Document:

Exhibit 4.2

 

[FORM OF CALM WARRANT]

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

XPRESSPA
GROUP, INC.

 

Warrant
To Purchase Common Stock

 

Warrant No.: 2019-E1

Number of Shares of Common Stock: 937,500

Date of Issuance: July 8, 2019 (“Issuance
Date”)

 

XpresSpa Group, Inc.,
a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Calm.com, inc., the registered
holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company, at the Exercise Price (as defined below) then in effect, at any time or times on or after January 8,
2020 (the “Initial Exercise Date”), but not after 11:59 p.m., New York time, on the Expiration Date (as defined
below), 937,500 fully paid nonassessable shares of Common Stock, subject to adjustment as provided herein (the
“Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant to Purchase Common
Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, this “Warrant”)
shall have the meanings set forth in Section 18 or as defined in the Securities Purchase Agreement (as defined below). This Warrant
represents the Warrants to purchase Common Stock (the “SPA Warrants”) issued pursuant to Section 2 of that certain
Securities Purchase Agreement, dated as of July 8, 2019 (the “Subscription Date”), by and among the Company
and Calm.com, Inc. (the “Buyer”) (the “Securities Purchase Agreement”).

 

     

     

    

 

1.         EXERCISE
OF WARRANT.

 

(a) Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder at any time or times on or after the Initial Exercise Date and prior to the
Expiration Date, in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant and (ii) (A)
payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which
this Warrant is being exercised (the “Aggregate Exercise Price”) in cash by wire transfer of immediately available
funds or (B) if the provisions of Section 1(d) are applicable, by notifying the Company that this Warrant is being exercised pursuant
to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original Warrant in order
to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares
shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase
the remaining number of Warrant Shares. On or before the first (1st) Trading Day following the date on which the Company
has received the Exercise Notice, the Company shall transmit by electronic mail an acknowledgment of confirmation of receipt of
the Exercise Notice to the Holder. On or before the second (2nd) Trading Day following the date on which the Company
has received the Exercise Notice, so long as the Holder delivers the Aggregate Exercise Price (or notice of a Cashless Exercise)
on or prior to the second (2nd) Trading Day following the date on which the Company has received the Exercise Notice (the “Share
Delivery Date”) (provided that if the Aggregate Exercise Price (or notice of a Cashless Exercise) has not been delivered
by such date, the Share Delivery Date shall be extended one (1) Trading Day after the Aggregate Exercise Price (or notice of a
Cashless Exercise) is delivered), the Company shall (X) provided that the Company’s transfer agent (“Transfer Agent”)
is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program and the
Warrant Shares are eligible to be issued without a restrictive legend, credit such aggregate number of Warrant Shares to which
the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through
its Deposit/Withdrawal At Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program or the Warrant Shares are not eligible to be issued without a restrictive legend, issue and dispatch by overnight
courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in
the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise.
The Company shall be responsible for all fees and expenses of the Transfer Agent and all fees and expenses with respect to the
issuance of Warrant Shares via DTC, if any. Upon delivery of the Exercise Notice and the Aggregate Exercise Price (or notice of
a Cashless Exercise) (such date of delivery being the “Exercise Date”), the Holder shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective
of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing
such Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section
1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant
Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Trading
Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to
purchase the number of Warrant Shares issuable immediately prior to such exercise under this Warrant, less the number of Warrant
Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this
Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company shall
pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; provided,
that the Company shall not be required to pay any tax or governmental charge that may be imposed with respect to any applicable
withholding or the issuance or delivery of the Warrant Shares to any Person other than the Holder, and no such issuance or delivery
shall be made unless and until such Person other than the Holder requesting such issuance has paid to the Company the amount of
any such tax, or has established to the satisfaction of the Company that such tax has been paid. The Company’s obligations
to issue and deliver Warrant Shares in accordance with the terms and subject to the conditions 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. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

(b) Exercise
Price. For purposes of this Warrant, “Exercise Price” means $2.00, subject to adjustment as provided herein.

