the Buyers
shall be entitled to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from
any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond
or other security. The remedies provided in this Agreement and the other Transaction Documents shall be cumulative and in
addition to all other remedies available under this Agreement and the other Transaction Documents, at law or in equity (including
a decree of specific performance and/or other injunctive relief).

 

(n)        Withdrawal Right. Notwithstanding
anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any
Buyer exercises a right, election, demand or option under a Transaction Document and the Company or any Subsidiary does not timely
perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion
from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand or election
in whole or in part without prejudice to its future actions and rights.

 

(o)        Payment Set Aside; Currency. To
the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to any of the other Transaction Documents
or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of
such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or
any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or
equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff
had not occurred. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other Transaction
Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all
other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted
into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange
Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the
U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

 

(p)        Judgment Currency.

 

(i)         If for the purpose of obtaining
or enforcing judgment against the Company in connection with this Agreement or any other Transaction Document in any court in any
jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 9(p) referred
to as the “Judgment Currency”)

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an amount due in U.S. Dollars under
this Agreement, the conversion shall be made at the Exchange Rate prevailing on the Business Day immediately preceding:

 

(1)        the date actual payment of
the amount due, in the case of any proceeding in the Court of Chancery of the State of Delaware or in the courts of any other jurisdiction
that will give effect to such conversion being made on such date; or

 

(2)        the date on which the foreign
court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is
made pursuant to this Section 9(p)(i)(2) being hereinafter referred to as the “Judgment Conversion Date”).

 

(ii)        If in the case of any proceeding
in the court of any jurisdiction referred to in Section 9(p)(i)(2), there is a change in the Exchange Rate prevailing between
the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount
as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange Rate prevailing on
the date of payment, will produce the amount of U.S. Dollars which could have been purchased with the amount of Judgment Currency
stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

 

(iii)       Any amount due from the
Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other
amounts due under or in respect of this Agreement or any other Transaction Document.

 

(q)        Independent Nature of Buyers’
Obligations and Rights. The obligations of each Buyer under the Transaction Documents are several and not joint with the
obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other
Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by
any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the Buyers
do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption
that the Buyers are in any way acting in concert or as a group or entity, and the Company shall not assert any such claim with
respect to such obligations or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges
that the Buyers are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such
obligations or the transactions contemplated by the Transaction Documents. The decision of each Buyer to purchase Securities
pursuant to the Transaction Documents has been made by such Buyer independently of any other Buyer. Each Buyer acknowledges
that no other Buyer has acted as agent for such Buyer in connection with such Buyer making its investment hereunder and that no
other Buyer will be acting as agent of such Buyer in connection with monitoring such Buyer’s investment in the Securities
or enforcing its rights under the Transaction Documents. The Company and each Buyer confirms that each Buyer has independently
participated with the Company and its Subsidiaries in the negotiation of the transaction contemplated hereby with the advice of
its own counsel and advisors. Each Buyer shall be entitled to independently protect and enforce its rights, including, without

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limitation, the rights arising out of this
Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional
party in any proceeding for such purpose. The use of a single agreement to effectuate the purchase and sale of the Securities
contemplated hereby was solely in the control of the Company, not the action or decision of any Buyer, and was done solely for
the convenience of the Company and its Subsidiaries and not because it was required or requested to do so by any Buyer. It
is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between
the Company, each Subsidiary and a Buyer, solely, and not between the Company, its Subsidiaries and the Buyers collectively and
not between and among the Buyers.

 

(r)        Performance Date. If the
date by which any obligation under any of the Transaction Documents must be performed occurs on a day other than a Business Day,
then the date by which such performance is required shall be the next Business Day following such date.

 

(s)        Enforcement Fees. The
Company agrees to pay all costs and expenses of the Buyers incurred as a result of enforcement of the Transaction Documents and
the collection of any amounts owed to the Buyers hereunder (whether in cash, equity or otherwise), including, without limitation,
reasonable attorneys’ fees and expenses.

 

(t)        Collateral Agent.

 

(i)         Appointment;
Authorization. The Buyers, together with any successors or assigns thereof, hereby irrevocably appoint, designate and authorize
High Trail Special Situations LLC as collateral agent to take such action on their behalf under the provisions of the Notes, each
Security Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of each Security
Document, together with such powers as are reasonably incidental thereto. The provisions of this Section 9(t) are solely for
the benefit of the Collateral Agent, and the Company shall not have rights as a third-party beneficiary of any of such provisions.
It is understood and agreed that the use of the term “agent” herein or in any Security Document (or any other similar
term) with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to
create or reflect only an administrative relationship between contracting parties. Notwithstanding any provision to the contrary
contained elsewhere in the Notes, any Security Document or any other agreement, instrument or document related hereto or thereto,
the Collateral Agent shall not have any duty or responsibility except those expressly set forth herein, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into the Notes, any Security Document or any other
agreement, instrument or document related hereto or thereto or otherwise exist against the Collateral Agent.

 

(ii)        Delegation
of Duties. The Collateral Agent may perform any and all of its duties and exercise its rights and powers hereunder or under
any Security Document by or through any one or more sub-agents appointed by the Collateral Agent. The Collateral Agent and any
such sub-agent may perform any and all of its duties and exercise its rights and powers by or through its Affiliates (as defined
in the Notes), partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives,
or the partners, directors, officers,

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employees, agents, trustees,
administrators, managers, advisors and representatives of any of its Affiliates (collectively, the “Related Parties”).
The exculpatory provisions of this Section 9(t) shall apply to any such sub-agent and to the Related Parties of the
Collateral Agent and any such sub-agent. The Collateral Agent shall not be responsible for the negligence or misconduct of any
sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the
Collateral Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

 

(iii)       Exculpatory Provisions.

 

(A)       The Collateral
Agent shall not have any duties or obligations except those expressly set forth in the Security Documents, and its duties shall
be administrative in nature. Without limiting the generality of the foregoing, the Collateral Agent: (i) shall not be subject to
any fiduciary or other implied duties, regardless of whether a Default (as defined in the Notes) or Event of Default (as defined
in the Notes) has occurred and is continuing; (ii) shall not have any duty to take any discretionary action or exercise any discretionary
powers; and (iii) shall not, except as expressly set forth in the Security Documents, have any duty to disclose, and shall not
be liable for the failure to disclose, any information relating to the Company or any of its Affiliates that is communicated to
or obtained by the Collateral Agent or any of its Affiliates in any capacity.

 

(B)       The Collateral
Agent shall not be liable for any action taken or not taken by it in the absence of its own gross negligence or willful misconduct
as determined by a court of competent jurisdiction by final and non-appealable judgment. The Collateral Agent shall be deemed not
to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of Default is given
to the Collateral Agent in writing by the Company.

 

(C)       The Collateral
Agent shall not be responsible for or have any duty to ascertain or inquire into (a) any statement, warranty or representation
made in or in connection with the Notes, any Security Document or any other agreement, instrument or document related hereto or
thereto, (b) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith
or therewith, (c) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein
or therein or the occurrence of any Default or Event of Default, (d) the validity, enforceability, effectiveness or genuineness
of the Notes, any Security Document or any other agreement, instrument or document related to the Notes or Security Documents,
or (e) any failure of the Company or any other party to the Notes, any Security Agreement or any other agreement, instrument or
document related to the Notes or Security Documents to perform its obligations thereunder. The Collateral Agent shall not be under
any obligation to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions
of, the Notes, any Security Document or any other agreement, instrument or document related to the Notes or Security Documents,
or to inspect the properties, books or records of the Company or any Affiliate of the Company.

 

(iv)       Reliance
by Collateral Agent. The Collateral Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to have

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been signed, sent or
otherwise authenticated by the proper Person. The Collateral Agent also may rely upon any statement made to it orally or by telephone
and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. The Collateral
Agent may consult with legal counsel, independent accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

(v)        Successor
Agent. The Collateral Agent may resign as the Collateral Agent at any time upon ten (10) days’ prior notice to the Buyers
and the Company. If the Collateral Agent resigns under the Notes, the Required Holders shall appoint a successor agent. If no successor
agent is appointed prior to the effective date of the resignation of the Collateral Agent, the Collateral Agent may appoint a successor
Collateral Agent on behalf of the Buyers after consulting with the Buyers. Upon the acceptance of its appointment as successor
agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Collateral Agent and the
term “the Collateral Agent” shall mean such successor agent, and the retiring Collateral Agent’s appointment,
powers and duties as the Collateral Agent shall be terminated. After the Collateral Agent’s resignation hereunder as the
Collateral Agent, the provisions of this Section 9(t) shall continue to inure to its benefit as to any actions
taken or omitted to be taken by it while it was the Collateral Agent. If no successor agent has accepted appointment as the Collateral
Agent by the date which is thirty (30) days following a retiring Collateral Agent’s notice of resignation, a retiring Collateral
Agent’s resignation shall nevertheless thereupon become effective and the Buyers, shall perform all of the duties of the
Collateral Agent hereunder until such time as Required Holders shall appoint a successor agent as provided for above.

 

(vi)        Non-Reliance
on the Collateral Agent. The Buyers acknowledges that they have, independently and without reliance upon the Collateral Agent
or any of its Related Parties and based on such documents and information as they have deemed appropriate, made their own credit
analysis and decision to enter invest in the Notes. The Buyers also acknowledges that they will, independently and without reliance
upon the Collateral Agent or any of its Related Parties and based on such documents and information as they shall from time to
time deem appropriate, continue to make their own decisions in taking or not taking action under or based upon the Notes, any Security
Document or any related agreement or any document furnished hereunder or thereunder.

 

(vii)       Collateral
Matters. The Buyers irrevocably authorize the Collateral Agent to release any Lien (as defined in the Notes) granted to or
held by the Collateral Agent under any Security Document (i) when all Obligations (as defined in the Security Agreements) have
been paid in full; (ii) constituting property sold or to be sold or disposed of as part of or in connection with any sale or other
disposition permitted under the Notes and each other agreement, instrument or document related thereto (it being agreed and understood
that the Collateral Agent may conclusively rely without further inquiry on a certificate of an officer of the Company as to the
sale or other disposition of property being made in compliance with the Notes and each other agreement, instrument or document
related thereto); or (iii) if approved, authorized or ratified in writing by the Buyers. The Collateral Agent shall have the right,
in accordance with the Security Documents to sell, lease or otherwise dispose of any Collateral (as defined in the Security Agreements)
for cash, credit or any combination thereof, and the Collateral Agent may purchase

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any Collateral at public
or, if permitted by law, private sale and, in lieu of actual payment of the purchase price, may credit bid and setoff the amount
of such price against the Obligations.

 

(viii)      Reimbursement
by Buyers. To the extent that the Company for any reason fails to indefeasibly pay any amount required under Sections 4(g)
or 9(k) to be paid by it to the Collateral Agent (or any sub-agent thereof) or any Related Party of the Collateral Agent (or any
sub-agent thereof), the Buyers hereby agree, jointly and severally, to pay to the Collateral Agent (or any such sub-agent) or such
Related Party of the Collateral Agent (or any sub-agent thereof), as the case may be, such unpaid amount.

 

(ix)       Marshaling; Payments Set Aside.
Neither the Collateral Agent nor the Buyers shall be under any obligation to marshal any assets in favor of the Company or
any other Person or against or in payment of any or all of the Obligations. To the extent that the Company makes a payment or payments
to the Collateral Agent, or the Collateral Agent enforces its Liens (as defined in the Notes) or exercises its rights of set-off,
and such payment or payments or the proceeds of such enforcement or set-off or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Collateral Agent
in its discretion) to be repaid to a trustee, receiver or any other party in connection with any bankruptcy, insolvency or similar
proceeding, or otherwise, then (i) to the extent of such recovery, the obligation under the Notes intended to be satisfied shall
be revived and continued in full force and effect as if such payment had not been made or such enforcement or set-off had not occurred
and (ii) the Buyers agree to pay to the Collateral Agent upon demand its share of the total amount so recovered from or repaid
by the Collateral Agent to the extent paid to the Buyers.

 

[signature pages follow]

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IN WITNESS WHEREOF, each Buyer and the Company
have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

 

	 	COMPANY:
	 	 
	 	9 METERS BIOPHARMA, INC.
	 	 
	 	By: 	 
	 	 	Name:	[ l ]
	 	 	Title:	[ l ]

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IN WITNESS WHEREOF, each Buyer and the Company
have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

 

	 	BUYER:
	 	 
	 	[ l ]
	 	 	 
	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 

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SCHEDULE OF BUYERS

 

	(1)	 	 	(2)	 	 	(3)	 	(4) 	 	(5) 	 	(6)	 	(7)	 	(8)
	Buyer	 	 	Address
	 	 	Aggregate
 Principal
 Amount of
 Initial Notes

	 	Aggregate
 Purchase
 Price of
 Initial Notes

	 	Maximum
 Aggregate Principal
 Amount of
 Subsequently
 Purchased Notes

	 	Maximum
 Aggregate Purchase
 Price of
 Subsequently
 Purchased Notes

	 	Maximum Aggregate
 Purchase Price of
 Purchased Notes

	 	Legal Representative’s Address
	[ l ]	 	 	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	[ l ]
	TOTAL	 	 	 	 	 	$	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	$	[ l ]	 	 	 

    	68

    	

    

Exhibit A

 

Form of Senior Secured Convertible Note

    	 

    	

    

Exhibit B

 

Form of Security Agreements

    	 

    	

    

Exhibit C

 

Voting Agreement Parties

 

		1.	

    	 

    	

    

Exhibit D

 

Form of Voting Agreement

    	 

    	

    

Exhibit E

 

Form of Perfection CertificateExhibit 10.2

 

9
Meters Biopharma, Inc.

 

Senior Secured Convertible Note due
2025

 

THE ISSUANCE AND SALE OF NEITHER THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES THAT MAY BE ISSUABLE PURSUANT TO THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. UNTIL THE DATE THAT IS ONE (1)
YEAR AFTER THE ISSUE DATE (AS DEFINED ON THE REVERSE OF THIS NOTE), THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION AND PROSPECTUS-DELIVERY REQUIREMENTS OF THE SECURITIES ACT.

    	 

    	 

    

9
Meters Biopharma, Inc.

 

Senior Secured Convertible Note due
2025

 

Certificate No. A-[_]

 

9 Meters Biopharma,
Inc., a Delaware corporation (the “Company”), for value received, promises to pay to High Trail Special Situations
LLC (the “Initial Holder”), or its registered assigns, one hundred and five percent (105%) of the principal
sum of [ ● ] million dollars ($[ ●
],000,000) (such principal sum, the “Principal Amount” and 105% of such Principal Amount, the “Maturity
Principal Amount”) on July 1, 2025, and to pay any outstanding interest thereon, as provided in this Note, in each case
as provided in and subject to the other provisions of this Note, including the earlier redemption, repurchase or conversion of
this Note.

 

Unless otherwise indicated,
references herein to “dollars” or “$” are to U.S. dollars.

 

Additional provisions
of this Note are set forth on the other side of this Note.

 

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

    	 

    	 

    

IN WITNESS WHEREOF,
9 Meters Biopharma, Inc. has caused this instrument to be duly executed as of the date set forth below.

 

	 	9 Meters Biopharma,
Inc.

	 	 	 
	Date: [__], 2022	By:	 
	 	 	Name: 	[ ● ]
	 	 	Title: 	[ ● ]

 

(Signature Page to Senior Secured Convertible Note due 2025, Certificate No. A-[_])

    	 

    	 

    

9
Meters Biopharma, Inc.

 

Senior Secured Convertible Note due
2025

 

This Note (this “Note”
and, collectively with any Note issued in exchange therefor or in substitution thereof, the “Notes”) is issued
by 9 Meters Biopharma, Inc., a Delaware corporation (the “Company”), and designated as its “Senior Secured
Convertible Notes due 2025.”

 

Section 1.       Definitions.

 

“Accelerated
Principal Conversion Date” has the meaning set forth in Section 5(C)(ii).

 

“Accelerated
Principal Conversion Notice” has the meaning set forth in Section 5(C)(ii).

 

“Accelerated
Principal Conversion Period” means a period of time specified by the Company of at least ten (10) Trading Days (but not
more than forty (40) Trading Days) in length, commencing on the date that is three (3) Trading Days after the date notice thereof
is received by the Holder (or, at the election of the Holder, an earlier date); provided that no Accelerated Principal Conversion
Period shall occur during or overlap with any Amortization Stock Payment Period or other Accelerated Principal Conversion Period
across all notes issued pursuant to the Securities Purchase Agreement which remain outstanding.

 

“Accelerated
Principal Payment” has the meaning set forth in Section 4(A)(ii).

 

“Accelerated
Principal Stock Payment Delivery Date” has the meaning set forth in Section 5(C)(ii).

 

“Accelerated
Principal Stock Payment Notice” has the meaning set forth in Section 5(C)(ii).

 

“Additional
Amortization Amount” has the meaning set forth in Section 4(A)(i).

 

“Adjustment
Period” has the meaning set forth in Section 7(F)(i)(6)(d).

 

“Adjustment
Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance
or sale (or deemed issuance or sale in accordance with Section 7(F)(ii)) of shares of Common Stock that could result in
a decrease in the net consideration received by the Company in connection with, or with respect to, such securities (including,
without limitation, any cash settlement rights, cash adjustment or other similar rights).

 

“Affiliate”
has the meaning set forth in Rule 144 under the Securities Act.

 

“Amortization
Date” means, with respect to a Note, (A) the first calendar day of each month beginning with the twelfth (12th) month
following the Issue Date; and (B) if not otherwise included in clause (A), the Maturity Date.

    	 

    	 

    

“Amortization
Payment” means, with respect to any Amortization Date, an amount equal to [ ●
]1 on each such Amortization Date.

 

“Amortization
Stock Payment Date” has the meaning set forth in Section 5(C)(i).

 

“Amortization
Stock Payment Delivery Date” has the meaning set forth in Section 5(C)(i).

 

“Amortization
Stock Payment Period” has the meaning set forth in Section 5(C)(i).

 

“Applicable
Price” has the meaning set forth in Section 7(F)(i)(6).

 

“Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issue Date, directly or indirectly managed or advised by the
Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a “group” (within the meaning
of Section 13(d)(3) of the Exchange Act) together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial
ownership of the Common Stock would or could be aggregated with the Holder’s and the other Attribution Parties for purposes
of Section 13(d) of the Exchange Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and all other
Attribution Parties to the Maximum Percentage.

 

“Authorized
Denomination” means, with respect to the Notes, a Principal Amount thereof equal to $1,000 or any integral multiple of
$1,000 in excess thereof, or, if such Principal Amount then-outstanding is less than $1,000, then such outstanding Principal Amount.

 

“Available
Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the
then-current Benchmark is a term rate, any tenor for such Benchmark that is or may be used for determining the length of an Interest
Period or (y) otherwise, any payment period for interest calculated with reference to such Benchmark, as applicable, pursuant to
this Note as of such date.

 

“Bankruptcy
Law” means Title 11, United States Code, or any similar U.S. federal or state or non-U.S. law for the relief of debtors.

 

“Benchmark”
means, initially, LIBOR; provided that if a replacement of the Benchmark has occurred pursuant to Section 4(C)(iii), then
“Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such
prior benchmark rate. Any reference to “Benchmark” shall include, as applicable, the published component used in the
calculation thereof.

 

“Benchmark
Replacement” means, for any Available Tenor: (1) For purposes of Section 4(C)(iii)(1), the first alternative set
forth below that can be determined by the 

 

 

1 NTD: To be an
amount equal to 105.0% of the initial Principal Amount multiplied by a fraction, the numerator of which shall be one and the denominator
of which shall be the number of Amortization Dates that remain as of the date of the issuance of the Note.

    	2

    	 

    

Collateral Agent: (a)
the sum of: (i) Term SOFR and (ii) 0.11448% (11.448 basis points) for an Available Tenor of one-month’s duration, 0.26161%
(26.161 basis points) for an Available Tenor of three-months’ duration, and 0.42826% (42.826 basis points) for an Available
Tenor of six-months’ duration, or (b) the sum of: (i) Daily Simple SOFR and (ii) the spread adjustment selected or recommended
by the Relevant Governmental Body for the replacement of the tenor of LIBOR with a SOFR-based rate having approximately the same
length as the interest payment period specified in Section 4(C)(iii)(1); and (2) For purposes of Section 4(C)(iii)(2),
the sum of (a) the alternate benchmark rate and (b) an adjustment (which may be a positive or negative value or zero), in each
case, that has been selected by the Collateral Agent and the Company as the replacement for such Available Tenor of such Benchmark
giving due consideration to any evolving or then-prevailing market convention, including any applicable recommendations made by
the Relevant Governmental Body, for U.S. dollar-denominated syndicated credit facilities at such time.

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “Business Day,” the definition of “Interest Period,” timing
and frequency of determining rates and making payments of interest and other technical, administrative or operational matters)
that the Collateral Agent and the Company decide may be appropriate to reflect the adoption and implementation of such Benchmark
Replacement and to permit the administration thereof by the Collateral Agent in a manner substantially consistent with market practice
(or, if the Collateral Agent decides that adoption of any portion of such market practice is not administratively feasible or if
the Collateral Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other
manner of administration as the Collateral Agent decides is reasonably necessary in connection with the administration of this
Note).

 

“Benchmark
Transition Event” means, with respect to any then-current Benchmark other than LIBOR, the occurrence of a public statement
or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for
the administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York,
an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over
the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator
for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide all
Available Tenors of such Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there
is no successor administrator that will continue to provide any Available Tenor of such Benchmark or (b) all Available Tenors of
such Benchmark are or will no longer be representative of the underlying market and economic reality that such Benchmark is intended
to measure and that representativeness will not be restored.

 

“Board of Directors”
means the board of directors of the Company or a committee of such board duly authorized to act on behalf of such board.

 

“Business Combination
Event” has the meaning set forth in Section 10.

    	3

    	 

    

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

 

“Capital Lease”
means, with respect to any Person, any leasing or similar arrangement conveying the right to use any property, whether real or
personal property, or a combination thereof, by that Person as lessee that, in conformity with GAAP, is required to be accounted
for as a capital lease on the balance sheet of such Person.

 

“Capital Lease
Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a Capital Lease
that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the stated maturity
thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which
such lease may be prepaid by the lessee without payment of a penalty.

 

“Capital Stock”
of any Person means any and all shares of, interests in, rights to purchase, warrants or options for, participations in, or other
equivalents of, in each case however designated, the equity of such Person, but excluding any debt securities convertible into
such equity.

 

“Cash”
means all cash and liquid funds.

 

“Cash Equivalents”
means, as of any date of determination, any of the following: (A) marketable securities (i) issued or directly and unconditionally
guaranteed as to interest and principal by the United States Government, or (ii) issued by any agency of the United States the
obligations of which are backed by the full faith and credit of the United States, in each case maturing within one (1) year after
such date; (B) marketable direct obligations issued by any state of the United States of America or any political subdivision of
any such state or any public instrumentality thereof, in each case maturing within one (1) year after such date and having, at
the time of the acquisition thereof, a rating of at least A-1 from Standard & Poor’s Corporation or at least P-1 from
Moody’s Investors Service; (C) commercial paper maturing no more than one (1) year from the date of creation thereof and
having, at the time of the acquisition thereof, a rating of at least A-1 from Standard & Poor’s Corporation or at least
P-1 from Moody’s Investors Service; (D) certificates of deposit or bankers’ acceptances maturing within one (1) year
after such date and issued or accepted by any commercial bank organized under the laws of the United States of America or any State,
or the District of Columbia that (i) is at least “adequately capitalized” (as defined in the regulations of its primary
federal banking regulator), and (ii) has Tier 1 capital (as defined in such regulations) of not less than $5,000,000,000; and (E)
shares of any money market mutual fund that (i) has substantially all of its assets invested continuously in the types of investments
referred to in clauses (A) and (B) above, (ii) has net assets of not less than $5,000,000,000, and (iii) has the highest rating
obtainable from either Standard & Poor’s Corporation or Moody’s Investors Service.

