Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement
(this “Agreement”) is dated as November 18, 2021, between Gaming Technologies, Inc., a Delaware corporation whose principal
place of business is located at Two Summerlin, Las Vegas, NV 89135 (the “Company”) and the Purchaser identified on the signature
pages hereto (including their successors and assigns, the “Purchaser”).

 

WHEREAS, subject to the terms and conditions set
forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”),
and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser desire to purchase from
the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, the Company and each Purchaser, severally and not jointly, agree as set forth below.

 

ARTICLE
I

 

1.1  
The following terms have the meanings indicated in this Section 1.1:

 

“Action” shall have the meaning ascribed
to such term in Section 3.1(j).

 

“Affidavit of Confession of Judgment”
means the Affidavit of Confession of Judgment dated the date hereof, executed by the Company.

 

“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 144 under the Securities Act.

 

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

 

“Change
of Control” means the occurrence of any of (i) an acquisition after the date hereof by an individual or legal entity or “group”
(as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) other than a group including Jason Drummond of effective control
(whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 50% of the voting
securities of the Company, or (ii) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates
with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own
less than 50% of the aggregate voting power of the Company or the successor entity of such transaction, or (iii) the Company sells or
transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction
own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, (iv) a replacement at one time
or within a three year period of more than one-half of the members of the Company’s board of directors or Members which is not approved
by a majority of those individuals who are members of the board of directors or Members on the date hereof (or by those individuals who
are serving as members of the board of directors or Members on any date whose nomination to the board of directors or Members was approved
by a majority of the members of the board of directors Members who are members on the date hereof), or (v) Jason Drummond shall no longer
be employed by the Company as Chief Executive Officer on a full time basis or Darin Oliver shall no longer be employed by the Company
as Head of Corporate and Regulatory Strategy, or (vi) the execution by the Company of an agreement to which the Company is a party or
by which it is bound, providing for any of the events set forth above in (i) through (vi) above.

 

 

    	 	 	 

     

    

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Business Day when all of the Transaction Documents have been executed and delivered by the applicable parties
thereto, and all conditions precedent to (i) the Purchaser’ obligations to pay the Subscription Amount and (ii) the Company’s
obligations to deliver the Securities have been satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants 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.

 

“Company
Counsel” means Sichenzia Ross Ference LLP.

 

“Debenture”
means the Security Agreement, dated the date hereof, between the Guarantor and the Purchaser.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1 hereof.

 

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

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h) hereof.

 

“Guarantor”
means Gaming Technologies Limited, an English Corporation.

 

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Lock-up
Agreement” means the lock-up agreement executed by Jason Drummond and the Company.

 

“Majority
Purchasers” shall mean holders of 50% of the then outstanding principal amount of the Notes, so long as such 50% includes Puritan
Partners LLC as lead investor.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b) hereof.

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Notes”
means the 10% Senior Secured Convertible Notes due November 18, 2022 in aggregate principal amount of $1,666,666.67, convertible into
shares of common stock of the Company, and issued by the Company to the Purchaser hereunder.

 

“OFAC”
shall mean the United States Department of the Treasury’s Office of Foreign Assets Control.

 

“OFAC Regulations”
shall mean the regulations promulgated by OFAC, as amended from time to time.

 

“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.

 

 

    	 	 	 

     

    

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such
as a deposition), whether commenced or threatened.

 

“Qualified
Offering” means an (i) equity or equity-linked financing for the account of the Company or any of its Subsidiaries in which
shares of common stock, or securities, directly or indirectly, convertible into or exchangeable or exercisable for shares of common stock
are issued or (ii) debt financing (not otherwise covered in clause (i), which financing results in cumulative aggregate proceeds to the
Company of at least $8,000,000.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated the date hereof between the Company, and the Purchaser.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities”
means the Notes, the Warrants the and the shares of common underlying the Notes and Warrants.

 

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

 

“Security
Agreement” means the Security Agreement, dated the date hereof, between the Company and the Purchaser.

 

“Security
Documents” means the Security Agreement, the Debenture, the Share Charge and any other documents and filings required thereunder
(all UCC-1 and IP filing receipts and filings under UK law) in order to grant the Purchaser a perfected first priority security interest
on all of the current and future assets of the Company and its Subsidiaries.

 

“Share
Charge” means the Charge over Shares, dated the date hereof, between the Company and the Purchaser.

 

“Subsidiary
Guarantee” means the Subsidiary Guarantee, dated the date hereof, between the Guarantor and the Purchaser.

 

“Shares”
shares of common stock of the Company.

 

“Subscription Amount”
means, as to the Purchaser, the aggregate amount to be paid for Note and Shares purchased hereunder as specified below such Purchaser’
name on the signature page of this Agreement and next to the heading “Subscription Amount”, in United States Dollars and in
immediately available funds.

 

“Subsidiary”
means any direct or indirect subsidiary of the Company as set forth on Schedule 3.1(a).

 

“Transaction Documents”
means this Agreement, the Notes, the Warrants, the Security Agreement, the Subsidiary Guarantee, the Debenture, the Share Charge, the
Affadavit of Confession and the Lock-up Agreement, the Registration Rights Agreement, the Transfer Agent Instructions, and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Warrants” means the 5-year warrants,
exercisable at the conversion price to purchase Common Stock of the Company.

 

PURCHASE AND SALE

 

2.1
 Closing. Subject to the terms and conditions set forth herein, the Purchaser agrees
to purchase from the Company and the Company agrees to sell to the Purchaser the aggregate principal amount of Notes and number of
Warrants, in each case set forth opposite the name of such Purchaser on the signature page hereto, for the purchase price set forth
on such page, which shall be payable to the Company at the Closing by wire transfer of immediately available funds. The Note shall
be issued with an original issue discount of 10% (i.e., face amount is the gross proceeds/.90). Upon closing, the Purchaser will
receive 120% coverage (on an as converted basis of the face amount of the Note based on a fixed conversion price of $2.75 per)
of 5- year warrants exercisable at the conversion price to purchase shares of Common Stock of the Company.

 

 

    	 	 	 

     

    

 

At the Closing, the Purchaser
shall deliver to the Company via wire transfer immediately available funds equal to its Subscription Amount and the Company shall deliver
to the Purchaser its Note and the Warrant and the other items set forth in Section 2.2 issuable at the Closing. Upon satisfaction of
the conditions set forth in Section 2.2, the Closing shall occur at the offices of the Company, or such other location as the parties
shall mutually agree.

 

2.2  
Deliveries.

 

	a)		On the Closing Date, the Company shall deliver to the Purchaser the following and shall have
satisfied the following conditions, as the case may be:

 

	(i)		this Agreement, duly executed by the Company;

 

	(ii)		a duly executed Note with a principal amount equal to the amount such set forth on the signature
page hereto, registered in the name of such Purchaser, substantially in the form of Exhibit A hereto;

 

	(iii)		the Warrant, registered in the name of such Purchaser, substantially in the form of Exhibit
B hereto;

 

	(iv)		the Security Agreement, duly executed by the Company, substantially in the form of Exhibit
C hereto;

 

	(v)		the Subsidiary Guarantee, duly executed by the Guarantor, substantially in the form of Exhibit
D hereto;

 

	(vi)		the Affidavit of Confession of Judgment, substantially in the form of Exhibit E hereto, duly
executed by the Company;

 

	(viii)		a legal opinion of Company Counsel satisfactory in form and substance to the Purchaser, substantially
in the form of Exhibit F hereto;

 

	(ix)		the Registration Rights Agreement, substantially in the form of Exhibit G hereto;

 

	(x)		the Lock-up Agreement, executed by Jason Drummond and the Company substantially in the form
of Exhibit H hereto;

 

	(xi)		Certificates of the CEO and Secretary of the Company, in the form of Exhibit I , certifying
as to (a) copies of the Certificate of Incorporation and bylaws of the Company and the Guarantor , as amended and restated as of the
date hereof, (b) all actions taken and consents made by such party and its officers and shareholders as applicable to authorize the transactions
provided by the Transaction Documents, (c) the names of the officers of such party authorized to sign the Transaction Documents , together
with a sample of the true signature of such Person, (d) all conditions set forth in this Section 2.2 have been met by such party, and
(e) no event has occurred or such party anticipates occurring that has resulted in an Event of Default under the Notes or with the passage
of time would result in an Event of Default under the Notes;

 

	(xii)		Certificates of good standing for the Company in the jurisdictions of its incorporation,
in the principal places in which it conducts business and in the places where it owns real estate;

 

	(xiii)		Transfer Agent Instructions, executed by the Company and the Transfer Agent, substantially
in the form of Exhibit J hereto;

 

	(xiv)		the Share Charge, substantially in the form of Exhibit K hereto;

 

	(xv)		the Debenture, substantially in the form of Exhibit L hereto and]

 

	(xvi)		Waivers executed by each of the purchasers of the Company’s equity securities in its
$3.25 per share private placement round waiving their rights to most favored nations and price protection based on the issuance of the
Securities

 

 

    	 	 	 

     

    

 

	b)		On the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company
the following:

 

	(i)		this Agreement duly executed by the Purchaser;

 

	(ii)		the Purchaser’ Subscription Amount by wire transfer to the account of the Company;

 

	(iii)		the Security Agreement, duly executed by the Purchaser;

 

	(iv)		the Debenture, duly executed by the Purchaser;

 

	(v)		the Share Charge, duly executed by the Purchaser; and

 

	(vi)		the Registration Rights Agreement, duly executed by the Purchaser.

 

2.3  Closing Conditions.

 

	a)		The obligations of the Company hereunder in connection with the Closing are subject to the
following conditions being met:

 

	(i)		the accuracy in all material respects when made and on the Closing Date of the representations
and warranties of the Purchaser contained herein;

 

	(ii)		all obligations, covenants and agreements of Purchaser required to be performed at or prior
to the Closing Date shall have been performed; and

 

	(iii)		the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

	b)		The obligations of the Purchaser hereunder in connection with the Closing are subject to
the following conditions being met:

 

	(i)		the accuracy in all material respects when made and on the Closing Date of the representations
and warranties of the Company contained herein;

 

	(ii)		all obligations, covenants and agreements of the Company and its Subsidiaries required to
be performed at or prior to the Closing Date shall have been performed;

 

	(iii)		of the collateral;

 

	(iv)		no statute, rule, regulation, executive order, decree, ruling or injunction shall have been
enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation
of any of the transactions contemplated by the Transaction Documents;

 

	(v)		the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

	(vi)		no banking moratorium have been declared either by the United States or New York State authorities,
no suspension of trading shall have been declared on the New York Stock Exchange or the NASDAQ Stock Market, nor shall there have occurred
any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or
any material adverse change in, any financial markets which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable
or inadvisable to purchase the Note and Shares at the Closing;

 

 

    	 	 	 

     

    

 

	(vii)		the Company shall have no outstanding indebtedness, other than (A) that in favor of the Purchaser
pursuant to the Note, (B) indebtedness incurred in the ordinary course of business in connection with the purchase of equipment, trade
debt incurred in the ordinary course of business, and (C) indebtedness set forth on the Schedules hereto;

 

	(viii)		No other securities of the Company outstanding after the use of proceeds hereof (i) shall
be in default or (ii) shall reset (or shall have exercised any rights to convert into the Securities) as a result of the issuance of
the Securities; and

 

	(ix)		the Company has engaged Maxim Group LLC to consummate a Qualified Offering of equity securities

 

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and
Warranties of the Company. Except as set forth in the Disclosure Schedule which shall be deemed a part hereof, the Company
hereby makes the representations and warranties set forth below to the Purchaser.

