Document:

Exhibit 10.1

 

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (this “Agreement”), dated as of August 23, 2022, is between HELBIZ, INC., a company incorporated
under the laws of the
State of Delaware, with its principal operation office located
at 32 Old Slip, New York, NY 10005 (the “Company”), and each of the investors listed on the Schedule of Buyers
attached hereto (individually, a “Buyer” and collectively the “Buyers”).

WITNESSETH

 

WHEREAS, the Company
and each Buyer desire to enter into this transaction for the Company to sell and the Buyers to purchase the Convertible Debentures (as
defined below) pursuant to an exemption from registration pursuant to Section 4(2) and/or Rule 506 of Regulation D (“Regulation
D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of
1933, as amended (the “Securities Act”);

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s), as provided
herein, and the Buyer(s) shall purchase up to $10,000,000 of convertible debentures in the form attached hereto as “Exhibit A”
(the “Convertible Debentures”), which shall be convertible into shares of the Company’s common stock, par value
$0.001 (the “Common Stock”) (as converted, the “Conversion Shares”), of which $5,000,000 shall be
purchased upon the signing this Agreement (the “First Closing”), $2,500,000 shall be purchased upon the filing of a
Registration Statement with the U.S. Securities and Exchange Commission registering the resale of the Conversion Shares by the Buyers
(the “Second Closing”), and $2,500,000 shall be purchased on or about the date the Registration Statement has first
been declared effective by the SEC (the “Third Closing”) (individually referred to as a “Closing”
collectively referred to as the “Closings”), for a total purchase price of up to $10,000,000 (the “Purchase
Price”) in the respective amounts set forth opposite each Buyer(s) name on Schedule I (the “Subscription Amount”);

WHEREAS, on the
date hereof, the Company shall issue to the Buyer(s) warrants in the form attached hereto as “Exhibit B” (collectively,
the “Warrants”) which shall exercisable into an aggregate of 500,000 Common Shares (the “Warrant Shares”)
in the respective amounts set forth opposite each Buyer(s) name on Schedule I;

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement (the
“Registration Rights Agreement”) pursuant to which the Company has agreed to provide certain registration rights under
the Securities Act and the rules and regulations promulgated there under, and applicable state securities laws;

WHEREAS, on the
date hereof, certain subsidiaries of the Company are executed and delivering an Amended and Restated Global Guaranty Agreement (the “Guaranty
Agreement”) pursuant to which the Guarantors (as set forth therein) agree to guaranty all of the obligations of the Company
to the Buyer; and

WHEREAS, the
Convertible Debentures, the Conversion Shares,
the Warrants, and the Warrant Shares are collectively referred
to herein as the “Securities.”

    	 

    	 

    

AGREEMENT

 

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

		1.	PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.

 

(a)
Purchase of Convertible Debentures. Subject to the satisfaction
(or waiver) of the conditions set forth in Sections 6 and 7 below, the
Company shall issue and sell to each Buyer, and each Buyer severally, but
not jointly, agrees to purchase from the Company at the Closing, Convertible Debentures with
principal amount corresponding to the Subscription Amount set forth opposite each Buyer’s name on the Schedule of Buyers attached
as Schedule I hereto, and Warrants in the amount set forth opposite each Buyer’s name on the Schedule of Buyers attached as Schedule
I hereto. 

(b)
Closing Dates. Each Closing of the purchase of
Convertible Debentures by the Buyers shall occur at the
offices Yorkville Advisors Global, LP, 1012 Springfield Avenue, Mountainside, NJ 07092. The date and time of each Closing shall
be as follows: (i) the First Closing shall be 10:00 a.m.,
New York time, on the first Business Day
on which the conditions to the Closing set forth in
Sections 6 and 7 below are satisfied or waived (or
such other date as is mutually agreed to by
the Company and each Buyer) (the “First Closing Date”), (ii) the Second Closing shall be
10:00 a.m., New York time, by
the third Business Day after the date on which the Registration Statement is filed by the Company
with the SEC, provided the conditions to the Closing set forth in Sections 6 and 7 below
are satisfied or waived (or such other date as
is mutually agreed to by the Company and each Buyer)
(the “Second Closing Date”), and (iii) the Third Closing shall be 10:00 a.m., New
York time, by the third Business Day after the Registration Statement is first declared effective by the SEC, provided the conditions
to the Closing set forth in Sections 6 and 7 below
are satisfied or waived (or such other date as
is mutually agreed to by the Company and each Buyer)
(the “Third Closing Date” and collectively referred to as the “Closing Dates”). As
used herein “Business Day”
means any day other than a Saturday, Sunday or other
day on which commercial banks in New York,
New York are authorized or required by
law to remain closed. 

(c)
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions
of this Agreement, on the Closing Date, (i) the Buyers shall deliver to the Company the Purchase Price for the Convertible Debentures
to be issued and sold to such Buyer at the Closing, minus any fees or expenses to be paid directly from the proceeds of the Closing as
set forth herein, and (ii) the Company shall deliver to each Buyer, Convertible Debentures which such Buyer is purchasing at the
Closing with a principal amount corresponding with the Subscription Amount set forth opposite each
Buyer’s name on Schedule of Buyers attached as Schedule I hereto, duly executed on behalf of the Company, and Warrants in
the amount set forth opposite each Buyer’s name on the Schedule of Buyers attached as Schedule I hereto, duly executed on behalf
of the Company.

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(d)
Maximum Shares. Notwithstanding anything in this Agreement to the contrary, the Company shall
not issue any Common Shares pursuant to the transactions contemplated hereby or any other Transaction Documents if the issuance of such
shares of Common Stock would exceed the aggregate number of shares of Common Stock that the Company may issue in this transaction in compliance
with the Company’s obligations under the rules or regulations of NASDAQ Capital Market ( the “Exchange Cap”),
except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by
the applicable rules of the NASDAQ Capital Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written
opinion from outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the
Buyers. The Exchange Cap shall be appropriately adjusted for any stock dividend, stock split, reverse stock split or similar transaction.

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

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

(a)
Investment Purpose. The Buyer is acquiring the Securities for its own account for investment
only and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales
registered under or exempt from the registration requirements of the Securities Act; provided, however, that by making the representations
herein, the Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to an effective registration statement
covering such Securities or an available exemption under the Securities Act. Such Buyer does not presently have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Securities.  

(b)
Accredited Investor Status. The Buyer is an “Accredited Investor” as that term
is defined in Rule 501(a)(3) of Regulation D.

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

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(d)
Information. The Buyer and its advisors (and his or, its counsel), if any, have been furnished
with all materials relating to the business, finances and operations of the Company and information he deemed material to making an informed
investment decision regarding his purchase of the Securities, which have been requested by such Buyer. The Buyer and its advisors, if
any, have been afforded the opportunity to ask questions of the Company and its management. Neither such inquiries nor any other due diligence
investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such Buyer’s
right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands that its investment
in the Securities involves a high degree of risk. The Buyer has sought such accounting, legal and tax advice, as it has considered necessary
to make an informed investment decision with respect to its acquisition of the Securities.

(e)
Transfer or Resale. The Buyer understands that: (i) the Securities have not been registered
under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder, (B) such Buyer shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the
effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such
registration requirements, or (C) such Buyer provides the Company with reasonable assurances (in the form of seller and broker representation
letters) that such Securities can be sold, assigned or transferred pursuant to Rule 144 promulgated under the Securities Act, as amended
(or a successor rule thereto) (collectively, “Rule 144”), in each case following the applicable holding period set
forth therein; and (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule
144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the person
through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance
with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder. 

(f)
Legends. The Buyer agrees to the imprinting, so long as its required by this Section 2(f),
of a restrictive legend on the Securities in substantially the following form:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
[AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS

 

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Certificates evidencing the Conversion Shares
or the Warrant Shares shall not contain any legend (including the legend set forth above), (i) while a registration statement covering
the resale of such security is effective under the Securities Act, (ii) following any sale of such security pursuant to Rule 144, (iii)
if such securities are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The Buyer agrees that the removal of restrictive
legend from certificates representing Securities as set forth in this Section 3(f) is predicated upon the Company’s reliance that
the Buyer will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus
delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold
in compliance with the plan of distribution set forth therein.

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

(h)
Authorization, Enforcement. This Agreement has been duly
and validly authorized, executed and delivered on behalf
of such Buyer and shall constitute the legal, valid
and binding obligations of such Buyer
enforceable against such Buyer in accordance with its
terms, except as such enforceability may be limited
by general principles of equity or to applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally,
the enforcement of applicable creditors' rights and
remedies. 

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

 

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(j)
Certain Trading Activities. The Buyer has not
directly or indirectly, nor has any Person
acting on behalf of or pursuant to any understanding with
the Buyer, engaged in any transactions in the securities
of the Company (including,
without limitation, any Short Sales (as defined
below) involving the
Company's securities) during the period
commencing as of the time that the
Buyer first contacted
the Company or the
Company's agents regarding the specific
investment in the Company contemplated by this
Agreement and ending immediately prior to the
execution of this Agreement by
such Buyer. The Buyer hereby agrees that it shall not directly or indirectly, engage in any Short Sales involving the Company’s
securities during the period commencing on the date hereof and ending when no Convertible Debentures remain outstanding. "Short Sales"
means all "short sales" as defined in Rule 200
promulgated under Regulation SHO under the 1934
Act (as defined below). The Buyer is aware that
Short Sales and other hedging activities may
be subject to applicable federal and state securities
laws, rules and regulations and the Buyer
acknowledges that the
responsibility of compliance with any such
federal or state securities laws, rules and regulations
is solely the responsibility of the
Buyer. 

(k)Trading
Information. Upon the Company’s request, the Buyer agrees to provide the Company with trading reports setting forth the number
and average sales prices of Common Shares sold the Buyer on each Trading Day the prior trading week along with the total aggregate number
of Common Shares traded on each Trading Day. “Trading Day” means a day on which the Common Shares are quoted or traded
on an Eligible Market on which the shares of Common Stock are then quoted or listed; provided, that in the event that the Common Shares
are not listed or quoted, then Trading Day shall mean a Business Day.