    	4

    	 

    

“Clinical
Development Cessation” has the meaning set forth in Section 8(B)(i).

 

“Clinical Development
Cessation Notice” has the meaning set forth in Section 8(B)(i).

 

“Clinical Development
Cessation Optional Redemption Date” has the meaning set forth in Section 8(B)(i).

 

“Clinical Development
Cessation Optional Redemption Notice” has the meaning set forth in Section 8(B)(i).

 

“Clinical Development
Cessation Redemption Amount” has the meaning set forth in Section 8(B)(i).

 

“Clinical Development
Cessation Redemption Price” means the cash price equal to one hundred fifteen percent (115%) of the outstanding Principal
Amount plus the accrued and unpaid interest thereon.

 

“Clinical Development
Cessation Trigger” has the meaning set forth in Section 8(B)(i).

 

“Clinical
Development Cessation Trigger Notice” has the meaning set forth in Section 8(B)(i).

 

“Close of Business”
means 5:00 p.m., New York City time.

 

“Collateral”
has the meaning set forth in the Security Agreements.

 

“Collateral
Agent” means High Trail Special Situations LLC in its capacity as collateral agent for the Holder and each Other Holder,
together with any successor thereto in such capacity.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common Stock”
means the common stock, par value $0.0001 per share, of the Company.

 

“Common Stock
Change Event” has the meaning set forth in Section 7(H)(i)(4).

 

“Company Redemption
Equity Conditions” will be deemed to be satisfied as of any date if all of the following conditions are satisfied as
of such date and on each of the twenty (20) previous Trading Days: (A) any shares issuable upon conversion of this Note at such
time would be Freely Tradable; (B) the Holder is not in possession of any material non-public information provided by or on behalf
of the Company; (C) the issuance of shares pursuant to this Note at such time would not be limited by Section 7(I); (D)
the issuance of shares pursuant to this Note at such time would satisfy Section 7(E)(i); (E) no public announcement of a
pending, proposed or intended Fundamental Change has occurred that has not been abandoned, terminated or consummated; and (F) the
Daily VWAP per share of Common Stock on the Nasdaq Capital Market is not less than fifteen cents ($0.15) (subject to proportionate
adjustments for events of the type set forth in Section 7(F)(i)(1); (G) the daily dollar trading volume (as reported on Bloomberg)
of the Common Stock on the Nasdaq Capital Market is not less than one hundred thousand dollars ($100,000); and (H) no Event of
Default will have occurred that has not been waived and no Default will have occurred and be continuing which has not been waived.

 

“Company Redemption
Equity Conditions Period” has the meaning set forth in Section 8(A)(iv).

 

“Company Redemption
Date” means the Company Redemption Option 1 Date or the Company Redemption Option 2 Date, as applicable.

 

“Company Redemption
Option 1 Date” has the meaning set forth in Section 8(A)(i).

    	5

    	 

    

“Company Redemption
Option 2 Date” has the meaning set forth in Section 8(A)(ii).

 

“Company Redemption
Option 1 Price” means, with respect to a redemption of this Note pursuant to Section 8(A)(i), a cash amount equal
to one hundred five percent (105%) of the Principal Amount of such Note elected to be redeemed by the Company, plus accrued and
unpaid interest.

 

“Company Redemption
Option 2 Price” means, with respect to a redemption of this Note pursuant to Section 8(A)(ii), a cash amount equal
to the greater of (A) the Fixed Conversion Value, plus accrued and unpaid interest and (B) (i) if before the first year anniversary
of the Issue Date, one hundred twenty-five percent (125%) of the Principal Amount of such Note elected to be redeemed by the Company,
plus accrued and unpaid interest, (ii) if after the first year anniversary of the Issue Date but before the second year anniversary
of the Issue Date, one hundred fifteen percent (115%) of the Principal Amount of such Note elected to be redeemed by the Company,
plus accrued and unpaid interest and (iii) if after the second year anniversary of the Issue Date, one hundred five percent (105%)
of the Principal Amount of such Note elected to be redeemed by the Company, plus accrued and unpaid interest.

 

“Contingent
Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person
with respect to (A) any Indebtedness or other obligations of another Person, including any such obligation directly or indirectly
guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise
directly or indirectly liable; (B) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant
services issued for the account of that Person; and (C) all obligations arising under any interest rate, currency or commodity
swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect
a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent
Obligation” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect
of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the
maximum amount of the obligations under the guarantee or other support arrangement.

 

“Conversion
Consideration” has the meaning set forth in Section 7(D)(i).

 

“Conversion
Consideration Interest Shares” has the meaning set forth in Section 7(D)(i)(2).

 

“Conversion
Consideration Interest Shares Notice” has the meaning set forth in Section 7(D)(ii).

 

“Conversion
Date” means the first Business Day on which the requirements set forth in Section 7(C)(i) to convert this Note
are satisfied.

 

“Conversion
Notice” has the meaning set forth in Section 7(C)(i).

    	6

    	 

    

“Conversion
Price” means, as of any time, an amount equal to (A) one thousand dollars ($1,000) divided by (B) the Conversion
Rate in effect at such time.

 

“Conversion
Floor Price” if any, shall mean a price not in excess of the lesser of (x) fifteen cents ($0.15) less than the Market
Stock Payment Price on the date of the Amortization Stock Payment Notice and Accelerated Principal Stock Payment Notice, as applicable
and (y) eighty-five percent (85%) of the Market Stock Payment Price on the date of the Amortization Stock Payment Notice and Accelerated
Principal Stock Payment Notice, as applicable.

 

“Conversion
Rate” initially means [Insert an amount (rounded to the nearest fourth decimal place) equal to a fraction
(1) whose numerator is $1,000; and (2) whose denominator is 100% of the average of the five (5) Daily VWAPs immediately prior to
the date of the Securities Purchase Agreement or for Subsequently Purchased Notes, the five (5) Daily VWAPs immediately prior to
such Issuance(s); provided that, in each occurrence, if such average of the five (5) Daily VWAPs immediately prior to the Securities
Purchase Agreement or issuance of Subsequently Purchased Notes, as applicable (each a “Conversion Rate Date”), is higher
than the Daily VWAP on the date immediately prior to the applicable Conversion Rate Date, then the Daily VWAP on the date immediately
prior to the applicable Conversion Rate Date shall be used] shares of Common Stock per $1,000 Principal Amount of Notes;
provided, however, that the Conversion Rate is subject to adjustment pursuant to Section 7; provided,
further, that whenever this Note refers to the Conversion Rate as of a particular date without setting forth a particular
time on such date, such reference will be deemed to be to the Conversion Rate immediately after the Close of Business on such date.

 

“Conversion
Settlement Date” has the meaning set forth in Section 7(D)(iv).

 

“Convertible
Securities” means any capital stock or other security of the Company or any of its Subsidiaries that is at any time and
under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the
holder thereof to acquire, any capital stock or other security of the Company (including, without limitation, Common Stock) or
any of its Subsidiaries.

 

“Copyright
License” means any written agreement granting any right to use any Copyright or Copyright registration, now owned or
hereafter acquired by the Company or in which the Company now holds or hereafter acquires any interest.

 

“Copyrights”
means all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof, or
of any other country.

 

“Covering Price”
has the meaning set forth in Section 7(D)(v)(1).

 

“Daily Simple
SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established
by the Collateral Agent in accordance with the conventions for this rate recommended by the Relevant Governmental Body for determining
“Daily Simple SOFR” for syndicated business loans; provided, that if the Collateral Agent decides that any such convention
is not administratively feasible for the Collateral Agent, then the Collateral Agent may establish another convention in its reasonable
discretion.

    	7

    	 

    

“Daily VWAP”
means, for any VWAP Trading Day, the per share volume-weighted average price of the Common Stock on the Nasdaq Capital Market (or
the principal, in terms of volume, Eligible Exchange on which the Common Stock is listed
for trading) as displayed under the heading “Bloomberg VWAP” on Bloomberg page “NMTR <EQUITY> VAP”
(or, if such page is not available, its equivalent successor page) in respect of the period from the scheduled open of trading
until the scheduled close of trading of the primary trading session on such VWAP Trading Day (or, if such volume-weighted average
price is unavailable, the market value of one share of Common Stock on such VWAP Trading Day, determined, using a volume-weighted
average price method, by a nationally recognized independent investment banking firm selected by the Company). The Daily VWAP will
be determined without regard to after-hours trading or any other trading outside of the regular trading session.

 

“Default”
means any event that is (or, after notice, passage of time or both, would be) an Event of Default.

 

“Default Interest”
has the meaning set forth in Section 4(B)(ii).

 

“Disqualified
Stock” means, with respect to any Person, any Capital Stock that by its terms (or by the terms of any security into which
it is convertible or for which it is exchangeable at the option of the holder) or upon the happening of any event:

 

(A)      matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise;

 

(B)      is convertible
or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock convertible or exchangeable solely at the option
of the Company or a Subsidiary of the Company; provided that any such conversion or exchange will be deemed an incurrence of Indebtedness
or Disqualified Stock, as applicable); or

 

(C)      is redeemable
at the option of the holder thereof, in whole or in part,

 

(D)      in the case of
each of clauses (A), (B) and (C), at any point prior to the one hundred eighty-first (181st) day after the Maturity Date.

 

“DTC”
means The Depository Trust Company.

 

“Early Opt-in
Effective Date” means, with respect to any Early Opt-in Election, the sixth (6th) Business Day after the date notice
of such Early Opt-in Election is provided to the Holder, so long as the Collateral Agent has not received, by 5:00 p.m. (New York
City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the Holder, written
notice of objection to such Early Opt-in Election from Holders comprising the Required Holders.

 

“Early Opt-in
Election” means the occurrence of: (1) a notification by the Collateral Agent to (or the request by the Company to the
Collateral Agent to notify) the Holder that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities
for public companies in the pharmaceutical or biotechnology industry sector and with similar credit profiles
to the Company) at such

    	8

    	 

    

time contain (as a result
of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a
benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and
(2) the joint election by the Collateral Agent and the Company to trigger a fallback from LIBOR and the provision by the Collateral
Agent of written notice of such election to the Holder.

 

“Eligible Exchange”
means any of The New York Stock Exchange, The NYSE American LLC, The Nasdaq Capital Market, The Nasdaq Global Market or The Nasdaq
Global Select Market (or any of their respective successors).

 

“Equipment”
means all “equipment” as defined in the UCC with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of
the foregoing.

 

“Equity Conditions”
will be deemed to be satisfied as of any date if all of the following conditions are satisfied as of such date and on each of the
twenty (20) previous Trading Days: (A) the shares issuable upon conversion of this Note are Freely Tradable; (B) the Holder is
not in possession of any material non-public information provided by or on behalf of the Company; (C) the issuance of such shares
will not be limited by Section 7(I); (D) such shares will satisfy Section 7(E)(i); (E) no public announcement of
a pending, proposed or intended Fundamental Change has occurred that has not been abandoned, terminated or consummated; (F) the
Daily VWAP per share of Common Stock on the Nasdaq Capital Market (or the principal, in terms of volume, Eligible Exchange on which the Common Stock is listed for trading) is not less than fifteen cents ($0.15) (subject
to proportionate adjustments for events of the type set forth in Section 7(F)(i)(1); (G) the daily dollar trading volume
(as reported on Bloomberg) of the Common Stock on the Nasdaq Capital Market (or the principal, in terms of volume, Eligible Exchange
on which the Common Stock is listed for trading) is not less than one hundred thousand dollars ($100,000); and (H) no Event of
Default will have occurred that has not been waived and no Default will have occurred and be continuing which has not been waived.

 

“Equity Interests”
shall mean, with respect to any Person, any and all shares, interests, participations or other equivalents, including preferred
stock or membership interests (however designated, whether voting or non-voting), of equity of such Person, including, if such
Person is a partnership, partnership interests (whether general or limited) and including, without limitation, any “equity
security” (as that term is defined under Rule 405 promulgated under the Securities Act), and any other interest or participation
that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership.

 

“Equity Issuance”
shall mean (a) any issuance or sale by the Company or any of its Subsidiaries of any Equity Interests (including any Equity Interests
issued upon exercise or conversion of any Equity Rights) or any Equity Rights, or (b) the receipt by the Company or any of its
Subsidiaries of any capital contribution (whether or not evidenced by any Equity Interest issued by the recipient of such contribution),
in each case for bona fide capital-raising purposes and other than (i) any issuance of Equity Interests upon the exercise of any
Equity Rights outstanding as of the date hereof provided, that such issuance is made pursuant to the terms of such Equity Rights
in effect on the date hereof and such Equity Rights are not amended to increase the number of such Equity Interests or to decrease
the exercise price, exchange price or conversion

    	9

    	 

    

price of Equity Rights,
(ii) Equity Interests issuable upon the exercise of any Equity Rights or upon the lapse of forfeiture restrictions on awards made
pursuant to an Approved Stock Plan (including Equity Interests withheld by the Company for the purpose of paying on behalf of the
holder thereof the exercise price of stock options or for paying taxes due as a result of such exercise or lapse of forfeiture
restrictions) or (iii) Common Stock issuable upon the exercise of stock options or upon the lapse of forfeiture restrictions on
awards made pursuant to, any stock option exchange program of the Company that is approved by the Board of Directors or the compensation
committee thereof or the Company’s stockholders, whether now in effect or hereafter implemented.

 

“Equity Rights”
shall mean, with respect to any Person, any then-outstanding subscriptions, options, warrants, commitments, preemptive rights,
convertible debt, or other equity-linked securities or agreements of any kind for the issuance or sale, of any additional Equity
Interests of any class, or partnership or other ownership interests of any type in, such Person.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Event of Default”
has the meaning set forth in Section 11(A).

 

“Event of Default
Acceleration Amount” means, with respect to the delivery of a notice pursuant to Section 11(B)(ii) declaring this
Note to be due and payable immediately on account of an Event of Default, a cash amount equal to the greater of (A) one hundred
fifteen percent (115%) of the then outstanding Principal Amount of this Note (or such lesser principal amount accelerated pursuant
to such notice) plus accrued and unpaid interest on this Note and (B) the product of (i) the Conversion Rate in effect as of the
Trading Day immediately preceding the date that the Holder delivers such notice pursuant to Section 11(B)(ii); (ii) the
total then outstanding Principal Amount (expressed in thousands) of this Note plus accrued and unpaid interest; and (iii) the Daily
VWAP on the date the Holder delivers such notice pursuant to Section 11(B)(ii).

 

“Event of Default
Notice” has the meaning set forth in Section 11(C).

 

“Event of Default
Stock Payment” has the meaning set forth in Section 5(E).

 

“Event of Default
Stock Payment Date” means any date on which the Holder delivers an Event of Default Stock Payment Notice pursuant to
Section 5(E) hereunder.

 

“Event of Default
Stock Payment Delivery Date” has the meaning set forth in Section 5(E).

 

“Event of Default
Stock Payment Notice” has the meaning set forth in Section 5(E).

 

“Event of Default
Stock Payment Price” means, with respect to any Event of Default Stock Payment Date, an amount equal to eighty five percent
(85.0%) of the lowest Daily VWAP during the ten (10) VWAP Trading Day period ending on such Event of Default Stock Payment Date.

 

“Ex-Dividend
Date” means, with respect to an issuance, dividend or distribution on the Common Stock, the first date on which shares
of Common Stock trade on the applicable exchange

    	10

    	 

    

or in the applicable
market, regular way, without the right to receive such issuance, dividend or distribution (including pursuant to due bills or similar
arrangements required by the relevant stock exchange). For the avoidance of doubt, any alternative trading convention on the applicable
exchange or market in respect of the Common Stock under a separate ticker symbol or CUSIP number will not be considered “regular
way” for this purpose.

 

“Excess Shares”
has the meaning set forth in Section 7(I)(i).

 

“Exchange Act”
means the U.S. Securities Exchange Act of 1934, as amended.

 

“Exempt Issuance”
means the issuance of (a) Common Stock, options, restricted stock awards, restricted stock units, stock appreciation rights or
other equity awards to employees, officers, directors of the Company pursuant to an Approved Stock Plan (as defined in the Securities
Purchase Agreement) or any stock or option plan or other agreement duly adopted by: (i) the Board of Directors or the compensation
committee thereof and approved by the stockholders of the Company for the purposes of providing compensation for services provided
to the Company in their capacity as such, or (ii) the Board of Directors or the compensation committee thereof as an inducement
grant in accordance with Nasdaq Listing Rule 5635(c)(4) or (b) (or such similar rule of the principal, in terms of volume, Eligible Exchange on which the Common Stock is listed for trading) any securities issued
upon the exercise or exchange of or conversion of any Convertible Securities issued and outstanding on the date of the Securities
Purchase Agreement, provided that such securities have not been amended since the date of the Securities Purchase Agreement to
increase the number of such securities, to extend the term of such securities, to decrease the exercise price, exchange price or
conversion price of such securities, or to otherwise have terms that are less favorable to the Company.

 

“Expiration
Date” has the meaning set forth in Section 7(F)(i)(5).

 

“Expiration
Time” has the meaning set forth in Section 7(F)(i)(5).

 

“FCA”
has the meaning set forth in Section 5(B)(iii).

 

“Fixed Conversion
Value” means the amount equal to the product of (i) the Daily VWAP of the Company’s Common Stock on the date of
the Redemption Notice and (ii) the number of shares of Common Stock that would result from the conversion on the date of the Redemption
Notice at the Conversion Price of the portion of the Principal Amount redeemed pursuant to Section 8(A)(ii). For purposes
of such calculation, any conversion limitations set forth herein shall not apply.

 

“Floor”
means a rate equal to six percent (6.00%) per annum.

 

“Freely Tradable”
means, with respect to any shares of Common Stock issued or issuable pursuant to this Note, that (A) such shares would be eligible
to be offered, sold or otherwise transferred by the Holder pursuant to an effective registration statement and without any requirement
for registration under any state securities or “blue sky” laws; (B) such shares are (or, when issued, will be) (i)
represented by book-entries at DTC and identified therein by an “unrestricted” CUSIP number; (ii) not represented by
any certificate that bears a legend referring to transfer restrictions under the Securities Act or other securities laws; and (iii)
listed and admitted

    	11

    	 

    

for trading, without
suspension or material limitation on trading, on an Eligible Exchange; and (C) no delisting or suspension by such Eligible Exchange
has been threatened (with a reasonable prospect of delisting occurring after giving effect to all applicable notice, appeal, compliance
and hearing periods) or reasonably likely to occur or pending as evidenced by (x) a writing by such Eligible Exchange or (y) the
Company falling below the minimum listing maintenance requirements of such Eligible Exchange.

 

“Fundamental
Change” means any of the following events:

 

(A)      a “person”
or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), other than the Company or its Wholly Owned
Subsidiaries, or the employee benefit plans of the Company or its Wholly Owned Subsidiaries, files any report with the Commission
indicating that such person or group has become the direct or indirect “beneficial owner” (as defined below) of shares
of the Company’s common equity representing more than fifty percent (50%) of the voting power of all of the Company’s
then-outstanding common equity;

 

(B)      the consummation
of (i) any sale, lease or other transfer, in one transaction or a series of transactions, of all or substantially all of the assets
of the Company and its Subsidiaries, taken as a whole, to any Person (other than solely to one or more of the Company’s Wholly
Owned Subsidiaries); or (ii) any transaction or series of related transactions in connection with which (whether by means of merger,
consolidation, share exchange, combination, reclassification, recapitalization, acquisition, liquidation or otherwise) all of the
Common Stock is exchanged for, converted into, acquired for, or constitutes solely the right to receive, other securities, cash
or other property (other than a subdivision or combination, or solely a change in par value, of the Common Stock); provided,
however, that any merger, consolidation, share exchange or combination of the Company pursuant to which the Persons that
directly or indirectly “beneficially owned” (as defined below) all classes of the Company’s common equity immediately
before such transaction directly or indirectly “beneficially own,” immediately after such transaction, more than fifty
percent (50%) of all classes of common equity of the surviving, continuing or acquiring company or other transferee, as applicable,
or the parent thereof, in substantially the same proportions vis-à-vis each other as immediately before such transaction
will be deemed not to be a Fundamental Change pursuant to this clause (B);

 

(C)      the Company’s
stockholders approve any plan or proposal for the liquidation or dissolution of the Company; or

 

(D)      the Common Stock
ceases to be listed on any Eligible Exchange.

 

For the purposes of this definition, (x)
any transaction or event described in both clause (A) and in clause (B)(i) or (ii) above (without regard to
the proviso in clause (B)) will be deemed to occur solely pursuant to clause (B) above (subject to such proviso);
and (y) whether a Person is a “beneficial owner” and whether shares are “beneficially owned”
will be determined in accordance with Rule 13d-3 under the Exchange Act.

 

“Fundamental
Change Notice” has the meaning set forth in Section 6(C).

 

“Fundamental
Change Repurchase Date” means the date as of which this Note must be repurchased for cash in connection with a Fundamental
Change, as provided in Section 6(B).

    	12

    	 

    

“Fundamental
Change Repurchase Price” means, with respect to this Note (or any portion of this Note to be repurchased) upon a Repurchase
Upon Fundamental Change, a cash amount equal to the greater of (A) one hundred fifteen percent (115%) of the then outstanding Principal
Amount of this Note (or such lesser principal amount accelerated pursuant to such notice) to be so repurchased and (B) the product
of (i) the Conversion Rate in effect as of the Trading Day immediately preceding the effective date of such Fundamental Change;
(ii) the Principal Amount of this Note to be repurchased upon a Repurchase Upon Fundamental Change (expressed in thousands); and
(iii) the Fundamental Change Stock Price for such Fundamental Change.

 

“Fundamental
Change Stock Price” means, with respect to any Fundamental Change, the Daily VWAP per share of Common Stock occurring on
the later of (i) the VWAP Trading Day immediately before the effective date of such Fundamental Change and (ii) the VWAP Trading Day
immediately after any public announcement of such Fundamental Change, which includes, but is not limited to, public disclosure on a
Form 8-K or otherwise.

 

“GAAP”
means generally accepted accounting principles in the United States of America, as in effect from time to time; provided the definitions
set forth in this Note and any financial calculations required thereby shall be computed to exclude any change to lease accounting
rules from those in effect pursuant to Financial Accounting Standards Board Accounting Standards Codification 840 (Leases) and
other related lease accounting guidance as in effect on the date hereof.

 

“Holder”
means the person in whose name this Note is registered on the books of the Company, which initially is the Initial Holder.

 

The term “including”
means “including without limitation,” unless the context provides otherwise.

 

“IBA”
has the meaning set forth in Section 5(B)(iii).