 

	a)		Subsidiaries. All of the direct and indirect subsidiaries
of the Company are set forth in Schedule 3.1(a) hereto. The Company owns, directly or indirectly, all of the capital stock or other equity
of each Subsidiary free and clear of any Liens, other than the Lien granted to the Purchaser, and all the issued and outstanding shares
of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to
subscribe for or purchase securities.

 

	b)		Organization and Qualification. Each of the Company and the Subsidiaries is an entity
duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its
business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective
certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries
is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality,
validity or enforceability of any Transaction Documents, (ii) a material adverse effect on the results of operations, assets, business,
prospects or financial condition of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
or its Subsidiaries’ ability to perform in any material respect on a timely basis its obligations under any Transaction Document
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

	c)		Authorization; Enforcement. The Company and each of its Subsidiaries has the requisite
corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and
otherwise to carry out its respective obligations thereunder. The execution and delivery of each of the Transaction Documents by the
Company and each of its Subsidiaries and the consummation by it of the transactions contemplated thereby have been duly authorized by
all action on the part of the Company and each of its Subsidiaries and no further action is required by the Company and each of its Subsidiaries
in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and each of
its Subsidiaries and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company
and such Subsidiaries enforceable against the Company and such Subsidiaries in accordance with its terms except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

 

    	 	 	 

     

    

 

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

 

	e)		Filings, Consents and Approvals. Except as set forth in Schedule 3.1 (e) hereto, neither
the Company, its Subsidiaries is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any
filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with
the execution, delivery and performance by the Company or such Subsidiaries of the Transaction Documents, other than the filing of Form
D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the “Required
Approvals”).

 

	f)		Issuance of the Securities. The Securities are duly authorized and, when issued and
paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free
and clear of all Liens other than restrictions on transfer provided for in the Transaction Documents. The Common Stock issuable upon
exercise of the Notes and the Warrants, when issued in accordance with the terms of the Transaction Documents, will be validly issued,
fully paid and non-assessable, free and clear of all Liens imposed by the Company, and its Subsidiaries. The Company has reserved from
its duly authorized capital stock a number of shares of Common Stock for issuance of at least equal to the amount required to satisfy
the conversion of the Note and exercise of the Warrants.

 

	g)		Capitalization. The capitalization of the Company and its Subsidiaries is as set forth
on Schedule 3.1(g). Other than as set forth on Schedule 3.1(g), the Company and the Subsidiaries have no indebtedness for money borrowed.
Except as set forth on Schedule 3.1(g), the Company has not issued any capital stock since June 30, 2021. No Person has any right of
first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Except as set forth on Schedule 3.1(g), as a result of the purchase and sale of the Securities, there are no outstanding
options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights
or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of common
stock of the Company, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of common stock, of the Company or securities or rights convertible or exchangeable into shares of common
stock of the Company or its Subsidiaries. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to
issue shares of common stock of the Company or any Subsidiary or other securities to any Person (other than the Purchaser) and will not
result in a right of the Company’s or any of its Subsidiaries’ securities to adjust the exercise, conversion, exchange or
reset price under such securities. All of the outstanding shares of capital stock in the Company and its Subsidiaries are validly issued,
fully paid and nonassessable, have been issued in material compliance with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval
or authorization of any stockholder, the Board of Directors of the Company or any of its Subsidiaries or others is required for the issuance
and sale of the Securities. There are no stockholders’ agreements, voting agreements or other similar agreements with respect to
Company’s or any of its Subsidiaries’ capital stock to which the Company or any of its Subsidiaries is a party or, to the
knowledge of the Company or such Subsidiary, between or among any of the Company’s stockholders or any stockholder of its Subsidiaries.
Neither the Company nor any Subsidiary has any outstanding indebtedness for borrowed money except for the indebtedness described in Schedule
3.1 (g) hereto.

 

 

    	 	 	 

     

    

 

	h)		Financial Statements. Except as set forth on Schedule 3.1(h), the financial statements
of the Company and its Subsidiaries, including those financial statements for each of the years ended December 31 in the 3-year period
ended December 31, 2020 and the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021, comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time
of filing. Such financial statements of the Company and its Subsidiaries have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be
otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

 

	i)		Material Changes. Since September 30, 2021, (i) there
has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect,
(ii) except as set forth on Schedule 3.1(i), each of the Company and its Subsidiaries has not incurred any liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice
and (B) liabilities not required to be reflected in the Company’s, its Subsidiaries’ financial statements pursuant to GAAP
or required to be disclosed in filings made with the Commission, (iii) each of the Company and its Subsidiaries has not altered its method
of accounting, (iv) each of the Company and its Subsidiaries has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) each
of the Company and its Subsidiaries has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing
stock option plans.

 

	j)		Litigation. Other than as set forth in Schedule 3.1 (j) hereto, there is no action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting
the Company , any Subsidiary, or any of their respective properties before or by any court, arbitrator, governmental or administrative
agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely
affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if
there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any
Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company
or any Subsidiary, there is not pending or contemplated, any investigation by the Commission involving the Company or any Subsidiary
or any current or former director or officer of the Company or any Subsidiary.

 

	k)		Labor Relations. No material labor dispute exists or, to the knowledge of the Company
or Subsidiary, is imminent with respect to any of the employees of the Company or any Subsidiary which could reasonably be expected to
result in a Material Adverse Effect.

 

	l)		Compliance,
Material Contracts. Except as set forth on Schedule 3.1(l) hereto, neither the Company nor any Subsidiary (i) is in default under
or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default
under or that it is in violation of, any indenture, loan or credit agreement, services, marketing or processing agreement or any other
agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation
of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local
laws applicable to its business except in each case as could not have a Material Adverse Effect. Except as set forth on Schedule 3.1(l),
each material contractis in full force and effect and is enforceable in accordance with its terms, and no material defaults enforceable
against the Company or any Subsidiary exist thereunder. Neither the Company nor any Subsidiary has received notice from any party to
any Material Contract stating that it intends to terminate or amend such contract.

 

 

    	 	 	 

     

    

 

	m)		Regulatory Permits and Licenses. The Company and the Subsidiaries possess all certificates,
authorizations, memberships, sponsorships and permits issued by the appropriate federal, state, local or foreign regulatory authorities
or other Person necessary to conduct their respective businesses and are in good standing under all such certificates, authorizations,
memberships, sponsorship and permits, except where the failure to possess such permits could not have or reasonably be expected to result
in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice
of proceedings relating to the revocation or modification of any Material Permit.

 

	n)		Title to Assets. The Company and the Subsidiaries have good and marketable title in
fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable
title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free
and clear of all Liens, except Liens as do not materially affect the value of such property and do not materially interfere with the
use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or
other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by
the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries
are in compliance.

 

	o)		Intellectual Property. The term “Proprietary Assets” means all patents,
patent applications, trademarks, service marks, trademark and service mark applications, trade names, copyright registrations, and licenses
currently owned and/or used by the Company (which for purposes of this subsection shall include its Subsidiaries) or necessary for the
conduct of the Company’s business as currently conducted or proposed to be conducted, as well as any agreement under which the
Company has access to any intellectual property or confidential information used by the Company in its business. Schedule 3.1(o) sets
forth all Proprietary Assets necessary, to the Company’s knowledge, to conduct the Company’s business as currently conducted
or as presently proposed to be conducted. The Company owns, or has the right to use under the agreements or upon the terms described
on Schedule 3.1(o), to all of the Proprietary Assets and has taken all actions reasonable in light of its financial position to protect
the Proprietary Assets. Except as set forth on Schedule 3.1(o), the Company does not require any license or other agreement to use any
of the Proprietary Assets, except for licenses or agreements that can be obtained in the ordinary course of business without unreasonable
effort, delay, cost, or expense. The Company is not bound by or a party to any options, licenses, or agreements of any kind with respect
to the Intellectual Property Rights (as defined below) of any other Person and, to the Company’s knowledge, there are no outstanding
options, licenses, or agreements of any kind relating to the Proprietary Assets. With respect to each item of the Company’s Proprietary
Assets that any third party owns and that the Company uses pursuant to license, sublicense, agreement or permission: (i) the license,
as it relates to the Company is legal, valid, binding, enforceable, and in full force and effect in all material respects; (ii) the Company
is not, and to the Company’s knowledge, no other party to the license, sublicense, agreement or permission is in material breach
or default, and no event has occurred which with notice or lapse of time or both would constitute a material breach or default or permit
termination, modification or acceleration thereunder; (iii) the Company has not, and to the Company’s knowledge, no other party
to the license, sublicense, agreement or permission has repudiated any material provision thereof; and (iv) the Company has not granted
any sublicense or similar right with respect to the license, sublicense, agreement or permission other than as expressly permitted by
such license, sublicense, agreement or permission. Except as set forth on Schedule 3.1(o), to the Company’s knowledge, no director,
officer, or stockholder of the Company owns any rights in any Intellectual Property Rights directly or indirectly competitive with those
owned or to be used by the Company or derived from or in connection with the conduct of the Company’s business. Except as set forth
on Schedule 3.1(o), to the Company’s knowledge it is not now necessary to use any inventions or works of authorship of its employees
made outside of their employment by the Company. Except as set forth on Schedule 3.1(o), the Company has obtained from all of the Company’s
current and former officers, employees and consultants assignments to all inventions developed or conceived during their association
with the Company and relating to its business. The Company has not granted rights to manufacture, produce, assemble, license, market,
or sell its products to any other person. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for
use in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively,
the “Intellectual Property Rights”). The Company’s Intellectual Property Rights are as set forth on Schedule
3.1 (o) hereto. Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights of
others

 

 

    	 	 	 

     

    

 

	p)		Insurance. The Company and the Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the
Company and the Subsidiaries are engaged. To the best of the Company’s knowledge, such insurance contracts and policies are accurate
and complete. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
without a significant increase in cost.

 

	q)		Transactions With Affiliates and Employees. None of the officers or directors of the
Company or any Subsidiary and, to the knowledge of the Company or any Subsidiary , none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge
of the Company or any Subsidiary, any entity in which any officer, director, or any such employee has a substantial interest or is an
officer, director, trustee or partner, in each case in excess of $10,000 other than (i) for payment of salary or consulting fees for
services rendered, (ii) reimbursement for expenses incurred on behalf of the Company or any Subsidiary and (iii) for other employee benefits,
including stock option agreements under any stock option plan of the Company or any Subsidiary.

