Document:

Exhibit 10.99

 

ADDITIONAL ISSUANCE AGREEMENT

 

This Additional Issuance
Agreement (this “Agreement”), dated as of October 29, 2019, is made pursuant to Section 4.13 of that certain
Securities Purchase Agreement, dated as of September 27, 2019 (the “Purchase Agreement”), as amended, by and
between Ideanomics, Inc. (the “Company”) and ID Ventures 7, LLC (the “Purchaser”) for the
purchase of the Company’s 10% Senior Secured Convertible Debentures due March 27, 2021 (the “Additional Debenture”)
and Common Stock Purchase Warrants (“Additional Warrants” and together with the Additional Debentures, the
 “Additional Securities”). Capitalized terms used and not otherwise defined herein that are defined in the
Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.

 

For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.       Issuance
of Additional Debenture and Additional Warrants. The Company hereby agrees to issue to the Purchaser, and the Purchaser hereby
agrees to purchase, an Additional Debenture in the aggregate principal amount of $400,000, which Additional Debenture shall otherwise
be in the form of the Debenture along with Additional Warrants to purchase up to 600,000 shares of Common Stock, which Additional
Warrant shall otherwise be in the form of the Warrant. The Company shall promptly deliver to the Purchaser the Additional Securities.

 

2.       Documents.
The rights and obligations of the Purchaser and of the Company with respect to the Additional Securities and the shares of Common
Stock issuable under the Additional Securities (the “New Underlying Shares”) shall be identical in all respects
to the rights and obligations of such Purchaser and of the Company with respect to the Debentures, the Warrants and the Underlying
Shares issued and issuable pursuant to the Purchase Agreement. Any rights of a Purchaser or covenants of the Company which are
dependent on such Purchaser holding securities of the Company or which are determined in magnitude by such Purchaser’s purchase
of securities pursuant to the Purchase Agreement shall be deemed to include any securities purchased or issuable hereunder. The
Purchase Agreement is hereby amended so that the term “Debentures” includes the Additional Debenture, the term “Warrant”
includes the Additional Warrant and the term “Underlying Shares” includes the New Underlying Shares.

 

3.       Security
Interest. Company hereby acknowledges and agrees that the security interests granted to the holders of the Existing Debentures
and Debentures pursuant to the Existing Security Agreement applies to and covers the obligations of the Company to the Purchasers
evidenced by the Additional Debentures and (b) the Additional Debentures rank pari passu to the Existing Debentures
and the Debentures.

 

4.       Subsidiary
Guarantee. The Additional Debenture constitutes an “Obligation” under the Subsidiary Guarantee as if the Additional
Debentures were Debentures issued pursuant to the Purchase Agreement

 

     

     

    

 

5.       Representations
and Warranties of the Company. The Company hereby makes to the Purchaser the following representations and warranties:

 

(a)       Authorization;
Enforcement. The Company has the reqms1te corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have been duly authorized
by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or
its stockholders in connection therewith. This Agreement has been duly executed by the Company and, when delivered in accordance
with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

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

 

(c)       Issuance
of the Additional Securities. The Additional Securities are duly authorized and, upon the execution of this Agreement by
a Purchaser, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company other than restrictions on transfer provided for in the Transaction Documents. The Additional Underlying Shares, when
issued in accordance with the terms of the Additional Securities, will be validly issued, fully paid and nonassessable, free
and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock a number of
shares of Common Stock for issuance of the Additional Underlying Shares at least equal to the Required Minimum on the date
hereof.

 

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(d)       Affirmation
of Prior Representations and Warranties. Except as set forth on Schedule 4(d) hereto, the Company hereby represents
and warrants to each Purchaser that the Company’s representations and warranties listed in Section 3.1 of the Purchase Agreement
are true and correct as of the date hereof.

 

4.       Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof to the Company as follows:

 

(a)       Authority.
The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized
by all necessary corporate or similar action on the part of such Purchaser. This Agreement has been duly executed by such Purchaser
and, when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation
of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

(b)       Own
Account. Such Purchaser (i) understands that the Additional Securities are “restricted security” and have not
been registered under the Securities Act or any applicable state securities law, (ii) is acquiring the Additional Securities as
principal for its own account and not with a view to or for distributing or reselling such Additional Securities or any part thereof
in violation of the Securities Act or any applicable state securities law, (iii) has no present intention of distributing any
of such securities in violation of the Securities Act or any applicable state securities law and (iv) has no arrangement or understanding
with any other persons regarding the distribution of such Additional Securities (this representation and warranty not limiting
such Purchaser’s right to sell the Additional Underlying Shares pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws) in violation of the Securities Act or any applicable state securities law.
Such Purchaser is acquiring the Additional Securities hereunder in the ordinary course of its business. Such Purchaser does not
have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Additional Securities or
Additional Underlying Shares.

 

(c)       Purchaser
Status. Such Purchaser is an “accredited investor” as defined in Rule 501under the Securities Act.

 

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(d)       General
Solicitation. Such Purchaser is not purchasing the Additional Securities as a result of any advertisement, article,
notice or other communication regarding the Additional Securities published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

		5.	Public
                                         Disclosure. The Company shall, on or before 9 am ET on the Trading Day immediately
                                         following the date hereof, issue a Current Report on Form 8-K, reasonably acceptable
                                         to the Purchaser, disclosing the material terms of the transactions contemplated hereby
                                         and attaching this Agreement as an exhibit thereto. The Company shall consult with the
                                         Purchaser in issuing any other press releases with respect to the transactions contemplated
                                         hereby.

 

		6.	Delivery
                                         of Opinion. Concurrently herewith, the Company shall deliver to the Purchaser an
                                         opinion of counsel regarding this Agreement and the issuance of the Additional Securities
                                         in form and substance reasonably acceptable to the Purchaser.