 

“Indebtedness”
means, indebtedness of any kind, including, without duplication (A) all indebtedness for borrowed money or the deferred purchase
price of property or services, including reimbursement and other obligations with respect to surety bonds and letters of credit,
(B) all obligations evidenced by notes, bonds, debentures or similar instruments, (C) all Capital Lease Obligations, (D) all Contingent
Obligations, and (E) Disqualified Stock.

 

“Independent
Investigator” has the meaning set forth in Section 9(R).

 

“Initial Holder”
has the meaning set forth in the cover page of this Note.

 

“Intellectual
Property” means all of the Company’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions; mask
works; the Company’s applications therefor and reissues, extensions, or renewals thereof; and the Company’s goodwill
associated with any of the foregoing, together with the Company’s rights to sue for past, present and future infringement
of Intellectual Property and the goodwill associated therewith.

 

“Interest Payment
Date” means (A) the first calendar day of each month, beginning on August 1, 2022; and (B) if not otherwise included
in clause (A), the Maturity Date.

    	13

    	 

    

“Interest Period”
means the period beginning on the day after the applicable Interest Payment Date and ending on the next Interest Payment Date.

 

“Investment”
means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any Person, or any
loan, advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of another Person
or the purchase of any assets of another Person for greater than the fair market value of such assets to solely the extent of the
amount in excess of the fair market value.

 

“IP Collateral”
means the portion of the Collateral that includes the Company’s Intellectual Property.

 

“Issue Date”
means June [ ● ], 2022.

 

“Last Reported
Sale Price” of the Common Stock for any Trading Day means the closing sale price per share (or, if no closing sale price
is reported, the average of the last bid price and the last ask price per share or, if more than one in either case, the average
of the average last bid prices and the average last ask prices per share) of Common Stock on such Trading Day as reported in composite
transactions for the principal U.S. national or regional securities exchange on which the Common Stock is then listed. If the Common
Stock is not listed on a U.S. national or regional securities exchange on such Trading Day, then the Last Reported Sale Price will
be the last quoted bid price per share of Common Stock on such Trading Day in the over-the-counter market as reported by OTC Markets
Group Inc. or a similar organization. If the Common Stock is not so quoted on such Trading Day, then the Last Reported Sale Price
will be the average of the mid-point of the last bid price and the last ask price per share of Common Stock on such Trading Day
from a nationally recognized independent investment banking firm selected by the Company.

 

“LIBOR”
means the rate equal to the London interbank offered rate administered by ICE Benchmark Administration Limited (or any successor
administrator of such rate), as published by Reuters (or any other commercially available source providing quotations of such rate
as designated by the Holder from time to time).

 

“License”
means any Copyright License, Patent License, Trademark License or other license of rights or interests.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien
or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional
sale or other title retention agreement, and any lease in the nature of a security interest; provided, that for the avoidance of
doubt, licenses, strain escrows and similar provisions in collaboration agreements, research and development agreements that do
not create or purport to create a security interest, encumbrance, levy, lien or charge of any kind shall not be deemed to be Liens
for purposes of this Note.

 

“Market Disruption
Event” means, with respect to any date, the occurrence or existence, during the one-half hour period ending at the scheduled
close of trading on such date on the principal, in terms of volume, Eligible Exchange on which the Common
Stock is listed for trading or trades, of any material suspension or limitation imposed on trading

    	14

    	 

    

(by reason of movements
in price exceeding limits permitted by the relevant exchange or otherwise) in the Common Stock or in any options contracts or futures
contracts relating to the Common Stock.

 

“Market Liquidity
Cap” means ten percent (10%) of the aggregate dollar value of the Company’s Share Trading Volume during the Trading
Days of the Accelerated Principal Conversion Period or Amortization Stock Payment Period, as applicable; provided, Market
Liquidity Limited Days shall be deemed to have a Share Trading Volume of zero (0).

 

“Market Liquidity
Limited Days” means, with respect to any Accelerated Principal Conversion Period or Amortization Stock Payment Period,
as applicable, (i) any Trading Days within such period in which the Market Stock Payment Price is less than the Conversion Floor
Price, if any, (ii) at Holder’s sole discretion, any Trading Days within such period in which (x) the Market Stock Payment
Price is equal to or higher than the Conversion Floor Price, if any, and (y) ninety-two percent (92%) of any intraday price per
share of the Common Stock on the Nasdaq Capital Market (or of the principal, in terms of volume, Eligible Exchange on which the Common Stock is listed for trading) is less than the Conversion Floor Price, if any, and
(iii) unless waived by the Holder at its sole discretion, any Trading Days for which the Equity Conditions are not satisfied.

 

“Market Price”
means the average of the Daily VWAP immediately prior to the Company Option 1 Redemption Date.

 

“Market Stock
Payment Price” means, with respect to any Amortization Stock Payment Date, Accelerated Principal Conversion Date, or
Interest Payment Date, as applicable, an amount equal to ninety-two percent (92.0%) of the lowest Daily VWAP during the three (3)
consecutive VWAP Trading Day period ending on, and including, the VWAP Trading Day immediately prior to such Amortization Stock
Payment Date, Accelerated Principal Conversion Date, or Interest Payment Date, as applicable.

 

“Maturity Date”
means July 1, 2025.

 

“Maturity
Principal Amount” has the meaning set forth in the cover page of this Note; provided, however, that
the Maturity Principal Amount of this Note will be subject to reduction pursuant to Section 5, Section 6, Section 7
and Section 8.

 

“Maximum Percentage”
has the meaning set forth in Section 7(I)(i).

 

“Minimum Liquidity
Requirement” has the meaning set forth in Section 9(J)(i).

 

The term “or”
is not exclusive, unless the context expressly provides otherwise.

 

“Open of Business”
means 9:00 a.m., New York City time.

 

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

    	15

    	 

    

“Other Holder”
means any person in whose name any Other Note is registered on the books of the Company.

 

“Other Notes”
means any Notes that are of the same class of this Note and that are represented by one or more certificates other than the certificate
representing this Note.

 

“Patent License”
means any written agreement granting any right with respect to any invention covered by a Patent that is in existence or a Patent
application that is pending, in which agreement the Company now holds or hereafter acquires any interest.

 

“Patents”
means all letters patent of, or rights corresponding thereto, in the United States or in any other country, all registrations and
recordings thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States or any other
country.

 

“Permitted
Indebtedness” means (A) Indebtedness evidenced by this Note; (B) Indebtedness actually disclosed pursuant to the Securities
Purchase Agreement as of the date of the Securities Purchase Agreement; (C) Indebtedness outstanding at any time secured by a Lien
described in clause (G) of the defined term “Permitted Liens,” provided such Indebtedness does not exceed the cost
of the Equipment and related expenses financed with such Indebtedness; provided that the total amount of Permitted Indebtedness
described in this clause (C) may not exceed two hundred and fifty thousand dollars ($250,000) in the aggregate; (D) Indebtedness
to trade creditors incurred in the ordinary course of business; (E) Indebtedness that also constitutes a Permitted Investment;
(F) Subordinated Indebtedness of the Company; (G) reimbursement obligations in connection with letters of credit or similar instruments
that are secured by Cash or Cash Equivalents and issued on behalf of the Company or a Subsidiary thereof in an aggregate amount
not to exceed two hundred and fifty thousand dollars ($250,000) at any time outstanding; (H) Contingent Obligations that are guarantees
of Indebtedness described in clauses (A) through (I); and (I) extensions, refinancings and renewals of any items of Permitted Indebtedness
(other than any Indebtedness repaid with the proceeds of this Note), provided that the principal amount is not increased
or the terms modified to impose materially more burdensome terms upon the Company or its Subsidiaries, as the case may be, and
provided further, that if the lender of any such proposed extension, refinancing or renewal of Permitted Indebtedness incurred
hereunder is different from the lender of the Permitted Indebtedness to be so extended, refinanced or renewed then, in addition
to the foregoing proviso, such Permitted Indebtedness shall also not (1) have a final maturity date, amortization payment, sinking
fund, put right, mandatory redemption or other repurchase obligation at the option of the lender or holder of such indebtedness,
or be prepayable at the option of the Company, in any case earlier than one hundred eighty-one (181) days following the Maturity
Date or (2) have any covenants that are more restrictive on the Company in any material respect than the covenants set forth in
this Note.

 

“Permitted
Intellectual Property Licenses” means (A) Intellectual Property licenses in existence at the Issue Date, including those
listed on the Schedules to the Security Agreements, (B) non-perpetual Intellectual Property licenses granted in the ordinary course
of business on arm’s length terms consisting of the licensing of technology, the development of technology or the providing
of technical support which may include licenses with unlimited renewal options solely to the extent such options require mutual
consent for renewal or are subject to financial or other conditions as to the ability of licensee to perform under the license;
provided such license was not

    	16

    	 

    

entered into during an
Event of Default or continuance of a Default, and (C) Intellectual Property licenses with respect to any IP Collateral in connection
with a Strategic Transaction upon satisfaction of the Strategic Transaction Collateral Requirements.

 

“Permitted
Investment” means: (A) Investments actually disclosed pursuant to the Securities Purchase Agreement, as in effect
as of the Issue Date; (B) (i) marketable direct obligations issued or unconditionally guaranteed by the United States of America
or any agency or any State thereof maturing within one year from the date of acquisition thereof, (ii) commercial paper maturing
no more than one year from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (iii) certificates of deposit issued by any bank headquartered
in the United States with assets of at least $5,000,000,000 maturing no more than one year from the date of investment therein,
and (iv) money market accounts; (C) Investments accepted in connection with Permitted Transfers; (D) Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent
obligations of, and other disputes with, customers or suppliers arising in the ordinary course of the Company’s business;
(E) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers
in the ordinary course of business and consistent with past practice, provided that this clause (E) shall not apply to Investments
of the Company in any Subsidiary thereof; (F) Investments consisting of (i) loans not involving the net transfer on a substantially
contemporaneous basis of cash proceeds to employees, officers or directors relating to the purchase of capital stock of the Company
pursuant to employee stock purchase plans or other similar agreements approved by the Company’s Board of Directors and (ii)
travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, provided
that the aggregate of all such loans outstanding may not exceed two hundred and fifty thousand dollars ($250,000) at any time;
(G) Investments in Wholly Owned Subsidiaries; (H) Permitted Intellectual Property Licenses; and (I) additional Investments that
do not exceed two hundred and fifty thousand dollars ($250,000) in the aggregate in any twelve (12) month period.

 

“Permitted
Liens” means any and all of the following: (A) Liens in favor of Holder or the Collateral Agent; (B) Liens deemed to
be disclosed pursuant to the Securities Purchase Agreement, as in effect as of the Issue Date; (C) Liens for taxes, fees, assessments
or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; provided,
that the Company maintains adequate reserves therefor in accordance with GAAP; (D) Liens securing claims or demands of materialmen,
artisans, mechanics, carriers, warehousemen, landlords and other like Persons arising in the ordinary course of business; provided,
that the payment thereof is not yet required; (E) Liens arising from judgments, decrees or attachments in circumstances which do
not constitute a Default or an Event of Default hereunder; (F) the following deposits, to the extent made in the ordinary course
of business: deposits under workers’ compensation, unemployment insurance, social security and other similar laws, or to
secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance
or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to
secure statutory obligations (other than Liens arising under ERISA or environmental Liens) or surety or appeal bonds, or to secure
indemnity, performance or other similar bonds; (G) Liens on Equipment or software or other intellectual property constituting purchase
money Liens and Liens in connection with Capital Leases securing Indebtedness permitted in clause (C) of “Permitted Indebtedness”;
(H) leasehold

    	17

    	 

    

interests in leases or
subleases and licenses granted in the ordinary course of the Company’s business and not interfering in any material respect
with the business of the licensor; (I) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment
of custom duties that are promptly paid on or before the date they become due; (J) Liens on insurance proceeds securing the payment
of financed insurance premiums that are promptly paid on or before the date they become due (provided that such Liens extend only
to such insurance proceeds and not to any other property or assets); (K) statutory and common law rights of set-off and other similar
rights as to deposits of cash and securities in favor of banks, other depository institutions and brokerage firms; (L) easements,
zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of
business so long as they do not materially impair the value or marketability of the related property; (M) Liens on Cash or Cash
Equivalents securing obligations permitted under clause (D) and (G) of the definition of Permitted Indebtedness; (N) Liens on IP
Collateral in connection with a Strategic Transaction upon satisfaction of the Strategic Transaction Collateral Requirements; and
(O) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described
in clauses (C) through (O) above (other than any Indebtedness repaid with the proceeds of this Note); provided, that any extension,
renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness
being extended, renewed or refinanced (as may have been reduced by any payment thereon) does not increase.

 

“Permitted
Transfers” means (A) dispositions of inventory sold, and Permitted Intellectual Property Licenses entered into, in each
case, in the ordinary course of business, (B) dispositions of worn-out, obsolete or surplus property at fair market value in the
ordinary course of business; (C) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the
compromise or settlement thereof in the ordinary course of business for less than the full amount thereof; (D) transfers consisting
of Permitted Investments in Wholly Owned Subsidiaries under clause (G) of Permitted Investments; (E) dispositions of IP Collateral
in connection with a Strategic Transaction upon satisfaction of the Strategic Transaction Collateral Requirements; and (F) other
transfers of assets to any Person other than to a joint venture and which have a fair market value of not more than two hundred
and fifty thousand dollars ($250,000) in the aggregate in any twelve (12) month period.

 

“Person”
or “person” means any individual, sole proprietorship, partnership, limited liability company, joint venture,
company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock
company, estate, entity or government agency.

 

“Primary Security”
has the meaning set forth in Section 7(F)(i)(6)(d).

 

“Potentially
Dilutive Issuance” has the meaning set forth in Section 7(F)(ii)(1).

 

“Principal
Amount” has the meaning set forth in the cover page of this Note; provided, however, that the Principal
Amount of this Note will be subject to reduction (A) pursuant to Section 5, Section 6, Section 7 and Section 8
and (B) by an amount equal to (i) the sum of all Total Amortization Payments or Accelerated Principal Payments pursuant to
Section 4(A) made

    	18

    	 

    

prior to date of determination
of the Principal Amount of the Note then outstanding, divided by (ii) one and five hundredths (1.05).

 

“Redemption
Notice” means the Redemption Option 1 Notice or Redemption Option 2 Notice, as applicable.

 

“Redemption
Option 1 Notice” has the meaning set forth in Section 8(A)(i).

 

“Redemption
Option 2 Notice” has the meaning set forth in Section 8(A)(ii).

 

“Reference
Property” has the meaning set forth in Section 7(H)(i)(4).

 

“Reference
Property Unit” has the meaning set forth in Section 7(H)(i)(4).

 

“Registration
Statement Redemption Amount” has the meaning set forth in Section 8(B)(ii).

 

“Registration
Statement Redemption Notice” has the meaning set forth in Section 8(B)(ii).

 

“Registration Statement Redemption Price”
means the cash price equal to one hundred and five (105%) of the outstanding Principal Amount plus the accrued and unpaid interest
thereon.

 

“Registration
Statement Redemption Trigger” has the meaning set forth in Section 8(B)(ii).

 

“Relevant Governmental
Body” means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee
officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York,
or any successor thereto.

 

“Remainder
Accelerated Principal Payment” has the meaning set forth in Section 5(C)(ii).

 

“Reported Outstanding
Share Number” has the meaning set forth in Section 7(I)(i).

 

“Repurchase
Upon Fundamental Change” means the repurchase of any Note by the Company pursuant to Section 6.

 

“Required Holders” has
the meaning set forth in the Securities Purchase Agreement.

 

“Required
Reserve Amount” has the meaning in Section 9(Q).

 

“Requisite Stockholder Approval”
means the stockholder approval contemplated by Nasdaq Listing Rule 5635(d) (or similar rule of the principal, in terms of volume,
Eligible Exchange on which the Common Stock is listed for trading) with respect to
the issuance of shares of Common Stock upon conversion of the Notes in excess of the limitations imposed by such rule; provided,
however, that the Requisite Stockholder Approval will be deemed to be obtained if, due to any amendment or binding change
in the interpretation of the applicable listing standards of the Nasdaq Capital Market (or of the principal, in terms of volume,
Eligible Exchange on which the Common Stock is listed for trading), such stockholder
approval is no longer required for the Company to settle all conversions of this Note by delivering shares of Common Stock without
limitation pursuant to Section 7(B).

 

“Rule 144”
means Rule 144 promulgated under the Securities Act.

 

“Rule 145”
means Rule 145 promulgated under the Securities Act.

 

“SBS Asset”
means any product candidate in clinical development or approved drug product designed for the treatment of
short bowel syndrome.

 

“Scheduled
Trading Day” means any day that is scheduled to be a Trading Day on the principal U.S. national or regional
securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or
regional securities exchange, on the principal in terms of volume, Eligible Exchange on which the Common Stock is
listed for trading. If the Common Stock is not so listed or traded, then “Scheduled Trading day” means a Business
Day.

    	19

    	 

    

“Secondary
Security” has the meaning set forth in Section 7(F)(i)(6)(d).

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended.

 

“Securities
Purchase Agreement” means that certain Securities Purchase Agreement, dated as of June 30, 2022, between the Company and High Trail Special Situations LLC providing for the issuance of this Note.

 

“Security Agreements”
means (i) that certain Security Agreement, dated [  ], 2022, and (ii) that certain Intellectual Property
Security Agreement dated [  ], 2022, in each case between the Company, Naia Rare
Diseases, LLC, a Delaware limited liability company, each of the Subsidiaries of the
Company and the Collateral Agent.

 

“Security Document”
has the meaning set forth in the Security Agreements.

 

“Share Delivery
Date” means any (i) Interest Payment Date on which the Company makes a payment of Stated Interest in shares of Common
Stock in accordance with Section 5(B), (ii) Amortization Stock Payment Delivery Date, (iii) Accelerated Principal Stock
Payment Delivery Date, (iv) Event of Default Stock Payment Delivery Date, or (iv) Conversion Settlement Date.

 

“Share Trading
Volume” has the meaning set forth in Section 8(A)(i).

 

“Significant
Subsidiary” means, with respect to any Person, any Subsidiary of such Person that constitutes a “significant subsidiary”
(as defined in Rule 1-02(w) of Regulation S-X under the Exchange Act) of such Person.

 

“SOFR”
means a rate per annum equal to the secured overnight financing rate for such Business Day published by the Federal Reserve Bank
of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of
New York, currently at http://www.newyorkfed.org (or any successor source for the secured overnight financing rate identified as
such by the administrator of the secured overnight financing rate from time to time).

 

“Spin-Off”
has the meaning set forth in Section 7(F)(i)(3)(b).

 

“Spin-Off Valuation
Period” has the meaning set forth in Section 7(F)(i)(3)(b).

 

“Stated Interest”
has the meaning set forth in Section 4(B)(i).

 

“Stated Interest
Rate” means, as of any date, a rate per annum equal to 3-month LIBOR plus five percent (5.00%) per annum; provided,
if such rate would be less than the Floor, the Stated Interest Rate will be deemed to be the Floor for the purposes of this Note.

 

“Stated Interest
Stock Payment Notice” has the meaning set forth in Section 5(B).

 

“Stock Payment
Determination Date” means (i) with respect to a Total Amortization Payment in shares of Common Stock in accordance with
to Section 5(C)(i), the related Amortization Stock Payment Date, (ii) with respect to an Accelerated Principal Payment in
shares of Common Stock in accordance with to Section 5(C)(ii), the related Accelerated Principal Conversion Date, (iii)
with respect to a payment of Stated Interest in shares of Common Stock in

    	20

    	 

    

accordance with Section
5(B), the related Interest Payment Date, (iii) with respect to an Event of Default Stock Payment, the date of delivery of the
related Event of Default Stock Payment Notice, and (iv) with respect to the delivery of Conversion Consideration, the related Conversion
Date.

 

“Strategic
Transaction” means a license, development or other commercial transaction in which the Company transfers any Intellectual
Property rights to a third party; provided, that such third party shall be an operating company in the pharmaceutical or
biotechnology industry and not an entity that is a financial institution or engaged predominantly in activities that are financial
in nature.

 

“Strategic
Transaction Collateral Requirements” means, in connection with a Strategic Transaction, (i) the Strategic Transaction
and any release, disposition or lien on IP Collateral in connection with such Strategic Transaction has been approved by the Company’s
Board of Directors, including with respect to the fairness thereof to the Company’s stockholders, (ii) the Company has provided
the Holder with written certification of such approval (iii) all consideration received in exchange for such disposition becomes
Collateral securing the Note and (iv) upon completion of such Strategic Transaction, (x) no Default or Event of Default shall
have occurred hereunder that has not been waived by the Required Holders and (y) no event or circumstance shall have occurred
and is continuing which, with the giving of notice or passage of time or both, could constitute an Event of Default with respect
to Section 11(A)(ii), Section 11(A)(iv), Section 11(A)(vi), Section 11(A)(x), Section 11(A)(xii),or
Section 11(A)(xv) or Section 11(A)(xvi) and has not been waived by the Required Holders.

 

“Subordinated
Indebtedness” means Indebtedness subordinated to the Notes pursuant to a written agreement between the Holder and the
applicable lender in amounts and on terms and conditions satisfactory to the Holder in its sole discretion.

 

“Subsequent
Financing” means a private placement of solely the Company’s Common Stock solely for cash consideration proceeds
paid by a Person thereunder, directly or indirectly, to (or at the direction of) the Company or any of its Subsidiaries.

 

“Subsequent
Financing Requirement” has the meaning set forth in Section 9(S).

 

“Subsidiary”
means, with respect to any Person, (A) any corporation, association or other business entity (other than a partnership or limited
liability company) of which more than fifty percent (50%) of the total voting power of the Capital Stock entitled (without regard
to the occurrence of any contingency, but after giving effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of directors, managers or trustees, as applicable, of such corporation, association
or other business entity is owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries
of such Person; and (B) any partnership or limited liability company where (i) more than fifty percent (50%) of the capital accounts,
distribution rights, equity and voting interests, or of the general and limited partnership interests, as applicable, of such partnership
or limited liability company are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries
of such Person, whether in the form of membership, general, special or limited partnership or limited liability company interests
or otherwise; and (ii) such Person or any one or more of the

    	21

    	 

    

other Subsidiaries of
such Person is a controlling general partner of, or otherwise controls, such partnership or limited liability company.

 

“Successor
Corporation” has the meaning set forth in Section 10(A).

 

“Successor
Person” has the meaning set forth in Section 7(H)(i).

 

“Tender/Exchange
Offer Valuation Period” has the meaning set forth in Section 7(F)(i)(5).

 

“Term SOFR”
means, for the applicable corresponding tenor, the forward-looking term rate based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Total Amortization
Payment” has the meaning set forth in Section 4(A)(i).

 

“Total Market Capitalization” means, with
respect to the date of determination, the product of (i) the sum of (x) two hundred fifty-nine million one hundred seven thousand three
hundred eighty (259,107,380) shares of Common Stock and (y) the total amount of shares of Common Stock issued pursuant to all notes issued
pursuant to the Securities Purchase Agreement (in each of (x) and (y), as adjusted for any stock splits, stock dividends, stock combinations,
recapitalizations or other similar transactions that occur with respect to the Common Stock after the date of the Securities Purchase
Agreement), and (ii) the Daily VWAP on such date.