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth under
the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and to qualify any representation
or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations and warranties set forth
below to the Buyer:

(a)
Organization and Qualification.
The Company and each of its Subsidiaries are entities
duly formed, validly existing
and in good standing under
the laws of the jurisdiction
in which they are formed, and have
the requisite power and authority
to own their properties and to carry
on their business as now being conducted and
as presently proposed to be conducted. The Company
and each of its Subsidiaries is duly qualified
as a foreign entity to do business and is in good
standing in every jurisdiction in which
its ownership of property or
the nature of the
business conducted by it makes such qualification
necessary, except to the extent
that the failure to be so qualified or
be in good standing would
not reasonably be expected to have a Material
Adverse Effect (as defined below). As used in this
Agreement, “Material Adverse Effect”
means any material adverse effect on (i)
the business, properties, assets, liabilities, operations
(including results thereof), condition (financial or
otherwise) or prospects of the
Company and its Subsidiaries, taken as a
whole, (ii) the transactions contemplated
hereby or in any of the
other Transaction Documents or any other agreements
or instruments to be entered into
by the Company in connection
herewith or therewith or (iii) the
authority or ability of
the Company to perform any of its obligations
under any of the Transaction Documents
(as defined below). “Subsidiaries” means any Person in which the Company,
directly or indirectly, owns a majority of
the outstanding capital stock having
voting power or holds a majority of
the equity or similar interest of
such Person, and each of the foregoing, is individually
referred to herein as a “Subsidiary”.

 

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(b)
Authorization; Enforcement;
Validity. The Company has the requisite power
and authority to enter into
and perform its obligations under this Agreement
and the other Transaction Documents and to issue
the Securities in accordance with the terms hereof
and thereof. The execution and delivery of this
Agreement and the other Transaction Documents by
the Company and the consummation by
the Company of the
transactions contemplated hereby and thereby (including,
without limitation, the
issuance of the Convertible
Debentures, the reservation for issuance and issuance of
the Conversion Shares issuable upon conversion
of the Convertible
Debentures and the reservation for issuance and issuance of
the Warrant Shares issuable upon exercise of
the Warrants), have
been duly authorized by the
Company's board of directors and no further
filing, consent or authorization is required by
the Company, its board of
directors or its stockholders or other governmental
body. This Agreement has been, and the other Transaction
Documents to which the Company is a party will
be prior to the Closing,
duly executed and delivered by
the Company, and each constitutes the
legal, valid and binding obligations
of the Company, enforceable against the
Company in accordance with its respective
terms, except as such enforceability may be limited
by general principles of equity
or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws
relating to, or affecting generally, the
enforcement of applicable creditors' rights
and remedies and except as rights to indemnification and to contribution
may be limited by federal or
state securities law. “Transaction Documents” means, collectively, this
Agreement, the Convertible Debentures, the Registration
Rights Agreement, the Warrants, the Guaranty Agreement, and each of the
other agreements and instruments entered into by
the Company or delivered by
the Company in connection with the transactions
contemplated hereby and thereby, as may be amended
from time to time. 

(c)
Issuance of Securities. The issuance of
the Securities are duly
authorized and, upon issuance and payment
in accordance with the terms of the
Transaction Documents the Securities
shall be validly issued, fully paid
and nonassessable and free from all preemptive
or similar rights, mortgages, defects, claims, liens, pledges,
charges, taxes, rights of first refusal,
encumbrances, security interests and other encumbrances (collectively
“Liens”) with respect
to the issuance thereof. As of the
Closing Date, the Company shall have
reserved from its duly
authorized capital stock not less than
the maximum number of Common Shares issuable
upon conversion of all Convertible
Debentures (assuming for purposes hereof that (x) such Convertible
Debentures are convertible at the Floor
Price, (y) any such conversion shall not take into
account any limitations on the
conversion of the Convertible
Debentures set forth therein). Upon issuance
or conversion in accordance with the Convertible
Debentures, the Conversion Shares when issued,
will be validly
issued, fully paid and nonassessable and free from
all preemptive or similar rights or Liens
with respect to the issue thereof, with
the holders being entitled to all rights
accorded to a holder of Common Shares. Upon
issuance or exercise in accordance with the Warrants,
the Warrant Shares when issued, will
be validly issued, fully paid
and nonassessable and free from all preemptive
or similar rights or Liens with
respect to the issue thereof, with the holders
being entitled to all rights accorded to a holder
of Common Shares. 

(d)
 No Conflicts.
The execution, delivery and performance of the
Transaction Documents by the Company and
the consummation by the
Company of the transactions contemplated
hereby and thereby (including, without limitation,
the issuance of the
Securities) will not (i) result in a violation
of the Articles of
Incorporation (as defined below), Bylaws (as
defined below), certificate of formation, memorandum of
association, articles of association, bylaws or
other organizational documents of the
Company or any of its Subsidiaries, or
any capital stock or other
securities of the Company or
any of its Subsidiaries, (ii) conflict with, or
constitute a default under, or give to others
any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which
the Company or any of its Subsidiaries is
a party, or (iii) result in a violation of
any law, rule, regulation, order, judgment or decree
(including, without limitation,
U.S. federal and state securities laws and regulations,
the securities laws of the
jurisdictions of the Company's incorporation
or in which it or
its subsidiaries operate and the rules and regulations
of the NASDAQ Capital Market (the “Principal Market”)) applicable
to the Company or any of
its Subsidiaries or by which any property
or asset of the
Company or any of its Subsidiaries is bound
or affected, except in the
case of (ii) and (iii) for any conflict, default, right or
violation that would
not reasonably be expected to result in a Material Adverse Effect.

 

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(e)
Consents. The Company is not required to obtain
any material consent from, authorization or order
of, or make any filing or registration with
(other than any filings as may be
required by any federal or state securities agencies
and any filings as may be required by
the Principal Market), any Governmental Entity
(as defined below) or any regulatory or
selfregulatory agency or any other Person
in order for it to execute, deliver or perform any of its
obligations under or contemplated by the
Transaction Documents, in each case, in accordance with the terms hereof or
thereof. All consents, authorizations, orders,
filings and registrations which the Company or
any Subsidiary is required to obtain pursuant to the
preceding sentence have been or will
be obtained or
effected on or prior to the Closing
Date, and neither the Company nor
any of its Subsidiaries are aware of any facts or
circumstances which might prevent the Company
or any of its Subsidiaries from
obtaining or effecting any of
the registration, application or
filings contemplated by the Transaction Documents.
The Company is not in violation of
the requirements of the
Principal Market and has no knowledge of
any facts or circumstances which could reasonably
lead to delisting or suspension of the
Common Shares in the foreseeable future. The Company has notified the
Principal Market of the issuance of
all of the Securities hereunder, which
does not require obtaining
the approval of the stockholders
of the Company or any other
Person or Governmental Entity, and the
Principal Market has completed its review of the
related Listing of Additional Share form.
“Governmental Entity” means any nation, state, county, city, town,
village, district, or other political jurisdiction
of any nature, federal, state, local, municipal, foreign, or
other government, governmental or quasigovernmental
authority of any nature (including any governmental
agency, branch, department, official, or entity and
any court or other tribunal), multinational
organization or body; or
body exercising, or entitled to exercise,
any administrative, executive, judicial, legislative,
police, regulatory, or taxing authority
or power of any nature or
instrumentality of any of the
foregoing, including any entity or
enterprise owned or controlled by a government
or a public international
organization or any of the
foregoing. 

 

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(f)
Acknowledgment Regarding Buyer's
Purchase of Securities. The Company acknowledges
and agrees that each Buyer is acting
solely in the capacity of an arm's length
purchaser with respect to the Transaction Documents
and the transactions contemplated hereby and
thereby and that no Buyer is (i) an officer or director
of the Company or any of
its Subsidiaries, (ii) to its knowledge, an "affiliate" (as defined in Rule
144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule
144”)) of the Company or any of
its Subsidiaries or (iii) to its knowledge, a
“beneficial owner” of more than 10% of the 
Common Shares (as defined for purposes of Rule 13d-3 of the
1934 Act). The Company further acknowledges that no Buyer (nor any affiliate of any Buyer) is
acting as a financial advisor or fiduciary of
the Company or any of its Subsidiaries (or in
any similar capacity) with respect to the Transaction
Documents and the transactions contemplated
hereby and thereby, and any advice given by a Buyer
or any of its representatives or agents in connection
with the Transaction Documents and the transactions
contemplated hereby and thereby is merely incidental to
such Buyer's purchase of the Securities. The Company further represents to each Buyer
that the Company's decision to enter into the Transaction
Documents to which it is a party has been based solely
on the independent evaluation by the Company and its
representatives. 

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

(h)
Dilutive Effect.
The Company understands and acknowledges that
the number of Conversion Shares will
increase in certain circumstances. The Company further acknowledges its
obligation to issue the Conversion Shares
upon conversion of the
Convertible Debentures in accordance with this
Agreement and the Convertible Debentures is, absolute
and unconditional regardless of the
dilutive effect that such issuance may
have on the ownership interests of
other stockholders of the
Company. 

(i)
Application of
Takeover Protections; Rights Agreement.
The Company and its board of directors have
taken all necessary action, if any, in order to render inapplicable
any control share acquisition, interested stockholder, business combination,
poison pill (including, without
limitation, any distribution under
a rights agreement), stockholder rights plan or
other similar antitakeover provision under
the Articles of Incorporation, Bylaws or
other organizational documents or the
laws of the jurisdiction
of its incorporation or otherwise which is
or could become applicable
to any Buyer as a result of the
transactions contemplated by this Agreement,
including, without limitation,
the Company's issuance of the
Securities and any Buyer's ownership of the
Securities. 