 

		7.	Effect on Transaction Documents. Except as expressly set forth above, all of the terms and conditions of the Transaction
Documents shall continue in full force and effect after the execution of this Agreement and shall not be in any way changed, modified
or superseded by the terms set forth herein, including, but not limited to, any other obligations the Company may have to the Purchaser
under the Transaction Documents. Notwithstanding the foregoing, this Agreement shall be deemed for all purposes as an amendment
to any Transaction Document as required to serve the purposes hereof, and in the event of any conflict between the terms and provisions
of the Debentures or any other Transaction Document, on the one hand, and the terms and provisions of this Agreement, on the other
hand, the terms and provisions of this Agreement shall prevail.

 

		8.	Amendments
                                         and Waivers. The provisions of this Agreement, including the provisions of this sentence,
                                         may not be amended, modified or supplemented, and waivers or consents to departures from
                                         the provisions hereof may not be given, unless the same shall be in writing and signed
                                         by the Company and each Purchaser.

 

		9.	Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

		10.	Successors
                                         and Assigns. This Agreement shall inure to the benefit of and be binding upon the
                                         successors and permitted assigns of each of the parties and shall inure to the benefit
                                         of each Purchaser. The Company may not assign (except by merger) its rights or obligations
                                         hereunder without the prior written consent of the Purchaser of the then-outstanding
                                         Securities. The Purchaser may assign their rights hereunder in the manner and to the
                                         Persons as permitted under the Purchase Agreement.

 

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

 

		12.	Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be determined in accordance with the provisions of the Purchase Agreement.

 

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

 

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

 

		15.	Fees
                                         and expenses. At the closing, the Company has agreed to reimburse the Purchaser $10,000
                                         for its fees and expenses. The Company shall deliver to each Purchaser, prior to closing,
                                         a completed and executed copy of a closing statement, for the closing of the purchase
                                         and sale of the Additional Securities, otherwise in the form attached to the Purchase
                                         Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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Executed as of the first date written above
by the undersigned duly authorized representatives of the Company and the Purchaser:

 

IDEANOMICS, INC.

 

	By:	 	 
	 	Name:	Conor McCarthy	 
	 	Title:	CFO	 
	 	 	 	 	 
	Name of Purchaser:	ID Venturas 7, LLC	 
	 	 
	Signature of Authorized Signatory:	 	 
	 	 	 
	Name of Authorized Signatory:	Antonio Ruiz-Gimenez	 
	 	 	 
	Title of Authorized Signatory:	Managing Director	 
	 	 	 	 	 	 

 

Subscription Amount: $400,000

 

Principal Amount: $400,000

 

Warrant Shares: 600,000

 

    6Exhibit 10.100

 

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

 

Original
Issue Date: October 29, 2019

Original
Conversion Price (subject to adjustment herein): $1.00

 

	 	$	 

 

10% SENIOR SECURED
CONVERTIBLE DEBENTURE DUE MARCH 27, 2021

 

THIS
l0% SENIOR SECURED CONVERTIBLE DEBENTURE is one of a series of duly authorized and validly issued 10% Senior Secured Convertible
Debentures of Ideanomics, Inc., a Nevada corporation (the "Company"), having its principal place of business
at 55 Broadway, 19th Floor, New York, New York 10006 , designated as its 10% Senior Secured Convertible Debenture due March 27,
2021 (this debenture, the "Debenture" and, collectively with the other debentures of such series, the "
Debentures").

 

FOR
VALUE RECEIVED, the Company promises to pay to ID VENTURAS 7 LLC or its registered assigns (the "Holder"), or
shall have paid pursuant to the terms hereunder, the principal sum of $400,000 on March 27, 2021 (the "Maturity Date")
or such earlier date as this Debenture is required or permitted to be repaid as provided hereunder, and to pay interest to the
Holder on the aggregate unconverted and then outstanding principal amount of this Debenture in accordance with the provisions
hereof. This Debenture is subject to the following additional provisions:

 

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

 

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

 

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

 

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

 

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

 

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

 

"Change
of Control Transaction" means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or "group" (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of
in excess of 50% of the voting securities of the Company (other than by means of conversion or exercise of the Debentures and
the Securities issued together with the Debentures), including, without limitation, through a purchase offer, tender offer or
exchange offer (whether by the Company or another Person) or a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization , recapitalization, spin-off or scheme of arrangement), in one or more related
transactions, (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with
the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction
own less than 50% of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company sells
or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to
such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, or
(d) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of
the events set forth in clauses (a) through (c) above.

 

"Common
Stock" means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

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

 

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

 

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

 

"Conversion Schedule"
means the Conversion Schedule in the form of Schedule 1 attached hereto.

 

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

 

"Debenture
Register" shall have the meaning set forth in Section 2(c).

 

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

 

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

 

"Effectiveness
Period" shall have the meaning set forth in the Registration Rights Agreement.

 

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"Equity
Conditions" means, during the period in question, (a) the Company shall have duly honored all conversions and redemptions
scheduled to occur or occurring by virtue of one or more Notices of Conversion of the Holder, if any, (b) the Company shall have
paid all liquidated damages and other amounts owing to the Holder in respect of this Debenture, (c) with respect to Section 2
only, (i) there is an effective Registration Statement pursuant to which the Holder is permitted to utilize the prospectus thereunder
to resell all of the shares of Common Stock issuable pursuant to the Transaction Documents (and the Company believes, in good
faith, that such effectiveness will continue uninterrupted for the foreseeable future) or (ii) all of the Conversion Shares issuable
pursuant to the Transaction Documents (and shares issuable in lieu of cash payments of interest) may be resold pursuant to Rule
144 without volume or manner-of-sale restrictions or current public information requirements as determined by the counsel to the
Company as set forth in a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the Holder,
(d) the Common Stock is trading on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed
or quoted for trading on such Trading Market (and the Company believes, in good faith, that trading of the Common Stock on a Trading
Market will continue uninterrupted for the foreseeable future), (e) there is a sufficient number of authorized but unissued and
otherwise unreserved shares of Common Stock for the issuance of all of the shares then issuable pursuant to the Transaction Documents,
(f) there is no existing Event of Default and no existing event which, with the passage of time or the giving of notice, would
constitute an Event of Default, (g) the issuance of the shares in question (or, in the case of an Optional Redemption, the shares
issuable upon conversion in full of the Optional Redemption Amount) to the Holder would not violate the limitations set forth
in Section 4(d) and Section 4(e) herein, (h) there has been no public announcement of a pending or proposed Change of Control
Transaction that has not been consummated, and (i) the applicable Holder is not in possession of any information provided by the
Company, any of its Subsidiaries, or any of their officers, directors, employees, agents or Affiliates, that constitutes, or may
constitute, material non-public information.