 

“Total Outstanding
Notes Principal Amount” has the meaning set forth in Section 9(J)(i).

 

“Trademark
License” means any written agreement granting any right to use any Trademark or Trademark registration, now owned or
hereafter acquired by the Company or in which the Company now holds or hereafter acquires any interest.

 

“Trademarks”
means all trademarks (registered, common law or otherwise) and any applications in connection therewith, including registrations,
recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country or any political subdivision thereof.

 

“Trading
Day” means any day on which (A) trading in the Common Stock generally occurs on the principal U.S. national
or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a
U.S. national or regional securities exchange, on the principal, in terms of volume, Eligible Exchange on which the Common
Stock is listed for trading; and (B) there is no Market Disruption Event. If the Common Stock is not so listed or traded, then
“Trading Day” means a Business Day.

 

“Transaction
Documents” has the meaning set forth in the Securities Purchase Agreement.

 

“Unit”
has the meaning set forth in Section 7(F)(i)(6)(d).

 

“UCC”
means the Uniform Commercial Code as the same is, from time to time, in effect in the State of New York.

 

“Undelivered
Shares” has the meaning set forth in Section 7(D)(v).

 

“Valuation
Event” has the meaning set forth in Section 7(F)(ii)(1)(d).

    	22

    	 

    

“VWAP Market
Disruption Event” means, with respect to any date, (A) the failure by the principal U.S. national or regional securities
exchange on which the Common Stock is then listed, or, if the Common Stock is not then listed on a U.S. national or regional securities
exchange, the principal, in terms of volume, Eligible Exchange on which the Common Stock is then traded, to open for trading during its regular trading session
on such date; or (B) the occurrence or existence, for more than one half hour period in the aggregate, of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted by the relevant exchange or otherwise) in the Common
Stock or in any options contracts or futures contracts relating to the Common Stock, and such suspension or limitation occurs or
exists at any time before 1:00 p.m., New York City time, on such date.

 

“VWAP Trading
Day” means a day on which (A) there is no VWAP Market Disruption Event; provided that the Holder, by written notice to
the Company, may waive any such VWAP Market Disruption Event; and (B) trading in the Common Stock generally occurs on the principal
U.S. national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed
on a U.S. national or regional securities exchange, on the principal, in terms of volume, Eligible Exchange on which the Common Stock is then traded. If
the Common Stock is not so listed or traded, then “VWAP Trading Day” means a Business Day.

 

“Wholly Owned
Subsidiary” of a Person means any Subsidiary of such Person all of the outstanding Capital Stock or other ownership interests
of which (other than directors’ qualifying shares) are owned by such Person or one or more Wholly Owned Subsidiaries of such
Person.

 

“Withheld Shares”
has the meaning set forth in Section 7(B).

 

Section 2.      Persons
Deemed Owners.

 

The Holder of this Note
will be treated as the owner of this Note for all purposes.

 

Section 3.      Registered
Form.

 

This Note, and any Note
issued in exchange therefor or in substitution thereof, will be in registered form, without coupons.

 

Section 4.    Amortization
Payments; Accelerated Principal Payments; Interest; Maturity Date Payment; Prepayment.

 

(A)     Amortization
Payments and Accelerated Principal Payments.

 

(i)         Scheduled
Amortization Payments. The Company shall make an amortization payment with respect to this Note equal to the applicable Amortization
Payment (or portion thereof, if applicable) together with the payment of Stated Interest corresponding to such outstanding Amortization
Payment (or portion thereof, if applicable), plus, at the Company’s election, any additional payment of the outstanding
Principal Amount (or portion thereof), together with the payment of Stated Interest corresponding to such outstanding Principal
Amount (the “Additional Amortization Amount” and together with the applicable Amortization Payment, the “Total
Amortization Payment”) on each Amortization Date. Each such Amortization Payment, together with the payment of Stated

    	23

    	 

    

Interest corresponding
to such outstanding Amortization Payment (or portion thereof, if applicable), shall be paid to Holder in cash on each Amortization
Date in accordance with Section 5(A) or in shares of Common Stock in accordance with Section 5(C)(i), and each Additional
Amortization Amount shall only be paid to Holder in shares of Common Stock in accordance with Section 5(C)(i). Any Total
Amortization Payment, together with the payment of Stated Interest corresponding to the portion of the Principal Amount of such
outstanding Total Amortization Payment (or portion thereof, if applicable), paid pursuant to this Section 4(A)(i) shall
reduce the Principal Amount by such paid amount divided by one hundred and five percent (105%). If this Note (or any portion of
this Note) is to be paid pursuant to this Section 4(A), then, from and after the date the related Total Amortization Payment
is paid in full, this Note (or such portion) will cease to be outstanding and interest will cease to accrue on this Note (or such
portion).

 

(ii)         Accelerated
Principal Payments. The Company may, by providing written notice thereof to the Holder, from time to time elect to accelerate
payment of the outstanding Principal Amount (or portion thereof, if applicable), together with the payment of Stated Interest
corresponding to such outstanding Principal Amount (an “Accelerated Principal Payment”). Each such Accelerated
Principal Payment shall be paid to Holder in shares of Common Stock in accordance with Section 5(C)(ii). Any Accelerated
Principal Payment paid pursuant to this Section 4(A)(ii) shall reduce the Principal Amount by such paid amount divided
by one hundred and five percent (105%). In the event there are additional notes outstanding issued pursuant to the Securities
Purchase Agreement and the Company elects to make an Accelerated Principal Payment for this Note pursuant to this Section 4(A)(ii),
the Holder may instead elect for such Accelerated Principal Amount to instead apply as an acceleration of Accelerated Principal
Amount under Section 4(A)(ii) of another of such outstanding notes by providing written notice thereof to the Company.

 

(B)      Interest.

 

(i)         This
Note will accrue interest (the “Stated Interest”) at a rate per annum equal to the Stated Interest Rate, set on the first day of and fixed throughout each Interest Period. Stated
Interest on this Note will (i) accrue on the Principal Amount of this Note; (ii) accrue from, and including, the most recent date
to which Stated Interest has been paid or duly provided for (or, if no Stated Interest has theretofore been paid or duly provided
for, the Issue Date) to, but excluding, the date of payment of such Stated Interest; (iii) be paid to Holder in cash on each Amortization
Date or Interest Payment Date in accordance with Section 5(A) or in shares of Common Stock in accordance with Section
5(B) (or, if paid in shares of Common Stock in connection with a Total Amortization Payment or Accelerated Principal Payment,
then in accordance with Section 5(C)(i) or Section 5(C)(ii), respectively); and (iv) be computed on the basis of
a 360-day year comprised of twelve 30-day months.

 

(ii)        If
a Default or an Event of Default occurs, then in each case, to the extent lawful, interest (“Default Interest”)
will accrue (rather than at the Stated Interest Rate, if applicable) on the Principal Amount outstanding as of the date of such
Default or Event of Default at a rate per annum equal to eighteen percent (18.0%), from, and including, the date of such Default
or Event of Default, as applicable, to, but excluding, the date such Default is cured and all outstanding Default Interest under
this Note has been paid. Default

    	24

    	 

    

Interest hereunder
will be payable in arrears on the earlier of (i) the first day of each calendar month and (ii) the date such Default is cured,
and will be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

(iii)        Benchmark
Replacement Setting. Notwithstanding anything to the contrary herein:

 

(1)     Replacing LIBOR.
On March 5, 2021 the Financial Conduct Authority (“FCA”), the regulatory supervisor of LIBOR’s administrator
(“IBA”), announced in a public statement the future cessation or loss of representativeness of overnight/Spot
Next, 1-month, 3-month, 6-month and 12- month LIBOR tenor settings. On the earlier of (i) the date that all Available Tenors of
LIBOR have either permanently or indefinitely ceased to be provided by IBA or have been announced by the FCA pursuant to public
statement or publication of information to be no longer representative and (ii) the Early Opt-in Effective Date, if the then-current
Benchmark is LIBOR, the Benchmark Replacement will replace such Benchmark for all purposes hereunder in respect of any setting
of such Benchmark on such day and all subsequent settings without any amendment to, or further action or consent by any party.
With respect to any Benchmark Replacement, all interest payments will be payable on a monthly basis.

 

(2)     Replacing Future
Benchmarks. Upon the occurrence of a Benchmark Transition Event, the Benchmark Replacement will replace the then-current Benchmark
for all purposes hereunder in respect of any Benchmark setting at or after 5:00 p.m. on the fifth (5th) Business Day after the
date notice of such Benchmark Replacement is provided to the Holder without any amendment to, or further action or consent of
any other party to, this Note so long as the Collateral Agent has not received, by such time, written notice of objection to such
Benchmark Replacement from Holders comprising the Required Holders.

 

(3)     Benchmark Replacement
Conforming Changes. In connection with the implementation and administration of a Benchmark Replacement, the Collateral Agent
will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary
herein, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action
or consent of any other party (other than the consent of the Company in accordance with the definition of “Benchmark Replacement
Conforming Changes”).

 

(4)     Notices; Standards
for Decisions and Determinations. The Collateral Agent will promptly notify the Company and the Holders of (i) the implementation
of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision
or election that may be made by the Collateral Agent and/or the Company, as applicable, pursuant to this Section 4(C)(iii),
including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance
or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may
be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required
pursuant to this Section 4(C)(iii).

    	25

    	 

    
(5)     Unavailability
of Tenor of Benchmark. Notwithstanding anything to the contrary herein, at any time (including in connection with the implementation
of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBOR) and either (A) any
tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time
as selected by the Collateral Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such
Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will
be no longer representative, then the Collateral Agent and the Company may modify the definition of “Interest Period”
for any Benchmark setting at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that
was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark
(including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be
representative for a Benchmark (including a Benchmark Replacement), then the Collateral Agent may modify the definition of “Interest
Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.

 

(C)     Maturity
Date Payment. On the Maturity Date, the Company will pay the Holder an amount in cash equal to one hundred five percent (105%)
of the then-outstanding Principal Amount of this Note plus any accrued and unpaid interest on this Note.

 

(D)     Prepayment.
Except as expressly set forth herein, the Company may not prepay the Note without the written consent of the Holder.

 

	Section 5.	Method of Payment; When Payment Date is Not a Business
Day.

 

(A)     Method of
Payment. The Company will pay all cash amounts due under this Note by wire transfer of immediately available funds to the
account of the Holder, or by check to an address of such Holder within the United States, as applicable, as set forth in a written
notice of an account or address of such Holder delivered by the Holder to the Company at least one (1) Business Day before the
date such amount is due.

 

(B)     Company’s
Election to Pay Stated Interest in Cash or Common Stock. At least five (5) Trading Days (but no more than ten (10) Trading
Days) prior to an Interest Payment Date, the Company, if it desires to elect to make a payment of Stated Interest with respect
to such Interest Payment Date entirely or partially, in shares of Common Stock, shall deliver to the Holder a written notice of
such election (i) stating which portion thereof the Company has elected to pay in shares of Common Stock and (ii) certifying that
the Equity Conditions are satisfied as of such date (a “Stated Interest Stock Payment Notice”) (and such election
shall be irrevocable as to such Interest Payment Date). Failure to timely deliver such written notice to the Holder shall be deemed
an election by the Company to pay the Stated Interest with respect to such Interest Payment Date in cash. With respect to any
Interest Payment Date for which the Company has elected to make a payment of Stated Interest (or any applicable portion thereof)
in shares of Common Stock in accordance with this Section 5(B), the Company shall issue to the Holder on each such Interest
Payment Date a number of validly issued, fully paid and Freely Tradable shares of Common Stock equal to the quotient (rounded
up to the closest whole number) obtained by dividing such payment of Stated Interest (or any applicable portion thereof) by the
Market Stock Payment Price as of such Interest Payment Date. Notwithstanding anything herein to the contrary, the Company will
not

    	26

    	

    

have the right to, and
will not, make any payment of Stated Interest (or any applicable portion thereof) in shares of Common Stock if the Equity Conditions
are not satisfied for each VWAP Trading Day occurring between the date of delivery of the Stated Interest Stock Payment Notice
and the applicable Interest Payment Date (and the Company shall certify in writing to the Holder on the applicable Interest Payment
Date that the Equity Conditions have continued to have been satisfied during such period), and such payment of Stated Interest
(or any applicable portion thereof) shall instead be paid in cash on such Interest Payment Date in accordance with Section
5(A), unless such failure of the Equity Conditions to be so satisfied is waived in writing by the Holder, which waiver may
be granted or withheld by the Holder in its sole discretion.

 

(C)     Company’s
Election to Pay Total Amortization Payments or Accelerated Principal Payments in Common Stock.

 

(i)          Scheduled
Total Amortization Payments. At least five (5) Trading Days (but no more than ten (10) Trading Days) prior to an Amortization
Date, the Company, if it desires to elect to make a Total Amortization Payment with respect to such Amortization Date entirely
or partially, in shares of Common Stock, shall deliver to the Holder a written notice of such election (i) stating which portion
thereof the Company has elected to pay in shares of Common Stock, (ii) stating the Additional Amortization Amount, if any, the
Company has elected to pay (which shall be payable solely in shares of Common Stock), (iii) certifying that the Equity Conditions
are satisfied as of such date, and (iv) at the Company’s option, electing a Conversion Floor Price (and such election shall
be irrevocable) below which the Company would elect not to issue shares (a “Amortization Stock Payment Notice”).
Failure to timely deliver such written notice to the Holder shall be deemed an election by the Company to pay the Amortization
Payment with respect to such Amortization Date in cash, and no election of Additional Amortization Amount will be allowed for
such Amortization Date (unless otherwise mutually agreed in writing, for which an email writing shall be sufficient, by both the
Holder and the Company). With respect to any Amortization Date for which the Company has elected to make a Total Amortization
Payment (or any applicable portion thereof) in shares of Common Stock in accordance with this Section 5(C)(i), (i) the
Holder shall allocate all or any portion of any applicable Total Amortization Payment to any Scheduled Trading Day (any such date,
a “Amortization Stock Payment Date”) during the period beginning on, and including, the applicable Amortization
Date and ending on, and including, the Scheduled Trading Day immediately before the subsequent Amortization Date (the “Amortization
Stock Payment Period”); and (ii) the Company shall issue to the Holder a number of validly issued, fully paid
and Freely Tradable shares of Common Stock equal to the quotient (rounded up to the closest whole number) obtained by dividing
such Total Amortization Payment (or any applicable portion thereof) by the Market Stock Payment Price as of such Amortization
Stock Payment Date. Any portion of the Total Amortization Payment not paid in shares of Common Stock because the Holder did not
allocate such Total Amortization Payment (or applicable portion thereof) to a Scheduled Trading Day during the applicable Amortization
Stock Payment Period shall be deemed to be allocated on the last day of the applicable Amortization Stock Payment Period. The
Holder must provide notice to the Company of its election of any Amortization Stock Payment Date and the applicable portion of
the Total Amortization Payment it is electing to receive on each such Amortization Stock Payment Date no later

    	27

    	

    

than 4:30 p.m.
New York Time on such Amortization Stock Payment Date; provided, that the Company will not have the right to, and will not,
unless consented to in writing (of which email notice shall be sufficient) by the Holder on the last Trading Day of the Amortization
Stock Payment Period, make any payment of the Total Amortization Payment (or any applicable portion thereof) in shares of Common
Stock which, on the last Trading Day of the Amortization Stock Payment Period, after giving effect to all stock payments made during
such Amortization Stock Payment Period, would cause the Total Amortization Payment paid in shares of Common Stock for such period to
exceed the Market Liquidity Cap; provided, that any portion of the Total Amortization Payment, after giving effect to such
payment, (with any payments applied first to any Amortization Payment and secondarily to any Additional Amortization Amount), in
excess of the Market Liquidity Cap shall instead remain outstanding. Any payment to be made pursuant to this Section 5(C)(i),
if it would be made at a price per share lower than the Conversion Floor Price, shall, at the Holder’s election, either (i) be
made at the Conversion Floor Price or (ii) not be made and such amount shall instead remain outstanding (unless such Conversion
Floor Price is mutually waived in writing, for which an email writing shall be sufficient, by both the Holder and the Company); provided,
that any such outstanding amount shall not be allocated on the last Trading Day of the Amortization Stock Payment Period.
Notwithstanding anything to the contrary contained herein, (i) any Amortization Payment (or portion thereof) that remains
outstanding shall remain eligible to be elected for allocation to any Scheduled Trading Day during the remainder of the Amortization
Stock Payment Period and, if after such Amortization Stock Payment Period, such amount, if otherwise unconverted into shares
pursuant to this Section 5(C)(i) (including as a result of exceeding the Market Liquidity Cap or, if neither waived by the
Holder and the Company nor taken at the Conversion Floor Price at the Holder’s election, remain unconverted due to the
Holder’s Conversion Floor Price) shall be paid in cash on the Business Day after such Amortization Stock Payment Period and
(ii) any Additional Amortization Amount (or portion thereof) that remains outstanding shall remain eligible to be elected for
allocation to any Scheduled Trading Day during the remainder of the Amortization Stock Payment Period and, if after such
Amortization Stock Payment Period, such amount shall be treated as if never elected to have been paid pursuant to this Section
5(C)(i). Notwithstanding anything herein to the contrary, the Company will not have the right to, and will not, make any Total
Amortization Payment (or any applicable portion thereof) in shares of Common Stock if the Equity Conditions are not satisfied for
each VWAP Trading Day occurring between the date of delivery of the Amortization Stock Payment Notice and the applicable
Amortization Stock Payment Delivery Date (as defined below) (and the Company shall certify in writing to the Holder on the
applicable Amortization Stock Payment Delivery Date that the Equity Conditions have continued to have been satisfied during such
period), and such Total Amortization Payment (or any applicable portion thereof) shall instead be paid in cash, within one Business
Day following such VWAP Trading Day for which the Company was unable to satisfy the Equity Conditions, in accordance with Section
5(A), unless such failure of the Equity Conditions to be so satisfied is waived in writing by the Holder, which waiver may be
granted or withheld by the Holder in its sole discretion. The Company shall not pay any portion of any Total Amortization Payment in
shares of Common Stock on any day that the Holder has not allocated or deemed to have allocated as an Amortization Stock Payment
Date. Any such shares of Common Stock will be delivered by the Company to the Holder on or before the second (2nd) Business Day
following the applicable Amortization Stock Payment Date (such delivery date, a “Amortization Stock Payment Delivery
Date”).

 

(ii)          Accelerated
Principal Payments. The Company, if it desires to elect to make an Accelerated Principal Payment, shall deliver to the Holder
a written notice of

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such
election (i) stating the dollar amount up to which the Company has elected to pay (which shall be payable solely in shares of
Common Stock) (ii) stating the Accelerated Principal Conversion Period, (iii) certifying that the Equity Conditions are
satisfied as of such date, and (iv) at the Company’s option, electing a Conversion Floor Price (and such election shall
be irrevocable) below which the Company would elect not to issue shares (a “Accelerated Principal Stock
Payment Notice”). With respect to any Accelerated Principal Payment, (i) the Holder shall have the right to
allocate all or any portion of such Accelerated Principal Payment to any Scheduled Trading Day (any such selected date, an
“Accelerated Principal Conversion Date”) during the Accelerated Principal Conversion Period; and (ii) the
Company shall issue to the Holder a number of validly issued, fully paid and Freely Tradable shares of Common Stock equal to
the quotient (rounded up to the closest whole number) obtained by dividing such Accelerated Principal Payment (or any
applicable portion thereof) by the Market Stock Payment Price as of such Accelerated Principal Conversion Date. The Holder
shall provide any number of notices (each, an “Accelerated Principal Conversion Notice”) totaling, in the
aggregate, the Accelerated Principal Payment to the Company of its election(s) of any Accelerated Principal Conversion
Date(s) no later than 4:30 p.m. New York Time on such Accelerated Principal Conversion Date; provided, that failure to
deliver such Accelerated Principal Conversion Notice(s), which in the aggregate total the Accelerated Principal Payment,
before 4:30 p.m. New York Time on the last day of the Accelerated Principal Conversion Period shall be deemed an election by
the Holder that the Accelerated Principal Conversion Date for the remainder of the Accelerated Principal Payment (the
“Remainder Accelerated Principal Payment”) be the last Trading Day of the Accelerated Principal Conversion
Period provided, however, that any Accelerated Principal Conversion Notice specifying a conversion price lower
than the Conversion Floor Price shall be deemed a failed election (unless otherwise mutually agreed in writing, for which an
email writing shall be sufficient, by both the Holder and the Company) for which such amount subject to a failed election
notwithstanding any waiver may, at the Holder’s election, be converted at the Conversion Floor Price if such
Conversion Floor Price is greater than the Market Stock Payment Price; provided, further, that the Company will
not have the right to, and will not, unless consented to in writing (of which email notice shall be sufficient) by the Holder
on the last Trading Day of the Accelerated Principal Conversion Period, make any payment of the Remainder Accelerated
Principal Payment (or any applicable portion thereof) in shares of Common Stock which, on the last Trading Day of the
Accelerated Principal Conversion Period, after giving effect to such payment, would cause the total amount of such
Accelerated Principal Payment paid in shares of Common Stock to exceed the Market Liquidity Cap; provided, that any
portion of the Remainder Accelerated Principal Payment, after giving effect to such payment, in excess of the Market
Liquidity Cap shall instead remain outstanding. Notwithstanding anything to the contrary contained herein, any amount that
remains outstanding shall remain eligible to be elected for allocation to any Scheduled Trading Day during the remainder of
the Accelerated Principal Conversion Period and, if after such Accelerated Principal Conversion Period, such amount shall be
treated as if never elected to have been paid pursuant to this Section 5(C)(ii). Notwithstanding anything
herein to the contrary, the Company will not have the right to, and will not, make any Accelerated Principal Payment (or any
applicable portion thereof) in shares of Common Stock if the Equity Conditions are not satisfied for each VWAP Trading Day
occurring between the date of delivery of the Accelerated Principal Stock Payment Notice and the applicable

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Accelerated
Principal Conversion Date (and the Company shall certify in writing to the Holder on the
applicable Accelerated Principal Stock Payment Delivery Date (as defined below) that the Equity Conditions have continued to have
been satisfied during such period), unless such failure of the Equity Conditions to be so satisfied is waived in writing
by the Holder, which waiver may be granted in whole or in part or withheld by the Holder in its sole discretion. The Company shall
not pay any portion of any Accelerated Principal Payment in shares of Common Stock on any day other than a day that the Holder
has designated or has been deemed to designate as an Accelerated Principal Conversion Date. Any such shares of Common Stock will
be delivered by the Company to the Holder on or before the second (2nd) Business Day following the applicable Accelerated Principal
Conversion Date (such delivery date, an “Accelerated Principal Stock Payment Delivery Date”).

 

(D)     Delay of
Payment when Payment Date is Not a Business Day. If the due date for a payment on this Note as provided in this Note is not
a Business Day, then, notwithstanding anything to the contrary in this Note, such payment may be made on the immediately following
Business Day and no interest will accrue on such payment as a result of the related delay.