 

     

     

    

 

(c) Company’s
Failure to Timely Deliver Securities. If (I) the Company shall fail for any reason or for no reason on or prior to the Share
Delivery Date either (a) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program and the
Warrant Shares are eligible to be issued without a restrictive legend, to issue to the Holder a certificate without any restrictive
legend for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the
Company’s share register or (b) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program
and the Warrant Shares are eligible to be issued without a restrictive legend, to credit the Holder’s balance account with
DTC, for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant
and the Warrant Shares are not eligible to be issued without a restrictive legend, to issue and dispatch by overnight courier to
the address as specified in the Exercise Notice for delivery on or before the Share Delivery Date a certificate, registered in
the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder
is entitled pursuant to such exercise, or (II) after the Initial Effective Date (as defined in the Registration Rights Agreement)
and during the Registration Period (as defined in the Registration Rights Agreement), (x) the Registration Statement (as defined
in the Registration Rights Agreement) covering the resale of all of the Warrant Shares that are the subject of the Exercise Notice
(the “Unavailable Warrant Shares”) is not available for the resale of such Unavailable Warrant Shares, (y) the
Company fails to promptly, but in no event later than as required pursuant to the Registration Rights Agreement, so notify the
Holder and (z) the Company fails to, on or prior to the Share Delivery Date, deliver the Warrant Shares electronically without
any restrictive legend by crediting such aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise
to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian system (the
event described in the immediately foregoing clause (II) is hereinafter referred to as a “Notice Failure”) and
either a Notice Failure or an event described in clause (I) above (referred to herein as an “Exercise Failure”)
occurs, then, in addition to all other remedies available to the Holder, (X) the Company shall pay in cash to the Holder on each
day after the Share Delivery Date and during such Notice Failure or Exercise Failure an amount equal to 1.0% of the product of
(A) the number of shares of Common Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder
is entitled, and (B) the higher of (i) the then in effect Exercise Price of this Warrant or (ii) the closing price of the Common
Stock on the date of the applicable Exercise Notice, and (Y) the Holder, upon written notice to the Company, may void its Exercise
Notice with respect to, and retain or have returned, as the case may be, any portion of this Warrant that has not been exercised
pursuant to such Exercise Notice; provided that the voiding of an Exercise Notice shall not affect the Company’s obligations
to make any payments which have accrued prior to the date of such notice pursuant to this Section 1(c) or otherwise. If the Company
is required to pay liquidated damages hereunder solely as a result of a Notice Failure, the liquidated damages related thereto
will cease to accrue upon delivery of a written notice to the Holder specifying the correct status of the applicable Registration
Statement. For the avoidance of doubt, the Company acknowledges that the Company may be liable for Registration Delay Payments
pursuant to the Registration Rights Agreement in the event of an Exercise Failure or Notice Failure. In addition to the foregoing,
if an Exercise Failure or Notice Failure occurs, and if on or after the Share Delivery Date the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale through a broker by the Holder of shares
of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Trading Days after the Holder’s request and in the Holder’s discretion, either
(i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other
reasonable out of pocket expenses related to the Buy-In, if any) for the shares of Common Stock so purchased (such number of shares
not to exceed the number of Warrant Shares failed to be delivered) (the “Buy-In Price”), at which point the
Company’s obligation to deliver such certificate (and to issue such shares of Common Stock) or credit such Holder’s
balance account with DTC for such shares of Common Stock shall terminate, or (ii) promptly honor its obligation to deliver to the
Holder a certificate or certificates representing such shares of Common Stock or credit such Holder’s balance account with
DTC, as applicable, and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of
(A) such number of shares of Common Stock, times (B) the sale price of the Common Stock at which the sell order giving rise to
such purchase obligation was executed. Nothing shall limit the Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect
to the Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver
such shares of Common Stock) upon the exercise of this Warrant as required pursuant to the terms hereof.