 

"Event
of Default" shall have the meaning set forth in Section 8(a).

 

"Interest
Conversion Rate" means 85% of the lesser of (i) the average of the VWAPs for the 5 consecutive Trading Days ending on
the Trading Day that is immediately prior to the applicable Interest Payment Date or (ii) the average of the VWAPs for the 5 consecutive
Trading Days ending on the Trading Day that is immediately prior to the date the applicable Interest Conversion Shares are issued
and delivered if such delivery is after the Interest Payment Date.

 

"Interest Conversion Shares" shall
have the meaning set forth in Section 2(a).

 

"Interest
Notice Period" shall have the meaning set forth in Section 2(a).

 

"Interest
Payment Date" shall have the meaning set forth in Section 2(a).

 

"Interest
Share Amount" shall have the meaning set forth in Section 2(a).

 

"Issuable
Maximum" shall have the meaning set forth in Section 4(e).

 

"Late Fees" shall have the meaning
set forth in Section 2(d).

 

"Mandatory
Default Amount" means the sum of (a) the greater of (i) the outstanding principal amount of this Debenture, plus all
accrued and unpaid interest hereon, divided by the Conversion Price on the date the Mandatory Default Amount is either (A) demanded
(if demand or notice is required to create an Event of Default) or otherwise due or (B) paid in full, whichever has a lower Conversion
Price, multiplied by the VWAP on the date the Mandatory Default Amount is either (x) demanded or otherwise due or (y) paid in
full, whichever has a higher VWAP, or (ii) 110% of the outstanding principal amount of this Debenture, plus 100% of accrued and
unpaid interest hereon, and (b) all other amounts, costs, expenses and liquidated damages due in respect of this Debenture.

 

"New
York Courts" shall have the meaning set forth in Section 9(e).

 

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

 

"Optional Redemption" shall have
the meaning set forth in Section 6(a).

 

"Optional
Redemption Amount" means the sum of (a) the then outstanding principal amount of the Debenture, (b) accrued but unpaid
interest and (c) all liquidated damages and other amounts due in respect of the Debenture.

 

"Optional Redemption Date" shall
have the meaning set forth in Section 6(a).

 

"Optional Redemption Notice" shall
have the meaning set forth in Section 6(a).

 

"Optional Redemption Notice Date"
shall have the meaning set forth in Section 6(a).

 

"Optional Redemption Period" shall
have the meaning set forth in Section 6(a).

 

"Original
Issue Date" means the date of the first issuance of the Debentures, regardless of any transfers of any Debenture and
regardless of the number of instruments which may be issued to evidence such Debentures.

 

"Permitted
Indebtedness" means (a) the indebtedness evidenced by the Debentures, (b) the Indebtedness existing on the Original Issue
Date and set forth on Schedule 3.1(p) attached to the Purchase Agreement, (c) indebtedness resulting from a bank or other
financial institution honoring a check, draft or similar instrument in the ordinary course of business, (d) indebtedness arising
under or in connection with cash management services in the ordinary course of business, (e) equipment lease obligations and purchase
money indebtedness of up to $1,000,000, in the aggregate, incurred in connection with the acquisition of fixed or capital assets
and equipment lease obligations with respect to newly acquired or leased assets, (f) indebtedness under bank lines of credit up
to $5,000,000 in the aggregate, at any time outstanding, (g) up to an aggregate of $5,000,000 of indebtedness that (i) is expressly
subordinate to the Debentures pursuant to a written subordination agreement with the Purchasers that is acceptable to each Purchaser
in its sole and absolute discretion and (ii) matures at a date later than the ninety first (91st) day following the Maturity Date,
and (h) obligations existing or arising under any swap or hedge contract; provided that such obligations are (or were) entered
into by the Company in the ordinary course of business for the purpose of mitigating risks associated with liabilities, commitments
, investments, assets or property held or reasonably anticipated by the Company, or changes in the value of securities issued
by the Company, and not for speculative purposes.

 

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"Permitted
Lien" means the individual and collective reference to the following: (a) Liens for taxes, assessments and other
governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being
contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the
management of the Company) have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the
ordinary course of the Company's business, such as carriers', warehousemen's and mechanics' Liens, statutory landlords'
Liens, and other similar Liens arising in the ordinary course of the Company's business, and which (x) do not individually or
in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the
operation of the business of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by
appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of
the property or asset subject to such Lien, (c) Liens incurred in connection with Permitted Indebtedness under clauses (a)
and (b) thereunder, (d) Liens incurred in connection with Permitted Indebtedness under clause (e) thereunder, provided that
such Liens are not secured by assets of the Company or its Subsidiaries other than the assets so acquired or leased, (e) any
interest or title of a lessor, sublessor, licensor or sublicensor under leases or licenses that are entered into in the
ordinary course of business, (f) leases, licenses, subleases, or sublicenses granted to
others in the ordinary course of business that do not (i) interfere in any material respect with the ordinary conduct of the
business of the Company or (ii) secure any indebtedness, or (g) Liens securing judgments against the Company for the payment
of money that does not constitute an Event of Default.