 

(E)     Event of
Default Stock Payments. If an Event of Default occurs and the Company fails to pay the Event of Default Acceleration Amount
when due in accordance with this Note, then the Holder may elect to receive such unpaid portion of the Event of Default Acceleration
Amount, entirely or partially, in shares of Common Stock (an “Event of Default Stock Payment”), and shall deliver
to the Company a written notice of such election stating which portion thereof the Holder has elected to receive in shares of
Common Stock (an “Event of Default Stock Payment Notice”). On or before the second (2nd) Business Day following
the date of delivery of any Event of Default Stock Payment Notice hereunder (the “Event of Default Stock Payment Delivery
Date”), the Company shall issue and deliver to the Holder, a number of validly issued, fully paid and Freely Tradable
shares of Common Stock equal to the quotient (rounded up to the closest whole number) obtained by dividing the Event of Default
Acceleration Amount (or applicable portion thereof) by the Event of Default Stock Payment Price as of the date of delivery of
the Event of Default Stock Payment Notice; provided, that, if the Company fails to timely issue and deliver to the Holder
such shares of Common Stock, then the Holder may revoke its election to receive shares of Common Stock and elect to receive such
Event of Default Acceleration Amount (or any portion thereof) in cash at any time prior to delivery of such shares of Common Stock.
Any portion of the Event of Default Acceleration Amount not paid in shares of Common Stock because the Holder did not elect, or
effectively revoked its election, to receive shares of Common Stock for such Event of Default Acceleration Amount (or applicable
portion thereof) will be paid in cash; provided, that the Holder may deliver multiple Event of Default Stock Payment Notices in
accordance with this Section 5(E) to the extent that any portion of the Event of Default Acceleration Amount remains unpaid
when due in accordance with this Note.

 

	Section 6.	Required Repurchase of Note upon a Fundamental Change.

 

(A)     Repurchase
Upon Fundamental Change. Subject to the other terms of this Section 6, if a Fundamental Change occurs, then the Holder
will have the right to require the Company to repurchase this Note (or any portion of this Note in an Authorized Denomination)
on the

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Fundamental Change Repurchase
Date for such Fundamental Change for a cash purchase price equal to the Fundamental Change Repurchase Price.

 

(B)     Fundamental
Change Repurchase Date. The Fundamental Change Repurchase Date for any Fundamental Change will be a Business Day of the Holder’s
choosing that is no more than twenty (20) Business Days after the later of (x) the date the Company delivers to the Holder the
related Fundamental Change Notice pursuant to Section 6(C); and (y) the effective date of such Fundamental Change.

 

(C)     Fundamental
Change Notice. No later than the eighth (8th) Business Day before the occurrence of any Fundamental Change, the Company will
send to the Holder a written notice (the “Fundamental Change Notice”) thereof (provided, however, in no event
shall such notice be required prior to the actual public notice of such Fundamental Change), stating the expected date such Fundamental
Change will occur. No later than the fifth (5th) Business Day after the date of delivery of the Fundamental Change
Notice, the Holder shall notify the Company in writing whether it will require the Company to repurchase this Note and specify
the Fundamental Change Repurchase Date.

 

(D)     Effect of
Repurchase. If this Note (or any portion of this Note) is to be repurchased upon a Repurchase Upon Fundamental Change, then,
from and after the date the related Fundamental Change Repurchase Price is paid in full, this Note (or such portion) will cease
to be outstanding and interest will cease to accrue on this Note (or such portion).

 

	Section 7.	Conversion.

 

		(A)	Right to Convert.

 

(i)          Generally.
Subject to the provisions of this Section 7, the Holder may, at its option, convert this Note.

 

(ii)          Conversions
in Part. Subject to the terms of this Section 7, this Note may be converted in part, but only in an Authorized Denomination.
Provisions of this Section 7 applying to the conversion of this Note in whole will equally apply to conversions of any
permitted portion of this Note.

 

(B)     When
this Note May Be Converted.

 

(i)          Generally.
The Holder may convert this Note at any time until the Close of Business on the second (2nd) Scheduled Trading Day immediately
before the Maturity Date.

 

(ii)          Limitations
and Closed Periods. Notwithstanding anything to the contrary in this Section 7, if this Note (or any portion of this
Note) is to be repurchased upon a Repurchase Upon Fundamental Change, then in no event may this Note (or such portion) be converted
after the Close of Business on the Scheduled Trading Day immediately before the related Fundamental Change Repurchase Date; provided,
that the limitations contained in this Section 7(B)(ii) shall no longer apply to this Note (or such applicable portion)
if the applicable Fundamental Change Repurchase Price is not delivered on the Fundamental

    	31

    	

    

Change Repurchase
Date in accordance with Section 6.

 

(C)     Conversion
Procedures.

 

(i)          Generally.
To convert this Note, the Holder must complete, sign and deliver to the Company the conversion notice attached to this Note on
Exhibit A or portable document format (.pdf) version of such conversion notice (at which time such conversion will
become irrevocable) (a “Conversion Notice”). For the avoidance of doubt, the Conversion Notice may be delivered
by e-mail in accordance with Section 14. If the Company fails to deliver, by the related Conversion Settlement Date, any
shares of Common Stock forming part of the Conversion Consideration of the conversion of this Note, the Holder, by notice to the
Company, may rescind all or any portion of the corresponding Conversion Notice at any time until such Undelivered Shares are delivered.

 

(ii)          Holder
of Record of Conversion Shares. The person in whose name any shares of Common Stock is issuable upon conversion of this Note
will be deemed to become the holder of record of such shares as of the Close of Business on the Conversion Date for such conversion,
conferring, as of such time, upon such person, without limitation, all voting and other rights appurtenant to such shares.

 

(iii)          Taxes
and Duties. If the Holder converts a Note, the Company will pay any documentary, stamp or similar issue or transfer tax or
duty due on the issue of any shares of Common Stock upon such conversion.

 

(D)     Settlement
upon Conversion.

 

(i)          Generally.
The consideration (the “Conversion Consideration”) due in respect of each $1,000 Principal Amount of this Note
to be converted will consist of the following:

 

(1)          subject
to Section 7(D)(iii), a number of shares of Common Stock equal to the Conversion Rate in effect on the Conversion Date
for such conversion; and

 

(2)          cash
in an amount equal to the aggregate accrued and unpaid interest on this Note to, but excluding, the Conversion Settlement Date
for such conversion or, at the election of the Company, a number of validly issued, fully paid and Freely Tradable shares of Common
Stock (the “Conversion Consideration Interest Shares”) equal to the quotient (rounded up to the closest whole
number) obtained by dividing the aggregate accrued and unpaid interest on this Note to, but excluding, the Conversion Settlement
Date by the Conversion Price.

 

(ii)        Company’s
Election to Convert Accrued Interest into Common Stock. At least ten (10) Trading Days prior to a Conversion Date, the Company,
if it desires to elect to convert accrued and unpaid interest on this Note into Conversion Consideration Interest Shares pursuant
to Section 7(D)(i)(2), shall deliver to the Holder a written notice of such election and certifying that the Equity Conditions
are satisfied as of such date (a “Conversion Consideration Interest Shares Notice”) (and such election shall
be irrevocable with respect to such interest and all subsequent conversions until the Company

    	32

    	

    

provides to
the Holder at least ten (10) Trading Days written notice of its intent to terminate such election). Failure to timely deliver
such written notice to the Holder shall be deemed an election by the Company to pay such accrued and unpaid interest in cash.
Notwithstanding anything herein to the contrary, the Company will not have the right to, and will not, make any conversion of
accrued interest into Conversion Consideration Interest Shares if the Equity Conditions are not satisfied for each VWAP Trading
Day occurring between the day of the delivery of the Conversion Consideration Interest Shares Notice and the applicable Conversion
Settlement Date (and the Company shall certify in writing to the Holder on the applicable Conversion Settlement Date that the
conditions set forth in this Section 7(D)(ii) are satisfied as of such Conversion Settlement Date), and such conversion
of accrued interest shall instead be paid in cash in accordance with Section 7(D)(i)(2), unless such failure of the foregoing
conditions to be so satisfied is waived in writing by the Holder, which waiver may be granted or withheld by the Holder in its
sole discretion.

 

(iii)        Fractional
Shares. The total number of shares of Common Stock due in respect of any conversion of this Note pursuant to this Section
7 will be determined on the basis of the total Principal Amount of this Note to be converted with the same Conversion Date;
provided, however, that if such number of shares of Common Stock is not a whole number, then such number will be
rounded up to the nearest whole number.

 

(iv)        Delivery
of the Conversion Consideration. The Company will pay or deliver, as applicable, the Conversion Consideration due upon the
conversion of this Note to the Holder on or before the second (2nd) Business Day (or, if earlier, the standard settlement period
for the primary Eligible Exchange on which the Common Stock is traded) immediately after the Conversion Date for such conversion
(the “Conversion Settlement Date”).

 

(v)        Company
Failure to Timely Deliver Stock Payments. If (x) the Company shall fail for any reason or for no reason on or prior to the
applicable Share Delivery Date to deliver shares of Common Stock in accordance with Section 5(B), Section 5(C),
Section 5(E), or Section 7(C) (such shares to which Holder is entitled referred to as the “Undelivered
Shares”); and (y) the Holder (whether directly or indirectly, including by any broker acting on the Holder’s behalf
or acting with respect to such Undelivered Shares) purchases any shares of Common Stock (whether in the open market or otherwise)
to cover any such Undelivered Shares (whether to satisfy any settlement obligations with respect thereto of the Holder or otherwise),
then, without limiting the Holder’s right to pursue any other remedy available to it (whether hereunder, under applicable
law or otherwise), the Holder will have the right, exercisable by notice to the Company, to cause the Company to either:

 

(1)          pay,
on or before the second (2nd) Business Day after the date such notice is delivered, cash to the Holder in an amount equal to the
aggregate purchase price (including any brokerage commissions and other out-of-pocket costs) incurred to purchase such shares
(such aggregate purchase price, the “Covering Price”); or

 

(2)          promptly
deliver, to the Holder, such Undelivered Shares in

    	33

    	

    

accordance
with this Note, together with cash in an amount equal to the excess, if any, of the Covering Price over the product of (x) the
number of such Undelivered Shares; and (y) the Daily VWAP per share of Common Stock on the applicable Stock Payment Determination
Date relating to such conversion.

 

To exercise such right, the Holder must deliver notice
of such exercise to the Company, specifying whether the Holder has elected clause (1) or (2) above to apply. If the Holder has
elected clause (1) to apply, then the Company’s obligation to deliver the Undelivered Shares in accordance with this Note
will be deemed to have been satisfied and discharged to the extent the Company has paid the Covering Price in accordance with
clause (1). Nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver shares of Common Stock as required pursuant to the terms hereof. In addition to the foregoing, if the
Company fails for any reason to deliver Common Stock to the Holder by the applicable 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 shares Undelivered Shares (based on the
Event of Default Stock Payment Price on the applicable Event of Default Stock Payment Delivery Date), $10 per Trading Day (increasing
to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after the
Share Delivery Date until the cash amount set forth in Section 7(D)(v)(1) is paid to the Holder or the shares of Common
Stock are delivered to the Holder pursuant to Section 7(D)(v)(2).

 

(vi)          Effect
of Conversion. If this Note is converted in full, then, from and after the date the Conversion Consideration therefor is issued
or delivered in settlement of such conversion, this Note will cease to be outstanding and all interest will cease to accrue on
this Note.

 

(E)       Common
Stock Issued upon Conversion.

 

(i)          Status
of Conversion Shares; Listing. Each share of Common Stock delivered pursuant to this Note will be a newly issued or
treasury share and will be duly and validly issued, fully paid, non-assessable, free from preemptive rights and free of any Lien
or adverse claim (except to the extent of any Lien or adverse claim created by the action or inaction of the Holder or the Person
to whom such share will be delivered). If the Common Stock is then listed on any securities exchange, or quoted on any inter-dealer
quotation system, then the Company will cause each share of Common Stock issued pursuant to this Note, when delivered, to be admitted
for listing on such exchange or quotation on such system. Any shares of Common Stock issued pursuant to this Note will
be issued in the form of book-entries at the facilities of DTC, identified therein by an “unrestricted” CUSIP number.

 

(ii)          Transferability
of Conversion Shares. Any shares of Common Stock issued upon conversion of this Note will be issued in the form of book-entries
at the facilities of

    	34

    	

    

DTC, identified
therein by an “unrestricted” CUSIP number.

 

(F)        Adjustments
to the Conversion Rate.

 

(i)          Events
Requiring an Adjustment to the Conversion Rate. The Conversion Rate will be adjusted from time to time as follows:

 

(1)          Stock
Dividends, Splits and Combinations. If the Company issues solely shares of Common Stock as a dividend or distribution on all
or substantially all shares of the Common Stock, or if the Company effects a stock split or a stock combination of the Common
Stock (in each case excluding an issuance solely pursuant to a Common Stock Change Event, as to which Section 7(H) will
apply), then the Conversion Rate will be adjusted based on the following formula:

 

 

where:

 

	 	CR0	=	the Conversion Rate in effect immediately before the Open
    of Business on the Ex-Dividend Date for such dividend or distribution, or immediately before the Open of Business on the effective
    date of such stock split or stock combination, as applicable;
	 	 	 	 
	 	CR1	=	the Conversion Rate in effect immediately after the Open
    of Business on such Ex-Dividend Date or the Open of Business on such effective date, as applicable;
	 	 	 	 
	 	OS0	=	the number of shares of Common Stock outstanding immediately
    before the Open of Business on such Ex-Dividend Date or effective date, as applicable, without giving effect to such dividend,
    distribution, stock split or stock combination; and
	 	 	 	 
	 	OS1	=	the number of shares of Common Stock outstanding immediately
    after giving effect to such dividend, distribution, stock split or stock combination.

 

If any dividend, distribution, stock split or stock
combination of the type described in this Section 7(F)(i)(1) is declared or announced, but not so paid or made, then the
Conversion Rate will be readjusted, effective as of the date the Board of Directors determines not to pay such dividend or distribution
or to effect such stock split or stock combination, to the Conversion Rate that would then be in effect had such dividend, distribution,
stock split or stock combination not been declared or announced.

 

(2)          Rights,
Options and Warrants. If the Company distributes, to all or

    	35

    	

    

substantially
all holders of Common Stock, rights, options or warrants (other than rights issued or otherwise distributed pursuant to a stockholder
rights plan, as to which the provisions set forth in Section 7(F)(vi) will apply) entitling such holders, for a period
of not more than sixty (60) calendar days after the record date of such distribution, to subscribe for or purchase shares of Common
Stock at a price per share that is less than the average of the Last Reported Sale Prices per share of Common Stock for the ten
(10) consecutive Trading Days ending on, and including, the Trading Day immediately before the date such distribution is announced,
then the Conversion Rate will be increased based on the following formula:

 

 

where:

 

	 	CR0	=	the Conversion Rate in effect immediately before the Open
    of Business on the Ex-Dividend Date for such distribution;
	 	 	 	 
	 	CR1	=	the Conversion Rate in effect immediately after the Open
    of Business on such Ex-Dividend Date;
	 	 	 	 
	 	OS	=	the number of shares of Common Stock outstanding immediately
    before the Open of Business on such Ex-Dividend Date;
	 	 	 	 
	 	X	=	the total number of shares of Common Stock issuable pursuant
    to such rights, options or warrants; and
	 	 	 	 
	 	Y	=	a number of shares of Common Stock obtained by dividing (x)
    the aggregate price payable to exercise such rights, options or warrants by (y) the average of the Last Reported Sale Prices
    per share of Common Stock for the ten (10) consecutive Trading Days ending on, and including, the Trading Day immediately
    before the date such distribution is announced.

 

To the extent that shares of Common Stock are not
delivered after the expiration of such rights, options or warrants (including as a result of such rights, options or warrants
not being exercised), the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the increase
to the Conversion Rate for such distribution been made on the basis of delivery of only the number of shares of Common Stock actually
delivered upon exercise of such rights, option or warrants. To the extent such rights, options or warrants are not so distributed,
the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the Ex-Dividend Date for the distribution
of such rights, options or warrants not occurred.

    	36

    	

    

For purposes of this Section 7(F)(i)(2), in
determining whether any rights, options or warrants entitle holders of Common Stock to subscribe for or purchase shares of Common
Stock at a price per share that is less than the average of the Last Reported Sale Prices per share of Common Stock for the ten
(10) consecutive Trading Days ending on, and including, the Trading Day immediately before the date the distribution of such rights,
options or warrants is announced, and in determining the aggregate price payable to exercise such rights, options or warrants,
there will be taken into account any consideration the Company receives for such rights, options or warrants and any amount payable
on exercise thereof, with the value of such consideration, if not cash, to be determined by the Board of Directors in good faith.

 

(3)        Spin-Offs
and Other Distributed Property.

 

(a)        Distributions
Other than Spin-Offs. If the Company distributes shares of its Capital Stock, evidences of its indebtedness or other assets
or property of the Company, or rights, options or warrants to acquire Capital Stock of the Company or other securities, to all
or substantially all holders of the Common Stock, excluding:

 

(v)        dividends, distributions,
rights, options or warrants for which an adjustment to the Conversion Rate is required pursuant to Section 7(F)(i)(1) or
Section 7(F)(i)(2);

 

(w)        dividends or distributions
paid exclusively in cash for which an adjustment to the Conversion Rate is required pursuant to Section 7(F)(i)(4);

 

(x)        rights issued or otherwise
distributed pursuant to a stockholder rights plan, except to the extent provided in Section 7(F)(vi);

 

(y)        Spin-Offs for which an
adjustment to the Conversion Rate is required pursuant to Section 7(F)(i)(3)(b); and

 

(z)        a distribution solely pursuant
to a Common Stock Change Event, as to which Section 7(H) will apply,

 

then the Conversion Rate will be increased based
on the following formula:

 

 

where:

    	37

    	

    

	 	CR0	=	the Conversion Rate in effect immediately before the Open
    of Business on the Ex-Dividend Date for such distribution;
	 	 	 	 
	 	CR1	=	the Conversion Rate in effect immediately after the Open of Business
    on such Ex-Dividend Date;
	 	 	 	 
	 	SP	=	the average of the Last Reported Sale Prices per share of Common Stock
    for the ten (10) consecutive Trading Days ending on, and including, the Trading Day immediately before such Ex-Dividend Date;
    and
	 	 	 	 
	 	FMV	=	the fair market value (as determined by the Board of Directors in good
    faith), as of such Ex-Dividend Date, of the shares of Capital Stock, evidences of indebtedness, assets, property, rights,
    options or warrants distributed per share of Common Stock pursuant to such distribution;

 

provided, however, that if FMV
is equal to or greater than SP, then, in lieu of the foregoing adjustment to the Conversion Rate, the Holder will receive,
for each $1,000 Principal Amount of this Note held by this Holder on the record date for such distribution, at the same time and
on the same terms as holders of Common Stock, the amount and kind of shares of Capital Stock, evidences of indebtedness, assets,
property, rights, options or warrants that such Holder would have received if such Holder had owned, on such record date, a number
of shares of Common Stock equal to the Conversion Rate in effect on such record date.

 

To the extent such distribution is not so paid or
made, the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the adjustment been made
on the basis of only the distribution, if any, actually made or paid.

 

(b)        Spin-Offs.
If the Company distributes or dividends shares of Capital Stock of any class or series, or similar equity interest, of or relating
to an Affiliate, a Subsidiary or other business unit of the Company to all or substantially all holders of the Common Stock (other
than solely pursuant to a Common Stock Change Event, as to which Section 7(H) will apply), and such Capital Stock or equity
interest is listed or quoted (or will be listed or quoted upon the consummation of the transaction) on a U.S. national securities
exchange (a “Spin-Off”), then the Conversion Rate will be increased based on the following formula:

 

 

where:

    	38

    	

    

	 	CR0	=	the Conversion Rate in effect immediately before the Open
    of Business on the Ex-Dividend Date for such Spin-Off;
	 	 	 	 
	 	CR1	=	the Conversion Rate in effect immediately after the Open of Business
    on such Ex-Dividend Date;
	 	 	 	 
	 	FMV	=	the product of (x) the average of the Last Reported Sale Prices per share
    or unit of the Capital Stock or equity interests distributed in such Spin-Off over the ten (10) consecutive Trading Day period
    (the “Spin-Off Valuation Period”) beginning on, and including, such Ex-Dividend Date (such average to be
    determined as if references to Common Stock in the definitions of Last Reported Sale Price, Trading Day and Market Disruption
    Event were instead references to such Capital Stock or equity interests); and (y) the number of shares or units of such Capital
    Stock or equity interests distributed per share of Common Stock in such Spin-Off; and
	 	 	 	 
	 	SP	=	the average of the Last Reported Sale Prices per share of Common Stock
    for each Trading Day in the Spin-Off Valuation Period.

 

The adjustment to the Conversion Rate pursuant to
this Section 7(F)(i)(3)(b) will be calculated as of the Close of Business on the last Trading Day of the Spin-Off Valuation
Period but will be given effect immediately after the Open of Business on the Ex-Dividend Date for the Spin-Off, with retroactive
effect. If a Note is converted and the Conversion Date occurs during the Spin-Off Valuation Period, then, notwithstanding anything
to the contrary in this Note, the Company will, if necessary, delay the settlement of such conversion until the second (2nd) Business
Day after the last day of the Spin-Off Valuation Period.

 

To the extent any dividend or distribution of the
type set forth in this Section 7(F)(i)(3)(b) is declared but not made or paid, the Conversion Rate will be readjusted to
the Conversion Rate that would then be in effect had the adjustment been made on the basis of only the dividend or distribution,
if any, actually made or paid.

 

(4)        Cash
Dividends or Distributions. If any cash dividend or distribution is made to all or substantially all holders of Common Stock,
then the Conversion Rate will be increased based on the following formula:

 

    	39

    	

    

where:

 

	 	CR0	=	the Conversion Rate in effect immediately before the Open
    of Business on the Ex-Dividend Date for such dividend or distribution;
	 	 	 	 
	 	CR1	=	the Conversion Rate in effect immediately after the Open of Business
    on such Ex-Dividend Date;
	 	 	 	 
	 	SP	=	the Last Reported Sale Price per share of Common Stock on the Trading
    Day immediately before such Ex-Dividend Date; and
	 	 	 	 
	 	D	=	the cash amount distributed per share of Common Stock in such dividend
    or distribution;

 

provided, however, that if D
is equal to or greater than SP, then, in lieu of the foregoing adjustment to the Conversion Rate, the Holder will receive,
for each $1,000 Principal Amount of this Note held by the Holder on the record date for such dividend or distribution, at the
same time and on the same terms as holders of Common Stock, the amount of cash that such Holder would have received if such Holder
had owned, on such record date, a number of shares of Common Stock equal to the Conversion Rate in effect on such record date.

 

To the extent such dividend or distribution is declared
but not made or paid, the Conversion Rate will be readjusted to the Conversion Rate that would then be in effect had the adjustment
been made on the basis of only the dividend or distribution, if any, actually made or paid.

