Document:

Exhibit 10.1

 

INTEREST PURCHASE AGREEMENT

 

This INTEREST PURCHASE
AGREEMENT (this “Agreement”) is entered into as of December 31, 2020, by and among Concentra Group Holdings
Parent, LLC, a Delaware limited liability company (the “Company”), Select Medical Corporation, a Delaware corporation
(“Select”), Welsh, Carson, Anderson & Stowe XII, L.P., a Delaware limited partnership (“WCAS”),
Dignity Health Holding Corporation, a Nevada corporation (“Dignity”), and the other signatories hereto (collectively
with WCAS and Dignity, the “Sellers” and each, individually, a “Seller”).

 

WHEREAS, the Sellers,
Select and the Company are parties to that certain Amended and Restated Limited Liability Company Agreement of the Company, dated
as of February 1, 2018 (as amended by that First Amendment, dated June 28, 2018, the “LLC Agreement”);

 

WHEREAS, pursuant to
(i) that certain Interest Purchase Agreement, dated as of January 1, 2020, by and among the Company, Select, WCAS, Dignity
and the other signatories thereto (the “First Put Agreement”) and (ii) that certain Interest Purchase Agreement,
dated as of February 1, 2020, by and among the Company, Select, WCAS, Dignity and the other signatories thereto (the “Mini
Put Agreement”), Select acquired approximately 18.61% of the outstanding membership interests of the Company on a fully
diluted basis;

 

WHEREAS, immediately
prior to the effectiveness of this Agreement, certain Sellers (the “Option Sellers”) exercised vested options
for Class B Interests and/or Class C Interests of the Company (the “Vested Options”) and received
the Class B Interests and/or Class C Interests set forth on Schedule II attached to each Option Seller’s
signature page. In connection with such exercise, each Option Seller is obligated to pay to the Company the applicable exercise
price and applicable withholding taxes arising as a result of such exercise;

 

WHEREAS, pursuant to
the Concentra Group Holdings Parent, LLC 2018 Equity Incentive Plan (as amended) (the “Equity Plan”) and each
Option Seller’s respective Award(s) (as defined in the Equity Plan), each Option Seller, in connection with the exercise
of their Vested Options, delivered a Notice of Option Exercise to the Company pursuant to which each Option Seller directed the
Company to withhold a certain number of Class B Interests and/or Class C Interests (the “Withheld Interests”)
that otherwise would be received by such Option Seller on exercise of the Vested Options as payment for the applicable exercise
price and applicable withholding taxes arising as a result of such exercise. The number of Withheld Interests for each Option Seller
is set forth on Schedule II attached to each such Option Seller’s signature page and the number of Purchased
Interests for each such Option Seller set forth on Schedule I attached to each such Option Seller’s signature page is
net of such Withheld Interests; and

 

WHEREAS, Select agrees
to purchase from each Seller, and each Seller agrees to sell to Select, the number of Class A Interests, Class B Interests
and Class C Interests (including any Class B Interests and Class C Interests arising from the exercise of the Vested
Options and net of any Withheld Interests) (collectively, the “Interests”) of the Company as set forth on Schedule I
attached to each Seller’s signature page (collectively, the “Purchased Interests”), such sale and
purchase to be consummated in accordance with the terms and subject to the conditions set forth herein.

 

    

     

    

 

NOW, THEREFORE, in consideration
of the premises set forth above and of the mutual representations, covenants, and obligations hereinafter set forth below, and
for other good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

 

Article I

PURCHASE AND SALE OF PURCHASED INTERESTS

 

1.1            Purchase,
Sale and Delivery of Purchased Interests. The closing of the purchase and sale of the Purchased Interests contemplated herein
(the “Closing”) shall take place remotely (including by facsimile or PDF) on the date hereof (the “Closing
Date”) and shall be deemed effective as of 12:01 A.M. (ET) on such date. At the Closing, in accordance with the
terms and subject to the conditions hereinafter set forth, each Seller shall sell, transfer and deliver to Select, and Select shall,
subject to Section 1.3, purchase from each such Seller, all of such Seller’s rights, title and interest in and
to the Purchased Interests set forth opposite such Seller’s name on Schedule I attached to such Seller’s
signature page for the Purchase Price (as defined below) set forth opposite such Seller’s name on Schedule I
attached to such Seller’s signature page. In connection with the delivery of the Purchased Interests to Select, each Seller
shall deliver to Select a duly executed irrevocable membership interest transfer power reflecting the transfer of such Seller’s
Purchased Interests to Select.