 

"Purchase
Agreement" means the Securities Purchase Agreement, dated as of October 29, 2019 among the Company and the original Holders,
as amended, modified or supplemented from time to time in accordance with its terms.

 

"Registration
Rights Agreement" means the Registration Rights Agreement, dated on or about the date of the Purchase Agreement, among
the Company and the original Holders, in the form of Exhibit B to the Purchase Agreement.

 

"Registration
Statement" means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale of the Underlying Shares by each Holder as provided for in the Registration Rights Agreement.

 

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

 

"Series B Warrant"
shall have the meaning set forth in Section 6(a).

 

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

 

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

 

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

 

"VWAP"
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, or (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the "Pink Sheets" published by OTC Markets, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported.

 

    5

     

    

 

Section 2.                    Interest.

 

a)                 
Payment of Interest in Cash or Kind. The
Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Debenture
at the rate of 10% per annum, payable quarterly in arrears on January 1, April 1, July1 and October 1, beginning on the first
such date after the Original Issue Date, on each Conversion Date (as to that principal amount then being converted), on each Optional
Redemption Date (as to that principal amount then being redeemed) and on the Maturity Date (each such date, an " Interest
Payment Date") (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next
succeeding Business Day), in cash or, at the Company's option, in duly authorized, validly issued, fully paid and non-assessable
shares of Common Stock at the Interest Conversion Rate (the dollar amount to be paid in shares, the "Interest Share Amount")
or a combination thereof; provided, however, that payment in shares of Common Stock may only occur if (i) all of
the Equity Conditions have been met (unless waived by the Holder in writing) during the ten (10) Trading Days immediately prior
to the applicable Interest Payment Date (the "Interest Notice Period") and through and including the date such shares
of Common Stock are actually issued to the Holder, (ii) the Company shall have given the Holder notice in accordance with the
notice requirements set forth below, and (iii) as to such Interest Payment Date, prior to such Interest Notice Period (but not
more than five (5) Trading Days prior to the commencement of such Interest Notice Period), the Company shall have delivered to
the Holder's account with The Depository Trust Company a number of shares of Common Stock due such Holder to be applied against
such Interest Share Amount equal to the quotient of (x) the applicable Interest Share Amount divided by (y) the Interest Conversion
Rate assuming for such purposes that the Interest Payment Date is the Trading Day immediately prior to the commencement of the
Interest Notice Period (the "Interest Conversion Shares").

 

b)                 
Company's Election to Pay Interest in Cash or Kind. Subject to the terms and conditions herein, the decision whether
to pay interest hereunder in cash, shares of Common Stock or a combination thereof shall be at the sole discretion of the Company.
If the Company elects to pay any interest hereunder in shares of Common Stock, the Company shall deliver to the Holder a written
notice of its election to pay interest hereunder ten (10) Trading Days prior to the applicable Interest Payment Date either in
shares of Common Stock or a combination of Common Stock and cash, and the Interest Share Amount as to the applicable Interest
Payment Date and the Interest Notice Period with respect to such payment shall commence as of the date of such notice, provided
that the Company may indicate in such notice that the election contained in such notice shall also apply to future Interest Payment
Dates until revised by a subsequent notice. After the first five (5) Trading Days of any Interest Notice Period, the Company's
election (whether specific to an Interest Payment Date or continuous) shall be irrevocable as to such Interest Payment Date. Subject
to the aforementioned conditions, failure to timely deliver such written notice to the Holder shall be deemed an election by the
Company to pay the interest on such Interest Payment Date in cash. At any time that the Company delivers a notice to the Holder
of its election to pay the interest in shares of Common Stock, the Company shall timely file a prospectus supplement pursuant
to Rule 424 disclosing such election if at such time the Company has an effective Registration Statement that does not otherwise
disclosure such election. The aggregate number of shares of Common Stock otherwise issuable to the Holder on an Interest Payment
Date shall be reduced by the number of Interest Conversion Shares previously issued to the Holder in connection with such Interest
Payment Date.

 

c)                 
Interest Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve (12) thirty
(30) calendar day periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding
principal, together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder,
has been made. Payment of interest in shares of Common Stock (other than the Interest Conversion Shares issued prior to an Interest
Notice Period) shall otherwise occur pursuant to Section 4(c)(ii) herein and, solely for purposes of the payment of interest in
shares, the Interest Payment Date shall be deemed the Conversion Date. Interest shall cease to accrue with respect to any principal
amount converted, provided that, the Company actually delivers the Conversion Shares within the time period required by Section
4(c)(ii) herein. Interest hereunder will be paid to the Person in whose name this Debenture is registered on the records of the
Company regarding registration and transfers of this Debenture (the "Debenture Register"). Except as otherwise
provided herein, if at any time the Company pays inter est partially in cash and partially in shares of Common Stock to the holders
of the Debentures, then such payment of cash shall be distributed ratably among the holders of the then-outstanding Debentures
based on their (or their predecessor's) initial purchases of Debentures pursuant to the Purchase Agreement.