 

(d) Cashless
Exercise. Notwithstanding anything contained herein to the contrary, if 180 days after the issuance of this Warrant a Registration
Statement on Form S-1 (or other applicable registration statement under the 1933 Act) (the “Registration Statement”)
covering the resale of the Warrant Shares is not available for the issuance of such Warrant Shares, the Holder may, in its sole
discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise in payment of the Exercise Price, elect instead to exercise this Warrant by means of a cashless
exercise (a “Cashless Exercise”) in which the Holder shall be entitled to receive a number of Warrant Shares equal
to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise
is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined
in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of
the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the
Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 1(a) hereof or (iii) the VWAP on the date of the applicable Notice of
Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant
to Section 1(a) hereof after the close of “regular trading hours” on such Trading Day;

 

     

     

    

 

(B) = the Exercise
Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of
Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise
were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are
issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities
Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to
take any position contrary to this Section 1(d).

 

(e) Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 12.

 

f) [Reserved].

 

(g) Insufficient
Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant at least
a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect
the exercise of all of this Warrant then outstanding (the “Required Reserve Amount” and the failure to have
such sufficient number of authorized and unreserved shares of Common Stock, an “Authorized Share Failure”),
then the Company shall promptly take all action necessary to increase the Company’s authorized shares of Common Stock to
an amount sufficient to allow the Company to reserve the Required Reserve Amount for this Warrant then outstanding. Without limiting
the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting
of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such
meeting, the Company shall provide each stockholder with a proxy statement and shall use its commercially reasonable efforts to
solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the stockholders that they approve such proposal. Notwithstanding the foregoing, if any such time of an Authorized
Share Failure, the Company is able to obtain the written consent of a majority of the shares of its issued and outstanding Common
Stock to approve the increase in the number of authorized shares of Common Stock without soliciting its stockholders, the Company
may satisfy this obligation by obtaining such consent and submitting for filing with Securities and Exchange Commission (the “SEC”)
an Information Statement on Schedule 14C. In the event that upon any exercise of this Warrant, the Company does not have sufficient
authorized shares to deliver in satisfaction of such exercise, then unless the Holder elects to void such attempted exercise, the
Holder may require the Company to pay to the Holder within three (3) Trading Days of the applicable exercise, cash in an amount
equal to the product of (i) the quotient determined by dividing (x) the number of Warrant Shares that the Company is unable to
deliver pursuant to this Section 1(g), by (y) the total number of Warrant Shares issuable upon exercise of this Warrant (without
regard to any limitations or restrictions on exercise of this Warrant) and (ii) the Black Scholes Value; provided, that (x) references
to “the day immediately following the public announcement of the applicable Fundamental Transaction” in the definition
of “Black Scholes Value” shall instead refer to “the date the Holder exercises this Warrant and the Company cannot
deliver the required number of Warrant Shares because of an Authorized Share Failure” and (y) clause (iii) of the definition
of “Black Scholes Value” shall instead refer to “the underlying price per share used in such calculation shall
be the highest Weighted Average Price during the period beginning on the date of the applicable date of exercise and the date that
the Company makes the applicable cash payment.”

 

     

     

    

 

2.         ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

 

(a) Certain
Anti-Dilution Adjustments. In addition to the reductions of the Exercise Price described in Section 2(b), if, at any time while
this Warrant 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 Common Stock at an effective price per share that
is lower than the then Exercise Price (such lower price, the “Base Exercise Price” and such issuances, collectively,
a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any
time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or
otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive
Common Stock at an effective price per share that is lower than the Exercise Price, such issuance shall be deemed to have occurred
for less than the Exercise Price on such date of the Dilutive Issuance), then the Exercise Price shall be reduced to equal the
Base Exercise Price, subject to adjustment for reverse and forward stock splits and the like. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued;. Notwithstanding the foregoing, no adjustment will be made under this
Section 2(a) in respect of an Exempt Issuance. If the Company enters into a Variable Rate Transaction, despite the prohibition
set forth in the Purchase Agreement, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the
lowest possible conversion price at which such securities may be converted or exercised. 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
2(a), 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 2(a), upon the occurrence of any Dilutive Issuance, the Holder is
entitled to receive a number of Warrant Shares based upon the Base Exercise Price on or after the date of such Dilutive Issuance,
regardless of whether the Holder accurately refers to the Base Exercise Price in the Notice of Exercise. In the event the Exercise
Price is reduced pursuant to this Section 2(a), the number of Warrant Shares issuable hereunder shall be increased such that the
aggregate Exercise Price payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the
aggregate Exercise Price prior to such adjustment. Notwithstanding anything herein to the contrary, this Section 2(a) shall not
apply until receipt of the Shareholder Approval pursuant to Nasdaq Listing Rule 5635(d) and for as long as such rule is applicable
to the Company.