 

	r)		Certain Fees. Except as set forth on Schedule 3.1(r), no brokerage or finder’s
fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Purchaser shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this
Section that may be due in connection with the transactions contemplated by this Agreement.

 

	s)		Private Placement. Assuming the accuracy of the Purchaser representations and warranties
set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company
and its Subsidiaries to the Purchaser as contemplated hereby.

 

	t)		Investment Company. The Company, its Subsidiaries is not, and is not an Affiliate
of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended. The Company, its Subsidiaries shall conduct its business in a manner
so that it will not become subject to the Investment Company Act.

 

	u)		Registration Rights. Except as contemplated by the transactions hereunder or as set
forth on Schedule 3.1(u), no Person has any right to cause the Company to effect the registration under the Securities Act of any securities
of the Company.

 

	v)		Application of Takeover Protections. The Company’s and its Subsidiaries’
Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s
or any of the Subsidiaries’ Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation
that is or could become applicable to the Purchaser as a result of the Purchaser’s and the Company’s, its Subsidiaries’
fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result of
the Company’ issuance of the Securities and the Purchaser’s ownership of the Securities.

 

	w)		Disclosure. All disclosure provided to the Purchaser regarding each of the Company,
its Subsidiaries, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, furnished
by or on behalf of the Company, its Subsidiaries with respect to the representations and warranties made herein are true and correct
in all material respects with respect to such representations and warranties and do not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading. The Company and its Subsidiaries acknowledge and agree that the Purchaser makes no nor has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

 

    	 	 	 

     

    

 

	x)		No Integrated Offering. Assuming the accuracy of the Purchaser’ representations
and warranties set forth in Section 3.2, neither the Company, nor any of its Subsidiaries or Affiliates, nor any Person acting on its
or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company or its Subsidiaries
for purposes of the Securities Act or any applicable shareholder approval provisions.

 

	y)		Solvency. For purposes of this representation, the term the “Company”
shall include all of its Subsidiaries. Based on the financial condition of the Company as of the Closing Date after giving effect to
the receipt by the Company and its Subsidiaries of the proceeds from the sale of the Securities hereunder and the application of the
proceeds thereof, (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or
in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature; (ii)
the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted
and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted
by the Company’s, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The
Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts
of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe
that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from
the Closing Date. Schedule 3.1(g) sets forth all outstanding secured and unsecured Indebtedness of the Company, its Subsidiaries or for
which any such party has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities
for borrowed money or amounts owed in excess of $10,000 (other than trade accounts payable incurred in the ordinary course of business),
(b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or
should be reflected in such party’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments
in excess of $10,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in
default with respect to any Indebtedness.

 

	z)		Environmental Matters. The Company and each its Subsidiaries(a) is in compliance with
any and all Environmental Laws (as herein defined), (b) has received all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its respective businesses and (c) is in compliance with all terms and conditions of any such permit, license
or approval, in each case except to the extent such noncompliance or non-receipt would not reasonably be expected to result in a Material
Adverse Effect. The term “Environmental Laws” means all applicable federal, state, local or foreign laws relating
to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases
of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

	aa)		Tax Status. Except for matters that would not, individually or in the aggregate, have
or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state
and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon (except for those contested in good
faith), and the Company have no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary.

 

	bb)		No General Solicitation. Neither the Company, nor any person acting on behalf of the
Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered
the Securities for sale only to the Purchaser and certain other “accredited investors” within the meaning of Rule 501 under
the Securities Act.

 

 

    	 	 	 

     

    

 

	cc)		Foreign Corrupt Practices; Patriot Act, etc. For purposes of this representation,
the term the “Company” shall include all of its Subsidiaries. Neither The Company, nor to the knowledge of the Company, any
agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any corrupt funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company
is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of
1977, as amended.

 

The Company
and its Subsidiaries are in compliance, in all material respects, with (a) the Trading with the Enemy Act, as amended, and each of the
foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto, and (b) the USA Patriot Act (Title III of Pub. L. 107-56, signed into law October
26, 2001) (the “Act”). No part of the proceeds of the Note will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting
in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States
Foreign Corrupt Practices Act of 1977, as amended. None of the Company or any of its Subsidiaries is a Person named on a list published
by OFAC or a Person with whom dealings are prohibited under any OFAC Regulations.

 

	dd)		Seniority. As of the Closing Date, except as set forth on Schedule 3.1(dd) hereto
no Indebtedness, equity or other security of the Company or the Subsidiaries is senior to, or pari passu with, the Notes in right
of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise.

 

	ee)		No Disagreements with Accountants and Lawyers. There are no disagreements of any kind
presently existing, or reasonably anticipated by the Company or any Subsidiary to arise, between the accountants and lawyers formerly
or presently employed by the Company or any Subsidiary and, except as set forth on Schedule 3.1(ee), the Company and each Subsidiary
is current with respect to any fees owed to its accountants and lawyers. By making this representation, each of the Company and its Subsidiaries
does not, in any manner, waive the attorney/client privilege or the confidentiality of the communications between the Company and its
Subsidiaries and its lawyers. The Company’s accountants are set forth on Schedule 3.1(ee) of the Disclosure Schedule. To the knowledge
of the Company, such accountants, who have expressed their opinion with respect to the financial statements for the year ended December
31, 2020, are a registered public accounting firm as required by the Securities Act.

 

	ff)		Acknowledgment Regarding Purchaser’s Purchase of Securities. The Company and
its Subsidiaries acknowledge and agree that the Purchaser is acting solely in the capacity of an arm’s length purchaser with respect
to the Transaction Documents and the transactions contemplated hereby. The Company and its Subsidiaries further acknowledge that the
Purchaser is not acting as a financial advisor or fiduciary of the Company and its Subsidiaries (or in any similar capacity) with respect
to this Agreement and the transactions contemplated hereby and any advice given by the Purchaser or any of its representatives or agents
in connection with this Agreement and the transactions contemplated hereby is merely incidental to the Purchaser’s purchase of
the Securities. The Company and its Subsidiaries further represent to the Purchaser that Company’s and its Subsidiaries’
decision to enter into this Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by
the Company, and their representatives.

 

 

 

    	 	 	 

     

    

 

	gg)		Rule 506(d) Bad Actor Disqualification Representations and Covenants.

 

	(i)		No Disqualification Events. Neither the Company, nor to the Company’s knowledge,
any of its predecessors affiliates, any manager, executive officer, other officer of the Company or such Subsidiary participating in
the offering, any beneficial owner (as that term is defined in Rule 13d-3 under the Exchange Act) of 20% or more of the Company’s
or such Subsidiaries’ outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that
term is defined in Rule 405 under the Securities Act) connected with the Company or such Subsidiary in any capacity as of the date of
this Agreement and on the Closing Date (each, a “Company Covered Person” and, together, “Company Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under
the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or
(d)(3). The Company and its Subsidiaries has exercised reasonable care to determine (i) the identity of each person that is a Company
Covered Person; and (ii) whether any Company Covered Person is subject to a Disqualification Event. The Company and its Subsidiaries
will comply with its disclosure obligations under Rule 506(e).

 

	(ii)		Other Covered Persons. None of the Company and its Subsidiaries is aware of any person
(other than any Company Covered Person) that has been or will be paid (directly or indirectly) remuneration in connection with the Note
that is subject to a Disqualification Event (each an “Other Covered Person”).

 

	(iii)		Reasonable Notification Procedures. With respect to each Company Covered Person, the
Company and its Subsidiaries has established procedures reasonably designed to ensure that they receive notice from each such Company
Covered Person of (i) any Disqualification Event relating to that Company Covered Person, and (ii) any event that would, with the passage
of time, become a Disqualification Event relating to that Company Covered Person; in each case occurring up to and including the Closing
Date.

 

	(iv)		Notice of Disqualification Events. The Company will notify the Purchaser immediately
in writing upon becoming aware of (i) any Disqualification Event relating to any Company Covered Person and (ii) any event that would,
with the passage of time, become a Disqualification Event relating to any Company Covered Person and/or Other Covered Person.

 

	hh)		Acknowledgment Regarding Purchaser’s Purchase of Securities. The Company and
its Subsidiaries acknowledge and agree that the Purchaser is acting solely in the capacity of an arm’s length purchaser with respect
to this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby and that the Purchaser is
not (i) an officer or director of the Company or the Subsidiaries, (ii) an Affiliate of the Company or the Subsidiaries or (iii) to the
knowledge of the Company or such Subsidiaries , a “beneficial owner” of more than 10% of the shares of Common Stock (as defined
for purposes of Rule 13d-3 of the 1934 Act. The Company and the Subsidiaries further acknowledge that the Purchaser is not acting as
a financial advisor or fiduciary of the Company or its Subsidiaries (or in any similar capacity) with respect to this Agreement or the
other Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by the Company or the Subsidiaries
or any of its representatives or agents in connection with this Agreement or the other Transaction Documents and the transactions contemplated
hereby and thereby is merely incidental to such Purchaser’s purchase of the Notes and Warrants.

 

 

    	 	 	 

     

    

 

	ii)		Sarbanes-Oxley; Internal Accounting Controls. Each of the Company and its Subsidiaries
is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The
Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Each of the Company and
its Subsidiaries has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and its Subsidiaries and designed such disclosure controls and procedures to ensure that material information relating to the
Company, including its Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the
period in which the Company's most recently filed periodic report under the Exchange Act, as the case may be, is being prepared. The
Company's certifying officers have evaluated the effectiveness of the Company's controls and procedures as of the date prior to the filing
date of the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company
presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness
of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no significant changes in the Company's (or any Subsidiary’s) internal controls (as such term is defined in Item 307(b) of
Regulation S-K under the Exchange Act) or, to the Company's (or any Subsidiary’s) knowledge, in other factors that could significantly
affect the Company's (or any Subsidiary’s) internal controls. The Company and its Subsidiaries have knowledge (upon receipt of
the proceeds of this transaction) that the Company’s independent public accountants have issued an audit letter containing a “going
concern” opinion in connection with the Company’s annual report on Form 10-K pursuant to Section 13 or 15(d) under the Exchange
Act for the fiscal year ended December 31, 2021.

 

	jj)		Variable Rate Securities. Except as provided in the Note, the Company has not directly
and/or indirectly entered into, nor has any agreement, intention and/or obligation to enter into any Variable Rate Transaction.

 

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

 

	a)		Organization; Authority. Such Purchaser is an entity duly organized under the laws
of the jurisdiction of its organization with full right, corporate, limited liability company or partnership power and authority to enter
into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder.
The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized
by all necessary corporate or similar action on the part of the Purchaser. Each Transaction Document to which it is a party has been
duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and
legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

	b)		Purchaser Representation. The Purchaser understands that the Securities are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities
as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof, has no
present intention of distributing any of such Securities in violation of the Securities Act or any applicable securities laws and has
no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and warranty
not limiting the

 

 

    	 	 	 

     

    

 

Purchaser’s
right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities
laws). Nothing contained herein shall be deemed a representation or warranty by such Purchaser to hold Securities for any period of time.

 

	c)		Purchaser Status. At the time such Purchaser was offered the Securities, it was, and
at the date hereof it is, and on each date on which it converts any of the Notes into shares of Common Stock it will be either: (i) an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act.