 

(5)        Tender
Offers or Exchange Offers. If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or exchange
offer for shares of Common Stock (other than solely pursuant to an odd-lot tender offer pursuant to Rule 13e-4(h)(5) under the
Exchange Act), and the value (determined as of the Expiration Time by the Board of Directors in good faith) of the cash and other
consideration paid per share of Common Stock in such tender or exchange offer exceeds the Last Reported Sale Price per share of
Common Stock on the Trading Day immediately after the last date (the “Expiration Date”) on which tenders or
exchanges may be made pursuant to such tender or exchange offer (as it may be amended), then the Conversion Rate will be increased
based on the following formula:

 

 

where:

 

	 	CR0	=	the Conversion Rate in effect immediately before the time
    (the “Expiration Time”) such tender or exchange offer expires;

    	40

    	

    

	 	CR1	=	the Conversion Rate in effect immediately after the Expiration
    Time;
	 	 	 	 
	 	AC	=	the aggregate value (determined as of the Expiration Time by the Board
    of Directors in good faith) of all cash and other consideration paid for shares of Common Stock purchased or exchanged in
    such tender or exchange offer;
	 	 	 	 
	 	OS0	=	the number of shares of Common Stock outstanding immediately before the
    Expiration Time (including all shares of Common Stock accepted for purchase or exchange in such tender or exchange offer);
	 	 	 	 
	 	OS1	=	the number of shares of Common Stock outstanding immediately after the
    Expiration Time (excluding all shares of Common Stock accepted for purchase or exchange in such tender or exchange offer);
    and
	 	 	 	 
	 	SP	=	the average of the Last Reported Sale Prices per share of Common Stock
    over the ten (10) consecutive Trading Day period (the “Tender/Exchange Offer Valuation Period”) beginning
    on, and including, the Trading Day immediately after the Expiration Date;

 

provided, however, that the Conversion
Rate will in no event be adjusted down pursuant to this Section 7(F)(i)(5), except to the extent provided in the immediately
following paragraph. The adjustment to the Conversion Rate pursuant to this Section 7(F)(i)(5) will be calculated as of
the Close of Business on the last Trading Day of the Tender/Exchange Offer Valuation Period but will be given effect immediately
after the Expiration Time, with retroactive effect. If a Note is converted and the Conversion Date occurs on the Expiration Date
or during the Tender/Exchange Offer Valuation Period, then, notwithstanding anything to the contrary in this Note, the Company
will, if necessary, delay the settlement of such conversion until the second (2nd) Business Day after the last day of the Tender/Exchange
Offer Valuation Period.

 

To the extent such tender or exchange offer is announced
but not consummated (including as a result of the Company being precluded from consummating such tender or exchange offer under
applicable law), or any purchases or exchanges of shares of Common Stock in such tender or exchange offer are rescinded, the Conversion
Rate will be readjusted to the Conversion Rate that would then be in effect had the adjustment been made on the basis of only
the purchases or exchanges of shares of Common Stock, if any, actually made, and not rescinded, in such tender or exchange offer.

 

(6)        Degressive
Issuances. Subject to Section 7(F)(ii), if, on or after the

    	41

    	

    

date of the Securities Purchase Agreement,
the Company or any of its Subsidiaries grants issues or sells (or enters into any agreement to grant, issue or sell), or in accordance
with this Section 7(F)(i)(6) is deemed to have granted, issued or sold, any shares of Common Stock (including the issuance
or sale of shares of Common Stock owned or held by or for the account of the Company) for a consideration per share (the “Effective
Price”) less than a price equal to the Conversion Price in effect immediately prior to such granting, issuance or sale
or deemed granting issuance or sale (such Conversion Price then in effect is referred to herein as the “Applicable Price”)
(the foregoing a “Degressive Issuance”), then, effective as of the Close of Business on such date, the Conversion
Rate will be increased to an amount equal to (x) one thousand dollars ($1,000) divided by (y) the Weighted Average Issuance
Price. For these purposes, the “Weighted Average Issuance Price” will be equal to:

 

 

where:

 

	 	CP	=	the Conversion Price in effect immediately before giving
    effect to the adjustment required by this Section 7(F)(i)(6);
	 	 	 	 
	 	OS	=	the number of shares of Common Stock outstanding immediately before such
    Degressive Issuance;
	 	 	 	 
	 	EP	=	the Effective Price per share of Common Stock in such Degressive Issuance;
    and
	 	 	 	 
	 	X	=	the sum, without duplication, of (x) the total number of shares of Common
    Stock issued or sold in such Degressive Issuance; and (y) the maximum number of shares of Common Stock underlying such Convertible
    Securities issued or sold in such Degressive Issuance.

 

For all purposes of the foregoing (including, without
limitation, determining the adjusted Conversion Rate and the Effective Price under this Section 7(F)(i)(6)), the following
shall be applicable:

 

	 	(a)	Issuance of Options. If the Company in any manner grants, issues or sells (or enters into any agreement to grant, issue
or sell) any Options and the lowest price per share for which one share of Common Stock is at any time issuable upon the exercise
of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option
or otherwise pursuant to the terms thereof is less than the Applicable Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such
price per share. For purposes of this

    	42

    	

    

	 	 	Section 7(F)(i)(6)(a), the
    “lowest price per share for which one share of Common Stock is at any time issuable upon the exercise of any such
    Options or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option or
    otherwise pursuant to the terms thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of
    consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the
    granting, issuance or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any
    Convertible Security issuable upon exercise of such Option or otherwise pursuant to the terms thereof and (y) the lowest
    exercise price set forth in such Option for which one share of Common Stock is issuable (or may become issuable assuming all
    possible market conditions) upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible
    Securities issuable upon exercise of any such Option or otherwise pursuant to the terms thereof minus (2) the sum of all
    amounts paid or payable to the holder of such Option (or any other Person) upon the granting, issuance or sale of such
    Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon
    exercise of such Option or otherwise pursuant to the terms thereof plus the value of any other consideration received or
    receivable by, or benefit conferred on, the holder of such Option (or any other Person). Except as contemplated below, no
    further adjustment of the Conversion Rate shall be made upon the actual issuance of such shares of Common Stock or of such
    Convertible Securities upon the exercise of such Options or otherwise pursuant to the terms of or upon the actual issuance of
    such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities.

 

	 	(b)	Issuance of Convertible Securities. If
    the Company in any manner issues or sells (or enters into any agreement to issue or sell) any Convertible Securities and the
    lowest price per share for which one share of Common Stock is at any time issuable upon the conversion, exercise or exchange
    thereof or otherwise pursuant to the terms thereof is less than the Applicable Price, then such share of Common Stock shall
    be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale (or the time
    of execution of such agreement to issue or sell, as applicable) of such Convertible Securities for such price per share. For
    the purposes of this Section 7(F)(i)(6)(b), the “lowest price per share for which one share of Common Stock is
    at any time issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms
    thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or
    receivable by the Company with respect to one share of Common

    	43

    	

    

	 	 	Stock upon the issuance or sale (or pursuant to the
    agreement to issue or sell, as applicable) of the Convertible Security and upon conversion, exercise or exchange of such
    Convertible Security or otherwise pursuant to the terms thereof and (y) the lowest conversion price set forth in such
    Convertible Security for which one share of Common Stock is issuable (or may become issuable assuming all possible market
    conditions) upon conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof minus (2) the sum of all
    amounts paid or payable to the holder of such Convertible Security (or any other Person) upon the issuance or sale (or the
    agreement to issue or sell, as applicable) of such Convertible Security plus the value of any other consideration received or
    receivable by, or benefit conferred on, the holder of such Convertible Security (or any other Person). Except as
    contemplated below, no further adjustment of the Conversion Rate shall be made upon the actual issuance of such shares of
    Common Stock upon conversion, exercise or exchange of such Convertible Securities or otherwise pursuant to the terms thereof,
    and if any such issuance or sale of such Convertible Securities is made upon exercise of any Options for which an adjustment
    of the Conversion Rate has been or is to be made pursuant to other provisions of this Section 7(F)(i)(6), except as
    contemplated below, no further adjustment of the Conversion Price shall be made by reason of such issuance or sale. For
    purposes of this Section 7(F)(i)(6), any re-pricing or amendment of any Convertible Securities (including, for the
    avoidance of doubt, any Convertible Securities existing as of the date of the Securities Purchase Agreement) will be deemed to be the issuance of additional
    Convertible Securities, without affecting any prior adjustments theretofore made to the Conversion Rate.

 

	 	(c)	Change in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional
consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at
which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases
at any time (other than proportional changes in conversion or exercise prices, as applicable, in connection with an event referred
to in Section 7(F)(i)(6)(a)), the Conversion Rate in effect at the time of such increase or decrease shall be adjusted
to the Conversion Rate which would have been in effect at such time had such Options or Convertible Securities provided for such
increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be,
at the time initially granted, issued or sold. For purposes of this Section 7(F)(i)(6)(c), if the terms of any Option or
Convertible Security that was outstanding as of the date of the Securities Purchase Agreement are increased or decreased in the manner described

    	44

    	

    

	 	 	in the immediately preceding sentence, then such
    Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof
    shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section
    7(F)(i)(6)(c) shall be made if such adjustment would result in an increase of the Conversion Rate then in effect.

 

	 	(d)	Calculation of Consideration Received. If any Option and/or Convertible Security and/or Adjustment Right is issued in connection
with the issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the Holder, the
“Primary Security”, and such Option and/or Convertible Security and/or Adjustment Right, the “Secondary
Securities” and together with the Primary Security, each a “Unit”), together comprising one integrated
transaction, the aggregate consideration per share of Common Stock with respect to such Primary Security shall be deemed to be
the lower of (x) the purchase price of such Unit, (y) if such Primary Security is an Option and/or Convertible Security, the lowest
price per share for which one share of Common Stock is at any time issuable upon the exercise or conversion of the Primary Security
in accordance with Section 7(F)(i)(6)(a) or Section 7(F)(i)(6)(b) above and (z) the lowest Daily VWAP of the shares
of Common Stock on any Trading Day during the four (4) Trading Day period (the “Adjustment Period”) immediately
following the public announcement of such Degressive Issuance (for the avoidance of doubt, if such public announcement is released
prior to the opening of the Nasdaq Capital Market (or of any principal, in terms of volume, Eligible Exchange on which the Common Stock is listed for trading) on a Trading Day, such Trading Day shall be the first Trading Day in such
four (4) Trading Day period and if this Note is converted, on any given Conversion Date during any such Adjustment Period, solely
with respect to such portion of this Note converted on such applicable Conversion Date, such applicable Adjustment Period shall
be deemed to have ended on, and included, the Trading Day immediately prior to such Conversion Date). If any shares of Common
Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration
received therefor will be deemed to be the net amount of consideration received by the Company therefor. If any shares of Common
Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration
received by the Company will be the fair value of such consideration, except where such consideration consists of publicly traded
securities, in which case the amount of consideration received by the Company for such securities will be the arithmetic average
of

    	45

    	

    

	 	 	the Daily VWAPs of such security for each of the five
    (5) Trading Days immediately preceding the date of receipt. If such parties are unable to reach agreement within ten (10)
    days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such
    consideration will be determined within five (5) Trading Days after the tenth (10th) day following such Valuation Event by an
    independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall be
    final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the
    Company.

 

Notwithstanding anything to the contrary contained
herein, (1) the Conversion Rate will not be adjusted pursuant to this Section 7(F)(i)(6) solely as a result of an Exempt
Issuance; (2) in no event will the Conversion Rate be decreased pursuant to this Section 7(F)(i)(6); and (3) the Company
will not effect any Degressive Issuance that would result in an adjustment to the Conversion Rate pursuant to this Section
7(F)(i)(6) that requires the approval of the Company’s stockholders pursuant to the listing standards of the Company’s
primary Eligible Exchange (measured in terms of trading volume for its Common Stock) on which the Common Stock is traded, unless
the Company has obtained such stockholder approval before such Degressive Issuance.

 

Notwithstanding anything to the contrary contained
herein, if the Conversion Rate (as adjusted by this Section 7(F)(i)(6))
shall be less than the Conversion Rate (as adjusted by Section 7(F)(ii)), the Conversion Rate (as adjusted by Section 7(F)(ii))
shall be deemed to apply.

 

(ii)        Adjustments
to the Conversion Rate in Connection with Certain Equity Issuances.

 

(1)        Adjustment
Upon Issuance of Shares of Common Stock. If at any time on or prior to the date that is ninety (90) days following the
date of the Securities Purchase Agreement, the Company grants issues or sells (or enters into any agreement to grant, issue or sell), or in accordance with this
Section 7(F)(ii) is deemed to have granted, issued or sold, any shares of Common Stock (including the issuance or sale
of shares of Common Stock owned or held by or for the account of the Company) (the foregoing a “Potentially Dilutive
Issuance”), then immediately after such Potentially Dilutive Issuance, the Conversion Rate will be changed to an amount
equal to (x) $1,000 divided by (y) the arithmetic average of the Daily VWAPs of such Common Stock for each of the five (5) Trading
Days immediately following the date of public disclosure (which for the avoidance of doubt shall include within such five (5)
Trading Days the date of any such public disclosure thereof if such public disclosure occurs prior to the opening of market trading
hours for any Eligible Exchange) of any granting, issuance or sale or deemed granting issuance or sale; provided, that
if such amount is less than the Conversion Rate prior to such adjustment, the Conversion Rate shall not be changed. For all purposes
of the foregoing, the following shall be applicable:

 

(a)        Issuance
of Options. If the Company in any manner grants, issues or sells (or enters into any agreement to grant, issue or sell) any
Options then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the
time of the granting or sale of such Option. No further adjustment of the

    	46

    	

    

Conversion
Rate shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise
of such Options or otherwise pursuant to the terms of or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities.

 

(b)        Issuance
of Convertible Securities. If the Company in any manner issues or sells (or enters into any agreement to issue or sell) any
Convertible Securities, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale (or the time of execution of such agreement to issue or sell, as applicable) of
such Convertible Securities. No further adjustment of the Conversion Rate shall be made upon the actual issuance of such shares
of Common Stock upon conversion, exercise or exchange of such Convertible Securities or otherwise pursuant to the terms thereof.

 

(2)        Other
Events. In the event that the Company (or any Subsidiary) shall take any action to which the provisions hereof are not strictly
applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated
by the provisions of this Section 7(F)(ii) but not expressly provided for by such provisions (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s
Board of Directors shall in good faith determine and implement an appropriate adjustment in the Conversion Rate so as to protect
the rights of the Holder; provided that no such adjustment pursuant to this Section 7(F)(ii)(2) will decrease
the Conversion Rate as otherwise determined pursuant to this Note; provided, further that if the Holder
does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company’s
Board of Directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing
to make such appropriate adjustments, whose determination shall be final and binding absent manifest error and whose fees and
expenses shall be borne by the Company.

 

(3)        Notwithstanding anything to the contrary contained herein, if the Conversion Rate (as adjusted
by this Section 7(F)(ii)) shall be less than the Conversion Rate (as adjusted by Section 7(F)(i)(6)), the Conversion Rate (as adjusted
by Section 7(F)(i)(6)) shall be deemed to apply.

 

(iii)        No
Adjustments in Certain Cases.

 

(1)        Where
the Holder Participates in the Transaction or Event Without Conversion. Notwithstanding anything to the contrary in Section
7(F)(i), the Company will not be obligated to adjust the Conversion Rate on account of a transaction or other event otherwise
requiring an adjustment pursuant to Section 7(F)(i) (other than a stock split or combination of the type set forth in Section
7(F)(i)(1) or a tender or exchange offer of the type set forth in Section 7(F)(i)(5)) if the Holder participates, at
the same time and on the same terms as holders of Common Stock, and solely by virtue of being the Holder of this Note, in such
transaction or event without having to convert this Note and as if the Holder held a number of shares of Common Stock equal to
the product of (i) the Conversion Rate in effect on the related record date; and (ii) the aggregate Principal Amount (expressed
in thousands) of this Note held by this Holder on such date.

 

(2)        Certain
Events. The Company will not be required to adjust the

    	47

    	

    

Conversion
Rate except as provided in Section 7(F) and Section 7(H). Without limiting the foregoing, the Company will not be
obligated to adjust the Conversion Rate on account of:

 

(a)        except
as otherwise provided in Section 7(F), the sale of shares of Common Stock for a purchase price that is less than the market
price per share of Common Stock or less than the Conversion Price;

 

(b)        the
issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest
payable on the Company’s securities and the investment of additional optional amounts in shares of Common Stock under any
such plan;

 

(c)        the
issuance of any shares of Common Stock, restricted stock or options or rights to purchase shares of Common Stock pursuant to any
present or future employee, director or consultant benefit plan or program of, or assumed by, the Company or any of its Subsidiaries;

 

(d)        the
issuance of any shares of Common Stock pursuant to any option, warrant, right or convertible or exchangeable security of the Company
outstanding as of the Issue Date (other than an adjustment pursuant to Section 7(F)(vi) in connection with the separation
of rights under the Company’s stockholder rights plan existing, if any, as of the Issue Date);

 

(e)        repurchases
of Common Stock, including structured or derivative transactions, that are not pursuant to a tender offer as contemplated by Section
7(F)(i)(5);

 

(f)        solely
a change in the par value of the Common Stock; or

 

(g)        accrued
and unpaid interest on this Note.

 

(iv)        Adjustments
Not Yet Effective. Notwithstanding anything to the contrary in this Note, if:

 

(1)        this
Note is to be converted;

 

(2)        the
record date, effective date or Expiration Time for any event that requires an adjustment to the Conversion Rate pursuant to Section
7(F)(i) has occurred on or before the Conversion Date for such conversion, but an adjustment to the Conversion Rate for such
event has not yet become effective as of such Conversion Date;

 

(3)        the
Conversion Consideration due upon such conversion includes any whole shares of Common Stock; and

 

(4)        such
shares are not entitled to participate in such event (because they were not held on the related record date or otherwise),

    	48

    	

    

then, solely for purposes of such conversion, the
Company will, without duplication, give effect to such adjustment on such Conversion Date. In such case, if the date on which
the Company is otherwise required to deliver the consideration due upon such conversion is before the first date on which the
amount of such adjustment can be determined, then the Company will delay the settlement of such conversion until the second (2nd)
Business Day after such first date.

 

(v)        Conversion
Rate Adjustments where the Converting Holder Participates in the Relevant Transaction or Event. Notwithstanding anything to
the contrary in this Note, if:

 

(1)      a
Conversion Rate adjustment for any dividend or distribution becomes effective on any Ex-Dividend Date pursuant to Section 7(F)(i);

 

(2)      a
Note is to be converted;

 

(3)      the
Conversion Date for such conversion occurs on or after such Ex-Dividend Date and on or before the related record date;

 

(4)      the
Conversion Consideration due upon such conversion includes any whole shares of Common Stock based on a Conversion Rate that is
adjusted for such dividend or distribution; and

 

(5)      such
shares would be entitled to participate in such dividend or distribution (including pursuant to Section 7(C)(ii)),

 

then (x) such Conversion Rate adjustment will not
be given effect for such conversion; (y) the shares of Common Stock issuable upon such conversion based on such unadjusted Conversion
Rate will not be entitled to participate in such dividend or distribution; and (z) there will be added, to the Conversion Consideration
otherwise due upon such conversion, the same kind and amount of consideration that would have been delivered in such dividend
or distribution with respect to such shares of Common Stock had such shares been entitled to participate in such dividend or distribution.

 

(vi)        Stockholder
Rights Plans. If any shares of Common Stock are to be issued upon conversion of any Note and, at the time of such conversion,
the Company has in effect any stockholder rights plan, then the Holder of such Note will be entitled to receive, in addition to,
and concurrently with the delivery of, the Conversion Consideration otherwise payable under this Note upon such conversion, the
rights set forth in such stockholder rights plan, unless such rights have separated from the Common Stock at such time, in which
case, and only in such case, the Conversion Rate will be adjusted pursuant to Section 7(F)(i)(3)(a) on account of such
separation as if, at the time of such separation, the Company had made a distribution of the type referred to in such Section
to all holders of the Common Stock, subject to readjustment in accordance with such Section if such rights expire, terminate or
are redeemed.

 

(vii)      Limitation
on Effecting Transactions Resulting in Certain Adjustments. The

    	49

    	

    

Company will
not engage in or be a party to any transaction or event that would require the Conversion Rate to be adjusted pursuant to Section
7(F)(i) or Section 7(H) to an amount that would result in the Conversion Price per share of Common Stock being less
than the par value per share of Common Stock.

 

(viii)     Equitable
Adjustments to Prices. Whenever any provision of this Note requires the Company to calculate the average of the Last Reported
Sale Prices, or any function thereof, over a period of multiple days (including to calculate an adjustment to the Conversion Rate),
the Company will make proportionate adjustments, if any, to such calculations to account for any adjustment to the Conversion
Rate pursuant to Section 7(F)(i) that becomes effective, or any event requiring such an adjustment to the Conversion Rate
where the Ex-Dividend Date or effective date, as applicable, of such event occurs, at any time during such period.

 

(ix)        Calculation
of Number of Outstanding Shares of Common Stock. For purposes of this Section 7(F), the number of shares of Common
Stock outstanding at any time will (i) include shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock; and (ii) exclude shares of Common Stock held in the Company’s treasury (unless the Company pays
any dividend or makes any distribution on shares of Common Stock held in its treasury).

 

(x)        Calculations.
All calculations with respect to the Conversion Rate and adjustments thereto will be made to the nearest 1/10,000th of a share
of Common Stock (with 5/100,000ths rounded upward).

 

(xi)        Notice
of Conversion Rate Adjustments. Upon the effectiveness of any adjustment to the Conversion Rate pursuant to Section 7(F)(i),
the Company will promptly send notice to the Holder containing (i) a brief description of the transaction or other event on account
of which such adjustment was made; (ii) the Conversion Rate in effect immediately after such adjustment; and (iii) the effective
time of such adjustment.

 

(G)        Voluntary
Adjustments.

 

(i)        Generally.
To the extent permitted by law and applicable stock exchange rules, the Company, from time to time, may (but is not required to)
increase the Conversion Rate by any amount if (i) the Board of Directors determines in good faith that such increase is either
(x) in the best interest of the Company; or (y) advisable to avoid or diminish any income tax imposed on holders of Common Stock
or rights to purchase Common Stock as a result of any dividend or distribution of shares (or rights to acquire shares) of Common
Stock or any similar event and (ii) such increase is irrevocable. The Company and the Holder agree that any such voluntary adjustment
to the Conversion Rate and any conversion of any portion of the Note based upon any such voluntary adjustment shall not constitute
material non-public information with respect to the Company.

 

(ii)        Notice
of Voluntary Increases. If the Board of Directors determines to increase the Conversion Rate pursuant to Section 7(G)(i),
then, no later than the first Business Day following such determination, the Company will send notice to the Holder

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of such increase,
the amount thereof and the period during which such increase will be in effect.

 

(H)        Effect
of Certain Recapitalizations, Reclassifications, Consolidations, Mergers and Sales.