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(j)
 SEC Documents; Financial
Statements. During the
two (2) years prior to the date hereof,
the Company has timely filed all reports, schedules, forms,
proxy statements, statements and other documents
required to be filed by it with
the SEC pursuant to the reporting requirements
of the Securities Exchange
Act of 1934, as amended (the “1934
Act”) (all of the foregoing filed prior
to the date hereof and all exhibits
and appendices included therein and financial
statements, notes and schedules thereto and documents
incorporated by reference therein being hereinafter
referred to as the “SEC
Documents”). The Company
has delivered or has made available to the
Buyers or their respective representatives true, correct and complete copies
of each of the SEC
Documents not available
on the EDGAR system. As
of their respective dates, the SEC Documents
complied in all material respects with the requirements of
the 1934 Act and the rules and regulations
of the SEC promulgated thereunder applicable
to the SEC Documents, and none
of the SEC
Documents, at the time they were filed with
the SEC, contained any untrue statement
of a material fact or omitted to state a material
fact required to be stated therein or necessary
in order to make the statements therein, in the light
of the circumstances under
which they were made, not misleading. As
of their respective dates, the financial statements of
the Company included in the
SEC Documents complied in all material respects
with applicable accounting requirements and the published
rules and regulations of the SEC
with respect thereto as in effect as of
the time of filing. Such financial statements
have been prepared in accordance with generally
accepted accounting principles (“GAAP”),
consistently applied, during
the periods involved (except (i) as may
be otherwise indicated in such financial statements
or the notes thereto, or
(ii) in the case of unaudited
interim statements, to the extent they may
exclude footnotes or may be
condensed or summary statements) and fairly present in all material respects the
financial position of the
Company as of the dates
thereof and the results of its operations and
cash flows for the periods then ended (subject,
in the case of unaudited
statements, to normal yearend audit adjustments which
will not be material, either individually
or in the aggregate). The reserves, if any,
established by the Company or
the lack of reserves, if applicable,
are reasonable based upon facts and circumstances known
by the Company on
the date hereof and there are no
loss contingencies that are required to
be accrued by the
Statement of Financial Accounting Standard
No. 5 of the
Financial Accounting Standards Board which are
not provided for by
the Company in its financial statements
or otherwise. No other
information provided by or on behalf of the Company
to any of the Buyers which
is not included in the SEC
Documents (including, without limitation,
information in the disclosure schedules to
this Agreement) contains any untrue statement
of a material fact or omits to state any material
fact necessary in order to make the statements therein not
misleading, in the light of the
circumstance under which they are or
were made. The Company is not currently contemplating
to amend or restate any of the
financial statements (including, without limitation,
any notes or any letter
of the independent accountants of the
Company with respect thereto) included in
the SEC Documents
(the “Financial Statements”),
nor is the Company currently aware of
facts or circumstances which would require
the Company to amend or restate any of
the Financial Statements, in each case, in order for any of
the Financials Statements to be in compliance with GAAP and the rules and regulations of the SEC. The Company has not been informed
by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is
any need for the Company to amend or restate any of the Financial Statements. 

 

    	10 

    	 

    

(k)
Absence of Certain Changes. Since the
date of the Company's most recent audited
financial statements contained in a Form 10-K
or S-1, as the case may be, there has been no Material Adverse Effect, nor any event
or occurrence specifically affecting the Company or its Subsidiaries that would be reasonably expected to result in a Material Adverse
Effect. Since the date of the
Company's most recent audited financial statements contained
in a Form 10-K or S-1, as the case may be, neither
the Company nor any of
its Subsidiaries has (i) declared or paid any dividends,
(ii) sold any material assets, individually or
in the aggregate, outside of the
ordinary course of business or (iii) made
any material capital expenditures, individually or
in the aggregate, outside of the
ordinary course of business. Neither the
Company nor any of its Subsidiaries has
taken any steps to seek protection pursuant to any
law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation
or winding up,
nor does the Company or
any Subsidiary have any knowledge or
reason to believe that any of their respective
creditors intend to initiate involuntary
bankruptcy proceedings or any actual knowledge
of any fact which would reasonably lead
a creditor to do so.

(l)
No Undisclosed Events, Liabilities,
Developments or Circumstances. No event, liability,
development or circumstance has occurred or exists, or
is reasonably expected to exist or occur specific
to the Company, any of its Subsidiaries or
any of their respective businesses, properties, liabilities,
prospects, operations (including results thereof) or
condition (financial or otherwise), that has
not been publicly disclosed and would
reasonably be expected to have a Material Adverse
Effect. 

(m)
Conduct of
Business; Regulatory Permits. Neither
the Company nor any of
its Subsidiaries is in violation of any
term under its Articles of
Incorporation, any certificate of designation,
preferences or rights of any other
outstanding series of preferred stock of
the Company or any of
its Subsidiaries or Bylaws or their organizational charter, certificate of
formation, memorandum of association, articles of
association, Articles of Incorporation or certificate
of incorporation or bylaws, respectively. Neither
the Company nor any of
its Subsidiaries is in violation of any
judgment, decree or order or
any statute, ordinance, rule or regulation applicable
to the Company or any of
its Subsidiaries, and neither the Company
nor any of its Subsidiaries will
conduct its business in violation of
any of the foregoing, except
in all cases for violations which would not reasonably be
expected to have a Material Adverse Effect. Without
limiting the generality of
the foregoing, the Company is not
in violation of any of
the rules, regulations or requirements of
the Principal Market and has no knowledge
of any facts or circumstances that
could reasonably lead to delisting or suspension
of the Common Shares by
the Principal Market in the foreseeable
future. During the one year prior to the
date hereof, (i) the Common Shares has been
listed or designated for quotation on
the Principal Market, (ii) trading in the Common
Shares has not been suspended by the
SEC or the
Principal Market and (iii) the Company has received no
communication, written or oral, from the
SEC or the
Principal Market regarding the suspension or delisting
of the Common Stock from the
Principal Market, which has not been publicly disclosed. The Company and each of its Subsidiaries
possess all certificates, authorizations and permits issued by
the appropriate regulatory authorities necessary
to conduct their respective businesses, except
where the failure to possess such certificates, authorizations
or permits would not reasonably be expected to
have, individually or
in the aggregate, a Material Adverse Effect,
and neither the Company nor
any of its Subsidiaries has received any notice
of proceedings relating to the revocation
or modification of any such certificate, authorization
or permit. There is no agreement, commitment, judgment,
injunction, order or decree binding
upon the Company or any of
its Subsidiaries or to which the Company
or any of its Subsidiaries is a party which
has or would reasonably be
expected to have the effect
of prohibiting or
materially impairing any business practice of the
Company or any of its Subsidiaries, any acquisition
of property by the Company or
any of its Subsidiaries or the
conduct of business by the
Company or any of its Subsidiaries as currently
conducted other than such effects, individually
or in the aggregate, which
have not had and would
not reasonably be expected to have a Material
Adverse Effect on the
Company or any of its Subsidiaries. 

 

    	11 

    	 

    

(n)
Foreign Corrupt Practices. Neither the Company nor any
of its Subsidiaries nor any director, officer,
agent, employee, nor any other
person acting for or on behalf of the Company
or any of its Subsidiaries (individually
and collectively, a “Company Affiliate”) have violated the U.S. Foreign
Corrupt Practices Act (the “FCPA) or
any other applicable antibribery or anti corruption
laws, nor has any Company Affiliate offered, paid, promised
to pay, or authorized the payment of
any money, or offered, given, promised to give,
or authorized the giving of anything of value, to any officer,
employee or any other person acting
in an official capacity for any Governmental Entity
to any political party or official thereof or
to any candidate for political office (individually
and collectively, a “Government Official”) or to any person under
circumstances where such Company Affiliate knew or was aware of
a high probability that all or a portion
of such money or thing of value would be offered, given
or promised, directly or indirectly, to any Government Official, for the
purpose, in violation of applicable law, of: (i) (A) influencing
any act or decision of such Government Official in his/her
official capacity, (B) inducing such Government Official to do
or omit to do any act in violation of his/her lawful
duty, (C) securing any improper advantage, or (D) inducing
such Government Official to influence or affect
any act or decision of any Governmental Entity, or
(ii) assisting the Company or its Subsidiaries
in obtaining or retaining business for or with, or directing
business to, the Company or its Subsidiaries.  

(o)
Equity Capitalization. 

(i)
Authorized and Outstanding Capital Stock. As of the date hereof, the
Company is authorized to issue 400,000,000 capital stock, consisting of three classes: 285,774,103 shares of Class A Common Stock, $0.0001
par value per share, 14,225,898 shares of Class B Common Stock, $0.00001 par value per share, and 100,000,000 shares of Preferred Stock,
$0.00001 par value per share. As of the date hereof, there were [___________] shares of Class A Common Stock outstanding, and there were
14,225,632 shares of Class B Common Stock outstanding. 

(ii)
Valid Issuance; Available Shares. All of such outstanding shares
are duly authorized and have been validly issued and are fully paid and nonassessable. 

 

    	12 

    	 

    

(iii)
Existing Securities; Obligations. Except as disclosed in the SEC
Documents: (A) none of the Company's or any Subsidiary's shares, interests or capital stock is subject to preemptive rights or any other
similar rights or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into,
or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests
or capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests
or capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the Company
or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to this Agreement);
(D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is
or may become bound to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments containing
antidilution or similar provisions that will be triggered by the issuance of the Securities; and (G) neither the Company nor any
Subsidiary has any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. 

(iv)
Organizational Documents. The Company has furnished to the Buyers or
filed on EDGAR true, correct and complete copies of the Company's Articles of Incorporation, as amended and as in effect on the date hereof
(the “Articles of Incorporation”), and the Company's bylaws, as amended and as in effect on the date hereof (the “Bylaws”),
and the terms of all convertible securities and the material rights of the holders thereof in respect thereto.

(p)
Litigation. Except as disclosed
in the SEC Documents, there is no
action, suit, arbitration, proceeding, inquiry or investigation
before or by the Principal Market, any court,
public board, other Governmental Entity, selfregulatory
organization or body pending or,
to the knowledge of the
Company, threatened against or affecting the Company
or any of its Subsidiaries, the
Common Shares or any of the
Company's or its Subsidiaries' officers or directors,
whether of a civil
or criminal nature or otherwise, in their capacities
as such, which would reasonably be expected to
result in a Material Adverse Effect. After reasonable inquiry
of its employees, the Company is not aware
of any event which
might result in or form the
basis for any such action, suit, arbitration, investigation,
inquiry or other proceeding.
Without limitation of the
foregoing, there has not been, and to the
knowledge of the Company, there is not
pending or contemplated, any investigation by
the SEC involving
the Company, any of its Subsidiaries or
any current or former director or
officer of the Company or
any of its Subsidiaries. Neither the
Company nor any of its Subsidiaries is the
subject of any order, writ, judgment, injunction,
decree, determination or award of any Governmental
Entity that would reasonably be
expected to result in a Material Adverse Effect. 

 

    	13 

    	 

    

(q)
Insurance. The Company and each of its Subsidiaries
are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management of the
Company believes to be prudent and customary
in the businesses in which the Company and its
Subsidiaries are engaged. In accordance with the previous sentence, the Company currently maintains
no insurance policies. Neither the Company nor
any such Subsidiary has been refused any insurance coverage sought or applied for,
and neither the Company nor
any such Subsidiary has any reason to believe that it will
be unable to renew its
existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar
insurers as may be necessary to continue its
business at a cost that would not have
a Material Adverse Effect. 

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

(s)
Registration Eligibility.
The Company is eligible to register the resale
of the Conversion Shares and the Warrant Shares by the Buyers
using Form S-1
promulgated under the 1933 Act.  

(t)
Shell Company Status. The Company is not an issuer
identified in, or subject to, Rule 144(i). More than
twelve months have passed since the Company ceased to be an issuer identified in Rule 144(i) and it publicly filed its Form 10 information.
 