 

	d)		Experience of the Purchaser. Such Purchaser, either alone or together with its representatives,
has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and
risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is
able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such
investment.

 

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

 

The Company and its Subsidiaries acknowledge
and agree that the Purchaser does not make or have not made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in this Section 3.2.

 

OTHER AGREEMENTS OF THE PARTIES

 

4.1   
Transfer Restrictions.

 

	a)		The Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company
or any Subsidiary or to an affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may,
at its expense, require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that
such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any
such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this
Agreement.

 

	b)		The Purchaser agrees to the imprinting, so long as is required by this Section 4.1(b), of
a legend on any of the Securities in the following form:

 

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

 

 

    	 	 	 

     

    

 

	c)		Certificates evidencing the Common Shares underlying the Note and the Warrant shall not contain
any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement (including the Registration
Statement) covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Common Shares
pursuant to Rule 144 , or (iii) if such Common Shares are eligible for sale under Rule 144, or (iiv) if such legend is not required under
applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission).
The Company shall, at its expense, cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the
Effective Date if required by the Company’s transfer agent to effect the removal of the legend hereunder. If all or any portion
of a Note is converted or Warrant is exercised at a time when there is an effective registration statement to cover the resale of the
common shares, or if such common shares may be sold under Rule 144or if such legend is not otherwise required under applicable requirements
of the Securities Act (including judicial interpretations thereof and pronouncements issued by the staff of the Commission) then such
common shares shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend
is no longer required under this Section 4.1(c), it will, no later than two Business Days following the delivery by a Purchaser to the
Company or the Company’s transfer agent of a certificate representing common shares issued with a restrictive legend (such third
Business Day, the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing
such shares that is free from all restrictive and other legends. Neither the Company may make any notation on its records or give instructions
to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. Certificates for common shares
subject to the legend removal hereunder shall be transmitted by the transfer agent of the Company to the Purchaser by crediting the account
of the Purchaser’ prime broker with the DTC.

 

	d)		In addition to the Purchaser’s other available remedies, the Company shall pay to each
Purchaser, in cash, as partial liquidated damages and not as a penalty, $1000 per Trading Day for each Trading Day after the Legend Removal
Date until such certificate is delivered without a legend. Nothing herein shall limit each Purchaser’ right to pursue actual damages
for the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and each
Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief.

 

	e)		The Purchaser agrees that the removal of the restrictive legend from certificates representing
Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance that such Purchaser will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or
an exemption therefrom.

 

4.2  
Acknowledgment of Dilution. The Company and its Subsidiaries acknowledge that the issuance of the Securities may result in dilution
of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company and its Subsidiaries
further acknowledge that its obligations under the Transaction Documents, including without limitation its obligation to issue the Common
Shares underlying the Notes pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set
off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company or its Subsidiaries may
have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders
of the Company and its Subsidiaries.

 

4.3   Furnishing of Information Rule 144 Availability. As long as any Purchaser owns Securities, if the Company is not required to file
reports pursuant to the Exchange Act, it will prepare and furnish to such Purchaser and make publicly available in accordance with Rule
144(c) such information as is required for such Purchaser to sell the Securities under Rule 144. The Company further covenants that it
will take such further action as any holder of Securities may reasonably request, all to the extent required from time to time to enable
such Person to sell such Securities without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144.

 

 

    	 	 	 

     

    

 

At all times from the date hereof through
and including the date none of the Conversion Shares are outstanding (the “Required Period”) the Company shall ensure each
Purchaser can sell the pursuant to and in accordance with Rule 144 under the Securities Act. If, (i) at any time during the Required Period,
the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) under the Securities Act
(a “Public Information Failure”), or (ii) the Company shall fail to take such action as is reasonably requested by the Purchaser
to enable the Purchasers to sell any of the shares received in connection with the Notes pursuant to Rule 144 under the Securities Act
(including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s
transfer agent as may be reasonably requested from time to time by the Purchasers and otherwise fully cooperate with Purchasers and each
Purchaser’s broker to effect such sale of the shares of common stock received in connection with the Notes, Additional Notes, Warrants
or Additional Warrants pursuant to Rule 144 under the Securities Act) (a “Process Failure”) then, in either case, in addition
to the Purchaser’s other available remedies, the Company shall pay to Purchasers, as liquidated damages and not as a penalty, by
reason of any such delay in or reduction of its ability to sell the Conversion Shares, an amount in cash equal to two (2%) percent of
up to the original aggregate principal amount of the Notes and Additional Notes on the day of a Public Information Failure or Process
Failure, as applicable, and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty (30) days), thereafter, until
(a) in the case of a Process Failure, the date such Process Failure is cured, or (b) in the case of a Public Information Failure, the
date such Public Information Failure is cured. Notwithstanding anything to the contrary provided herein, liquidated damages for each Process
Failure or Public Information Failure shall not commence to accrue for a period of 5 days from the date of any such Process Failure and/or
Public Information Failure. The payments to which the Purchasers shall be entitled pursuant to this Section 4.3 are referred to herein
as “Rule 144 Failure Payments”. Rule 144 Failure Payments shall be paid on the earlier of (i) the last day of the calendar
month during which such Rule 144 Failure Payments are incurred and (ii) the third (3rd) Trading Day after the event or failure giving
rise to the Rule 144 Failure Payments is cured.

 

4.4  
Integration. The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer
for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that
would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act
of the sale of the Securities to the Purchaser or that would be integrated with the offer or sale of the Securities for purposes of the
rules and regulations of any Trading Market.

 

4.5 Securities Laws Disclosure; Publicity.
The Company shall by 9:00 a.m. (New York City time) on the Trading Day immediately following the date hereof file a Current Report on
Form 8-K, including the Transaction Documents as exhibits thereto, with the SEC. From and after the issuance of such press release, the
Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the
Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection
with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company
acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between
the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand,
and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and the Purchaser shall consult with
each other in issuing any press releases with respect to the transactions contemplated hereby. Notwithstanding the foregoing, the Company
shall not publicly disclose the name of the Purchaser, or include the name of the Purchaser in any filing with the Commission or any regulatory
agency or Trading Market, without the prior written consent of the Purchaser, except (i) as required by federal or state securities law
and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide such
Purchaser with notice of such disclosure permitted under subclause (i) or (ii).

 

4.6 Shareholder Rights Plan.
No claim will be made or enforced by the Company or its Subsidiaries or, to the knowledge of any such party, any other Person that any
Purchaser is an “Acquiring Person” under any shareholder rights plan or similar plan or arrangement in effect or hereafter
adopted by the Company or its Subsidiaries, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement,
by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company any of its Subsidiaries
and any Purchaser. The Company and its Subsidiaries shall conduct its business in a manner so that it will not become subject to the Investment
Company Act.

 

 

    	 	 	 

     

    

 

4.7 Use of Proceeds.
The Company shall use the net proceeds from the sale of the Securities hereunder to provide funding for the following purposes: player
acquisition, marketing and general working capital, and to pay fees and expenses (fees and expenses reasonably satisfactory to the Investor)
incurred in connection herewith. The Company may not use funds at any time to repay indebtedness, lend money, give credit or make advances
to any officers, directors, employees, affiliates or debtholders of the Company or its Subsidiaries.

 

4.8  
Reimbursement. If the Purchaser becomes involved in any capacity in any Proceeding by or against any Person who is a stockholder
of the Company or its Subsidiaries (except as a result of sales, pledges, margin sales and similar transactions by the Purchaser to or
with any current stockholder), solely as a result of such Purchaser’ acquisition of the Securities under this Agreement, the Company
and its Subsidiaries will reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any investigation
preparation and travel in connection therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations
of the Company and its Subsidiaries under this paragraph shall be in addition to any liability which the Company or such Subsidiaries
may otherwise have, shall extend upon the same terms and conditions to any Affiliates of the Purchaser who are actually named in such
action, proceeding or investigation, and partners, directors, agents, employees and controlling persons (if any), as the case may be,
of such Purchaser and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Company, its Subsidiaries, the Purchaser and any such Affiliate and any such Person. The Company and its Subsidiaries
also agree that neither the Purchaser nor any such Affiliates, partners, directors, agents, employees or controlling persons shall have
any liability to the Company, its Subsidiaries, or any Person asserting claims on behalf of or in right of the Company, its Subsidiaries,
solely as a result of acquiring the Securities under this Agreement.

 

4.9   Indemnification
of Purchaser. Subject to the provisions of this Section 4.9, the Company and its Subsidiaries will indemnify and hold the Purchaser
and its directors, officers, shareholders, partners, employees and agents (and any other Persons with a functionally equivalent role
of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents,
members, partners or employees of such Person (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) (each, a “Purchaser Party”) harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court
costs and reasonable attorneys’ fees and costs of investigation that any Purchaser Party may suffer or incur as a result of, arising
from, or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company and its Subsidiaries
in this Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser, or any of them or their respective
Affiliates, by any stockholder of the Company or its Subsidiaries or who is not an Affiliate of such Purchaser, with respect to any of
the transactions contemplated by the Transaction Documents (in each case unless such action is based upon a breach of such Purchaser’
representation, warranties or covenants under the Transaction Documents or any agreements or understandings any Purchaser may have with
any such stockholder or any violations by such Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes
fraud, gross negligence or willful misconduct). If any action shall be brought against any Purchaser Party in respect of which indemnity
may be sought pursuant to this Agreement, the Purchaser Party shall promptly notify the Company in writing, and the Company shall have
the right to assume the defense thereof with counsel of its own choosing. Any Purchaser Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense
of the Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing,
(ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there
is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company
and the position of the Purchaser Party. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed;
or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made by the Purchaser in this Agreement or in the other Transaction
Documents.