 

(b) Adjustment
Upon Subdivision or Combination of Shares of Common Stock. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date
combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into
a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

(c) Voluntary
Adjustment By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to
any amount and for any period of time deemed appropriate by the Board of Directors of the Company. Notwithstanding anything herein
to the contrary, this Section 2(c) shall not apply until receipt of the Shareholder Approval pursuant to Nasdaq Listing Rule 5635(d)
unless the Company is not then subject to Nasdaq Listing Rule 5635(d). 

 

     

     

    

 

3.         RIGHTS
UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend or other distribution of its assets (or rights
to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation,
any distribution of cash, stock or other securities, property, options, evidence of indebtedness or any other assets by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled, and the Company shall reserve
the Holder’s pro rata share of the Distribution pending complete exercise of this Warrant, to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant)
immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

 

4.         PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a) Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all of the record
holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled, and the Company
shall reserve the Holder’s pro rata share of the Purchase Rights pending complete exercise of this Warrant, to acquire, upon
the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
or restrictions on exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or
sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock
are to be determined for the grant, issue or sale of such Purchase Rights.

 

(b) Fundamental
Transactions. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any direct or indirect purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”); then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor
Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after,
the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental
Transaction; provided, however, until the first anniversary of the Issuance Date, the Black Scholes Value
of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction shall be capped
at the initial Exercise Price of this Warrant; provided, further, if the Fundamental Transaction is not
within the Company’s control, including not approved by the Company’s Board of Directors or the consideration is not
in all stock of the Successor Entity, Holder shall have the option to require the Company or any Successor Entity to purchase its
Warrant for the Black Scholes Value of the unexercised portion of this Warrant as of the date of consummation of such Fundamental
Transaction using the same type or form of consideration (and in the same proportion) that is being offered and paid to the holders
of Common Stock of the Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash,
stock or any combination thereof, or whether the holders of Common Stock are given the choice to receive from among alternative
forms of consideration in connection with the Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements
in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of
the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable
for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares
of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this
Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares
of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which
is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions
of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right
and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

     

     

    

 

5.         NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation or Bylaws,
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the proper exercise of this Warrant by the Holder, and (iii) shall, so long as any of
the SPA Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, the number of shares of Common Stock as
shall from time to time be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations
on exercise).

 

6.         WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote,
give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to
the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant.
In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities
(upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices
and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

     

     

    

 

7.         REISSUANCE
OF WARRANTS.

 

(a) Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b) Lost, Stolen
or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant
Shares then underlying this Warrant.

 

(c) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however,
that no SPA Warrants for fractional Warrant Shares shall be given.

 

(d) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

8.         NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 5.4 of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions
taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting
the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the
Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least five (5)
days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights
to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights to
vote with respect to any Fundamental Transaction, dissolution or liquidation; provided in each case that such
information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

9.         AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended or waived and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Required Holders, and with respect to any amendment, the amendment is in writing and signed by the Company,
except that any Holder may waive the Company’s performance hereunder or provide consent as the only such Holder.

 

     

     

    

 

10.        GOVERNING
LAW; JURISDICTION; JURY TRIAL. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City
of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The Company hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to the Company at the address set forth in Section 5.4 of the Securities Purchase Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR
ANY TRANSACTION CONTEMPLATED HEREBY.

 

11.        CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

12.        DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via electronic mail within two (2) Business
Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two
(2) Business Days submit via electronic mail (a) the disputed determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares
to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant,
as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later
than ten (10) Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s
or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

13.        REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant and 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 right of the Holder to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant. 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 of this Warrant shall be entitled,
in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required.