(u)
Money Laundering.
The Company and its Subsidiaries are in compliance with,
and have not previously violated,
the USA Patriot Act of 2001 and all other
applicable U.S. and nonU.S. antimoney laundering laws and regulations,
including, but not limited to, the laws,
regulations and Executive Orders and sanctions
programs (“Sanctions Programs”) administered by the
U.S. Office of Foreign Assets Control (“OFAC”),
including, without limitation,
(i) Executive Order 13224 of
September 23, 2001 entitled, "Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support
Terrorism" (66 Fed. Reg. 49079 (2001));
and any regulations contained in 31 CFR, Subtitle B, Chapter V. 

 

    	14 

    	 

    

(v)
Disclosure. The Company confirms that neither it
nor any other Person acting
on its behalf has provided any of the
Buyers or their agents or counsel with any
information that constitutes or could reasonably
be expected to constitute material, nonpublic
information concerning the Company or any
of its Subsidiaries, other than
the existence of the
transactions contemplated by this Agreement
and the other Transaction Documents. The Company understands and confirms that
each of the Buyers will
rely on the foregoing representations in
effecting transactions in securities of the Company.
All disclosures provided to the
Buyers regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated
hereby, including the schedules to this
Agreement, furnished by or on behalf of the Company
or any of its Subsidiaries, taken
as a whole, are true and correct and does not
contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the
circumstances under which they were made,
not misleading. All of
the written information furnished after the date
hereof by or on behalf of the Company or
any of its Subsidiaries to each Buyer pursuant
to or in connection with this Agreement and the
other Transaction Documents, taken as a whole,
will be true and correct in all material respects as of
the date on which
such information is so provided and will not contain
any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements made therein, in the
light of the circumstances under
which they were made, not misleading. No
event or circumstance has occurred or information exists with
respect to the Company or any of
its Subsidiaries or its or their business, properties, liabilities,
prospects, operations (including results thereof) or
conditions (financial or otherwise), which,
under applicable law, rule or regulation, requires public
disclosure at or before the date
hereof or announcement by the Company but
which has not been so publicly disclosed.
All financial projections and forecasts that
have been prepared by or on behalf of the Company
or any of its Subsidiaries and made available
to the Buyers have been prepared in good
faith based upon reasonable assumptions and represented, at the
time each such financial projection or forecast was delivered to each Buyer, the
Company's best estimate of future financial performance (it being
recognized that such financial projections or forecasts
are not to be viewed as facts and that
the actual results during
the period or periods covered by
any such financial projections or forecasts may differ from
the projected or forecasted results). The
Company acknowledges and agrees that no Buyer makes
or has made any representations or warranties with
respect to the transactions contemplated hereby
other than those specifically set forth in Section
2. 

(w)
No General Solicitation. Neither the Company, nor any of its affiliates, nor any Person acting
on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under
the Securities Act) in connection with the offer or sale of the Securities.

(x)
Private Placement. Assuming the accuracy of the Buyers’ representations and warranties
set forth in Section 2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to
the Buyers as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of
the Primary Market. 

 

		4.	COVENANTS.

 

(a)
Reporting Status. For the period beginning on the date hereof, and ending 6 months after the date on which all the Convertible
Debentures are no longer outstanding (the “Reporting Period”), the Company
shall file on a timely basis all reports required to be filed with the SEC
pursuant to the 1934 Act, and the Company
shall not terminate its status as an issuer required to file reports under
the 1934 Act even if the 1934 Act or the rules
and regulations thereunder would no longer require
or otherwise permit such termination.

    	15 

    	 

    

(b)
Use of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions
contemplated herein to repay any loans to any executives or employees of the Company, or to make any payments in respect of any related
party debt. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions contemplated herein,
or lend, contribute, facilitate or otherwise make available such proceeds to any Person (i) to fund, either directly or indirectly,
any activities or business of or with any Person that is identified on the list of Specially Designated Nationals and Blocker Persons
maintained by OFAC, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions
Programs, or (ii) in any other manner that will result in a violation of Sanctions Programs.

(c)
Listing. The Company shall promptly secure the listing or designation for quotation
(as the case may be) of all of the Underlying
Securities (as defined below) upon each national securities
exchange and automated quotation system, if any, upon
which the Common Shares are then listed or designated for quotation (as the
case may be, each an “Eligible Market”), subject to official notice of
issuance, and shall use reasonable efforts to maintain such listing or designation for quotation
(as the case may be) of all Underlying Securities from
time to time issuable under the terms of the Transaction
Documents on such Eligible Market for the Reporting Period. Neither the Company nor
any of its Subsidiaries shall take any action which could be reasonably expected to
result in the delisting or suspension of the Common
Shares on an Eligible Market during the Reporting Period. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 4(c). “Underlying Securities”
means the (i) the Conversion Shares, (ii) the
Warrant Shares and (iii) any common shares of the Company issued or issuable with
respect to the Conversion Shares or Warrant Shares, including,
without limitation, (1) as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the
Company into which the Common Shares are converted or exchanged without
regard to any limitations on conversion of the Convertible
Debentures.

(d)
Fees. The Company shall pay to YA Global II SPV, LLC, an affiliate of the Buyer (the “Subsidiary Fund”),
a one-time legal fee in the amount of $10,000. The legal fee shall be deducted from the gross proceeds of the Closing.

(e)
Pledge of Securities. Notwithstanding anything to the
contrary contained in this Agreement, the Company
acknowledges and agrees that, subject to compliance with applicable federal and state securities
laws, the Securities may be pledged by an Investor
in connection with a bona fide margin agreement
or other loan or financing arrangement that is secured by the
Securities. The Company hereby agrees to execute and deliver such documentation as a pledgee
of the Securities may reasonably request in connection
with a pledge of the Securities to such
pledgee by a Buyer.

    	16 

    	 

    

(f)
Disclosure of Transactions and Other Material Information. Within 1 day after
the date of this Agreement, the
Company shall file a current report on Form 8-K describing all the
material terms of the transactions contemplated by the
Transaction Documents in the form required
by the 1934 Act and attaching all the material
Transaction Documents (including, without limitation, this
Agreement and all schedules to this Agreement) (including all attachments, the
“Current Report”). From and
after the filing of the Current Report, the
Company shall have disclosed all material, nonpublic information (if any) provided
to any of the Buyers by the Company or any of
its Subsidiaries or any of their respective officers, directors, employees or agents in connection
with the transactions contemplated by the Transaction Documents. In
addition, effective upon the filing of
the Current Report, the Company acknowledges
and agrees that any and all confidentiality or similar obligations with respect to
the transactions contemplated by the Transaction
Documents under any agreement, whether written
or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and any of the
Buyers or any of their affiliates, on the other hand, shall terminate. The Company
shall not, and the Company shall cause each of
its Subsidiaries and each of its and their respective officers, directors, employees and agents not
to, provide any Buyer with any material, nonpublic
information regarding the Company or any of its Subsidiaries from
and after the date hereof without the
express prior written consent of such Buyer (which may be granted or withheld in such
Buyer's sole discretion).

(g)
Reservation of Shares. So long as
any of the Convertible Debentures remain outstanding,
the Company shall take all action necessary to at all times have authorized, and reserved for the
purpose of issuance, no less than the maximum number of Common Shares issuable upon
conversion of all the Convertible Debentures
then outstanding (assuming for purposes hereof that (x) the
Convertible Debentures are convertible at the
Floor Price (as defined therein), and (y) any such conversion shall not take into
account any limitations on the conversion of the
Convertible Debentures) (the “Required
Reserve Amount”); provided that
at no time shall the number of Common Shares reserved pursuant to this
Section 4(g) be reduced other than proportionally in connection
with any conversion and/or redemption, or reverse stock split. If
at any time the maximum number of Common Shares issuable upon conversion of all the Convertible Debentures then outstanding (assuming
for purposes hereof that (x) the Convertible Debentures are convertible at the Variable Conversion Price (as defined in the Convertible
Debenture) then in effect, and (y) any such conversion shall not take into account any limitations on the conversion of the Convertible
Debentures), is greater than the number of Common Shares that remain available for issuance
under the Exchange Cap, then the Company will use commercially
reasonable efforts to (i) promptly call and hold a shareholder meeting for the purpose of seeking the approval of its shareholders
for or (ii) obtain the written consent of a majority of its shareholders approving issuances of Common Shares in excess of the Exchange
Cap as required by the applicable rules of the Nasdaq.

(h)
Conduct of Business. The business of the
Company and its Subsidiaries shall not be conducted
in violation of any law, ordinance or regulation of any Governmental Entity, except
where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

(i)
From the date hereof until no more than $5,000,000 of principal amount in the aggregate of convertible debentures issued pursuant
to the securities purchase agreement dated October 12, 2021, and convertible debentures issued pursuant to the securities purchase agreement
dated April 15, 2022 (collectively, the “Prior Debentures”) remains outstanding, unless the holders of at least 75%
in principal amount of the then outstanding Prior Debentures shall have given prior written consent, the Company shall not, and shall
not permit any of its subsidiaries (whether or not a subsidiary on the date hereof) to, directly or indirectly (i) 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, (ii) other than Permitted Liens, enter into, create, incur, assume or suffer to exist any lien, security
interest, option or other charge or encumbrance (each, a “Lien”) 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, or (iii) 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 holders of the Convertible Debentures, (iv) make any payments in respect of any related party debt, including, without limitation,
any payment under the March 1, 2022 promissory note entered into with the CEO of the Company, or any other payments under any debt owed
to the CEO or any other officer or director of the Company, (v) make any payments in respect of any bonuses to the CEO or any other officer
or director of the Company, or (vi) enter into or agree to enter into any debenture, note, instrument, contract, financing arrangements,
or other transaction that allows the holder of such instrument or counterparty to such transaction to acquire shares of Common Stock,
or receive payments based on the price of the Common Shares, based on a price that varies or changes based on the market price of the
Common Shares.

    	17 

    	 

    

“Permitted
Indebtedness” shall mean: (i) indebtedness evidenced by the Convertible Debentures; (ii) indebtedness described on a Disclosure
Schedule attached hereto; (iii) indebtedness incurred solely for the purpose of financing the acquisition or lease of any equipment, including
capital lease obligations with no recourse other than to such equipment; (iv) indebtedness (A) the repayment of which has been subordinated
to the payment of the Convertible Debentures on terms and conditions acceptable to the Buyers, including with regard to interest payments
and repayment of principal, (B) which does not mature or otherwise require or permit redemption or repayment prior to or on the 91st day
after the maturity date of any Convertible Debentures then outstanding; and (C) which is not secured by any assets of the Company or its
subsidiaries; (v) indebtedness associated with acquiring new intellectual property assets and licenses, so long as the proceeds are going
to the party(ies) from which the Company is acquiring the assets, licenses, and other properties and (vi) any indebtedness (other than
the indebtedness set out in (i) – (v) above) incurred after the date hereof, provided that such indebtedness does not exceed $1,500,000
at any given time.