 

1.2            Purchase
Price. The purchase price for the Purchased Interests shall be four dollars and twenty cents ($4.20) per Purchased Interest
(the “Per Interest Price”).

 

1.3            Closing
Payment. On December 31, 2020, Select shall remit, or cause to be remitted, to each Seller an amount equal to the product
(the “Purchase Price”) of (a) the Per Interest Price and (b) the number of Purchased Interests set
forth opposite such Seller’s name on Schedule I attached to such Seller’s signature page, in immediately available
funds in accordance with wire instructions provided by such Seller to Select in writing. The Purchase Price payable to each Seller
is set forth opposite such Seller’s name on Schedule I attached to such Seller’s signature page.

 

Article II

REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF EACH SELLER

 

Each Seller hereby (solely
as to itself, himself or herself and not jointly or with respect to any other Seller) represents and warrants to, and agrees with,
Select and the Company as of the Closing Date as follows:

 

2.1            If
such Seller is not a natural person, such Seller is duly formed, incorporated or organized, validly existing and in good standing
under the laws of its jurisdiction of formation and has the power to carry on its business as it is now being conducted and to
enter into this Agreement and consummate the transactions contemplated by this Agreement.

 

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2.2            The
execution, delivery and performance by such Seller of this Agreement and the consummation of the transactions contemplated hereby
to which such Seller is a party are within the power and authority of such Seller and (a) if such Seller is an entity, have
been duly authorized by all necessary action on the part of such Seller and (b) if such Seller is a natural person, such Seller
is competent to execute and deliver this Agreement and to perform his or her obligations hereunder. The execution, delivery and
performance by such Seller of this Agreement and the consummation of the transactions contemplated hereby to which such Seller
is a party require no approval of, filing with, or other action by such Seller, by or in respect of, any governmental body, agency
or official or any other person.

 

2.3            This
Agreement has been (a) duly executed and delivered by such Seller and (b) assuming the due authorization, execution and
delivery of this Agreement by Select and the Company, constitutes a legal, valid and binding obligation of such Seller, enforceable
against such Seller in accordance with its terms, except as the enforceability hereof may be limited by (i) applicable bankruptcy,
insolvency, moratorium, reorganization or similar laws in effect which affect the enforcement of creditors’ rights generally
or (ii) general principles of equity, whether considered in a proceeding at law or in equity.

 

2.4            Neither
the execution and the delivery of this Agreement by such Seller nor the consummation of the transactions contemplated hereby by
such Seller will (a) violate in a material respect any statute, regulation, rule, judgment, order or other restriction of
any government, governmental agency or court to which such Seller is subject; (b) result in a material breach of, or constitute
a default under, any agreement, contract, lease, license or instrument to which such Seller is a party or by which such Seller
is bound; or (c) if such Seller is not a natural person, conflict with or result in any breach of any provision of the organizational
or governing documents of such Seller.

 

2.5            Such
Seller (a) is the sole record and beneficial owner of the Purchased Interests set forth opposite its name on Schedule I
attached to such Seller’s signature page, (b) has good and marketable title to such Purchased Interests and (c) has
the full legal right, power and authority to sell, transfer and deliver such Purchased Interests in accordance with the terms of
this Agreement. The delivery by such Seller to Select of such Purchased Interests pursuant to the terms of this Agreement will
transfer to Select good, valid and legal title to such Purchased Interests, free and clear of any and all liens, claims, pledges,
charges, security interests or encumbrances. Other than the LLC Agreement, none of such Purchased Interests are subject to any
shareholders agreement, voting agreement, voting trust, proxy or any other contractual obligation relating to the transferability
or the voting of such Purchased Interests.

 

2.6            No
investment bank, financial advisor, broker or finder has acted for such Seller in connection with this Agreement or the transactions
contemplated hereby, and no investment bank, financial advisor, broker or finder is entitled to any brokerage or finder’s
fee or other commissions in respect of such transactions based upon agreements, arrangements or understandings made by or on behalf
of such Seller.