 

(i)        Generally.
If there occurs:

 

(1)        recapitalization,
reclassification or change of the Common Stock (other than (x) changes solely resulting from a subdivision or combination of the
Common Stock, (y) a change only in par value or from par value to no par value or no par value to par value and (z) stock splits
and stock combinations that do not involve the issuance of any other series or class of securities);

 

(2)        consolidation,
merger, combination or binding or statutory share exchange involving the Company;

 

(3)        sale,
lease or other transfer of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, to any
Person; or

 

(4)        other
similar event,

 

and, in each case, as a result
of such occurrence, the Common Stock is converted into, or is exchanged for, or represents solely the right to receive, other
securities or other property (including cash or any combination of the foregoing) (such an event, a “Common Stock Change
Event,” and such other securities or other property, the “Reference Property,” and the amount and
kind of Reference Property that a holder of one (1) share of Common Stock would be entitled to receive on account of such Common
Stock Change Event (without giving effect to any arrangement not to issue fractional shares of securities or other property),
a “Reference Property Unit”), then, notwithstanding anything to the contrary in this Note, at the effective
time of such Common Stock Change Event, (x) the Conversion Consideration due upon conversion of any Note will be determined in
the same manner as if each reference to any number of shares of Common Stock in this Section 7 (or in any related definitions)
were instead a reference to the same number of Reference Property Units; (y) for purposes of Section 7(A), each reference
to any number of shares of Common Stock in such Section (or in any related definitions) will instead be deemed to be a reference
to the same number of Reference Property Units; and (z) for purposes of the definition of “Fundamental Change,” the
term “Common Stock” and “common equity” will be deemed to mean the common equity, if any, forming part
of such Reference Property. For these purposes, (I) the Daily VWAP of any Reference Property Unit or portion thereof that consists
of a class of common equity securities will be determined by reference to the definition of “Daily VWAP,” substituting,
if applicable, the Bloomberg page for such class of securities in such definition; and (II) the Daily VWAP of any Reference Property
Unit or portion thereof that does not consist of a class of common equity securities, and the Last Reported Sale Price of any
Reference Property Unit or portion thereof that does not consist of a class of securities, will be the fair value of such

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Reference Property Unit or portion
thereof, as applicable, determined in good faith by the Company (or, in the case of cash denominated in U.S. dollars, the face
amount thereof).

 

If the Reference Property consists
of more than a single type of consideration to be determined based in part upon any form of stockholder election, then the composition
of the Reference Property Unit will be deemed to be the weighted average of the types and amounts of consideration actually received,
per share of Common Stock, by the holders of Common Stock. The Company will notify the Holder of such weighted average as soon
as practicable after such determination is made.

 

At or before the effective date
of such Common Stock Change Event, the Company and the resulting, surviving or transferee Person (if not the Company) of such
Common Stock Change Event (the “Successor Person”) will execute and deliver such instruments or agreements
that (x) provides for subsequent conversions of this Note in the manner set forth in this Section 7(H); (y) provides for
subsequent adjustments to the Conversion Rate pursuant to Section 7(F) and Section 7(G) in a manner consistent with
this Section 7(H); and (z) contains such other provisions as the Company reasonably determines are appropriate to preserve
the economic interests of the Holder and to give effect to the provisions of this Section 7(H). If the Reference Property
includes shares of stock or other securities or assets of a Person other than the Successor Person, then such other Person will
also execute such instruments or agreements and such instruments or agreements will contain such additional provisions the Company
reasonably determines are appropriate to preserve the economic interests of the Holder.

 

(ii)        Notice
of Common Stock Change Events. As soon as practicable after learning the anticipated or actual effective date of any Common
Stock Change Event, the Company will provide written notice to the Holder of such Common Stock Change Event, including a brief
description of such Common Stock Change Event, its anticipated effective date and a brief description of the anticipated change
in the conversion right of this Note.

 

(iii)      Compliance
Covenant. The Company will not become a party to any Common Stock Change Event unless its terms are consistent with this Section
7(H).

 

(I)        Limitations
on Conversions.

 

(i)        Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained herein, the Company shall not effect the conversion
of any portion of this Note, or otherwise issue shares pursuant to this Note, and the Holder shall not have the right to convert
any portion of this Note, pursuant to the terms and conditions of this Note and any such conversion or issuance shall be null
and void and treated as if never made, to the extent that after giving effect to such conversion or issuance, the Holder together
with the other Attribution Parties collectively would beneficially own in the aggregate in excess of 4.99% (the “Maximum
Percentage”) of the number of shares of Common Stock outstanding immediately after giving effect to such conversion
or issuance. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the
Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and all other Attribution
Parties plus the number of shares of Common

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Stock
issuable upon conversion of, or otherwise pursuant to, this Note with respect to which the determination of such sentence is
being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) conversion of the
remaining, unconverted portion of this Note beneficially owned by the Holder or any of the other Attribution Parties and (B)
exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including, without
limitation, any convertible notes or convertible preferred stock or warrants) beneficially owned by the Holder or any other
Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this Section
7(I)(i). For purposes of this Section 7(I)(i), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act. For purposes of this Note, in determining the number of outstanding shares of Common Stock the
Holder may acquire in connection with this Note without exceeding the Maximum Percentage, the Holder may rely on the number
of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Commission, as the case may be, (y)
a more recent public announcement by the Company or (z) any other written notice by the Company or the Transfer Agent (as
defined in the Securities Purchase Agreement) setting forth the number of shares of Common Stock outstanding (the
“Reported Outstanding Share Number”). If the Company receives a notice from the Holder related to the
conversion of this Note or any issuance of shares of Common Stock in connection with this Note at a time when the actual
number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall promptly
notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that such conversion
or issuance of shares of Common Stock would otherwise cause the Holder’s beneficial ownership, as determined pursuant
to this Section 7(I)(i), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of
shares of Common Stock to be issued pursuant to such notice. For any reason at any time, upon the written or oral request
of the Holder, the Company shall within one (1) Trading Day confirm in writing or by electronic mail 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 and any
other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event that the
issuance of shares of Common Stock to the Holder upon conversion of, or otherwise pursuant to, this Note results in the
Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage
of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the Exchange Act), the number of
shares so issued by which the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds
the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled ab
initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. Upon delivery of a written
notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage
not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will
not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such
increase or decrease will apply only to the Holder and the other Attribution Parties and not to any Other Holder of Notes
that is not an Attribution Party of

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the Holder.
For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Note in excess of the Maximum Percentage
shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1)
of the Exchange Act. No prior inability to convert this Note or receive shares pursuant to this Note pursuant to this paragraph
shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of
convertibility. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 7(I)(i) to the extent necessary to correct this paragraph or any portion of this paragraph
which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 7(I)(i)
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained
in this paragraph may not be waived and shall apply to a successor holder of this Note.

 

(ii)        Stock
Exchange Limitations. Notwithstanding anything to the contrary in this Note, until the Requisite Stockholder Approval is obtained,
in no event will the number of shares of Common Stock issuable upon conversion or otherwise pursuant to this Note, together with
all other shares, if any theretofore issued upon conversion or otherwise pursuant to this Note, including (for the avoidance of
doubt) any portion constituting a payment of Stated Interest, a Total Amortization Payment or an Accelerated Principal Payment,
exceed the limit contemplated by Nasdaq Listing Rule 5635(d) (or such similar rule of the principal, in terms of volume, Eligible Exchange on which the Common Stock is listed for trading), which for the avoidance
of doubt, is equal to [insert # representing one share less share than 20% of the outstanding shares] shares in
the aggregate. If any one or more shares of Common Stock are not delivered as a result of the operation of the preceding sentence
(such shares, the “Withheld Shares”), then (1) on the date such shares of Common Stock are issuable hereunder
(after giving effect to any limitations imposed under Section 7(I)(i)), the Company will pay to the Holder, in addition
to the Conversion Consideration otherwise due upon such conversion or shares otherwise due to the Holder hereunder, cash in an
amount equal to the product of (x) the number of such Withheld Shares; and (y) the Daily VWAP per share of Common Stock on the
applicable Stock Payment Determination Date; and (2) to the extent the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in settlement of a sale by the Holder of such Withheld Shares, the Company will reimburse the
Holder for (x) any brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection with such
purchases and (y) the excess, if any, of (A) the aggregate purchase price of such purchases over (B) the product of (I) the number
of such Withheld Shares purchased by the Holder; and (II) the Daily VWAP per share of Common Stock on the applicable Stock Payment
Determination Date.

 

	Section 8.	Redemption of this Note.

 

(A)     Company Redemption
Election.

 

(i)        Redemption
Option 1. The Company may redeem all of the then outstanding Principal Amount of this Note or any portion thereof (a “Company
Redemption”), beginning on the one hundred eightieth (180th) day following the Issue Date,

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on a date to
be determined by the Company (any such date a “Company Redemption Option 1 Date”), for a cash redemption price
equal to the Company Redemption Option 1 Price; provided, that such redemption pursuant to this Section 8(A)(i)
may only be elected if the Market Price of the Company’s Common Stock has been no less than one hundred forty percent (140%)
of the Conversion Price on the Issue Date (subject to any subsequent stock splits) for the twenty (20) Trading Days immediately
preceding the Company Redemption Option 1 Date (the “Market Price Redemption Conditions”); provided further,
that the Company must provide notice of a Company Redemption Option 1 Date (“Redemption Option 1 Notice”) at
least ten (10) days prior to such Company Redemption Option 1 Date and the Company must have, on or prior to 9:00 am, New York
City time, on the Trading Day immediately preceding such notice delivery date, publicly disclosed any material, non-public information
regarding the Company (including the fact that the Company is redeeming the Note) on a Form 8-K or otherwise; provided,
however, that this Section 8(A)(i) will cease to have any force and effect if (i) any Default or Event of Default
has occurred hereunder that has not been waived by the Required Holders or (ii) any event or circumstance has occurred and is
continuing which, with the giving of notice or passage of time or both, could constitute an Event of Default  and has not been
waived by the Required Holders. A Company Redemption made pursuant to this Section 8(A)(i) shall be no greater than the
portion of the Principal Amount which, if converted into Common Stock at the Conversion Price, results in a number of shares of
Common Stock equal to (1) twenty percent (20%) of the aggregate volume (as reported on Bloomberg) traded in the Company’s
Common Stock on the Nasdaq Capital Market (or of the principal, in terms of volume, Eligible Exchange on which the Common Stock is listed for trading) during market trading hours (the “Share Trading Volume”)
during the twenty (20) Trading Days immediately preceding such Company Redemption Option 1 Date less (2) the cumulative number
of shares of the Company’s Common Stock converted by the Holder pursuant to Section 7 during the twenty (20) Trading
Days immediately preceding such Company Redemption Option 1 Date. In the event there are additional notes outstanding
issued pursuant to the Securities Purchase Agreement, the Company may not make a Company Redemption for this Note pursuant to
this Section 8(A)(i) while any such additional notes are outstanding that have an earlier issue date than this Note.

 

(ii)       Redemption
Option 2. At any time following the Issue Date, the Company may conduct a Company Redemption on a date to be determined by
the Company (any such date a “Company Redemption Option 2 Date”), for a cash redemption price equal to the
Company Redemption Option 2 Price; provided, that the Company must provide notice (“Redemption Option 2 Notice”)
thereof at least ten (10) days prior to such Company Redemption Option 2 Date and the Company must have, on or prior to 9:00 am,
New York City time, on the Trading Day immediately preceding such notice delivery date, publicly disclosed any material, non-public
information regarding the Company (including the fact that the Company is redeeming the Note) on a Form 8-K or otherwise; provided,
however, that this Section 8(A)(ii) will cease to have any force and effect if (i) any Default or Event of Default
has occurred hereunder that has not been waived by the Required Holders or (ii) any event or circumstance has occurred and is
continuing which, with the giving of notice or passage of time or both, could constitute an Event of Default with respect to

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and has not
been waived by the Required Holders.

 

(iii)      Effect
of Company Redemption. If this Note is to be redeemed in full pursuant to this Section 8(A), then, from and after the
date the related Company Redemption Option 1 Price or Company Redemption Option 2 Price, as applicable, is paid in full, this
Note will cease to be outstanding.

 

(iv)      Equity
Conditions. Notwithstanding anything herein to the contrary, the Company will not have the right to, and will not, make any
Company Redemption pursuant to this Section 8(A) if the Company Redemption Equity Conditions are not satisfied for each
VWAP Trading Day during the twenty (20) Trading Day period ending on, and including the Trading Day immediately prior to the Company
Redemption Date (such period, the “Company Redemption Equity Conditions Period”) (and the Company shall certify
in writing to the Holder (i) on the date of the Redemption Notice, within such notice, that the Company Redemption Equity Conditions
have continued to have been satisfied during such portion of the Company Redemption Equity Conditions Period leading up to and
including the date of the Redemption Notice and (ii) on the Company Redemption Date that the Company Redemption Equity Conditions
have continued to have been satisfied for the remainder of the Company Redemption Equity Conditions Period), unless such
failure of the Company Redemption Equity Conditions to be so satisfied is waived in writing by the Holder, which waiver may be
granted or withheld by the Holder in its sole discretion.

 

(B)     Holder Redemption
Election.

 

(i)      Clinical
Development Cessation Redemption Election. If (1) the Company ceases clinical development of the SBS Asset (the “Clinical
Development Cessation”) and (2) for a period of five (5) consecutive Trading Days, the Company’s Total Market Capitalization
is less than one hundred million dollars ($100 million) (the “Clinical Development Cessation Trigger”), then
(A) the Company shall, on the Trading Day on which the Clinical Development Cessation Trigger occurs, deliver to the Holder written
notice thereof (a “Clinical Development Cessation Trigger Notice”) and (B) the Holder may at any time after
the Clinical Development Cessation Trigger, elect to require the Company to redeem the outstanding Principal Amount at the Clinical
Development Cessation Redemption Price (the “Clinical Development Cessation Redemption Amount”) by delivering
to the Company written notice of such redemption (a “Clinical Development Cessation Optional Redemption Notice”).
On or before the second (2nd) Trading Day following the date of delivery of any Clinical Development Cessation Optional Redemption
Notice (the “Clinical Development Cessation Optional Redemption Date”), the Company shall pay the Holder in
cash the Clinical Development Cessation Redemption Amount. Notwithstanding the foregoing, if the Company ceases clinical development
of the SBS Asset at any time, the Company shall, on the Trading Day on which the Clinical Development Cessation occurs, deliver
to the Holder written notice thereof (a “Clinical Development Cessation Notice”).

 

(ii)      Registration
Statement Redemption Election. If (1) a Resale Registration Statement (as defined in the Securities Purchase Agreement) has
not been declared effective by the Commission following its review thereof on or before the date that is six (6) months after the
Issue Date or (2) at any time following the filing of such Resale Registration Statement, such Resale Registration Statement is
withdrawn (each, a “Registration Statement Redemption Trigger”), then (A) the Company shall, on the Trading
Day on which such Registration Statement Redemption Trigger occurs, deliver to the Holder written notice thereof (a “Registration
Statement Redemption Notice”) and (B) the Holder may at any time after the Registration Statement Redemption Trigger,
elect to require the Company to redeem the outstanding Principal Amount at the Registration Statement Redemption Price (the
“Registration Statement Redemption Amount”) by delivering to the Company written notice of such redemption.
On or before the second (2nd) Trading Day following the date of delivery of any Registration Statement Redemption Notice, the Company
shall pay the Holder in cash the Registration Statement Redemption Amount.

 

	Section 9.	Affirmative and Negative Covenants.

 

(A)     Stay, Extension
and Usury Laws. To the extent that it may lawfully do so, the Company (A) agrees that it will not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law (wherever or whenever
enacted or in force) that may affect the covenants or the performance of this Note; and (B) expressly waives all benefits or advantages
of any such law and agrees that it will not, by resort to any such law, hinder, delay or impede the execution of any power granted
to the Holder by this

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Note, but will suffer
and permit the execution of every such power as though no such law has been enacted.

 

(B)     Corporate
Existence. Subject to Section 10, the Company will cause to preserve and keep in full force and effect:

 

(i)        its
corporate existence and the corporate existence of its Subsidiaries in accordance with the organizational documents of the Company
or its Subsidiaries, as applicable; and

 

(ii)       the
rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries;

 

provided, however, that
the Company need not preserve or keep in full force and effect any such rights (charter and statutory), license or franchise or
existence of any of its Subsidiaries if the Board of Directors determines in good faith that (x) the preservation thereof is no
longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole; and (y) the loss thereof
is not, individually or in the aggregate, materially adverse to the Holder.

 

(C)     Ranking.
All payments due under this Note (i) shall rank pari passu with all Other Notes and (ii) shall rank senior to all other indebtedness
of the Company (other than the indebtedness described in clause (i)) and any Subordinated Indebtedness.

 

(D)     Indebtedness;
Amendments to Indebtedness. The Company shall not and shall not permit any Subsidiary to: (a) create, incur, assume, guarantee
or be or remain liable with respect to any Indebtedness, other than Permitted Indebtedness; (b) prepay any Indebtedness except
for (i) by the conversion of Indebtedness into equity securities (other than Disqualified Stock) and the payment of cash in lieu
of fractional shares in connection with such conversion, and (ii) a refinancing of the entire amount of such Indebtedness which
does not impose materially more burdensome terms upon the Company or its Subsidiaries than exist in such Indebtedness prior to
such refinancing, and which shall not have a maturity date, amortization payment, sinking fund, put right, mandatory redemption
or other repurchase obligation at the option of the lender or holder of such indebtedness, or be prepayable at the option of the
Company, in any case earlier than one hundred eighty-one (181) days following the Maturity Date; or (c) amend or modify any documents
or notes evidencing any Indebtedness in any manner which shortens the maturity date or any amortization, redemption or interest
payment date thereof or otherwise imposes materially more burdensome terms upon the Company or its Subsidiaries than exist in
such Indebtedness prior to such amendment or modification without the prior written consent of Holder. The Company shall not and
shall not permit any Subsidiary to incur any Indebtedness that would cause a breach or Default under the Notes or prohibit or
restrict the performance of any of the Company’s or its Subsidiaries’ obligations under the Notes, including without
limitation, the payment of interest and principal thereon.

 

(E)     Liens.
The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or permit
to exist any Lien of any kind on any asset now owned or hereafter acquired, except Permitted Liens.

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(F)     Investments.
The Company shall not directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its
Subsidiaries so to do, other than Permitted Investments; provided that the Company may not make any Investment (including
a Permitted Investment) or permit any of its Subsidiaries to make any Investment (including a Permitted Investment) if (i) any
Event of Default has occurred hereunder or (ii) any event or circumstance has occurred and is continuing which, with the giving
of notice or passage of time or both, could constitute an Event of Default with respect to Section 11(A)(ii), Section
11(A)(iv), Section 11(A)(vi), Section 11(A)(x), Section 11(A)(xii), Section 11(A)(xv) or Section
11(A)(xvi).

 

(G)     Distributions.
The Company shall not, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of stock or other Equity
Interest other than pursuant to employee, director or consultant repurchase plans or other similar agreements provided under plans
approved by the Board of Directors; provided, however, in each case the repurchase or redemption price does not exceed the original
consideration paid for such stock or Equity Interest, or (b) declare or pay any cash dividend or make a cash distribution on any
class of stock or other Equity Interest, except that a Subsidiary of the Company may pay dividends or make distributions to the
Company or a parent company that is a direct or indirect Wholly Owned Subsidiary of the Company, or (c) lend money to any employees,
officers or directors (except as permitted under clause (F) of the definition of Permitted Investment), or guarantee the payment
of any such loans granted by a third party in excess of one hundred thousand dollars ($100,000) in the aggregate or (d) waive,
release or forgive any Indebtedness owed by any employees, officers or directors in excess of one hundred thousand dollars ($100,000)
in the aggregate. If there are dividends or distributions made by the Company or any Subsidiary, within one (1) Business Day following
the date on which the Company files an Annual Report on Form 10-K or Quarterly Report on Form 10-Q with the Commission, the Company
will provide the Holder with a written notice setting forth the aggregate amount of dividends or distributions made by the Company
or any Subsidiary pursuant to this Section 9(G) for the period covered by such Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, as applicable. Notwithstanding anything herein to the contrary, the Company shall not, and shall not allow
any Subsidiary to, declare or pay any cash dividend or make a cash distribution on any class of stock or other Equity Interest
if (A) any Event of Default has occurred hereunder and has not been waived by the Required Holders or (B) any event or circumstance
has occurred and is continuing which, with the giving of notice or passage of time or both, could constitute an Event of Default
with respect to Section 11(A)(ii), Section 11(A)(iv), Section 11(A)(vi), Section 11(A)(x), Section
11(A)(xii), Section 11(A)(xv) or Section 11(A)(xvi).

 

(H)     Transfers.
The Company shall not, and shall not allow any Subsidiary to, voluntarily or involuntarily transfer, sell, lease, license, lend
or in any other manner convey any equitable, beneficial or legal interest in any material portion of the assets of the Company
and its Subsidiaries (taken as a whole), except for Permitted Transfers and Permitted Investments.

 

(I)     Taxes.
The Company and its Subsidiaries shall pay when due all taxes, fees or other charges of any nature whatsoever (together with any
related interest or penalties) now or hereafter imposed or assessed against the Company and its Subsidiaries or their respective
assets or upon their ownership, possession, use, operation or disposition thereof or upon their rents, receipts or earnings arising
therefrom. The Company and its Subsidiaries shall file on or before the due date

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therefor all personal
property tax returns. Notwithstanding the foregoing, the Company and its Subsidiaries may contest, in good faith and by appropriate
proceedings, taxes for which they maintain adequate reserves therefor in accordance with GAAP.

 

(J)     Minimum Liquidity.

 

(i)        Except
as otherwise provided in Section 9(J)(ii), the Company and its Subsidiaries shall have at all times liquidity calculated as unrestricted,
unencumbered Cash and Cash Equivalents in one or more deposit accounts located in the United States and subject to a Control Agreement
(as defined in the Security Agreements) entered into in favor of the Collateral Agent in a minimum amount equal to one hundred ten percent
(110%) of the sum of (i) the outstanding Principal Amount; and (ii) the principal amount of any other outstanding notes issued pursuant
to the Securities Purchase Agreement (i) and (ii) collectively, the “Total Outstanding Notes Principal Amount”);
provided, that such Control Agreements shall be “holder directed” Control Agreements that do not provide the Company
or its Subsidiaries access to the amounts in any such Controlled Accounts and only permit funds to be released from such Controlled Accounts
upon the direction of the Collateral Agent (the “Minimum Liquidity Requirement”).

 

(ii)       Upon
fulfillment of the Subsequent Financing Requirement, for as long as the Company’s Total Market Capitalization is in a minimum amount
equal to one hundred fifty million dollars ($150 million), the Minimum Liquidity Requirement shall be reduced to a minimum amount equal
to the greater of (i) (x) Total Outstanding Notes Principal Amount less (y) seven and a half percent (7.5%) of the Company’s
Total Market Capitalization and (ii) fifty percent (50%) of the Total Outstanding Notes Principal
Amount.

 

(iii)      On
or prior to the first (1st) calendar day of each month, the Company shall provide to the Holder a certification, in
the form attached hereto as Exhibit B, executed on behalf of the Company by the Chief Financial Officer of the Company,
certifying whether or not the Company has satisfied the requirements of Section 9(J)(i) (or Section 9(J)(ii), as
applicable) and Section 9(G) during the immediately preceding calendar month. If the Company determines in its sole discretion
that such information constitutes material non-public information, then the Company will so indicate in the certification provided
pursuant to the preceding sentence and the Company will concurrently disclose such material non-public information on a Current
Report on Form 8-K or otherwise.

 

(K)     Change in
Nature of Business. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
engage in any material line of business substantially different from those lines of business conducted by or publicly contemplated
to be conducted by the Company and each of its Subsidiaries on the Issue Date or any business substantially related or incidental
thereto. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, modify its
or their corporate structure or purpose.