“Permitted
Liens” shall mean (1) any security interest granted to the Buyers to secure the obligations under the Convertible Debentures,
(2) any prior security interest granted to the Buyers, (3) existing Liens disclosed by the Company on a Disclosure Schedule attached hereto;
(4) inchoate Liens for taxes, assessments or governmental charges or levies not yet due, as to which the grace period, if any, related
thereto has not yet expired, or being contested in good faith and by appropriate proceedings for which adequate reserves have been established
in accordance with GAAP; (5) Liens of carriers, materialmen, warehousemen, mechanics and landlords and other similar Liens which secure
amounts which are not yet overdue by more than 60 days or which are being contested in good faith by appropriate proceedings for which
adequate reserves have been established in accordance with GAAP; (6) licenses, sublicenses, leases or subleases granted to other persons
not materially interfering with the conduct of the business of the Company; (7) Liens securing capitalized lease obligations and purchase
money indebtedness incurred solely for the purpose of financing an acquisition or lease; (8) easements, rights-of-way, restrictions, encroachments,
municipal zoning ordinances and other similar charges or encumbrances, and minor title deficiencies, in each case not securing debt and
not materially interfering with the conduct of the business of the Company and not materially detracting from the value of the property
subject thereto; (9) Liens arising out of the existence of judgments or awards which judgments or awards do not constitute an Event of
Default; (10) Liens incurred in the ordinary course of business in connection with workers compensation claims, unemployment insurance,
pension liabilities and social security benefits and Liens securing the performance of bids, tenders, leases and contracts in the ordinary
course of business, statutory obligations, surety bonds, performance bonds and other obligations of a like nature (other than appeal bonds)
incurred in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money); (11) Liens in favor
of a banking institution arising by operation of law encumbering deposits (including the right of set-off) and contractual set-off rights
held by such banking institution and which are within the general parameters customary in the banking industry and only burdening deposit
accounts or other funds maintained with a creditor depository institution; (12) usual and customary set-off rights in leases and other
contracts; (13) escrows in connection with acquisitions and dispositions and (14) royalties and other rights to revenue derived from the
sale of the Company’s products that are granted in the ordinary course of business.

		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)
Register. The Company shall maintain at its principal executive offices or with the
Transfer Agent (or at such other
office or agency of the Company as it may designate by notice
to each holder of Securities), a register for the
Convertible Debentures in which the Company
shall record the name and address of the Person
in whose name the Convertible Debentures have
been issued (including the name and address of each transferee), the
amount of Convertible Debentures held by such Person, the number of Conversion Shares
issuable upon conversion of the Convertible
Debentures held by such Person, the amount of Warrants held by such Person and the
number of Warrant Shares issuable upon exercise of the
Warrants held by such Person. The Company shall keep the
register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

    	18 

    	 

    

(b)
Transfer Restrictions. 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 to an Affiliate
of a Buyer or in connection with a pledge as contemplated herein, the Company may 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 and obligations of a Buyer under this Agreement.

 

		6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

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

    	19 

    	 

    

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

(b)
Such Buyer and each other Buyer shall have delivered to the
Company the Purchase Price (less, in the case
of any Buyer, the amounts withheld pursuant to
Section 4(d)) for the Convertible Debentures being
purchased by such Buyer at the Closing by wire transfer of immediately available funds
in accordance with the Closing Statement.

(c)
The representations and warranties of such Buyer shall be true and correct in all material respects as of the
date when made and as of the Closing Date as though
originally made at that time (except for representations and warranties that speak as of a specific date, which
shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required
by this Agreement to be performed, satisfied or complied with
by such Buyer at or prior to the Closing Date.

		7.	CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

 

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

 

(a)
The Company shall have duly executed and delivered to such Buyer each of the
Transaction Documents to which it is a party and the
Company shall have duly executed and delivered to such Buyer a Convertible Debenture
with a principal amount corresponding to the Subscription Amount set forth opposite such Buyer’s name on Schedule of Buyers attached
as Schedule I for the Closing.

(b)
The Company shall have delivered to each Buyer copies of its and each Subsidiaries certified copies of its charter, as well as
any shareholder or operating agreements by or among the shareholders or members of any of the Company’s Subsidiaries.

(c)
The Company shall have delivered to such Buyer a certificate evidencing the incorporation
and good standing of the Company as of a date
within ten (10) days of the Closing Date.

(d)
Each and every representation and warranty of the Company shall be true and correct
in all material respects (other than representations and warranties qualified by materiality, which
shall be true and correct in all respects) as of the date when made and as of the
Closing Date as though originally made at that time (except for representations and
warranties that speak as of a specific date, which shall be true and correct as of such specific
date) and the Company shall have performed, satisfied and complied in all respects with
the covenants, agreements and conditions set forth in each Transaction Document required
to be performed, satisfied or complied with by the Company
at or prior to the Closing Date.

    	20 

    	 

    

(e)
The Company shall have obtained all governmental, regulatory or third-party consents
and approvals, if any, necessary for the sale of the
Securities, including without limitation, those
required by the Principal Market, if any.

(f)
Such Buyer shall have received a letter, duly executed by an
officer of the Company, setting forth the wire
amounts of each Buyer and the wire transfer instructions of the
Company (the “Closing Statement”). 

(g)
(i) From the date hereof to the
Closing Date, trading in the Common Shares shall not
have been suspended by the SEC or the
Principal Market (except for any suspension of trading of limited duration agreed to by the
Company, which suspension shall be terminated prior to the
Closing), and (ii) at any time prior to the applicable
Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not
have been suspended or limited, or minimum prices shall not have been established on
securities whose trades are reported by such service, or on the Principal Market, nor
shall a banking moratorium have been declared either by the
United States or New York State authorities 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 market which,
in each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable
to purchase the Securities at the Closing.

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

(i)
Solely with respect to the Second Closing, the Company shall have filed the Registration Statement with the SEC.

(j)
Solely with respect to the Third Closing, the Registration Statement shall be declared effective by the SEC.

		8.	TERMINATION.

 

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

    	21 

    	 

    

 

		9.	MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning
the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the
State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions)
that would cause the application of the
laws of any jurisdictions other than the State
of New York. The Company hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in The City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or under any of the other Transaction
Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or
proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing
contained herein shall be deemed or operate to preclude any Buyer from bringing suit
or taking other legal action against the Company
in any other jurisdiction to collect on the Company's
obligations to such Buyer or to enforce a judgment or other
court ruling in favor of such Buyer. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
MAY HAVE TO,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR
UNDER ANY OTHER TRANSACTION DOCUMENT OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT,
ANY OTHER TRANSACTION DOCUMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts,
all of which shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the
other party. In the event that any signature
is delivered by facsimile transmission or by an email which contains a portable document format
(.pdf) file of an executed signature page, such signature page shall create a valid and binding
obligation of the party executing (or on
whose behalf such signature is executed) with the same force and effect
as if such signature page were an original thereof.

(c)
Headings; Gender. The headings of this
Agreement are for convenience of reference and shall not
form part of, or affect the
interpretation of, this Agreement. Unless the
context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms "including," "includes,"
"include" and words of like import shall be construed broadly as if followed by
the words "without limitation." The terms "herein," "hereunder,"
"hereof" and words of like import refer to
this entire Agreement instead of just the provision
in which they are found.

    	22 

    	 

    

(d)
Entire Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer, the
Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the
instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and,
except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or
undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

(e)
Notices. Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing by letter and email and will be deemed to have been delivered:
upon the later of (A) either (i) receipt, when delivered personally or (ii) one (1) Business
Day after deposit with an overnight courier service with
next-day international delivery specified, in each case, properly addressed to the party
to receive the same and (B) receipt, when sent by electronic mail. The addresses and email
addresses for such communications shall be:

	If to the Company, to:	HELBIZ, INC.
	 	
    32 Old Slip

    New York, NY 10005

    Attention: Salvatore Palella

    Telephone: (917) 535-2610

    Email: ceo@helbiz.com]

     

     

	With Copy to:	
    William Rosenstadt, Esq.

    Ortoli Rosenstadt LLP

    366 Madison Avenue, 3rd Floor

    New York, NY 10017

    Telephone:  (212) 588-0022

    E-Mail:  wsr@orllp.legal

 

 

    	23 

    	 

    

 

	 	 
	If to a Buyer, to its address and email address set forth on the Schedule of Buyers, with copies to such Buyer's representatives as set forth on the Schedule of Buyers,
	 	 
	 	 
	With copy to:	
    David Fine, Esq.

    c/o Yorkville Advisors Global, LP

    1012 Springfield Avenue

    Mountainside, NJ 07092

    Telephone: (201) 985-8300

    Email: legal@yorkvilleadvisors.com

	 	 

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

(f)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of any of the Convertible Debentures (but excluding any purchasers of Underlying Securities,
unless pursuant to a written assignment by such Buyer). The Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Buyers. In connection with any transfer of any or all of its Securities, a Buyer may assign all,
or a portion, of its rights and obligations hereunder in connection with such Securities without the consent of the Company, in which
event such assignee shall be deemed to be a Buyer hereunder with respect to such transferred Securities.

(g)
Indemnification.

(i)
In consideration of each Buyer's execution
and delivery of the Transaction Documents
and acquiring the Securities thereunder
and in addition to all of the
Company's other obligations under the Transaction Documents, the
Company shall defend, protect, indemnify and hold harmless each Buyer
and each holder of any Securities and all
of their stockholders, partners, members, officers, directors, employees and direct or
indirect investors and any of the foregoing
Persons' agents or other representatives (including,
without limitation, those retained in connection
with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”)
from and against any and all actions, causes
of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith
(irrespective of whether any such Indemnitee is
a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys' fees and
disbursements (the “Indemnified Liabilities”), incurred by
any Indemnitee as a result of, or arising out of,
or relating to (i) any misrepresentation or breach
of any representation or warranty made by
the Company in any of the
Transaction Documents, (ii) any breach of any covenant,
agreement or obligation of
the Company or any Subsidiary contained
in any of the Transaction Documents
or (iii) any cause of action, suit, proceeding or
claim brought or made against such Indemnitee by
a third party (including for these purposes a derivative
action brought on behalf of the Company or any
Subsidiary) or which otherwise involves
such Indemnitee that arises out of
or results from (A) the execution, delivery,
performance or enforcement of any of
the Transaction Documents, (B) any transaction financed or
to be financed in whole or
in part, directly or indirectly, with the proceeds
of the issuance of
the Securities, or (C) any disclosure properly
made by such Buyer pursuant to Section 4(f), or
(D) the status of such Buyer
or holder of the
Securities either as an investor in the
Company pursuant to the transactions contemplated
by the Transaction Documents or as a party
to this Agreement (including, without
limitation, as a party in interest or otherwise
in any action or proceeding for injunctive or
other equitable relief). To the
extent that the foregoing undertaking
by the Company may be unenforceable for
any reason, the Company shall make the maximum
contribution to the payment and satisfaction of
each of the Indemnified Liabilities
which is permissible under applicable law.