 

 

    	 	 	 

     

    

 

4.10  
Reservation and Listing of Securities. At all times and as long as any of the Purchaser owns any outstanding Notes or Warrants,
the Company shall take all action necessary (and/or reasonably requested by the Purchaser) to at all times have authorized, and reserved
out of its authorized but unissued shares of Common Stock for the purpose of issuance to the Purchaser upon conversions or in respect
of interest on the Notes and upon exercise or in respect of the Warrants by the Purchaser or exercise of the Warrants and Additional Warrants,
no less than the two (2x) the sum of the maximum number of Conversion Shares and Warrant Shares issuable (including interest and original
issue discount, and without taking into account any limitations on the issuance thereof) pursuant to the conversion of the Notes or exercisable
pursuant to the Warrants (the “Required Reserved Amount”). If at any time the number of shares of Common Stock authorized
and reserved for issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action
necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders
to authorize additional shares to meet the Company’s obligations under this Agreement and the Transaction Documents, in the case
of an insufficient number of authorized shares, obtain stockholder approval of an increase in such authorized number of shares, and voting
the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized
shares is sufficient to meet the Required Reserved Amount. The Company shall initially reserve shares of Common Stock on its own books
and records (the “Reserve”) for the issuance of Conversion Shares, Warrant Shares and any other shares of Common Stock required
to be issued by the Company to the Purchaser pursuant to the Transaction Documents, which initial reservation shall be authorized by the
unanimous written consent of the Company’s Board of Directors delivered at Closing. From and after the date of this Agreement through
and including the date all of the Company’s and each of its Subsidiaries’ Indebtedness and all other obligations owed to the
Purchasers pursuant to this Agreement and the other Transaction Documents, including, but not limited to, the Note is paid and performed
in full, confirmation of which must be obtained by in writing from the Purchaser, the Company shall (a) issue or cause its Transfer Agent
to issue the shares received on conversion or exercise or in respect of interest and all other shares of Common Stock required to be issued
to such Purchaser or its broker only (subject to the immediately following clause (b)), (b) issue or cause its Transfer Agent to issue
shares of Common Stock to such Purchaser or its broker under the Notes from sources other than the Reserve, unless such Purchaser delivers
to the Company written pre-approval of such issuance from the Reserve, and (c) not reduce the Reserve under any circumstances, unless
such Purchaser delivers to the Company written pre-approval of such reduction. The Company shall immediately add shares of Common Stock
to the Reserve to ensure that the Required Reserve Amount (the greater of (i) and (ii) being the “Reserve Minimum”) are in
the Reserve at all times. The Company shall increase the amount of shares of Common Stock in the Reserve upon receipt of written notice,
which may be in email form, by such Purchaser (and/or its assigns) in order to ensure that the Reserve contains the Reserve Minimum and/or
at any time the number of shares in the Reserve is less than the Reserve Minimum. Notwithstanding to the contrary provided herein or elsewhere,
if at any time the number of shares of Common Stock in the Reserve, is less than the Required Reserved Amount, such Purchaser may send
written notice to the Company’s then Transfer Agent to increase out of the Company’s authorized but unissued shares of Common
Stock in such number of additional shares of Common Stock so the Reserve consists of at least the Required Reserve Amount, provided, that
the number of shares of Common Stock in the Reserve shall never be decreased or used for any other purposes other than for issue to the
Holder upon each conversion by such Purchaser of the Notes and each exercise by such Purchaser of the Warrants into shares of common stock.
As a condition to Closing, all actions required by the Company in this Section shall be approved by the unanimous written consent of the
Company’s Board of Directors which shall be delivered to the Purchasers at Closing.

 

4.11   Subsequent Equity Sales. In addition to the limitations set forth herein, from the date hereof until such time the Notes have been
repaid or converted in full, the Company shall be prohibited from effecting or entering into an agreement to effect any Subsequent Financing
involving a “Variable Rate Transaction” or an “MFN Transaction” (each as defined below). The term
“Variable Rate Transaction” shall mean a transaction in which the Company issues or sells (i) any debt or equity securities
that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A)
at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for
the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise
or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon
the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common
Stock or (ii) enters into any agreements, including but not limited to an equity line of credit, whereby the Company may sell securities
at a future determined price tied to the market price of the Common Stock. The term “MFN Transaction” shall mean a
transaction in which the Company issues or sells any securities in a capital raising transaction or series of related transactions which
grants to an investor the right to receive additional shares based upon future transactions of the Company on terms more favorable than
those granted to such investor in such offering. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude
any such issuance, which remedy shall be in addition to any right to collect damages. Notwithstanding the foregoing, this Section 4.11
shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction or MFN Transaction shall be an Exempt Issuance.

 

 

    	 	 	 

     

    

 

4.12   
Equal Treatment of Purchasers. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction
Documents. Further, the Company shall not make any payment of principal or interest on the Notes in amounts which are disproportionate
to the respective principal amounts outstanding on the Notes at any applicable time. For clarification purposes, this provision constitutes
a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company
to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

4.13  
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under
applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly
upon request of any Purchaser.

 

4.14 Most Favored Nations. Until such time
as the Company has consummated a Qualified Offering which results in an up-listing of the Common Stock onto a national exchange i.e. NASDAQ
or NYSE American. if the Company engages in any future financing transactions with a third-party investor (not including such a Qualified
Financing, except to the extent it relates to conversion, exercise and anti-dilution provisions of the Transaction Documents), the Company
will provide the Holder with written notice (the “MFN Notice”) thereof promptly but in no event less than 10 days prior
to closing any financing transactions. Included with the MFN Notice shall be a copy of all documentation relating to such financing transaction
and shall include, upon written request of the Holder, any additional information related to such subsequent investment as may be reasonably
requested by the Holder. In the event the Holder determines that the terms of the subsequent investment are preferable in any respect
to the terms of the Securities of the Company issued to the Holder pursuant to the terms of the Purchase Agreement, the Holder will notify
the Company in writing. Promptly after receipt of such written notice from the Holder, the Company agrees to amend and restate the Securities,
and, as necessary, adjust the number of bonus shares, to include the preferable term contained in the instruments evidencing the subsequent
investment and any bonus shares issued in connection therewith.

 

4.15. Right of Participation.

 

At any time within the 18 months subsequent to
the Closing, upon any issuance by the Company or any of its Subsidiaries of debt or common stock or common stock equivalents for cash
consideration, indebtedness or a combination of units thereof, other than in an underwritten public offering (a “Subsequent Financing”),
the Purchaser shall have the right to participate in up to its investment amount under this Agreement and Purchaser’s Note but not
more than 25% of the Subsequent Financing (the “Participation Maximum”) on the same terms, conditions and price provided for
in the Subsequent Financing. At least five (5) Business Days prior to the closing of the Subsequent Financing, the Company shall deliver
to each Purchaser a written notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall
ask the Purchaser if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall promptly,
but no later than one (1) Business Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing
Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised
thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term
sheet or similar document relating thereto as an attachment. 

 

If the Purchaser desires to participate in such Subsequent Financing
must provide written notice to the Company by not later than 5:30 p.m. (New York City time) on the fifth (5th) Business Day
after the Purchaser has received the Pre-Notice that such Purchaser is willing to participate in the Subsequent Financing, the amount
of such Purchaser’s participation (up to the Participation Maximum), and representing and warranting that such Purchaser has such
funds ready, willing, and available for investment on the from the Purchaser as of such fifth (5th) Business Day, otherwise
the Purchaser shall be deemed to have notified the Company that it does not elect to participate. 

 

 

    	 	 	 

     

    

 

If by 5:30 p.m. (New York City time) on the fifth (5th)
Business Day after the Purchaser have received the Pre-Notice, notifications by the Purchaser to the Company of their willingness to participate
in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total amount of the Participation
Maximum, then the Company may effect the remaining portion of such Participation Maximum and the balance of the Subsequent Financing on
the terms and with the Persons set forth in the Subsequent Financing Notice. 

 

Notwithstanding anything to the contrary in this Section 4.15 and unless
otherwise agreed to by the Purchaser, the Company shall either confirm in writing to the Purchaser that the transaction with respect to
the Subsequent Financing has been abandoned or shall publicly disclose its intention to issue the securities in the Subsequent Financing,
in either case in such a manner such that the Purchaser will not be in possession of any material, non-public information, by the tenth
(10th) Business Day following delivery of the Subsequent Financing Notice. If by such tenth (10th) Business Day,
no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment
of such transaction has been received by the Purchaser, such transaction shall be deemed to have been abandoned and the Purchaser shall
not be deemed to be in possession of any material, non-public information with respect to the Company or any Subsequent Financing.

 

4.16.
UK Liens. The Company will cause the Guarantor to take all actions and make any required filings in the UK within 5 business days
of the Closing Date to perfect the Purchaser’s first priority security interest in the assets set forth in the Debenture and the
Share Charge. Upon satisfaction of the Secured Obligations ( as defined in the Debenture) in full, at the request of the Purchaser, 
the Company will cause the Guarantor at its expense to take all action necessary
to remove such liens on such assets.

 

MISCELLANEOUS

 

5.1    Termination.
This Agreement may be terminated by the Purchaser, as to such Purchaser’s obligation hereunder by written notice to the other parties,
if the Closing has not been consummated on or before November 30, 2021; provided that no such termination will affect the right of any
party to sue for any breach by the other party (or parties).

 

5.2    Fees.
At the Closing, the Company has agreed to reimburse Purchaser (i) $20,000 for all Purchasers (less any amounts previously received; such
balance may be treated as proceeds advanced and added to the face of the Note) for legal expenses incurred in connection with the transaction,
and (ii) all other reasonable third-party costs and expenses incurred in connection with the due diligence and documentation of the transaction
by the Purchaser (e.g., background checks (to the extent not provided to Purchaser), lien searches and UCC filings, etc. The Company shall
pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance of any Securities.

 

5.3    Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been incorporated into such documents, exhibits and schedules.

 

5.4    Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via email or facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time)
on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via email or
facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30
p.m. (New York City time) on any Business Day, (c) the second Business Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto.

 

5.5   
Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case
of amendments, by the Company, and the Majority Purchaser or, in the case of a waiver, by the party against whom enforcement of any such
waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such
right.

 

 

    	 	 	 

     

    

 

5.6   
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

 

5.7   Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder. Any Purchaser may assign any or all of its
rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to such “Purchaser.”

 

5.8    No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.09.

 

5.9   Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting
in the City of New York. Each party 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 (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this 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. The parties hereby waive
all rights to a trial by jury. If the Purchaser shall commence an action or proceeding to enforce any provisions of the Transaction Documents,
then it shall be reimbursed by the Company for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

5.10   
Survival. The representations and warranties contained herein shall survive for a period of 12 months following the Closing, the
delivery of the Securities and the conversion or payment of the Notes.

 

5.11   
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page or data file
were an original thereof.

 

5.12   
Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

 

 

    	 	 	 

     

    

 

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

 

5.14  
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed,
the Company and its Subsidiaries shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate
or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement
Securities.

 

5.15  
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages,
each of the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would
be adequate.

 

5.16  
Payment Set Aside. To the extent that the Company or its Subsidiaries makes a payment or payments to any Purchaser pursuant to
any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such
enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, such Subsidiary, a trustee, receiver or
any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause
of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17  
Usury. To the extent it may lawfully do so, the Company and its Subsidiaries hereby agrees not to insist upon or plead or in any
manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever
enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser
in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any
Transaction Document, it is expressly agreed and provided that the total liability of the Company and its Subsidiaries under the Transaction
Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when
aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed
such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents
is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate
of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date forward, unless such
application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the
Company or any Purchaser to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied
by the Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess
to be at the Purchaser’s election.

 

5.18   
Liquidated Damages. The Company’s and its Subsidiaries obligations to pay any partial liquidated damages or other amounts
owing under the Transaction Documents is a continuing obligation of the Company and its Subsidiaries and shall not terminate until all
unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to
which such partial liquidated damages or other amounts are due and payable shall have been canceled.

 

 

    	 	 	 

     

    

 

5.15   
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document
are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other
Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be
entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out
of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding
for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction
Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the
Company and not because it was required or requested to do so by the Purchasers.