 

    6

     

    

 

d)                 
Late Fee. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate
equal to the lesser of 8% per annum or the maximum rate permitted by applicable law (the "Late
Fees") which shall accrue daily from the date such interest is due hereunder through and including the date of actual
payment in full. Notwithstanding anything to the contrary contained herein, if, on any Interest Payment Date the Company has elected
to pay accrued interest in the form of Common Stock but the Company is not permitted to pay accrued interest in Common Stock because
it fails to satisfy the conditions for payment in Common Stock set forth in Section 2(a) herein, then, at the option of the Holder,
the Company, in lieu of delivering either shares of Common Stock pursuant to this Section 2 or paying the regularly scheduled
interest payment in cash, shall deliver, within three (3) Trading Days of each applicable Interest Payment Date, an amount in
cash equal to the product of (x) the number of shares of Common Stock otherwise deliverable to the Holder in connection with the
payment of interest due on such Interest Payment Date multiplied by (y) the highest VWAP during the period commencing five (5)
Trading Days after the Interest Payment Date and ending on the Trading Day prior to the date such payment is actually made. If
any Interest Conversion Shares are issued to the Holder in connection with an Interest Payment Date and are not applied against
an Interest Share Amount, then the Holder shall promptly return such excess shares to the Company.

 

e)                 
Prepayment. Except as otherwise set forth in this Debenture, the Company may not prepay any portion of the principal
amount of this Debenture without the prior written consent of the Holder.

 

Section 3.                    Registration
of Transfers and Exchanges.

 

a)                 
Different Denominations. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of
different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such
registration of transfer or exchange.

 

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

 

    7

     

    

 

Section 4.                    Conversion.

 

a)                 
Voluntary Conversion. At any time after the Original Issue Date until this Debenture is no longer outstanding, this
Debenture shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and
from time to time (subject to the conversion limitations set forth in Section 4(d) and Section 4(e) hereof). The Holder shall
effect conversions by delivering to the Company a properly completed Notice of Conversion, the form of which is attached hereto
as Annex A (each, a "Notice of Conversion"), specifying therein the principal amount of this Debenture,
and any accrued but unpaid interest , to be converted and the date on which such conversion shall be effected (such date, the
 "Conversion Date"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be
the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Debenture to the Company unless the
entire principal amount of this Debenture, plus all accrued and unpaid interest thereon, has been so converted in which case the
Holder shall surrender this Debenture as promptly as is reasonably practicable after such conversion without delaying the Company's
obligation to deliver the shares on the Share Delivery Date. Conversions hereunder shall have the effect of lowering the outstanding
principal amount of this Debenture in an amount equal to the applicable conversion. The Holder and the Company shall maintain
records showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver an objection to
any Notice of Conversion within one (1) Business Day of receipt of such Notice of Conversion. In the event of any dispute or discrepancy,
the records of the Holder shall be controlling and determinative in the absence of manifest error. The
Holder, and any assignee by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this paragraph,
following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture may be less
than the amount stated on the face hereof.

 

b)                 
Conversion Price. The conversion price in effect on any Conversion Date shall be equal to $1.00,
subject to adjustment herein (the "ConversionPrice").

 

c)
                  Mechanics of Conversion.

 

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

 

ii.     
Delivery of Conversion Shares Upon Conversion. Not later than two (2) Trading Days after each Conversion
Date (the "Share Delivery Date"), the Company shall deliver, or cause to be delivered, to the Holder (A) the
Conversion Shares which, on or after the six (6) month anniversary of the Original Issue Date, shall be free of restrictive legends
and trading restrictions (other than those which may then be required by the Purchase Agreement) representing the number of Conversion
Shares being issued upon the conversion of this Debenture (including, if the Company has given continuous notice pursuant to Section
2(b) for payment of interest in shares of Common Stock at least ten (10) Trading Days prior to the date on which the Notice of
Conversion is delivered to the Company, shares of Common Stock representing the payment of accrued interest otherwise determined
pursuant to Section 2(a) but assuming that the Interest Notice Period is the ten (10) Trading Days period immediately prior to
the date on which the Notice of Conversion is delivered to the Company and excluding for such issuance
the condition that the Company deliver Interest Conversion Shares as to such interest payment prior to the commencement of the
Interest Notice Period) and (B) a bank check in the amount of accrued and unpaid interest (if the Company has elected or is required
to pay accrued interest in cash). On or after the six (6) month anniversary of the Original Issue Date, the Company shall deliver
any Conversion Shares required to be delivered by the Company under this Section 4(c) electronically through the Depository Trust
Company or another established clearing corporation performing similar functions.

 

    8

     

    

 

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

 

iv.    
Obligation Absolute. The Company's obligations to issue and deliver the Conversion Shares upon conversion of this Debenture
in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce
the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other
Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in
connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as
a waiver by the Company of any such action the Company may have against the Holder. In the event the Holder of this Debenture shall
elect to convert any or all of the outstanding principal amount hereof, the Company may not refuse conversion based on any claim
that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law or any agreement (except
if, upon the Holder's election to convert any principal amount here, the Company's delivery of Conversion Shares in connection
therewith constitutes a violation of law by the Company, evidenced by a written opinion of counsel to the Company), unless an injunction
from a court, on notice to Holder, restraining and or enjoining conversion of all or part of this Debenture shall have been sought
and obtained, and the Company posts a surety bond for the benefit of the Holder in the amount of 125% of the outstanding principal
amount of this Debenture, which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation
of the underlying dispute and the proceeds of which shall be payable to the Holder to the extent it obtains judgment. In the absence
of such injunction, the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion.If
the Company fails for any reason to deliver to the Holder such Conversion Shares pursuant to Section 4(c)(ii) by the Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount
being converted, $10 per Trading Day (increasing to $20 per Trading Day on the fifth (5th) Trading Day after such liquidated
damages begin to accrue) for each Trading Day after such Share Delivery Date until such Conversion Shares are delivered or Holder
rescinds such conversion.Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default
pursuant to Section 8 hereof for the Company's failure to deliver Conversion Shares within the period specified herein and the
Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation
, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from
seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

    9

     

    

 

v.     
Compensation for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other
rights available to the Holder, if the Company fails for any reason to deliver to the Holder such Conversion Shares by the Share
Delivery Date pursuant to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm
to purchase (in an open market transaction or otherwise), or the Holder's brokerage firm otherwise purchases, shares of Common
Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon
the conversion relating to such Share Delivery Date (a "Buy-In"), then the Company shall (A) pay in cash to the
Holder (in addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder's
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (I)
the aggregate number of shares of Common Stock that the Holder was entitled to receive from the
conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was
executed (including any brokerage commissions) and (B) at the option of the Holder, either reissue (if surrendered) this Debenture
in a principal amount equal to the principal amount of the attempted conversion (in which case such conversion shall be deemed
rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued if the Company had timely
complied with its delivery requirements under Section 4(c)(ii). For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of this Debenture with respect to which the
actual sale price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a
total of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000.
The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and,
upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other
remedies available to it hereunder, at law or in equity including, without limitation , a decree of specific performance and/or
injunctive relief with respect to the Company's failure to timely deliver Conversion Shares upon conversion of this Debenture
as required pursuant to the terms hereof.