 

(L)     Maintenance
of Properties, Etc. The Company shall maintain and preserve, and the Company shall cause each of its Subsidiaries to maintain
and preserve, all of its properties which are necessary or useful (as determined by the Company in good faith) to the conduct
of its business

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in good working order
and condition, ordinary wear and tear excepted, and comply at all times in all material respects with the provisions of all leases
to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

 

(M)     Maintenance
of Intellectual Property. The Company will take, and the Company shall cause each of its Subsidiaries to take, all actions
necessary or advisable to maintain and preserve all of the Intellectual Property Rights (as defined in the Securities Purchase
Agreement) of the Company or such Subsidiary that are necessary or material (as determined by the Company in good faith) to the
conduct of its business in full force and effect.

 

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

 

(O)     Transactions
with Affiliates. Neither the Company, nor any of its Subsidiaries, shall enter into, renew, extend or be a party to, any transaction
or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property
or assets of any kind or the rendering of services of any kind) with any affiliate (other than the Company or any of its Wholly
Owned Subsidiaries), except transactions for fair consideration and on terms no less favorable to it than would be obtainable
in a comparable arm’s length transaction with a Person that is not an affiliate thereof.

 

(P)     Restricted
Issuances. The Company shall not, and shall cause its Subsidiaries not to, directly or indirectly, without the prior written
consent of the holders of a majority in aggregate principal amount of the Notes then outstanding, (i) issue any Notes (other than
as contemplated by the Securities Purchase Agreement and the Notes) or (ii) issue any other securities or incur any Indebtedness,
in each case, that would cause a breach or Default under the Notes or that by its terms would prohibit or restrict the performance
of any of the Company’s or its Subsidiaries’ obligations under the Notes, including without limitation, the payment
of interest and principal thereon.

 

(Q)     Share Reserve.
So long as this Note remains outstanding, the Company shall at all times have no less than a number of shares of authorized but
unissued Common Stock reserved for any issuance equal to two hundred percent (200%) of a fraction, the numerator of which shall
be the then outstanding Principal Amount plus an amount equal to all interest accruable on such outstanding Principal Amount through
the Maturity Date, and the denominator of which shall be the Market Stock Payment Price (the “Required Reserve Amount”);
provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 9(Q) be reduced other
than in connection with any stock combination, reverse stock split or other similar transaction. If at any time the number of
shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company
will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
calling a special meeting of stockholders to authorize additional shares to meet

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the Company’s
obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized shares, obtain stockholder
approval (if required) of an increase in such authorized number of shares, and voting the management shares of the Company in
favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet
the Required Reserve Amount.

 

(R)     Independent
Investigation. At the request of the Required Holders at any time the Required Holders have determined in good faith that
(i) an Event of Default has occurred or (ii) any event or circumstance has occurred and is continuing which, with the giving of
notice or passage of time or both, could constitute an Event of Default but the Company has not timely agreed to such determination
in writing, the Company shall hire an independent, reputable investment bank selected by the Company and approved by the Required
Holders to investigate as to whether such Event of Default or event or circumstance has occurred (the “Independent Investigator”).
If the Independent Investigator determines that such Event of Default or event or circumstance has occurred, the Independent Investigator
shall notify the Company of such Event of Default or occurrence of such event or circumstance and the Company shall promptly deliver
written notice to the Holder of such Event of Default if such Event of Default has occurred. In connection with such investigation,
the Independent Investigator may, during normal business hours and upon signing a confidentiality agreement in a form reasonably
acceptable to the Company, inspect all contracts, books, records, personnel, offices and other facilities and properties of the
Company and its Subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them,
the records of its accountants (including the accountants’ work papers) and any books of account, records, reports and other
papers not contractually required of the Company to be confidential or secret, or subject to attorney-client or other evidentiary
privilege, and the Independent Investigator may make such copies and inspections thereof as the Independent Investigator may reasonably
request. The Company shall furnish the Independent Investigator with such financial and operating data and other information with
respect to the business and properties of the Company as the Independent Investigator may reasonably request. The Company shall
permit the Independent Investigator to discuss the affairs, finances and accounts of the Company with, and to make proposals and
furnish advice with respect thereto to, any of the Company’s officers, directors, key employees and independent public accountants
(and by this provision the Company authorizes said accountants to discuss with such Independent Investigator the finances and
affairs of the Company and any Subsidiaries), all at such reasonable times, upon reasonable notice, and as often as may be reasonably
requested.

 

(S)     Subsequent
Financing. On or before March 31, 2023, the Company shall raise at least twenty-five million dollars ($25,000,000) in gross
proceeds from one or more Subsequent Financings (the “Subsequent Financing Requirement”).

 

(T)     Upon delivery
by the Company to the Holder (or receipt by the Company from the Holder) of any notice in accordance with the terms of this Note,
unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public
information relating to the Company or any of its Subsidiaries, the Company shall on or prior to 9:00 am, New York City time on
the Business Day immediately following such notice delivery date, publicly disclose such material, non-public information on a
Form 8-K or otherwise. In the event that the Company believes that a notice contains material, non-public information relating
to the Company or any of its Subsidiaries, the Company so shall indicate to the Holder explicitly

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in writing in such notice
(or immediately upon receipt of notice from the Holder, as applicable), and in the absence of any such written indication in such
notice (or notification from the Company immediately upon receipt of notice from the Holder), the Holder shall be entitled to
presume that information contained in the notice does not constitute material, non-public information relating to the Company
or any of its Subsidiaries. Nothing contained in this Section 9(T) shall limit any obligations of the Company, or any rights
of the Holder, under the Securities Purchase Agreement.

 

(U)     The Company
acknowledges and agrees that the Holder is not a fiduciary or agent of the Company, the Holder will not have any obligations hereunder
except those obligations expressly set forth herein (and in the Securities Purchase Agreement) and the Holder is acting solely
in the capacity of an arm’s length contractual counterparty to the Company with respect to the Note and not as a fiduciary
or agent of the Company. The Company agrees that it will not assert any claim against the Holder based on an alleged breach of
fiduciary duty by the Holder in connection with the Note. The Company acknowledges that the Holder shall have no obligation to
(a) maintain the confidentiality of any information provided by the Company or (b) refrain from trading any securities while in
possession of such information in the absence of a written non-disclosure agreement signed by an officer of the Holder that explicitly
provides for such confidentiality and trading restrictions. In the absence of such an executed, written non-disclosure agreement,
the Company acknowledges that the Holder may freely trade in any securities issued by the Company, may possess and use any information
provided by the Company in connection with such trading activity, and may disclose any such information to any third party.

 

(V)     The Company
shall cause this Note and any shares of Common Stock issuable pursuant to this Note to be eligible to be offered, sold or otherwise
transferred by the Holder pursuant to Rule 144, without any requirements as to volume, manner of sale, availability of current
public information (whether or not then satisfied) or notice under the Securities Act and without any requirement for registration
under any state securities or “blue sky” law, on and after the date that is six (6) months following the Issue Date.
If this Note is to be transferred, the Holder shall notify the Company and surrender this Note to the Company (or provide the
Company an affidavit in a form reasonably acceptable to the Company that this Note was lost, stolen or destroyed), whereupon the
Company will forthwith issue and deliver upon the order of the Holder a new Note, registered as the Holder may request.

 

(W)     The Company
shall pay when due any and all fees and expenses owed by it under all deposit accounts located in the United States and subject
to a Control Agreement entered into in favor of the Collateral Agent.

 

	Section 10.	Successors.

 

The Company will not
consolidate with or merge with or into, or (directly, or indirectly through one or more of its Subsidiaries) sell, lease or otherwise
transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its Subsidiaries,
taken as a whole, to another Person, other than the Holder or any of its Affiliates (a “Business Combination Event”),
unless:

 

(A)     the resulting,
surviving or transferee Person either (x) is the Company or (y) if not the Company, is a corporation (the “Successor
Corporation”) duly organized and existing under

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the laws of the United
States of America, any State thereof or the District of Columbia that expressly assumes (by executing and delivering to the Holder,
at or before the effective time of such Business Combination Event, a supplement to this instrument) all of the Company’s
obligations under this Note; and

 

(B)     immediately
after giving effect to such Business Combination Event, no Event of Default will have occurred that has not been waived and no
Default will have occurred and be continuing which has not been waived.

 

At the effective time
of any Business Combination Event, the Successor Corporation (if not the Company) will succeed to, and may exercise every right
and power of, the Company under this Note with the same effect as if such Successor Corporation had been named as the Company
in this Note, and, except in the case of a lease, the predecessor Company will be discharged from its obligations under this Note.

 

	Section 11.	Defaults and Remedies

 

(A)     Events of
Default. “Event of Default” means the occurrence of any of the following:

 

(i)        a default
in the payment when due of a Total Amortization Payment, the Principal Amount, or the Fundamental Change Repurchase Price under
this Note;

 

(ii)       a
default in excess of two (2) Business Days in the payment when due of the interest on this Note;

 

(iii)      a
default in the Company’s obligation to issue shares pursuant to this Note (or any portion of this Note) in accordance with
Section 5(B), Section 5(C), Section 5(E), or Section 7(C) upon the exercise of the Holder’s
right with respect thereto;

 

(iv)      a default in the Company’s obligation to timely deliver a Fundamental Change Notice pursuant
to Section 6(C), a Clinical Development Cessation Trigger Notice pursuant to Section 8(B)(i), a Clinical Development
Cessation Notice pursuant to Section 8(B)(i) or a Registration Statement Redemption Notice pursuant to Section 8(B)(ii),
and such default continues for three (3) Business Days, or the delivery of a materially false or inaccurate Fundamental Change
Notice, Clinical Development Cessation Trigger Notice, Clinical Development Cessation Notice or Registration Statement Redemption
Notice;

 

(v)       any
failure to timely deliver an Event of Default Notice or a materially false or inaccurate certification as to whether any Event
of Default has occurred or as to whether the Equity Conditions (as defined in the Securities Purchase Agreement) have been satisfied;

 

(vi)      a
default in any of the Company’s obligations or agreements under this Note or the Transaction Documents (in each case, other
than a default set forth in clauses (i) - (v) or (vii) – (xix) of this Section 11(A)),
or a breach of any representation or warranty in any material respect (other than representations or warranties subject to material
adverse effect or materiality qualifications, which may not be breached in any respect) of any Transaction Document; provided,
however, that if such default can be cured, then such

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default shall
not be an Event of Default unless the Company has failed to cure such default within ten (10) Business Days after its occurrence;

 

(vii)     any
provision of any Transaction Document at any time for any reason (other than pursuant to the express terms thereof) ceases to
be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof is contested, directly
or indirectly, by the Company or any of its Subsidiaries, or a proceeding is commenced by the Company or any of its Subsidiaries
or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof;

 

(viii)    at
any time, this Note or any shares of Common Stock issuable upon conversion of this Note are not Freely Tradable;

 

(ix)     the
Company fails to comply with any covenant set forth in Section 9(D), Section 9(E), Section 9(F), Section
9(G), Section 9(H), Section 9(J), Section 9(P), Section 9(Q), Section 9(S) or Section 9(W)
of this Note;

 

(x)      the
suspension from trading or failure of the Common Stock to be trading or listed on the Company’s primary Eligible Exchange
(measured in terms of trading volume for its Common Stock) on which the Common Stock is traded for a period of three (3) consecutive
Trading Days;

 

(xi)     (i)
the failure of the Company or any of its Subsidiaries to pay when due or within any applicable
grace period any Indebtedness having an individual principal amount in excess of
at least two hundred and fifty thousand dollars ($250,000) (or its foreign currency equivalent) in the aggregate of the Company
or any of its Subsidiaries, whether such Indebtedness exists as of the Issue Date or is thereafter created, and whether such default
has been waived for any period of time or is subsequently cured; or (ii) the occurrence of any
breach or default under any terms or provisions of any other Indebtedness of at least two hundred and fifty thousand dollars
($250,000) (or its foreign currency equivalent) in the aggregate of the Company or any of its Subsidiaries,
if the effect of such failure or occurrence is to cause or to permit the holder or holders of any such indebtedness, to cause,
Indebtedness having an individual principal amount in excess of two hundred and fifty thousand dollars ($250,000)
to become or be declared due prior to its stated maturity;

 

(xii)    one
or more final judgments, orders or awards (or any settlement of any litigation or other proceeding that, if breached, could result
in a judgment, order or award) for the payment of at least two hundred and fifty thousand dollars ($250,000) (or its foreign currency
equivalent) in the aggregate (excluding any amounts covered by insurance pursuant to which the insurer has been notified and has
not denied coverage), is rendered against the Company or any of its Subsidiaries and remains unsatisfied and (i) enforcement proceedings
shall have been commenced by any creditor upon any such judgment, order, award or settlement or (ii) there shall be a period of
ten (10) consecutive Trading Days after entry thereof during which (A) a stay of enforcement thereof is not in effect or (B) the
same is not vacated, discharged, stayed or bonded pending appeal;

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(xiii)    (A)
the Company fails to timely file its quarterly reports on Form 10-Q or its annual reports on Form 10-K with the Commission in
the manner and within the time periods required by the Exchange Act, or (B) the Company withdraws or restates in any material
way (as reasonably determined by the Holder in good faith) any such quarterly report or annual report previously filed with the
Commission;

 

(xiv)   any
Security Document shall for any reason fail or cease to create a separate valid and perfected, and, except to the extent permitted
by the terms hereof or thereof, first priority Lien on the Collateral, in each case, in favor of the Collateral Agent in accordance
with the terms thereof, or any material provision of any Security Document shall at any time for any reason cease to be valid
and binding on or enforceable against the Company or the validity or enforceability thereof shall be contested by any party thereto,
or a proceeding shall be commenced by the Company or any governmental authority having jurisdiction over the Company, seeking
to establish the invalidity or unenforceability thereof;

 

(xv)    any
material damage to, or loss, theft or destruction of, any Collateral (provided that any damage, loss, theft or destruction of
the Collateral that reduces the value of such Collateral by two hundred and fifty thousand dollars ($250,000) or more shall be
deemed to be material), whether or not insured, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public
enemy, or other casualty which causes, for more than fifteen (15) consecutive days, the cessation or substantial curtailment of
revenue producing activities at any facility of the Company or any Subsidiary, if any such event or circumstance could reasonably
be expected to have a Material Adverse Effect (as defined in the Securities Purchase Agreement). For clarity, an Event of Default
under this Section 11(A)(xv) will not require any curtailment of revenue;

 

(xvi)   the
Company fails to remove any restrictive legend on any certificate or any shares of Common Stock issued to the Holder pursuant
to any Securities (as defined in the Securities Purchase Agreement) acquired by the Holder under the Securities Purchase Agreement
(including this Note) as and when required by such Securities or the Securities Purchase Agreement, unless otherwise then prohibited
by applicable federal securities laws and such failure continues for more than five (5) Trading Days;

 

(xvii)   the
Company or any of its Significant Subsidiaries, pursuant to or within the meaning of any Bankruptcy Law, either:

 

(1)   commences a
voluntary case or proceeding;

 

(2)   consents to
the entry of an order for relief against it in an involuntary case or proceeding;

 

(3)   consents to
the appointment of a custodian of it or for any substantial part of its property;

 

(4)   makes a general
assignment for the benefit of its creditors;

 

(5)   takes any comparable
action under any foreign Bankruptcy Law; or

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(6)   generally is
not paying its debts as they become due; or

 

(xviii)  a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that either:

 

(1)   is for relief
against Company or any of its Significant Subsidiaries in an involuntary case or proceeding;

 

(2)   appoints a
custodian of the Company or any of its Significant Subsidiaries, or for any substantial part of the property of the Company or
any of its Significant Subsidiaries;

 

(3)   orders the
winding up or liquidation of the Company or any of its Significant Subsidiaries; or

 

(4)   grants any
similar relief with respect to the Company or any of its Significant Subsidiaries under any foreign Bankruptcy Law,

 

and, in each case under this Section
11(A)(xviii), such order or decree remains unstayed and in effect for at least thirty (30) days.

 

(xix)    the
Company’s stockholders approve any plan for the liquidation or dissolution of the Company.

 

(B)     Acceleration.

 

(i)       Automatic
Acceleration in Certain Circumstances. If an Event of Default set forth in Section 11(A)(xvii) or Section 11(A)(xviii)
occurs with respect to the Company (and not solely with respect to a Significant Subsidiary of the Company), then the then
outstanding portion of the Principal Amount of, and all accrued and unpaid interest on, this Note will immediately become due
and payable without any further action or notice by any Person.

 

(ii)      Optional
Acceleration. If an Event of Default (other than an Event of Default set forth in Section 11(A)(xvii) or Section
11(A)(xviii) with respect to the Company and not solely with respect to a Subsidiary of the Company) occurs and has not been
waived by the Holder, then the Holder, by notice to the Company, may declare this Note (or any portion thereof) to become due
and payable immediately for cash in an amount equal to the Event of Default Acceleration Amount.

 

(C)     Notice of
Events of Default. Promptly, but in no event later than two (2) Business Days after an Event of Default, the Company will
provide written notice of such Event of Default to the Holder (an “Event of Default Notice”), which Event of
Default Notice shall include (i) a reasonable description of the applicable Event of Default, (ii) the date on which the Event
of Default occurred and (iii) the date on which the Default underlying such Event of Default initially occurred, if different
than the date on which the Event of Default occurred.

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	Section 12.	Ranking.

 

All payments due under
this Note shall rank (i) pari passu with all Other Notes, (ii) effectively senior to all unsecured indebtedness of the Company
to the extent of the value of the Collateral securing the Notes for so long as the Collateral so secures the Notes in accordance
with the terms hereof and (iii) senior to any Subordinated Indebtedness.

 

	Section 13.	Replacement Notes.

 

If the Holder of this
Note claims that this Note has been mutilated, lost, destroyed or wrongfully taken, then the Company will issue, execute and deliver
a replacement Note upon surrender to the Company of such mutilated Note, or upon delivery to the Company of evidence of such loss,
destruction or wrongful taking reasonably satisfactory to the Company. In the case of a lost, destroyed or wrongfully taken Note,
the Company may require the Holder to provide such security or an indemnity that is reasonably satisfactory to the Company to
protect the Company from any loss that it may suffer if this Note is replaced.

 

	Section 14.	Notices.

 

Any notice or communication
to the Company will be deemed to have been duly given if in writing and delivered in person or by first class mail (registered
or certified, return receipt requested), electronic transmission (including e-mail) or other similar means of unsecured electronic
communication or overnight air courier guaranteeing next day delivery, or to the other’s address, which initially is as
follows:

 

9 Meters Biopharma, Inc.

8480 Honeycutt Road, Suite 120

Raleigh, North Carolina 27615

Attention: Bethany Sensenig, CFO

Email address: bsensenig@9meters.com

 

The Company, by notice
to the Holder, may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication
to the Holder will be by email to its email address, which initially are as set forth in the Securities Purchase Agreement. The
Holder, by notice to the Company, may designate additional or different addresses for subsequent notices or communications.

 

If a notice or communication
is mailed in the manner provided above within the time prescribed, it will be deemed to have been duly given, whether or not the
addressee receives it.

 

	Section 15.	Successors and Assigns.

 

All agreements of the
Company in this Note will bind its successors and will inure to the benefit of the Holder’s successors and assigns.

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	Section 16.	Severability.

 

If any provision of
this Note is invalid, illegal or unenforceable, then the validity, legality and enforceability of the remaining provisions of
this Note will not in any way be affected or impaired thereby.

 

	Section 17.	Headings, Etc.

 

The headings of the
Sections of this Note have been inserted for convenience of reference only, are not to be considered a part of this Note and will
in no way modify or restrict any of the terms or provisions of this Note.

 

	Section 18.	Amendments

 

This Note may not be
amended or modified unless in writing by the Company and the Required Holders, and no condition herein (express or implied) may
be waived unless waived in writing by each party whom the condition is meant to benefit.

 

	Section 19.	Governing Law; Waiver of Jury Trial.

 

All questions concerning
the construction, validity, enforcement and interpretation of this Note shall be governed by the internal laws of the State of
Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or
any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. The
Company and each Holder hereby irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware,
for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with
any transaction contemplated hereby or thereby, 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 court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this 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 manner permitted by law. Nothing contained herein shall be deemed or operate to preclude any Holder from
bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations
to such Holder or to enforce a judgment or other court ruling in favor of such Holder. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER
TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY OR THEREBY.

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	Section 20.	Submission to Jurisdiction.

 

The Company (A) agrees
that any suit, action or proceeding against it arising out of or relating to this Note may be instituted in the Court of Chancery
of the State of Delaware; (B) waives, to the fullest extent permitted by applicable law, (i) any objection that it may now or
hereafter have to the laying of venue of any such suit, action or proceeding; and (ii) any claim that it may now or hereafter
have that any such suit, action or proceeding in such a court has been brought in an inconvenient forum; and (C) submits to the
nonexclusive jurisdiction of such court in any such suit, action or proceeding.

 

	Section 21.	Enforcement Fees.

 

The Company agrees
to pay all costs and expenses of the Holder incurred as a result of enforcement of this Note and the collection of any amounts
owed to the Holder hereunder (whether in cash, Common Stock or otherwise), including, without limitation, reasonable attorneys’
fees and expenses.

 

	Section 22.	Electronic Execution.

 

The words “execution,”
“signed,” “signature,” and words of similar import in the Note shall be deemed to include electronic or
digital signatures or the keeping of records in electronic form, each of which shall be of the same effect, validity, and enforceability
as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent and as provided for under
applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 U.S.C. §§ 7001-7006),
the Electronic Signatures and Records Act of 1999 (N.Y. State Tech. §§ 301-309), or any other similar state laws based
on the Uniform Electronic Transactions Act.

 

* * *

    	69

    	

    

Exhibit A

 

Conversion Notice

 

9
Meters Biopharma, Inc.

 

Senior Secured Convertible Note due 2025

 

Subject to the terms of this Note, by executing and delivering
this Conversion Notice, the undersigned Holder of this Note directs the Company to convert the following Principal Amount of this
Note: $                                ,000 in accordance with the following details.

 

	Shares of Common Stock to be delivered:	 
	 	 	 
	 	 	 
	Accrued interest amount:	 
	 	 	 
	 	 	 
	DTC Participant Number:	 
	 	 	 
	 	 	 
	DTC Participant Name:	 
	 	 	 

 

	Date: 	 	 	 
	 	 	 	 
	 	 	(Legal Name of Holder)
	 	 	 

	 	By:  	 
	 	 	Name:
	 	 	Title:

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Exhibit B

 

Form of Monthly Covenant Compliance Certificate

 

The undersigned, the duly qualified and
elected Chief Financial Officer of 9 Meters Biopharma, Inc., a Delaware corporation (the “Company”),
does hereby certify in such capacity and on behalf of the Company, pursuant to the Senior Secured Convertible Note due 2025, issued
[ ● ], 2022 (the “Note”), issued by the Company to [ ● ], that:

 

(i) the Company satisfied the requirements
of Section 9(G) of the Note during the calendar month ended [ ● ]; and

 

(ii) the Company satisfied the requirements
of Section 9(J) of the Note during the calendar month ended [ ● ].

 

Capitalized terms used herein without
definition shall have the meanings given to such terms in the Note.

 

	 	9 Meters Biopharma, Inc.
	 	 	 
	 	By:   

	 	 	 
	 	Name: 	 
	 	Title:	Chief Financial
    Officer

 

Date: __________________

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