 

5.20    Customer
Identification - USA Patriot Act Notice; OFAC and Bank Secrecy Act. Each Purchaser hereby notifies the Company that pursuant to the
requirements of the Act and such Purchaser’s policies and practices, each Purchaser is required to obtain, verify and record certain
information and documentation that identifies the Company, which information includes the name and addresses of Company and such other
information that will allow the Purchasers to identify the Company in accordance with the Act. In addition, the Company shall (a) ensure
that no person who owns a controlling interest in or otherwise controls the Company is or shall be listed on the Specially Designated
Nationals and Blocked Person List or other similar lists maintained by OFAC, the Department of the Treasury or included in any Executive
Orders, (b) not use or permit the use of the proceeds of the Notes to violate any of the foreign asset control regulations of OFAC or
any enabling statute or Executive Order relating thereto, and (c) comply, and cause any of its Subsidiaries to comply, with all applicable
Bank Secrecy Act (“BSA”) laws and regulations, as amended.

 

 

(Signature Pages Follow)

 

    	 	 	 

     

    

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

GAMING TECHNOLOGIES, INC.

Address for Notice: 

 

Two Summerlin

Las Vegas, NV 89135, USA

Telephone:

Email:

By:____________________________________

Name: Jason Drummond 

Title: CEO

 

 

 

With a copy to (which shall not constitute notice):

 

Sichenzia Ross Ference LLP

1185 Avenue of the Americas, 31st Floor

New York, NY 10036

 

Attn: Barrett S. DiPaolo

Telephone: 212-930-9700

Fax: 212-930-9725

Email: bdipaolo@srf.law  

 

 

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

 

    	 	 	 

     

    

 

 

[PURCHASER SIGNATURE
PAGES TO COMPANY, SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have
caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

 

Name of Investing Entity: ________________________________________________________

Signature of Authorized Signatory of Investing Entity: __________________________________

Name of Authorized Signatory: ____________________________________________________

 

Title of Authorized Signatory: _____________________________________________________

Email Address of Authorized Entity:_______________________________________________

 

Address for Notice of Investing Entity:

 

 

 

 

Address for Delivery of Securities for Investing Entity (if not same
as above):

 

 

 

 

 

 

Subscription Amount: $ 

Principal Amount of Notes: $

Warrants: 

 

 

 

    	 	 	 

     

    

 

EXHIBIT A

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT B

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT C

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT D

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT E

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT F

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT G

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT H

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT I

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT J

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT K

 

 

 

 

    	 	 	 

     

    

 

 

EXHIBIT LExhibit 10.2

 

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

 

Original Issue Date: November 18, 2021

 

$1,666,666.67

 

10% ORIGINAL ISSUE DISCOUNT SENIOR SECURED CONVERTIBLE NOTE

 

DUE NOVEMBER 18, 2022

 

THIS 10 % ORIGINAL ISSUE DISCOUNT SENIOR SECURED NOTE is one of a series
of duly authorized and validly issued 10 % Original Issue Discount Senior Secured Convertible Notes of Gaming Technologies, Inc., a Delaware
corporation (the “Company”), having its principal place of business at Two Summerlin, Las Vegas, NV 89135, designated as its
10% Original Issue Discount Senior Secured Convertible Note due November 18, 2022 (this Note, the “ Note ” and, collectively
with the other Notes of such series, the “ Notes”). The Notes shall be convertible into shares of common stock of in
the Company on the terms provided herein.

 

FOR VALUE RECEIVED, the Company promises to pay to PURITAN PARTNERS
LLC, a New York limited liability company, or its registered assigns (the “ Holder ”), or shall have paid pursuant
to the terms hereunder, the principal sum of $1,666,666.67 on November 18, 2022 (the “ Maturity Date ”) or such earlier
date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted
and then outstanding principal amount of this Note in accordance with the provisions hereof. This Note is subject to the following additional
provisions:

 

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

 

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

 

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

 

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

 

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

 

 

    	 	1	 

     

    

 

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

 

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

 

“Change of Control Transaction” shall have the meaning
set forth in the Purchase Agreement.

 

“Closing Bid Price” means on any particular date
(a) the last reported closing bid price per share of Common Stock on such date on the Trading Market (as reported by Bloomberg L.P. at
4:15 p.m. (New York City time)), or (b) if there is no such price on such date, then the closing bid price on the Trading Market on the
date nearest preceding such date (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (c) if the Common Stock is not
then listed or quoted on a Trading Market and if prices for the Common Stock are then reported in the “pink sheets” published
by Pink Sheets LLC (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) if the shares of Common Stock are not then publicly traded the fair market value of a share
of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company .

 

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

 

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

 

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

 

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

 

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

 

“Note Register” shall have the meaning set forth
in Section 2(c).

 

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

 

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

 

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

 

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

 

“Exempt Issuance” means the issuance of (a) options
to purchase shares of Common Stock to employees, officers or directors of the Company, pursuant to any stock or option plan duly adopted
by the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose,
(b) shares of Common Stock issuable upon exercise, conversion or pursuant to the terms of the Securities, or convertible securities, options
or warrants issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of
this Agreement to increase the number of such securities or to decrease the exercise, exchange or conversion price of any such securities,
(c) shares issued to unaffiliated third parties for legal, financial or other services provided to the Company, and (d) securities issued
pursuant to acquisitions or strategic transaction, provided that any such issuance shall only be to a person which is, itself or through
its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company receive benefits
in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing in securities.

 

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

 

 

    	 	2	 

     

    

 

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

 

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

 

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

 

“Majority Purchasers” shall mean holders of 50%
of the then outstanding principal amount of the Notes, so long as such 50% includes Puritan Partners LLC as lead investor.

 

“Mandatory Default Amount” means the sum of (a)
125% of the then outstanding principal amount of the Note, (b) accrued but unpaid interest through maturity and (c) all liquidated damages
and other amounts due in respect of the Note.

 

“Monthly Redemption” means the redemption of this
Note pursuant to Section 6(b) hereof.

 

“Monthly Redemption Amount” means, as to a Monthly
Redemption, one sixth of the original principal amount or, if less, the remaining principal balance of this Note, plus accrued but unpaid
interest, liquidated damages and any other amounts then owing to the Holder in respect of this Note.

 

“Monthly Redemption Date” means the eighteenth day
of each month, commencing immediately upon May 18, 2022 and terminating upon the full redemption of this Note.

 

“Monthly Redemption Notice” shall have the meaning
set forth in Section 6(b) hereof.

 

“New York Courts” shall have the meaning set forth
in Section 9(d).

 

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

 

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

 

“Optional Redemption Amount” means at (i) 115% of
the principal amount thereof plus any unpaid accrued interest to the date of repayment if within the first 3 months of the Closing Date
and (i) 120% of the principal amount thereof plus any unpaid accrued interest to the date of repayment if on or after the first 3 months
of the Closing Date, plus all other liquidated and other amounts due in respect of the Note.

 

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

 

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

 

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

 

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

 

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

 

“Permitted Indebtedness” means (a) the indebtedness
evidenced by the Notes, (b) lease obligations and purchase money indebtedness of up to $100,000, in the aggregate, incurred in connection
with the acquisition of capital assets and lease obligations with respect to newly acquired or leased assets and (c) unsecured indebtedness
that is expressly subordinate to the Notes pursuant to a written subordination agreement with the Purchasers that is acceptable to each
Purchaser in its sole and absolute discretion,

 

 

    	 	3	 

     

    

 

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

 

“Purchase Agreement” means the Securities Purchase
Agreement, dated as of November 18, 2021 between the Company, and the original Holders, as amended, modified or supplemented from time
to time in accordance with its terms.

 

“Qualified Offering” shall
have the meaning set forth in the Securities Purchase Agreement.

 

“Registration Rights Agreement” means the Registration
Rights Agreement, dated as of the date of the Purchase Agreement, among the Company, and the original Holders, as amended, modified or
supplemented from time to time in accordance with its terms.

 

“Registration Statement” means a registration statement
that registers the resale of all Conversion Shares and the Warrant Shares, names the Holder as a “selling stockholder” therein,
and meets the requirements of the Registration Rights Agreement.

 

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

 

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

 

“Subsidiary” shall have the meaning set forth in
the Purchase Agreement.

 

“Trading Day” means a day on which the New York
Stock Exchange is open for business.

 

“Trading Market” means the following markets or
exchanges on which the Common Stock is listed or quoted for trading on the date in question: the Nasdaq Capital Market, the Nasdaq Global
Market, the Nasdaq Global Select Market, the New York Stock Exchange, and the NYSE American LLC.

 

“Transaction Documents” shall have the meaning set
forth in the Purchase Agreement.

 

“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 for trading 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 OTC Bulletin Board 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 quoted for trading on the
OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink Sheets, LLC
(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 Holder and reasonably acceptable to the Company.

 

“Warrants Shares” means shares of common stock of
the Company issuable upon exercise of the Warrants in accordance with the terms hereof.

 

 

    	 	4	 

     

    

 

Section 2. Interest.

 

a)  
Payment of Interest in Cash. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding
principal amount of this Note at the rate of 10% per annum, accruing from the date hereof, payable monthly, commencing on and after the
third month after the Closing Date, on the eighteenth calendar day of each month, beginning on February 18, 2022, on each Monthly Redemption
Date (as to that principal amount then being redeemed), on each Conversion Date (as to that principal amount then being converted), on
each Optional Redemption Date (as to that principal amount then being redeemed) and on the Maturity Date (each such date, an “Interest
Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding
Business Day), in cash.

 

b)     
Interest Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day
periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together with
all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest hereunder
will be paid to the Person in whose name this Note is registered on the records of the Company regarding registration and transfers of
this Note (the “Note Register”).

 

c)      
Late Fee. In addition to all other amounts required to be paid to Holder hereunder, all overdue accrued and unpaid principal
and interest to be paid hereunder shall entail a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate
permitted by applicable law (the “Late Fees”) which shall accrue daily from the date such principal and interest is
due hereunder through and including the date of actual payment in full.

 

Section 3.  Registration of Transfers and Exchanges.

 

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

 

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

 

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

 

Section 4.  Conversion.

 

a)      
Voluntary Conversion. At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall
be convertible, in whole or in part, into shares of common stock of the Company (the “Common Stock”) at the option of the
Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 4(c) hereof). The Holder shall effect
conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice
of Conversion”), specifying therein the principal amount of this Note to be converted and the date on which such conversion
shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion,
the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, the
Holder shall not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all
accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal
amount of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain records showing the principal
amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within 1 Business
Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall be controlling
and determinative in the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree
that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal
amount of this Note may be less than the amount stated on the face hereof.

 

 

    	 	5	 

     

    

 

b) Conversion Price. The Notes shall be convertible at the option
of the Investor(s) into shares of Common Stock of the Company at a fixed conversion price per share equal to the lower of (i) $2.75, and
(ii) the price of the Common Stock in a Qualified Offering (or if units consisting of Common Stock and warrants are issued in the Qualified
Offering, the Notes shall be convertible into such units at the price of the units) (the “Conversion Price”).

 

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

 

d) Mechanics of Conversion.