 

14.        TRANSFER.
This Warrant and the Warrant Shares may be offered for sale, sold, transferred, pledged or assigned without the consent of the
Company.

 

     

     

    

 

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

 

16.       DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Warrant, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries, the Company shall within four (4) Business Days after any such receipt or delivery publicly disclose such
material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, nonpublic information relating to the Company or its Subsidiaries, the Company so shall indicate to such Holder
contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume
that all matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries.

 

17.       LIMITATIONS
OF RIGHTS. The rights granted to the Holder pursuant to Sections 2(a) and 4(b) of this Warrant are personal to the original
Holders of this Warrant and shall automatically be cancelled and of no further effect upon any transfer of this Warrant by sale
or otherwise.

 

18.       CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a) “1933
Act” means the Securities Act of 1933, as amended.

 

(b) “Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

(c)  “Bid
Price” 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 bid price of the Common Stock for the time in question (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,
(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 Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses
of which shall be paid by the Company.

 

(d) “Black
Scholes Value” means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg determined as of the day immediately following the public announcement of the applicable Fundamental Transaction,
or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, for pricing
purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining
term of this Warrant as of such date of request, (ii) an expected volatility equal to the greater of 100% and the 100 day volatility
obtained from the HVT function on Bloomberg as of the day immediately following the public announcement of the applicable Fundamental
Transaction, or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated,
(iii) the underlying price per share used in such calculation shall be the sum of the price per share being offered in cash, if
any, plus the value of any non-cash consideration, if any, being offered in the Fundamental Transaction, (iv) a zero cost of borrow
and (v) a 360 day annualization factor.

 

     

     

    

 

(e) “Bloomberg”
means Bloomberg Financial Markets.

 

(f) “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.

 

(g) “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such
security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing
bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the OTC Link or “pink sheets” by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Bid Price
or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved pursuant to Section 12. All such determinations to be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

(h) “Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.01 per share, and (ii) any share
capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

(i) “Common
Stock Equivalents” means any securities of the Company or its Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

(j) “Convertible
Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for shares of Common Stock.

 

(k) “Eligible
Market” means the Principal Market, the NYSE American, The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq
Global Select Market, or The New York Stock Exchange, Inc.

 

(l) “Expiration
Date” means January 8, 2025 or, if such date falls on a day other than a Business Day or on which trading does not take
place on the Principal Market (a “Holiday”), the next day that is not a Holiday.

 

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

 

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

 

     

     

    

 

(o)  “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, including such entity
whose common shares or common stock or equivalent equity security is quoted or listed on an Eligible Market (or, if so elected
by the Required Holders, any other market, exchange or quotation system), or, if there is more than one such Person or such entity,
the Person or such entity designated by the Required Holders or in the absence of such designation, such Person or entity with
the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(p) “Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

(q) “Principal
Market” means the Nasdaq Capital Market.

 

(r) “Registration
Rights Agreement” means that certain Registration Rights Agreement dated as of the date of the Securities Purchase Agreement
by and between the Company and the Buyer.

 

(s) “Required
Holders” means the holders of the SPA Warrants representing at least a majority of the shares of Common Stock underlying
the SPA Warrants then outstanding.

 

(t) “Shareholder
Approval” shall have the meaning set forth in the Securities Purchase Agreement.

 

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

 

(v)  “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock
is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading
during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(w)  “Trading
Market” means the first listed of 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, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing).
As of the closing date of the Financing Transaction, the Nasdaq Capital Market is the Trading Market.

 

 

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

 

     

     

    

 

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

 

(z) “Weighted
Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on
the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time
as such market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest Closing Bid Price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or “pink sheets” by OTC
Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved pursuant to Section 12 with the term “Weighted Average Price”
being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

[Signature Page Follows]

 

     

     

    

 

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

 

	 	XPRESSPA GROUP, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	Chief Executive Officer

 

[Signature Page to Warrant]

 

     

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

XPRESSPA
GROUP, INC.