 

vi.    
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep
available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Debenture
and payment of interest on this Debenture, each as herein provided, free from preemptive rights or any other actual contingent
purchase rights of Persons other than the Holder (and the other holders of the Debentures), not less than such aggregate number
of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking
into account the adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal amount of this
Debenture and payment of interest hereunder. The Company covenants that all shares of Common Stock that shall be so issuable shall,
upon issue, be duly authorized, validly issued, fully paid and nonassessable and, if the Registration Statement is then effective
under the Securities Act, shall be registered for public resale in accordance with such Registration Statement (subject to such
Holder's compliance with its obligations under the Registration Rights Agreement).

 

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

 

    10

     

    

 

viii.  
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Debenture shall be made without charge
to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such
Conversion Shares, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holder of
this Debenture so converted and the Company shall not be required to issue or deliver such Conversion 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. The Company shall pay all Transfer Agent fees required for same-day
processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Conversion Shares.

 

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

  

    11

     

    

 

e)                 
Issuance Limitations. Notwithstanding anything herein to the contrary, if the Company has not obtained Shareholder
Approval, then the Company may not issue, upon conversion of this Debenture, a number of shares of Common Stock which, when aggregated
with any shares of Common Stock issued on or after the Original Issue Date and prior to such Conversion Date (i)
in connection with the conversion of any Debentures issued pursuant to the Purchase Agreement,
(ii) in connection with the exercise of any Warrants issued pursuant to the Purchase Agreement and (iii) in connection with any
Shares issued pursuant to the Purchase Agreement, would exceed 25,874,400 shares of Common Stock (subject to adjustment for forward
and reverse stock splits, recapitalizations and the like) (such number of shares, the "Issuable Maximum"). Each
Holder shall be entitled to a portion of the Issuable Maximum equal to the quotient obtained by dividing (x) the original principal
amount of the Holder's Debenture by (y) the aggregate original principal amount of all Debentures issued on the Original Issue
Date to all Holders. In addition, each Holder may allocate its pro-rata portion of the Issuable Maximum among Debentures, Shares
and Warrants held by it in its sole discretion. Such portion shall be adjusted upward ratably in the event a Holder no longer
holds any Debentures or Warrants and the amount of shares issued to the Holder pursuant to the Holder's Debentures, Shares and
Warrants was less than the Holder's pro-rata share of the Issuable Maximum.

 

Section 5.                    Certain
Adjustments.

 

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

 

b)                  Subsequent
Equity Sales. If, at any time while this Debenture is
outstanding, the Company or any Subsidiary, as applicable, sells or grants any option to purchase or sells or grants any
right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other
disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an
effective price per share that is lower than the then Conversion Price (such lower price, the "Base Conversion
Price" and such issuances, collectively, a "Dilutive Issuance") (if the holder of the Common Stock
or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share
which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per
share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion
Price on such date of the Dilutive Issuance), then simultaneously with the consummation of each Dilutive Issuance the
Conversion Price shall be reduced to equal the Base Conversion Price. Notwithstanding the foregoing, no adjustment will be
made under this Section 5(b) in respect of an Exempt Issuance. The Company shall notify the Holder in writing, no later than
the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(b),
indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other
pricing terms (such notice, the "Dilutive Issuance Notice"). For purposes of clarification , whether or not
the Company provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of
such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of
Conversion.

 

    12

     

    

 

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

 

d)
                  Notice to the Holder.

 

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

 

ii.       Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants
to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of
the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which
the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be filed at each office or agency maintained for the purpose of conversion of this Debenture, and shall cause to
be delivered to the Holder at its last address as it shall appear upon the Debenture Register, at least five (5) calendar days
prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution, redemption , rights or warrants, or if a record is not to be taken, the
date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights
or warrants are to be determined or (y) the date on which such reclassification, consolidation , merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to convert this Debenture during
the 5-day period commencing on the date of such notice through the effective date of the event triggering such notice except as
may otherwise be expressly set forth herein.

 

Section 6.                    Redemptions.

 