    	24 

    	 

    

(ii)
Promptly after receipt by an Indemnitee under this
Section 9(g) of notice of
the commencement of any action
or proceeding (including any governmental action
or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim
in respect thereof is to be made against the Company
under this Section 9(g), deliver to the
Company a written notice of the
commencement thereof, and the Company shall have
the right to participate in, and,
to the extent the
Company so desires, to assume control of the defense
thereof with counsel mutually reasonably satisfactory
to the Company and the Indemnitee; provided,
however, that an Indemnitee shall have the
right to retain its own counsel with
the fees and expenses of such counsel to be paid
by the Company if: (A) the Company has
agreed in writing to pay such fees and expenses; (B) the
Company shall have failed promptly to assume the
defense of such Indemnified Liability and
to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability;
or (C) the named parties to any such Indemnified Liability
(including any impleaded parties) include both such Indemnitee and the
Company, and such Indemnitee shall have been advised by
counsel that a conflict of interest is likely
to exist if the same counsel were to represent such Indemnitee and the
Company (in which case, if such Indemnitee notifies the
Company in writing that it elects to employ separate counsel at the
expense of the Company, then
the Company shall not have
the right to assume the defense thereof
and such counsel shall be at the expense of
the Company), provided further, that
in the case of clause (C) above
the Company shall not be responsible for
the reasonable fees and expenses of more than
one (1) separate legal counsel for the
Indemnitees. The Indemnitee shall reasonably cooperate with the Company in connection
with any negotiation or defense of
any such action or Indemnified Liability by the
Company and shall furnish to the Company all information reasonably available
to the Indemnitee which relates to such
action or Indemnified Liability. The Company shall keep the
Indemnitee reasonably apprised at all times as to the status of
the defense or any settlement negotiations
with respect thereto. The Company shall not be
liable for any settlement of any action,
claim or proceeding effected without its
prior written consent, provided, however, that the
Company shall not unreasonably withhold, delay
or condition its consent. The Company shall
not, without the
prior written consent of the Indemnitee,
consent to entry of any judgment or enter into
any settlement or other compromise which
does not include as an unconditional
term thereof the giving by the
claimant or plaintiff to such Indemnitee of a
release from all liability in respect to such
Indemnified Liability or litigation, and such settlement
shall not include any admission as to fault on the
part of the Indemnitee. Following
indemnification as provided for hereunder, the
Company shall be subrogated to all rights of the
Indemnitee with respect to all third parties, firms
or corporations relating to the matter for
which indemnification has been made. The failure to deliver
written notice to the Company within
a reasonable time of the commencement of
any such action shall not relieve the
Company of any liability to the
Indemnitee under this Section 9(g), except to
the extent that the
Company is materially and adversely prejudiced in its ability
to defend such action.

 

    	25 

    	 

    

 

(iii)
The indemnification required by this Section
9(g) shall be made by periodic payments of
the amount thereof during the
course of the investigation or
defense, within ten (10) days after bills
supporting the Indemnified Liabilities
are received by the Company.

(iv)
The indemnity agreement contained herein
shall be in addition to (A) any cause of
action or similar right of the Indemnitee
against the Company or others, and (B) any liabilities
the Company may be subject to pursuant to the
law.

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

 

[REMAINDER PAGE INTENTIONALLY
LEFT BLANK]

 

 

    	26 

    	 

    

 

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

 

	 	
    COMPANY:

     

	 	HELBIZ, INC.
	 	 
	 	By: /s/ Salvatore Palella
	 	Name:Salvatore Palella
	 	Title:CEO
	 	 

 

 

 

 

 

 

    	27 

    	 

    

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

 

	 	
    BUYER:

     

     

	 	YA II PN, LTD. 
	 	 
	 	By:  Yorkville Advisors Global, LP
	 	Its:Investment Manager
	 	 
	 	       By:  Yorkville Advisors Global II, LLC
	 	       Its:   General Partner
	 	 
	 	       By /s/ Matt Beckman
	 	       Name:Matt Beckman
	 	       Title:Member

 

    	 

    	 

    

 

LIST OF EXHIBITS:

 

 

 

 

 

    	 

    	 

    

EXHIBIT A

 

FORM OF CONVERTIBLE DEBENTURES

 

 

 

    	 

    	 

    

 

 

EXHIBIT B

 

FORM OF WARRANTS

 

 

    	 

    	 

    

 

SCHEDULE OF BUYERS

 

 

	(a)	 	(b)	(c)
	Buyer 	 	Principal Amount of Convertible Debentures	Purchase Price (100% of Face Value)
	 	 	 	 
	YA II PN, Ltd.	 	 	 
	1012 Springfield Avenue	First Closing:	$5,000,000.00	$5,000,000.00
	Mountainside, NJ 07092	Second Closing	$2,500,000.00	$2,500,000.00
	Email: Legal@yorkvilleadvisors.com	Third Closing	$2,500,000.00	$2,500,000.00
	 	 	 
	 	Aggregate:	$10,000,000.00 	$10,000,000.00 
	 	 	 	 
	 	 	 
	Legal Representative’s Address and E-Mail Address	 
	Troy Rillo, Esq.	 	 	 
	1012 Springfield Avenue	 	 	 
	Mountainside, NJ 07092	 	 	 
	Email: Legal@yorkvilleadvisors.comExhibit 10.2

 

NEITHER
THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD 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.

HELBZ,
INC.

Convertible
Debenture

Principal Amount:  $5,000,000

Debenture Issuance
Date: August 23, 2022

Debenture Number:
HLBZ-7

 

FOR
VALUE RECEIVED, HELBZ, INC., a Delaware company (the “Company”), hereby promises to pay to the order of YA II
PN, LTD., or its registered assigns (the “Holder”) the amount set out above as the Principal Amount (as reduced pursuant
to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity
Date (as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest
(“Interest”) on any outstanding Principal at the applicable Interest Rate from the date set out above as the Debenture
Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon the Maturity Date or acceleration,
conversion, redemption or otherwise (in each case in accordance with the terms hereof). This Convertible Debenture (including all debentures
issued in exchange, transfer or replacement hereof, this “Debenture”) was originally issued pursuant to the Securities
Purchase Agreement dated on or about the date hereof (the “Securities Purchase Agreement”) between the Company and
the Buyers listed on the Schedule of Buyers attached thereto. Certain capitalized terms used herein are defined in Section (13).

(1)
GENERAL TERMS

(a)
Maturity Date. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal,
accrued and unpaid Interest, and any other amounts outstanding pursuant to the terms of this Debenture. The “Maturity Date”
shall be August 23, 2023, as may be extended at the option of the Holder. Other than as specifically permitted by this Debenture, the
Company may not prepay or redeem any portion of the outstanding Principal and accrued and unpaid Interest.

(b)
Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal balance hereof at an annual rate
equal to 5% (“Interest Rate”), which Interest Rate shall increase to an annual rate of 15% for so long as any Event
of Default remains uncured. Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the
extent permitted by applicable law.

    	 

    	 

    

 

(c)
Triggering Event. If, at any time after the Issuance Date, and from time to time thereafter, the daily VWAP is less than
the Floor Price then in effect for 5 consecutive Trading Days (the first day of each such day of each such occurrence, a “Triggering
Date”), then the Company shall make monthly payments beginning on the date which is 30 calendar days after the Triggering Date.
Each monthly payment shall be in an amount equal to the sum of (i) the Principal Amount outstanding as of the Triggering Date divided
by the number of full months until the Maturity Date, (ii) the Redemption Premium (as defined below) in respect of such Principal Amount,
and (iii) accrued and unpaid interest hereunder as of each payment date. Each monthly payment obligation shall be reduced by any amounts
converted since the last monthly payment. The obligation of the Company to make monthly payments hereunder shall cease if, any time after
the applicable Triggering Date, the daily VWAP is greater than the Floor Price for a period of 10 consecutive Trading Days, unless a
subsequent Triggering Date occurs. 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.

(d)
Early Redemption. The Company at its option shall have the right, but not the obligation, to redeem (“Optional
Redemption”) early a portion or all amounts outstanding under this Debenture as described in this Section; provided
that (i) the trading price of the Common Stock is less than the Fixed Conversion Price and (ii) the Company provides the Holder with
at least 5 Business Days’ prior written notice (each, a “Redemption Notice”) of its desire to exercise an Optional
Redemption. Each Redemption Notice shall be irrevocable and shall specify the outstanding balance of the Convertible Debentures to be
redeemed and the applicable Redemption Premium. The “Redemption Amount” shall be equal to the outstanding Principal
balance being redeemed by the Company, plus the applicable Redemption Premium, plus all accrued and unpaid interest. After receipt of
the Redemption Notice, the Holder shall have 5 Business Days to elect to convert all or any portion of Convertible Debentures. On the
6th Business Day after the Redemption Notice, the Company shall deliver to the Holder the Redemption Amount with respect to the Principal
amount redeemed after giving effect to conversions effected during the 5 Business Day period. 

(2)
EVENTS OF DEFAULT.