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
XpresSpa Group, Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant to Purchase
Common Stock No. ____ (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Warrant.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________
a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

____________
a “Cashless Exercise” with respect to _______________ Warrant Shares.

 

2. Payment of Exercise
Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

3. Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

 

	_______ Electronic Delivery	DTC Participant:	 
	 	DTC Number:	 
	 	Account Name:	 
	 	Account Number:	 
	 	 	 
	_______ Physical Delivery	Address:	 
	 	 	 
	 	 	 

 

Date: _______________ __, ______

 

	 	 
	Name of Registered Holder	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs American Stock Transfer & Trust Company, LLC to issue the above indicated
number of shares of Common Stock in accordance with the Exercise Notice.

 

	 	XPRESSPA GROUP, INC.
	 	 	 
	 	By:	               
	 	Name:	 
	 	Title:Exhibit 4.3

 

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

 

XPRESSPA HOLDINGS, LLC

 

SECOND AMENDED AND RESTATED CONVERTIBLE
PROMISSORY NOTE

 

	$7,000,000.00	July 8, 2019 
		New York, New York

 

FOR VALUE RECEIVED,
XPRESSPA HOLDINGS, LLC, a Delaware limited liability company (the “Company”), promises to pay to B3D, LLC, a
North Carolina limited liability company (as assignee and successor in interest to ROCKMORE INVESTMENT MASTER FUND LTD.) (the “Lender”),
or its registered and permitted assigns, in lawful money of the United States of America the principal sum of Seven Million and
No/100 Dollars ($7,000,000.00), or, if less, the then outstanding principal amount of the Loan, together with interest thereon
as hereinafter provided. This Note evidences the Loan made to the Company under that certain Credit Agreement dated April 22, 2015,
as amended by the First Amendment to Credit Agreement and Waiver dated as of August 8, 2016, and as amended by a Second Amendment
to Credit Agreement dated as of May 10, 2017, and as amended by a Third Amendment to Credit Agreement dated as of May 11, 2018,
and as amended by a Fourth Amendment to Credit Agreement dated and as of the date hereof (as further amended, restated, amended
and restated, extended, renewed, replaced, supplemented or otherwise modified from time to time, collectively, the “Credit
Agreement”) between the Company and the Lender. The Company shall pay such principal amount on the Maturity Date, whether
at maturity, by acceleration or otherwise.

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)       “Common
Stock Equivalents” means any securities of the Parent or its subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

    	2

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	3

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	4

     

    

 

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

 

2.         Interest.

 

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

 

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

 

    	5

     

    

 

(c)       At
Company’s option, exercisable in writing by notice to the Company at any time, (i) not more than thirty (30) but not less
than five (5) Business Days, prior to the Interest Deferment Date, at Company’s sole discretion, all or any portion of the
Monthly Interest that is payable on the Interest Deferment Date, or (ii) after the Interest Deferment Date, not more than twenty-one
(21) days but not less than five (5) Business Days, prior to the date upon which each payment of Monthly Interest is due, at Company’s
sole discretion, all or any portion of the Monthly Interest that is payable on such payment date (in each case, the “Share
Portion”), shall be paid by way of issuance of duly authorized, validly issued, fully paid and non-assessable and tradeable
shares of Common Stock (such number of Common Stock to be issued instead of cash payment, the “Interest Share Amount”).
Notwithstanding anything to the contrary contained in this Section 2(b), until the Shareholder Approval is obtained, the Monthly
Interest on $500,000 of the principal of this Note, shall be payable by cash payment alone in accordance with Section 2(a) and
may not be included in the Share Portion. The Interest Share Amount will be determined by dividing the amount of the Share Portion
set forth in Lender’s exercise notice by a price per share of Common Stock equal to ninety percent (90%) of the VWAP on the
Trading Date immediately preceding the date of the exercise notice (the “Initial Interest Share Price”). The
Parent shall deliver to Lender certificates evidencing the Interest Share Amount within two (2) Business Days after the date of
the exercise notice. If ninety percent (90%) of the average VWAP for the 30 Trading Days prior to and including the Interest Deferment
Date or, if the Interest Deferment Date is not a Trading Day, on the next succeeding Trading Day (such price, the “Make
Whole Price”), is less than the Initial Interest Share Price, then the Lender shall be entitled to additional shares
of Common Stock as partial (and additional) payment of the Interest Share Amount (such shares, the “Make Whole Shares”).
The quantity of Make Whole Shares will be determined by (y) dividing the amount of the Share Portion set forth in Lender’s
exercise notice by the Make Whole Price, and (z) subtracting therefrom the Interest Share Amount. The Parent shall deliver to Lender
certificates evidencing the Make Whole Shares within two (2) Business Days after the Interest Deferment Date. The Lender shall
have the same rights and remedies with respect to the delivery of any such Interest Share Amount and the Make Whole Shares as if
such shares were being issued pursuant to a voluntary conversion pursuant to Section 7(a). For the avoidance of doubt, notwithstanding
anything to the contrary contained herein, the Company shall not be permitted to pay Monthly Interest in shares of Common Stock
until Shareholder Approval has been obtained.