a)                 
Optional Redemption at Election of Company. Subject to the provisions of this Section 6(a), at any time after the
Original Issue Date, the Company may deliver a notice to the Holder (an "Optional Redemption Notice" and the
date such notice is deemed delivered hereunder, the "Optional Redemption Notice Date") of its irrevocable election
to redeem all, but not less than all, of the then outstanding principal amount of this Debenture for cash in an amount equal to
the Optional Redemption Amount on the tenth (10th) Trading Day following the Optional Redemption
Notice Date (such date, the "Optional Redemption Date", such ten (10) Trading Day period, the "Optional
Redemption Period" and such redemption, the "Optional Redemption"). The Optional Redemption Amount is
payable in full on the Optional Redemption Date. The Company may only effect an Optional Redemption if each of the Equity Conditions
shall have been met (unless waived in writing by the Holder) on each Trading Day during the period commencing on the Optional
Redemption Notice Date through to the Optional Redemption Date and through and including the date on which payment of the Optional
Redemption Amount is actually made in full. If any of the Equity Conditions shall cease to be satisfied at any time during the
Optional Redemption Period, then the Holder may elect to nullify the Optional Redemption Notice by notice to the Company within
three (3)  Trading Days after the first
day on which any such Equity Condition has not been met (provided that if, by a provision of the Transaction Documents , the Company
is obligated to notify the Holder of the non-existence of an Equity Condition , such notice period shall) be extended to the third
(3rd )Trading Day after proper notice from the Company)
in which case the Optional Redemption Notice shall be null and void,ab  initio. The Company covenants and agrees that it
will honor all Notices of Conversion tendered from the time of delivery of the Optional Redemption Notice through the date all
amounts owing thereon are due and paid in full. The Company's determination to pay an Optional Redemption in cash shall be applied
ratably to all of the holders of the then outstanding Debentures based on their (or their predecessor' s) initial purchases of
Debentures pursuant to the Purchase Agreement. In addition, in the event of any Optional
Redemption, the Company shall issue to the Holder Series B Warrants to purchase a number of shares of Common Stock equal to 50%
of the Conversion Shares issuable on an as-converted basis of the principal amount of the Holder's Debenture redeemed in the Optional
Redemption (for purposes of clarity, not including any principal amount of this Debenture that is converted by the Holder during
the Optional Redemption Period) as if such principal amount of this Debenture was converted immediately prior to such Optional
Redemption , in the form of Series A Warrant issued on the Closing Date, exercisable for a period of five (5) years from the Optional
Redemption Date (the "Series B Warrant"). The Company shall deliver the Series B Warrants on the Optional Redemption
Date. The purchase price of one share of Common Stock under this Series B Warrant shall be equal to the Conversion Price of the
Debenture on the Optional Redemption Date.

 

    13

     

    

 

b)                 
Redemption Procedure. The payment of cash and the issuance of the Series B Warrant pursuant to an Optional Redemption
shall be payable on the Optional Redemption Date. If any portion of the payment pursuant
to an Optional Redemption shall not be paid by the Company by the applicable due date, interest shall accrue thereon at an interest
rate equal to the lesser of 10% per annum or the maximum rate permitted by applicable law until such amount is paid in full. Notwithstanding
anything herein contained to the contrary, if any portion of the Optional Redemption Amount remains unpaid after such date, the
Holder may elect, by written notice to the Company given at any time thereafter, to invalidate such Optional Redemption, ab initio,
and, with respect to the Company' s failure to honor the Optional Redemption, the Company shall have no further right to exercise
such Optional Redemption. Notwithstanding anything to the contrary in this Section 6, the Company's determination to redeem in
cash or its elections under Section 6(b) shall be applied ratably among the Holders of Debentures. The Holder may elect to convert
the outstanding principal amount of the Debenture pursuant to Section 4 prior to actual payment in cash for any redemption under
this Section 6 by the delivery of a Notice of Conversion to the Company.

 

Section
7.                   Negative
Covenants. As long as any portion of this Debenture remains outstanding, unless the holders of at least a majority in principal
amount of the then outstanding Debentures shall have otherwise given prior written consent, the Company shall not, directly or
indirectly:

 

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

 

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

 

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

 

d)                 
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness (other than Indebtedness under clauses
(c) and (d) in the definition of Permitted Indebtedness), other than the Debentures if on a pro-rata basis; or

 

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

 

Section
8.                    Events
of Default.

 

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

 

i.      
any default in the payment of (A) the principal amount of any Debenture or (B) interest, liquidated damages and other amounts
owing to a Holder under any Debenture, as and when the same shall become due and payable (whether on a Conversion Date, Optional
Redemption Date, or the Maturity Date or by acceleration or otherwise) which default, solely in the case of a default under clause
(B) above, is not cured within three (3) Trading Days;

 

    14

     

    

 

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

 

iii.    
a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents or (B) any other material agreement, lease, document or instrument to which
the Company is obligated (and not covered by clause (vi) below);

 

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

 

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

 

vi.    
the Company shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement,
factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness
for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than
$500,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or
being declared due and payable prior to the date on which it would otherwise become due and payable;

 

vii.   
the Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume
listing or quotation for trading thereon within five (5) Trading Days;

 

viii.   the Company shall be a party to any Change of Control Transaction or shall agree to sell or dispose of all or in excess
of 50% of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change
of Control Transaction);

 

ix.     
the Company shall fail for any reason to deliver Conversion Shares to a Holder prior to the fifth (5th) Trading Day after
a Conversion Date pursuant to Section 4(c) or the Company shall provide at any time notice to the Holder, including by way of
public announcement, of the Company's intention to not honor requests for conversions of any Debentures in accordance with the
terms hereof;

 

x.     
any monetary judgment, writ or similar final process shall be entered or filed against the Company or any of its property
or other assets for more than $500,000, and such judgment, writ or similar final process shall remain unvacated, unbonded or unstayed
for a period of sixty (60) calendar days, unless such judgment, writ or similar final process is covered by an independent third
party insurer which insurer has been notified of such judgement or order and has acknowledged in writing coverage of the judgment,
writ or final process within such 60 day period; or

 

xi.    
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that the Equity
Conditions are satisfied or that there has been no Equity Conditions failure or as to whether any Event of Default has occurred.

 

    15

     

    

 

b)                
Remedies Upon Event of Default. If any Event of Default occurs, the outstanding
principal amount of this Debenture, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof
through the date of acceleration, shall become, at the Holder's election, immediately due and payable in cash at the Mandatory
Default Amount. Commencing five (5) days after the occurrence of any Event of Default that results in the eventual acceleration
of this Debenture, the interest rate on this Debenture shall accrue at an interest rate equal to the lesser of 15% per annum or
the maximum rate permitted under applicable law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly
surrender this Debenture to or as directed by the Company. In connection with such acceleration described herein, the Holder need
not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately
and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available
to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and
the Holder shall have all rights as a holder of the Debenture until such time, if any, as the Holder receives full payment pursuant
to this Section 8(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent
thereon.