(a)
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and
whether it 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)
the Company's failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Debenture
or any other Transaction Document within five (5) Business Days after such payment is due;

(ii)
the Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company
or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the
Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company any such bankruptcy,
insolvency or other proceeding which remains undismissed for a period of 61 days; or the Company or any subsidiary of the Company is
adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company
or any subsidiary of the Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or
any substantial part of its property which continues undischarged or unstayed for a period of sixty one (61) days; or the Company or
any subsidiary of the Company makes a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company
shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the
Company or any subsidiary of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or
restructuring of its debts; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its
consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary
of the Company for the purpose of effecting any of the foregoing;

    	2 

    	 

    

(iii)
the Company or any subsidiary of the Company shall default in any of its obligations under any other debenture or 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 of the Company or any subsidiary of the Company in an amount exceeding $500,000, whether such indebtedness now exists or
shall hereafter be created and such default shall result in such indebtedness becoming or being declared due and payable and such default
is not cured within five (5) Business Days;

(iv)
the Common Stock shall cease to be quoted or listed for trading, as applicable, on any Primary Market for a period of 10 consecutive
Trading Days;

(v)
the Company or any subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in Section (13)
unless in connection with such Change of Control Transaction this Debenture is retired; 

(vi)
the Company's (A) failure to deliver the required number of shares of Common Stock to the Holder within 2 Trading Days after the
applicable Delivery Date or (B) notice, written or oral, to any holder of the Debentures, including by way of public announcement, at
any time, of its intention not to comply with a request for conversion of any Debentures into shares of Common Stock that is tendered
in accordance with the provisions of the Debentures, other than pursuant to Section (4)(c);

(vii)
the Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within five (5)
Business Days after such payment is due; 

(viii)
the Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise commit
any material breach or default of any provision of this Debenture (except as may be covered by Section (2)(a)(i) through (2)(a)(ix) hereof)
or any Transaction Document (as defined in Section (13)) which is not cured within the time prescribed; or

(ix)
any Event of Default (as defined in the Other Debentures) occurs with respect to any Other Debentures.

(b)
During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred and is continuing, the
full unpaid Principal amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date of acceleration
shall become at the Holder's election, immediately due and payable in cash. Furthermore, in addition to any other remedies, the Holder
shall have the right (but not the obligation) to convert this Debenture (subject to the beneficial ownership limitations set out in Section
(3)(c)) at any time after (x) an Event of Default (provided that such Event of Default is continuing) or (y) the Maturity Date at the
Conversion Price. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind,
(other than required notice of conversion) and the Holder may immediately enforce any and all of its rights and remedies hereunder and
all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior to
payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

(3)
CONVERSION OF DEBENTURE.This Debenture shall be convertible into shares of Common Stock, on the terms and conditions
set forth in this Section (3).

(a)
Conversion Right. Subject to the limitations of Section (3)(c), at any time or times on or after the Issuance Date, the Holder
shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable
shares of Common Stock in accordance with Section (3)(b), at the Conversion Rate (as defined below). The number of shares of Common Stock
issuable upon conversion of any Conversion Amount pursuant to this Section (3)(a) shall be determined by dividing (x) such Conversion
Amount by (y) the Conversion Price (the “Conversion Rate”). The Company shall not issue any fraction of a share of
Common Stock upon any conversion. All calculations under this Section (3) shall be rounded to the nearest $0.0001. If the issuance would
result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up
to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the
issuance and delivery of Common Stock upon conversion of any Conversion Amount.

    	3 

    	 

    

(i)
“Conversion Amount” means the portion of the Principal and accrued Interest to be converted, redeemed or otherwise with respect
to which this determination is being made.

(ii)
“Conversion Price” means, as of any Conversion Date (as defined
below) or other date of determination the lower of (i) $2.00 (the “Fixed Conversion Price”), or (ii) 92.5% of the
lowest daily VWAPs during the 5 consecutive Trading Days immediately preceding the Conversion Date or other date of determination (the
“Variable Conversion Price”), but not lower than the Floor Price. The Conversion Price shall be adjusted from time
to time pursuant to the other terms and conditions of this Debenture. 

(b)
Mechanics of Conversion.

(i)
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York Time, on such date,
a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”)
to the Company and (B) if required by Section (3)(b)(iii), surrender this Debenture to a nationally recognized overnight delivery service
for delivery to the Company (or an indemnification undertaking reasonably satisfactory to the Company with respect to this Debenture
in the case of its loss, theft or destruction). On or before the third Trading Day following the date of receipt of a Conversion Notice
(the “Share Delivery Date”), the Company shall (X) if legends are not required to be placed on certificates of Common
Stock and provided that the Transfer Agent is participating in the Depository Trust Company's (“DTC”) Fast Automated
Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's
or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the Conversion
Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder
shall be entitled which certificates shall not bear any restrictive legends unless required pursuant to rules and regulations of the
Commission. If this Debenture is physically surrendered for conversion and the outstanding Principal of this Debenture is greater than
the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than
three (3) Business Days after receipt of this Debenture and at its own expense, issue and deliver to the holder a new Debenture representing
the outstanding Principal not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion
of this Debenture shall be treated for all purposes as the record holder or holders of such shares of Common Stock upon the transmission
of a Conversion Notice.

(ii)
Company's Failure to Timely Convert. If within three (3) Trading Days after the Company's receipt of an email copy of a Conversion
Notice the Company shall fail to issue and deliver a certificate to the Holder or credit the Holder's balance account with DTC for the
number of shares of Common Stock to which the Holder is entitled upon such holder's conversion of any Conversion Amount (a “Conversion
Failure”), and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) Common Stock
to deliver in satisfaction of a sale by the Holder of Common Stock issuable upon such conversion that the Holder anticipated receiving
from the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after the Holder's request and
in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage
commissions and other out of pocket expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”),
at which point the Company's obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly
honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B)
the Closing Bid Price on the Conversion Date.

(iii)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Debenture
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless (A)
the full Conversion Amount represented by this Debenture is being converted or (B) the Holder has provided the Company with prior written
notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical surrender of this
Debenture. The Holder and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions
or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this
Debenture upon conversion.

    	4 

    	 

    

(c)  
Limitations on Conversions.

(i)
Beneficial Ownership. The Holder shall not have the right to convert any portion of this Debenture or receive shares of
Common Stock hereunder to the extent that after giving effect to such conversion or receipt of such Shares, the Holder, together with
any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated
thereunder) in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to such conversion
or receipt of shares as payment of interest. Since the Holder will not be obligated to report to the Company the number of shares of
Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares
of Common Stock in excess of 4.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially
owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction
contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation
contained in this Section applies, the determination of which portion of the Principal amount of this Debenture is convertible shall
be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a Principal amount of this Debenture
that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in the issuance in excess
of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum Principal
amount permitted to be converted on such Conversion Date in accordance with Section (3)(a) and, any Principal amount tendered for conversion
in excess of the permitted amount hereunder shall remain outstanding under this Debenture. The provisions of this Section may be waived
by a Holder (but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders
shall be unaffected by any such waiver.

(ii)
Principal Market Limitations. Notwithstanding anything in this Debenture to the contrary, the Company shall not issue any
shares of Common Stock upon conversion of this Debenture, or otherwise, if the issuance of such Common Stock, together with any Common
Stock issued in connection with any related transactions that may be considered part of the same series of transactions, would exceed
the aggregate number of shares of Common Stock that the Company may issue in a transaction in compliance with the Company’s obligations
under the rules or regulations of Nasdaq Stock Market LLC (the “Nasdaq”) and shall be referred to as the “Exchange
Cap,” except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders
as required by the applicable rules of the Nasdaq for issuances of shares in excess of such amount or (B) obtains a written opinion from
outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder. The
Exchange Cap shall be appropriately adjusted for any stock dividend, stock split, reverse stock split or similar transaction. 

(d)  
Other Provisions.

(i)
The Company shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of Common
Stock issuable upon conversion of all outstanding amounts under this Debenture; and within three (3) Business Days following the receipt
by the Company of a Holder's notice that such minimum number of Underlying Shares is not so reserved, the Company shall promptly reserve
a sufficient number of shares of Common Stock to comply with such requirement.

(ii)
All calculations under this Section (3) shall be rounded to the nearest $0.0001 or whole share.

    	5 

    	 

    

(iii)
The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common
Stock solely for the purpose of issuance upon conversion of the outstanding Principal amount of this Debenture and accrued and unpaid
interest hereunder, as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than
the Holder, not less than such number of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions
set forth herein) upon the conversion of the entire outstanding Principal amount of this Debenture and accrued and unpaid interest hereunder
(for the purposes hereof, without regard to any limitations on conversions herein, other than the Floor Price). The Company covenants
that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid, nonassessable.

(iv)
Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section (2) herein
for the Company’s failure to deliver certificates representing shares of Common Stock upon conversion 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, in each case without the need to post a bond or provide other security. 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. 

(4)  
Adjustments to Conversion Price

(a)  
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company, at any time while this
Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on shares of Common Stock
or any other equity or equity equivalent securities payable in shares of its Common Stock, (b) subdivide outstanding shares of Common
Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a
smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any shares of capital stock of the Company,
then each of the Fixed Conversion Price and the Floor Price shall be multiplied by a fraction of which the numerator shall be the number
of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the
number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification.

(b)  
Other Events. If any event occurs of the type contemplated by the provisions of this Section (4) but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features, or issuing Convertible Securities with a variable conversion formula that is more favorable than this Debenture),
then the Company's Board of Directors will make an appropriate adjustment in the Conversion Price so as to protect the rights of the
Holder under this Debenture; provided that no such adjustment will increase the Conversion Price as otherwise determined pursuant to
this Section (4). If the Company issues any Convertible Securities with a variable conversion formula that is more favorable than this
Debenture, then at the option of the Holder, the Variable Conversion Price formula shall be changed to match that of the new Convertible
Securities. 

(c)  
Other Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation
of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets
with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to ensure that the Holder will thereafter have the right to receive upon a conversion of this Debenture, at the Holder's option, (i)
in addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which the Holder would
have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon the consummation
of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Debenture) or (ii)
in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets received by the holders
of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled
to receive had this Debenture initially been issued with conversion rights for the form of such consideration (as opposed to shares of
Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding
sentence shall be in a form and substance satisfactory to the Required Holders. The provisions of this Section shall apply similarly
and equally to successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of
this Debenture.

(d)  
Whenever the Conversion Price is adjusted pursuant to Section (4) hereof, the Company shall promptly mail to the Holder a notice
setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

    	6 

    	 

    

(e)  
In case of any (1) merger or consolidation of the Company or any subsidiary of the Company with or into another Person, or (2)
sale by the Company or any subsidiary of the Company of more than one-half of the assets of the Company in one or a series of related
transactions, a Holder shall have the right to (A) exercise any rights under Section (2)(b), (B) convert the aggregate amount of this
Debenture then outstanding into the shares of stock and other securities, cash and property receivable upon or deemed to be held by holders
of Common Stock following such merger, consolidation or sale, and such Holder shall be entitled upon such event or series of related
events to receive such amount of securities, cash and property as the shares of Common Stock into which such aggregate Principal amount
of this Debenture could have been converted immediately prior to such merger, consolidation or sales would have been entitled, or (C)
in the case of a merger or consolidation, require the surviving entity to issue to the Holder a convertible Debenture with a Principal
amount equal to the aggregate Principal amount of this Debenture then held by such Holder, plus all accrued and unpaid interest and other
amounts owing thereon, which such newly issued convertible Debenture shall have terms identical (including with respect to conversion)
to the terms of this Debenture, and shall be entitled to all of the rights and privileges of the Holder of this Debenture set forth herein
and the agreements pursuant to which this Debentures were issued. In the case of clause (C), the conversion price applicable for the
newly issued shares of convertible preferred stock or convertible Debentures shall be based upon the amount of securities, cash and property
that each share of Common Stock would receive in such transaction and the Conversion Price in effect immediately prior to the effectiveness
or closing date for such transaction. The terms of any such merger, sale or consolidation shall include such terms so as to continue
to give the Holder the right to receive the securities, cash and property set forth in this Section upon any conversion or redemption
following such event. This provision shall similarly apply to successive such events.