 

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

 

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

 

    	6

     

    

 

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

 

5.         Events
of Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	7

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	8

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.        Remedies.

 

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

 

    	9

     

    

 

7.         Conversion.

 

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

 

(b)       Conversion
Price. The conversion price for the principal and interest, if any, in connection with voluntary conversions by the Lender
pursuant to clause (a) above shall be two dollars ($2.00) per share of Common Stock, subject to adjustment herein (the “Conversion
Price”).

 

(c)       Mechanics
of Conversion.

 

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

 

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

 

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

 

    	10

     

    

 

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

 

    	11

     

    

 

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

 

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

 

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

 

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

 

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8.         Certain
Adjustments.

 

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

 

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

 

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

 

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

 

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

 

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

 

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(g)       Notice
to the Lender.

 

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

 

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

 

(h)       Nasdaq
Approval. Until the Parent receives the approval of its shareholders for the issuance of the Conversion Shares pursuant to
Nasdaq Listing Rule 5635(d) and for so long as such requirement is applicable to the Parent, the Parent may not issue any Interest
Share Amount in violation of such Listing Rule nor additional Conversion Shares resulting from a Dilutive Issuance in excess of
the amount of Conversion Shares issuable prior to the reduction of the Conversion Price due to the Dilutive Issuance adjustment.

 

    	16

     

    

 

9.         [Reserved]

 

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

 

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

 

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

 

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

 

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

 

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

 

    	17

     

    

 

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

 

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

 

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

 

19.       Amendment
and Restatement of Existing Note. This Note amends and restates that certain Amended And Restated Promissory Note issued
to the Lender by the Company on August 8, 2018 in the original principal amount of $6,500,000 (the “Existing Note”)
in its entirety. Upon the issuance of this Note, the Existing Note shall be deemed superseded by this Note without any further
action by the Lender or the Company. The indebtedness evidenced by the Existing Note is continuing indebtedness, and nothing in
this Note shall be deemed to constitute a payment, settlement or novation of the Existing Note, or the release of, or otherwise
adversely affect any lien or security interest securing such indebtedness or any rights of Lender against the undersigned, or any
guarantor of this Note or the Existing Note. Upon receipt of this Note Lender, at the Company’s request shall surrender the
Existing Note to the Company. All of the obligations of the Company and all Guarantors and the Parent shall, from and after execution
and delivery of this Note by the Company, continue in full force and effect as set forth herein.

 

(Signature Page Follows)

 

    	18

     

    

 

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

 

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

 

[Signature Page to 2nd
Amended & Restated Convertible Promissory Note]

 

    	19

     

    

 

[FORM OF NOTICE OF CONVERSION]

 

The undersigned hereby
elects to convert principal under the Second Amended And Restated Convertible Promissory Note dated July 8, 2019, of XPRESSPA HOLDINGS,
LLC, a Delaware limited liability company (the “Company”), promises to pay to B3D, LLC, a North Carolina limited
liability company, into shares of common stock (the “Common Stock”), of the Company’s Parent XpresSpa
Group, Inc., a Delaware corporation (the “Parent”), according to the conditions hereof, as of the date written
below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay
all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested
by Parent in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if
any.

  

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

 

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

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