 

i. Conversion Shares Issuable Upon Conversion of Principal Amount.
Subject to Section 4(d)(vii), the number of Conversion Shares issuable upon a conversion hereunder shall be determined by the quotient
obtained by dividing (x) the outstanding principal amount of this Note to be converted by (y) the Conversion Price.

 

 

    	 	6	 

     

    

 

ii. Delivery
of Certificate Upon Conversion.Not
later than two Trading Days after each Conversion Date (the “Share Delivery Date”), the Company shall deliver, or cause
to be delivered, to the Holder (A) a certificate or certificates representing the Conversion Shares which, on or after the earlier of
(i) the six month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading
restrictions (other than those which may then be required by the Purchase Agreement ) representing the number of Conversion Shares being
acquired upon the conversion of this Note and (B) a bank check in the amount of accrued and unpaid interest. On or after the earlier of
(i) the six-month anniversary of the Original Issue Date or (ii) the Effective Date, the Company shall use its best efforts to deliver
any certificate or certificates required to be delivered by the Company under this Section 4(d) 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 Holder by the second Trading
Day after the Conversion Date, the Holder shall be entitled to elect by written notice to the Company at any time on or before its receipt
of such certificate or certificates, to rescind such Conversion, in which event the Company shall promptly return to the Holder any original
Note delivered to the Company and the Holder shall promptly return to the Common Stock certificates representing the principal amount
of this Note unsuccessfully tendered for conversion to the Company.

 

iv. Obligation Absolute; Partial Liquidated
Damages. If the Company fails for any reason to deliver to the Holder such certificate or certificates pursuant to Section 4(f)(ii)
by the third Trading Day after the Conversion Date, the Company shall pay to such Holder, in cash, as liquidated damages and not as a
penalty, of $1000 for each Trading Day after such third Trading Day until such certificates are delivered. In addition, if the Company
fails to deliver instructions to the Transfer Agent by the day required above, the Company shall be required to pay an additional amount
in cash, as liquidated damages and not as a penalty, of $1,000 for each date until such notice is given to the Transfer Agent as required.
The Company’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 Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company
or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might
otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares; provided,
however, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder.
In the event a Holder of this Note shall elect to convert any or all of the outstanding principal amount hereof, the Company may not refuse
conversion based on any claim that the Holder or anyone associated or affiliated with the Holder of has been engaged in any violation
of law, agreement or for any other reason, unless, an injunction from a court, on notice, restraining and or enjoining conversion of all
or part of this Note shall have been sought and obtained and the Company posts a surety bond for the benefit of the Holder in the amount
of 150% of the principal amount of this Note outstanding, which is subject to the injunction, which bond shall remain in effect until
the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder to the extent it obtains
judgment. In the absence of an injunction precluding the same, the Company shall issue Conversion Shares or, if applicable, cash, upon
a properly noticed conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default
pursuant to Section 8 herein for the Company’s failure to deliver Conversion Shares within the period specified herein and such
Holder shall have the right to pursue all remedies available to it 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 Holders from seeking to enforce damages pursuant
to any other Section hereof or under applicable law. In the absence of such injunction, the Company shall issue Conversion Shares or,
if applicable, cash, upon a properly noticed conversion. If the Company fails for any reason to deliver to the Holder such certificate
or certificates pursuant to Section 4(d)(ii) by the third Trading Day after the Conversion Date, the Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing
to $20 per Trading Day on the fifth (5th) Trading Day after such liquidated damages begin to accrue) for each Trading Day after
such third (3rd) Trading Day until such certificates are delivered. Nothing herein shall limit a Holder’s right to pursue
actual damages or declare an Event of Default pursuant to Section 8 hereof for the Company’s failure to deliver Conversion Shares
within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall
not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law

 

 

    	 	7	 

     

    

 

v. Compensation for Buy-In on Failure to Timely Deliver Certificates
Upon Conversion. In addition to any other rights available to the Holder, if the Company fails for any reason to deliver to the Holder
such certificate or certificates by the Share Delivery Date pursuant to Section 4(d)(ii), and if after such Share Delivery Date the Holder
is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled
to receive upon the conversion relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in
cash to the Holder (in addition to any other remedies available to or elected by the Holder) the amount by which (x) the Holder’s
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the
option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of the attempted conversion
or deliver to the Holder the number of shares of Common Stock that would have been issued if the Company had timely complied with its
delivery requirements under Section 4(d)(ii). For example, if the Holder purchases Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to an attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares
(including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately
preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver 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. The Company
covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole
purpose of issuance upon conversion of this Note and exercise of the Warrants, as herein provided, free from preemptive rights or any
other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Notes), not less than two times
the aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement)
issuable (taking into account the adjustments and restrictions of Section 5) upon the conversion of the outstanding principal amount of
this Note and payment of interest hereunder and exercise of the outstanding Warrants. The Company covenants that all shares of Common
Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable and, if the Registration
Statement is then effective under the Securities Act, shall be registered for public sale in accordance with such Registration Statement.

 

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 Holder would otherwise be entitled
to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment in respect of such final fraction in
an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.

 

viii. Transfer Taxes. The issuance of certificates for shares
of the Common Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar
taxes that may be payable in respect of the issue or delivery of such certificates, provided that, the Company shall not be required to
pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion
in a name other than that of the Holder of this Note so converted and the Company shall not be required to issue or deliver such certificates
unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

 

 

 

    	 	8	 

     

    

 

Section 5. Certain Adjustments.

 

a) Stock Dividends and Stock Splits. If the Company, at any
time while this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of
Common Stock or shares of Common Stock or any Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon conversion of, or payment of interest on, the Notes), (ii) subdivides outstanding shares of Common
Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into
a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock
of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding any treasury shares of the Company ) outstanding immediately before such event and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become
effective immediately after the record date for the determination of holders 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 Company sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or
issues (or announces any sale, grant or any option to purchase or other disposition), any common stock or common stock equivalents entitling
any Person to acquire shares of common stock at an effective price per share that is lower than the then Conversion Price (such lower
price, the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if
the holder of the common stock or common stock equivalents so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which
are issued in connection with such issuance, be entitled to receive shares of common stock at an effective price per share that is lower
than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive
Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. 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 5(b)
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 1 Business Day following
the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance
price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance
Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section
5(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base
Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion
Price in the Notice of Conversion.

 

c) Subsequent Rights Offerings. If the Company, at any time
while the Note is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and not to Holders) entitling them
to subscribe for or purchase shares of Common Stock at a price per share that is lower than the then Conversion Price , then the Conversion
Price shall be multiplied by a fraction of which the denominator shall be the number of shares of the Common Stock outstanding on the
date of issuance of such rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase,
and of which the numerator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights or warrants
plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming delivery to the Company
in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at such price. Such adjustment
shall be made whenever such rights or warrants are issued, and shall become effective immediately after the record date for the determination
of stockholders entitled to receive such rights, options or warrants.

 

d) Pro Rata Distributions. If the Company, at any time while
this Note is outstanding, distributes to all holders of Common Stock (and not to the Holders) evidences of its indebtedness or assets
(including cash and cash dividends) or rights or warrants to subscribe for or purchase any security (other than the Common Stock, which
shall be subject to Section 5(b)), then in each such case the Conversion Price shall be adjusted by multiplying such Conversion Price
in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction
of which the denominator shall be the then price of the common stock or the VWAP determined as of the record date mentioned above, and
of which the numerator shall be such then price of the common stock or the VWAP on such record date less the then fair market value at
such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common
Stock as determined by the Board of Directors of the Company in good faith. In either case the adjustments shall be described in a statement
delivered to the Holder describing the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable
to 1 share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately
after the record date mentioned above.

 

 

    	 	9	 

     

    

 

e) Fundamental Transaction. If, at any time while this Note
is outstanding, (i) the Company effects any merger or consolidation of the Company with or into another Person, (ii) the Company effects
any sale of all or substantially all of its assets in one transaction or a series of related transactions, (iii) any tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange
their shares for other securities, cash or property, or (iv) the Company effects any reclassification of 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 (in
any such case, a “Fundamental Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have
the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence
of such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon
the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share
of Common Stock (the “Alternate Consideration”). 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 share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of one share of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following
such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving
entity in such Fundamental Transaction shall issue to the Holder a new Note consistent with the foregoing provisions and evidencing the
Holder’s right to convert such Note into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction
is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 5(e) and
insuring that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

 

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

 

g) Notice to the Holder.

 

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

 

ii. Notice to Allow Conversion by Holder. If (A) the Company
shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring
cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock
of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any
holders of stockholders of the Company or shall be required in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company , of any compulsory
share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the Company , then, in each case, the Company shall cause to be
filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at
its last address as it shall appear upon the Note Register, at least 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 t 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. The Holder is 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.

 

 

    	 	10	 

     

    

 

Section 6.  Redemption; Automatic Conversion.

 

a) Optional Redemption at Election of Company. Subject to the
provisions of this Section 6(a), at any time after Original Issue Date, the Company may, deliver a written notice to the Holder (an “Optional
Redemption Notice” and the date such notice is deemed delivered hereunder, the “Optional Redemption Notice Date”)
of its irrevocable election to redeem all of the then outstanding principal amount of this Note for cash in an amount equal to the Optional
Redemption Amount on the 20th Trading Day following the Optional Redemption Notice Date (such date, the “Optional
Redemption Date”, such 20 Trading Day period, the “Optional Redemption Period” and such redemption, the “Optional
Redemption”). The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company covenants and agrees
that it will honor all Notices of Conversion tendered from the time of delivery of the Optional Redemption Notice through the date all
amounts owing thereon are due and paid in full. The Company’s determination to pay an Optional Redemption in cash shall be applied
ratably to all of the holders of the then outstanding Notes based on their (or their predecessor’s) initial purchases of Notes pursuant
to the Purchase Agreement. In the event of any such attempt to repay the Notes, the Holder shall have the right to convert the Notes prior
to the date of any such prepayment in accordance with the conversion mechanics set forth herein.

 

b) Monthly Redemption. On each Monthly Redemption Date until
the entire original principal amount of this Note has been repaid or converted, the Company shall redeem the Monthly Redemption Amount
(the “Monthly Redemption”). The Monthly Redemption Amount payable on each Monthly Redemption Date shall be paid in
cash. Holder may convert, pursuant to Section 4(a), any principal amount of this Note subject to a Monthly Redemption at any time prior
to the date that the Monthly Redemption Amount, plus accrued but unpaid interest, liquidated damages and any other amounts then owing
to the Holder are due and paid in full.

 

Any principal amount of this Note converted between Monthly Redemption
Dates in excess of the Monthly Redemption Amount shall be applied against the last principal amount of this Note scheduled to be redeemed
hereunder, in reverse time order from the Maturity Date. The Company covenants and agrees that it will honor all Notices of Conversion
tendered up until such amounts are paid in full. The Company’s determination to pay a Monthly Redemption shall be applied ratably
to all of the holders of the then outstanding Notes based on their (or their predecessor’s) initial purchases of Notes pursuant
to the Purchase Agreement.