(5)
REISSUANCE OF THIS DEBENTURE.

(a)
Transfer. If this Debenture is to be transferred, the Holder shall surrender this Debenture to the Company, whereupon the
Company will forthwith issue and deliver upon the order of the Holder a new Debenture (in accordance with Section (5)(d)), registered
in the name of the registered transferee or assignee, representing the outstanding Principal being transferred by the Holder (along with
any accrued and unpaid interest thereof) and, if less then the entire outstanding Principal is being transferred, a new Debenture (in
accordance with Section (5)(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee,
by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of Section (3)(b)(iii) following conversion
or redemption of any portion of this Debenture, the outstanding Principal represented by this Debenture may be less than the Principal
stated on the face of this Debenture.

(b)
Lost, Stolen or Mutilated Debenture. Upon receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Debenture, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Debenture,
the Company shall execute and deliver to the Holder a new Debenture (in accordance with Section (5)(d)) representing the outstanding
Principal.

(c)
Debenture Exchangeable for Different Denominations. This Debenture is exchangeable, upon the surrender hereof by the Holder
at the principal office of the Company, for a new Debenture or Debentures (in accordance with Section (5)(d)) representing in the aggregate
the outstanding Principal of this Debenture, and each such new Debenture will represent such portion of such outstanding Principal as
is designated by the Holder at the time of such surrender.

    	7 

    	 

    

(d)
Issuance of New Debentures. Whenever the Company is required to issue a new Debenture pursuant to the terms of this Debenture,
such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the face of such new Debenture,
the Principal remaining outstanding (or in the case of a new Debenture being issued pursuant to Section (5)(a) or Section 5(5)(c), the
Principal designated by the Holder which, when added to the Principal represented by the other new Debentures issued in connection with
such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to such issuance of new Debentures),
(iii) shall have an issuance date, as indicated on the face of such new Debenture, which is the same as the Issuance Date of this Debenture,
(iv) shall have the same rights and conditions as this Debenture, and (v) shall represent accrued and unpaid Interest from the Issuance
Date.

(6) NOTICES.  Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof
must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt, when delivered
personally or (ii) one (1) Business Day after deposit with
an overnight courier service with next-day international delivery specified, in each
case, properly addressed to the party to receive the
same and (B) receipt, when sent by electronic mail. The addresses and email addresses for such communications shall be:

 

	If to the Company, to:	HELBZ, INC.
	 	32 Old Slip

    New York, NY 10005

    Attention: Salvatore Palella

    Telephone: (917) 535-2610

    Email: ceo@helbiz.com

	 	 
	With Copy to:	William Rosenstadt

    Ortoli Rosenstadt LLP

    366 Madison Avenue, 3rd Floor

    New York, NY 10017

    Telephone:  (212) 588-0022

    E-Mail:  wsr@orllp.legal

     

	If to the Holder:	YA II PN, LTD.
	 	c/o Yorkville Advisors Global, LLC

    1012 Springfield Avenue

	 	Mountainside, NJ 07092
	 	Attention: Mark Angelo
	 	Telephone: (201) 985-8300
	 	Email:  Legal@yorkvilleadvisors.com

 

or
at such other address and/or email and/or to the attention of such other person as the recipient party has specified by written notice
given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given
by the recipient of such notice, consent, waiver or other communication, (ii) electronically generated by the sender's email service
provider containing the time, date, recipient email address or (iii) provided by a nationally recognized overnight delivery service,
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service
in accordance with clause (i), (ii) or (iii) above, respectively.

(7)
Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Company, which
are absolute and unconditional, to pay the Principal of, interest and other charges (if any) on, this Debenture at the time, place, and
rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the Company. As long as this Debenture
is outstanding, the Company shall not and shall cause its subsidiaries not to, without the consent of the Holder, (i) amend its certificate
of incorporation, memorandum or articles of association, bylaws or other charter documents so as to adversely affect any rights of the
Holder; (ii) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of Common Stock or other equity securities;
or (iii) enter into any agreement with respect to any of the foregoing. 

    	8 

    	 

    

(8)
This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders
or any other proceedings of the Company, unless and to the extent converted into shares of Common Stock in accordance with the terms
hereof.

(9)
This Debenture shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Supreme Court of the State of New York located
in the City of New York, Borough of Manhattan, and the U.S. District Court for the
Southern District of New York in connection with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted
by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions.
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’
ACCEPTANCE OF THIS AGREEMENT.

(10)
If the Company fails to strictly comply with the terms of this Debenture, then the Company shall reimburse the Holder promptly
for all fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in any action
in connection with this Debenture, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in
connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which
become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the
protection, preservation or enforcement of any rights or remedies of the Holder.

(11)
Any waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist upon
strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must be in writing.

(12)
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and
circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing
usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest.
The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company
from paying all or any portion of the Principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at
any time hereafter in force, or which may affect the covenants or the performance of this 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 impeded 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.

(13)
CERTAIN DEFINITIONS. For purposes of this Debenture, the following terms shall have the following meanings:

(a)
“Bloomberg” means Bloomberg Financial Markets.

    	9 

    	 

    

(b)
“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 are authorized or required by law or other government action to close.

(c)
“Change of Control Transaction” means the occurrence of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether
through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty percent (50%)
of the voting securities of the Company (except that the acquisition of voting securities by the Holder or any other current holder of
convertible securities of the Company shall not constitute a Change of Control Transaction for purposes hereof), (b) a replacement at
one time or over time of more than one-half of the members of the board of directors of the Company (other than as due to the death or
disability of a member of the board of directors) which is not approved by a majority of those individuals who are members of the board
of directors on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination
to the board of directors was approved by a majority of the members of the board of directors who are members on the date hereof), (c)
the merger, consolidation or sale of fifty percent (50%) or more of the assets of the Company or any subsidiary of the Company in one
or a series of related transactions with or into another entity, or (d) the execution by the Company of an agreement to which the Company
is a party or by which it is bound, providing for any of the events set forth above in (a), (b) or (c). No transfer to a wholly-owned
subsidiary shall be deemed a Change of Control Transaction under this provision.

(d)
“Closing Bid Price” means the price per share in the last reported trade of the Common Stock on a Primary Market
or on the exchange which the Common Stock is then listed as quoted by Bloomberg.

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

(f)
“Commission” means the Securities and Exchange Commission.

(g)
“Common Stock” means ordinary shares in the capital of the Company with a par value of $0.0001 each and shares
of any other class into which such shares may hereafter be changed or reclassified.

(h)
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(i)
“Floor Price” means $0.25 per share.

(j)
“Fundamental Transaction” means any of the following: (1) the Company effects any merger or consolidation
of the Company with or into another Person and the Company is the non-surviving company (other than a merger or consolidation with a
wholly owned subsidiary of the Company for the purpose of redomiciling the Company), (2) the Company effects any sale of all or substantially
all of its assets in one or a series of related transactions, (3) 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 (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property. 

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

(l)
“Other Debentures” means any debentures issued pursuant to the Securities Purchase Agreement dated October
12, 2021, the Securities Purchase Agreement dated April 15, 2022, the Securities Purchase Agreement dated August 9, 2022, or the Securities
Purchase Agreement, and any other debentures, notes, or other instruments issued in exchange, replacement, or modification of the foregoing.

    	10 

    	 

    

(m)
“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government
or political subdivision thereof or a governmental agency.

(n)
“Primary Market” means any of the New York Stock Exchange, the
NYSE MKT, the Nasdaq Global
Market, the Nasdaq Global Select Market,
or the OTC QB, and any successor to any of the foregoing markets or exchanges.

(o)
“Redemption Premium” means 10% of the Principal amount being redeemed. 

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

(q)
“Securities Purchase Agreement” shall have the meaning set forth in the first paragraph of this Debenture.

(r)
“Trading Day” means a day on which the shares of Common Stock are quoted or traded on a Primary Market on which
the shares of Common Stock are then quoted or listed; provided, that in the event that the shares of Common Stock are not listed or quoted,
then Trading Day shall mean a Business Day.

(s)
“Transaction Document(s)” shall mean this Debenture, along with the Securities Purchase Agreement, and any
other documents or agreements entered into in connection with the foregoing. 

(t)
“Underlying Shares” means the shares of Common Stock issuable upon conversion of this Debenture or as payment
of interest in accordance with the terms hereof.

(u)
““VWAP means, for any security as of any date, the daily dollar volume-weighted average price for such security on the Primary
Market as reported by Bloomberg through its “Historical Prices – Px Table with Average Daily Volume” functions. 

 

[Signature
Page Follows]

    	11 

    	 

    

 

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

 

	 	COMPANY:
	 	HELBZ, INC.
	 	 

     

	 	By:/s/ Salvatore Palella
	 	Name: Salvatore Palella
	 	Title: CEO
	 	 

 

 

    	12 

    	 

    

 

EXHIBIT I

CONVERSION NOTICE

(To be executed
by the Holder in order to Convert the Debenture)

 

TO: HELBZ, INC.

Via Email: 

 

The
undersigned hereby irrevocably elects to convert a portion of the outstanding and unpaid Conversion Amount of Debenture No. HLBZ-7
into shares of Common Stock of HELBZ, INC., according to the conditions stated therein, as of the Conversion Date written
below.

	Conversion Date:	 
	Principal Amount
    to be Converted:	 
	Accrued Interest
    to be Converted:	 
	Total Conversion
    Amount to be converted:	 
	Fixed Conversion
    Price: 	 
	Variable Conversion
    Price:	 
	Applicable Conversion
    Price:	 
	Number of shares
    of Common Stock to be issued:	 
	 	 
	Please issue the shares of Common
    Stock in the following name and deliver them to the following account:
	Issue to:	
	Broker DTC Participant Code:	
	Account Number:	
	 	 
	Authorized Signature:	
	Name:	
	Title:

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