 

Section 9.                    Miscellaneous.

 

a)                 
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including,
without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, by email attachment,
or sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, or such
other facsimile number, email address, or address as the Company may specify for such purposes by notice to the Holder delivered
in accordance with this Section 9(a). Any and all notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized
overnight courier service addressed to each Holder at the facsimile number, email address or address of the Holder appearing on
the books of the Company, or if no such facsimile number or email attachment or address appears on the books of the Company, at
the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached
hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment to the email address set forth
on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

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

 

c)                 
Transferability. Subject to compliance with any applicable securities laws, this Debenture, and the provisions of
Section 4.1 of the Purchase Agreement, this Debenture and all rights hereunder (including, without limitation, any registration
rights) are transferable, in whole or in part, upon surrender of this Debenture at the principal office of the Company or its
designated agent, together with a written assignment of this Debenture substantially in the form attached hereto duly executed
by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.

 

    16

     

    

 

d)                
Lost or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen
or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture,
or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture
so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss , theft or destruction of such Debenture,
and of the ownership hereof, reasonably satisfactory to the Company, together with such instruments of indemnity (which in no
event shall include the posting of any bond) as the Company may reasonably request.

 

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

 

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

 

g)                 
Severability. If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture
shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable
to all other Persons and circumstances . If it shall be found that any interest or other amount deemed interest due hereunder
violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal
the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so)
that it shall 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 or other law which would prohibit or forgive the Company from paying all or any portion of the principal
of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Debenture, and the Company (to the extent it may lawfully do so) hereby expressly
waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though
no such law has been enacted.

 

    17

     

    

 

h)                 
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Debenture
shall be cumulative and in addition to all other remedies available under this Debenture and any of the other Transaction Documents
at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit
the Holder's right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this
Debenture. To the fullest extent permitted by applicable law, no party hereto shall assert, and each party hereby waives, and
acknowledges that no other Person shall have, any claim against any other party hereto, on any theory of liability, for special
or punitive damages arising out of, in connection with, or as a result of, this Debenture, any other Transaction Document or any
agreement or instrument contemplated hereby and thereby or the transactions contemplated hereby and thereby. The Company covenants
to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts
set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the
amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of
the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees
that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Debenture.

 

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

 

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

 

k)                 
Amendment. This Debenture may be modified or amended or the provisions hereof waived with the written consent of
the Company and the Holder.

 

l)                  
Secured Obligation. The obligations of the Company under this Debenture are secured by all assets of the Company
pursuant to the Security Agreement, dated as of February 22, 2019 between the Company and the Secured Parties (as defined in the
Security Agreement).

 

m)                
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Holder (other than by merger). The Holder may assign any or all of its rights under this Agreement to any Person
with the prior written consent of the Company and provided that such transferee shall agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the "Holder"; provided, however,
that, in connection with any transfer in whole or in part of this Debenture to an Affiliate of the Holder, such transfer shall
not require the prior written consent of the Company and, in connection with such transfer to an Affiliate of the Holder, the
Holder shall not be required to physically surrender this Debenture to the Company.

 

*********************

 

(Signature Page Follows)

 

    18

     

    

 

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

 

	 	IDEANOMICS,
    INC.
	 	 
	 	By:	 
	 	 	Name:	  
	 	 	Title:	 

 

	 	Facsimile No. for delivery of Notices:	 
	 	 	 
	 	Email address for delivery of Notices:	 

 

    19

     

    

 

ANNEX
A 

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the l0% Senior Secured Convertible Debenture due March 27, 2021 of Ideanomics,
Inc., a Nevada corporation (the "Company"), into shares of common stock (the "Common Stock"),
of the Company according to the conditions hereof, as of the date written below. If
shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested
by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes,
if any.

 

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

 

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

 

Conversion calculations:

 

Date to Effect Conversion:

 

Principal Amount of Debenture to be Converted:

 

Payment of Interest in Common Stock _ yes _ no

If
 yes, $               of
Interest Accrued on Account of

Conversion at Issue.

 

Number of shares of Common Stock to be issued:

 

Signature:

 

Name:

 

Address for Delivery of Common Stock Certificates:

 

Or

 

DWAC Instructions:

 

Broker No:                          

Account No:                      

 

    20

     

    

 

Schedule
1

 

CONVERSION
SCHEDULE

 

The
10% Senior Secured Convertible Debentures due on March 27, 2021 in the aggregate principal amount of $             are
issued by Ideanomics, Inc., a Nevada corporation. This Conversion Schedule reflects conversions made under Section 4 of the
above referenced Debenture.

 

Dated:

 

	 	 	Aggregate
	 
	 	 	Principal	 
	 	 	Amount	 
	Date of Conversion
        

        (or for first entry,

        Original Issue Date)
	Amount of 

    Conversion	Remaining

        Subsequent
        to

        Conversion
	 

        Company Attest

	 	 	(or original	 
	 	 	Principal	 
	 	 	Amount)	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    21

     

    

 

Schedule
2

 

ASSIGNMENT FORM

 

(To assign the foregoing
Debenture, execute this form and supply required information. Do not use this form to convert the Debenture.)

 

FOR VALUE RECEIVED,
the foregoing Debenture and all rights evidenced thereby are hereby assigned to

 

	Name:	 
	 	(Please Print)

 

	Address:	 
	 	(Please Print)

 

	Phone Number:	 
	 	 
	Email Address:	 

 

Dated:                                        
,           

 

Holder's
Signature:                                  

 

Holder's
Address:                                  

 

    22

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