 

c) Redemption Procedure. The payment of cash pursuant to an
Optional Redemption or a Monthly Redemption shall be payable on the Optional Redemption Date and Monthly Redemption Date, as applicable.
If any portion of the payment pursuant to an Optional Redemption or Monthly Redemption shall not be paid by the Company by the applicable
due date, and Event of Default shall be deemed to have occurred under the Notes. Notwithstanding anything to the contrary in this Section
6, the Company’s determination to redeem in cash or its elections under Section 6(b) shall be applied ratably among the Holders
of Notes. The Holder may elect to convert the outstanding principal amount of the Note pursuant to Section 4 prior to actual payment in
cash for any redemption under this Section 6 by the delivery of a Notice of Conversion to the Company.

 

d) Fractional Shares. No fractional shares are to be issued
upon the conversion of this Note, but rather the number of shares of Common Stock to be issued shall be rounded to the nearest whole number. To
the extent that rounding up to the nearest whole number would result in a violation of Section 4(d)(vi), the Company shall pay the applicable
converting Holder an amount in cash equal to the fractional share amount multiplied by the Closing Bid Price for the Common Stock on the
such date of conversion.

 

(e) Mandatory Prepayment. The Company shall be required to offer
to prepay in cash the aggregate unpaid principal amount of the Notes at (i) 115% of such amount plus any unpaid accrued interest to the
date of repayment if within the first 3 months of the Closing Date and (ii) 120% of such plus any unpaid accrued interest to the prepayment
date if on or after the first 3 months of the Closing Date, on the sale of all or substantially all of the assets of the Company and its
subsidiaries or upon a Change of Control, on a Qualified Offering , and at Maturity. In such an event, the Investor(s) shall have the
right to convert the Notes prior to the date of any such prepayment in accordance with any of the conversion mechanics as set forth in
the Notes. Such payment shall be made on the date of each of the events specified above and in each case the Company shall if practical
have provided 20 days’ notice to Holders. In such an event, the Investor(s) shall have the right to convert the Notes prior to the
date of any such prepayment in accordance with any of the conversion mechanics as set forth herein.

 

 

    	 	11	 

     

    

 

Section 7. 
Negative Covenants. As long as any portion of this Note remains outstanding, unless the Majority Purchasers shall have otherwise
given prior written consent, the Company shall not, and shall not permit any of its Subsidiaries (whether or not a Subsidiary on the Original
Issue Date) to, directly or indirectly:

 

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

 

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

 

c) amend its
charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely
affects any rights of the Holder, provided that the foregoing shall not
include an amendment to the certificate of incorporation to increase the Company’s authorize shares of Common Stock and/or to effect
a reverse split of the Common Stock in a range from 1-for-2 and 1-for-8;

 

d) repay, repurchase or offer to repay, repurchase or otherwise acquire
more than a de minimis number of shares of its Common Stock or Common Stock Equivalents of the Company or its Subsidiaries other
than as to (i) the Conversion Shares as permitted or required under the Transaction Documents and (ii) repurchases of Common Stock or
Common Stock Equivalents of Company departing officers and directors of the Company, provided that such repurchases shall not exceed an
aggregate of $100,000 for all officers and directors during the term of this Note;

 

e) repay, repurchase or offer to repay, repurchase or otherwise acquire,
or make any principal, interest or amortization payment on any Indebtedness, other than the Notes if on a pro-rata basis;

 

f) pay cash dividends or distributions on any equity securities of
the Company or its subsidiaries;

 

g) enter into any transaction with any Affiliate of the Company which
would be required to be disclosed in any public filing with the Commission, unless such transaction is made on an arm’s-length basis
and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required for
board approval); or

 

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

 

Section 8. Events of Default.

 

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

 

i. any default in the payment of (A) the principal amount of any Note
or (B) interest, liquidated damages and other amounts owing to a Holder on any Note, as and when the same shall become due and payable
(whether on a Conversion Date or the Maturity Date or by acceleration or otherwise) which default, solely in the case of an interest payment
or other default under clause (B) above, is not cured within 5 Trading Days;

 

ii. the Company, any of its Subsidiaries shall fail to observe or perform
any other covenant or agreement contained in the Notes (other than a breach by the Company of its obligations to deliver shares of Common
Stock to the Holder upon conversion, which breach is addressed in clause (xi) below) which failure is not cured, if possible to cure,
within the earlier to occur of (A) 5 Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company
and (B) 10 Trading Days after the Company has become or should have become aware of such failure;

 

 

    	 	12	 

     

    

 

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

 

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

 

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

 

vi. the Company or any Subsidiary shall default on any of its obligations
under any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there
may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing
or factoring arrangement that involves an obligation greater than $100,000, whether such indebtedness now exists or shall hereafter be
created;

 

vii. after the initial public offering, the Common Stock shall not
be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume listing or quotation for trading
thereon within five Trading Days;

 

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

 

ix. after the initial public offering, the Company does not meet the
current public information requirements under Rule 144 in respect of the Registrable Securities (as defined under the Registration Rights
Agreement);

 

x. the Company shall fail for any reason to deliver certificates to
a Holder on or before the tenth Trading Day after a Conversion Date pursuant to Section 4(d) the Company shall provide at any time notice
to the Holder, including by way of public announcement, of the Company’s intention to not honor requests for conversions of any
Notes in accordance with the terms hereof; or

 

xi. any monetary judgment, writ or similar final process shall be entered
or filed against the Company, any subsidiary, or any of their respective property or other assets for more than $100,000, and such judgment,
writ or similar final process shall remain unvacated, unbonded or unstayed for a period of 45 calendar days.

 

b) Remedies Upon Event of Default. If any Event of Default occurs,
the outstanding principal amount of this Note, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect
thereof through the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the Mandatory
Default Amount. Commencing 5 days after the occurrence of any Event of Default that results in the eventual acceleration of this Note,
the interest rate on this Note shall accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under
applicable law. At Holder’s option, it shall be entitled to be paid all such amounts due including late fees, if any, in cash or
from time to time in common stock with the conversion price of the common stock equal to a 30% discount to the average of the three lowest
closing prices of the common stock for the 10 prior trading days. Upon the payment in full of the Mandatory Default Amount, the Holder
shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described herein, the Holder
need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately
and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to
it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder
shall have all rights as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 8(b).
No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

 

    	 	13	 

     

    

 

Section 9. Miscellaneous.

 

a) Notices. Any and all notices or other communications or deliveries
to be provided by the Holder hereunder, including, without limitation, any Notice of Conversion, shall be in writing and delivered personally,
by facsimile, or sent by a nationally recognized overnight courier service, addressed to the Company at the address set forth above, or
such other facsimile or electronic mail number or address as the Company may specify for such purpose by notice to the Holder delivered
in accordance with this Section 9(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder
shall be in writing and delivered personally, by facsimile or electronic mail, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or address of the Holder appearing on the books of the Company, or if no such facsimile
number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder
shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile or electronic mail at the facsimile number or email address, as applicable, specified on the signature page prior to 5:30 p.m.
(New York City time), (ii) the date immediately following the date of transmission, if such notice or communication is delivered via facsimile
or electronic mail at the facsimile number or email address, as applicable, specified on the signature page between 5:30 p.m. (New York
City time) and 11:59 p.m. (New York City time) on any date, (iii) the second Business Day following the date of mailing, if sent by nationally
recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

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

 

c) Lost or Mutilated Note. If this Note shall be mutilated,
lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated
Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated,
lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof,
reasonably satisfactory to the Company.

 

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

 

e) Waiver; Amendment. Any waiver by the Company, or the Holder
of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or
of any breach of any other provision of this Note. The failure of the Company, or the Holder to insist upon strict adherence to any term
of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Note. Any waiver by the Company, or the Holder must be in writing. No provision of this
Agreement may be waived or amended except in a written instrument signed, in the case of amendments, by the Company and the Majority Purchasers
or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought.

 

 

    	 	14	 

     

    

 

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

 

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

 

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

 

i) Assumption. Any successor to the Company or any surviving
entity in a Fundamental Transaction shall (i) assume, prior to such Fundamental Transaction, all of the obligations of the Company under
this Note and the other Transaction Documents pursuant to written agreements in form and substance satisfactory to the Holder (such approval
not to be unreasonably withheld or delayed) and (ii) issue to the Holder a new Note of such successor entity evidenced by a written instrument
substantially similar in form and substance to this Note, including, without limitation, having a principal amount and interest rate equal
to the principal amount and the interest rate of this Note and having similar ranking to this Note, which shall be satisfactory to the
Holder (any such approval not to be unreasonably withheld or delayed). The provisions of this Section 9(i) shall apply similarly and equally
to successive Fundamental Transactions and shall be applied without regard to any limitations of this Note.

 

j) Senior Secured Obligation. The Notes will be senior to all
obligations of the Company, except those set forth on Schedule 3.1(g)(5) to the Purchase Agreement. The obligations of the Company under
this Note are secured pursuant to the Security Agreement, the Debenture and the Share Charge.

 

k) Affidavit of Confession of Judgment. The Holder hereby covenants
and agrees that it will hold in escrow and not file in any court or otherwise make use of the Affidavit of Confession of Judgment (notwithstanding
anything therein to the contrary) unless and until an Event of Default has occurred and is continuing that allows the Holder to demand
immediate payment of the outstanding principal amount of this Note.

 

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

 

(Signature Pages Follow)

 

 

    	 	15	 

     

    

 

 

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

 

 

 

 

	 	GAMING TECHNOLOGIES, INC.
	 	 
	 	By: __________________________________________ 
	 	 
	 	 
	 	Name: Jason Drummond
	 	Title: Chief Executive Officer
	 	Facsimile No. for delivery of Notices: 

 

 

    	 	16	 

     

    

 

ANNEX A

 

NOTICE OF CONVERSION

 

The undersigned hereby elects
to convert principal under the 10% Senior Secured Convertible Note of Gaming Technologies, Inc., a Delaware corporation (the “Company”),
due on November 18, 2022, into shares of common stock, of the Company (the “Common Stock”), according to the conditions
hereof, as of the date written below. If shares are to be issued in the name of a person other than the undersigned, the undersigned will
pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested
by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

 

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

 

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 Notes to be Converted:

 

Payment of Interest in Common Stock __ yes __ no

 

If yes, $_____________of Interest Accrued on Account
of Conversion at Issue.

 

Number of shares of Common Stock to be issued:

 

Signature:

 

Name:

 

Address:

 

 

 

Delivery Instructions:

 

     

 

    	 	17	 

     

    

 

 

Schedule
1

 

CONVERSION SCHEDULE

 

 

The 10% Original Issue Discount Senior Secured Convertible Note due
on November 18, 2022 in the original principal amount of $1,666,666.67 is issued by Gaming Technologies, Inc., a Delaware corporation.
This Conversion Schedule reflects conversions made under Section 4 of the above referenced Note.

 

Dated:

 

 

 

	 	Date of Conversion (or for first entry, Original Issue Date)	Amount of Conversion	Aggregate Principal Amount Remaining Subsequent To Conversion (or original Principal Amount)	Company Attest
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

 

 

    	 	18

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