 

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2.7            Such
Seller has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks
of its sale of the Purchased Interests and the other transactions contemplated hereby, and is entering into such transactions with
a full understanding of all of the terms, conditions and risks thereof and knowingly and willingly assumes such terms, conditions
and risks. Such Seller acknowledges and agrees that it has made its own inquiry and investigation into, and, based thereon, has
formed an independent judgment concerning, the Company and its business and operations, and has had, and has, full access to such
information about the Company and its business and operations as such Seller requires. SUCH SELLER UNDERSTANDS THAT SELECT MAY POSSESS
MATERIAL, NON-PUBLIC INFORMATION RELATING TO THE COMPANY AND THE INTERESTS. SUCH SELLER REPRESENTS, WARRANTS AND AGREES THAT IT
HAS NOT REQUESTED FROM SELECT OR THE COMPANY (OR ANY OF THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES)
AND HAS NOT RECEIVED FROM SELECT OR THE COMPANY (OR ANY OF THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES)
ANY INFORMATION ABOUT THE COMPANY OR ITS BUSINESS AND OPERATIONS OR THE INTERESTS AND UNDERSTANDS AND APPRECIATES THE SIGNIFICANCE
OF THERE BEING UNDISCLOSED INFORMATION, POSSIBLY INCLUDING MATERIAL INFORMATION, WITH RESPECT THERETO. SUCH SELLER REPRESENTS,
WARRANTS AND AGREES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELECT AS EXPRESSLY SET FORTH IN ARTICLE III
HEREOF, NONE OF THE COMPANY, SELECT (OR ANY OF THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES) MAKES OR
HAS MADE, OR SHALL BE DEEMED TO HAVE MADE, TO SUCH SELLER OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES ANY
REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE WHATSOEVER (ORAL OR WRITTEN, EXPRESS OR IMPLIED) RELATING TO SELECT, THE COMPANY
OR THEIR RESPECTIVE BUSINESS OR OPERATIONS OR THE INTERESTS OR OTHERWISE IN CONNECTION WITH THE PURCHASE AND SALE OF THE PURCHASED
INTERESTS AND THE OTHER TRANSACTIONS CONTEMPLATED HEREBY, AND NO PERSON HAS BEEN AUTHORIZED BY THE COMPANY OR SELECT TO MAKE ANY
REPRESENTATION OR WARRANTY RELATING TO SELECT, THE COMPANY OR THEIR RESPECTIVE BUSINESS OR OPERATIONS OR THE INTERESTS OR OTHERWISE
IN CONNECTION WITH THE PURCHASE AND SALE OF THE PURCHASED INTERESTS AND THE OTHER TRANSACTIONS CONTEMPLATED HEREBY, AND REPRESENTS,
WARRANTS AND AGREES THAT IN DETERMINING TO ENTER INTO AND PERFORM THIS AGREEMENT, SUCH SELLER HAS NOT RELIED UPON ANY REPRESENTATION,
WARRANTY, COVENANT OR AGREEMENT (ORAL OR WRITTEN, EXPRESS OR IMPLIED), RELATING TO SELECT, THE COMPANY OR THEIR RESPECTIVE BUSINESS
OR OPERATIONS OR THE INTERESTS OR OTHERWISE IN CONNECTION WITH THE PURCHASE AND SALE OF THE PURCHASED INTERESTS AND THE OTHER TRANSACTIONS
CONTEMPLATED HEREBY, OTHER THAN THE RESPECTIVE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF SELECT EXPRESSLY SET FORTH
HEREIN.

 

Article III

REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF SELECT

 

Select, hereby represents
and warrants to, and agrees with, each Seller as of the Closing Date as follows:

 

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3.1            Select
is a corporation, duly formed and validly existing under the laws of Delaware, and has the power to carry on its business as it
is now being conducted and to enter into this Agreement and consummate the transactions contemplated by this Agreement.

 

3.2            The
execution, delivery and performance by Select of this Agreement and the consummation of the transactions contemplated hereby are
within the power and authority of Select and have been duly authorized by all necessary action on the part of Select, acting by
the Board of Directors of Select or by a committee of the Board of Directors of Select established for the purpose of reviewing
the transactions contemplated by this Agreement, in each case excluding any members that are affiliated with any of the Sellers.
The execution, delivery and performance by Select of this Agreement and the consummation of the transactions contemplated hereby
require no approval of, filing with, or other action by Select, by or in respect of, any governmental body, agency or official
or any other person, other than any filings by Select or its affiliates required to be made under the Securities Exchange Act of
1934, as amended (the “Exchange Act”).

 

3.3            This
Agreement has been (a) duly executed and delivered by Select and (b) assuming the due authorization, execution and delivery
of this Agreement by each of the Sellers and the Company, constitutes a legal, valid, and binding obligation of Select, enforceable
against Select in accordance with its terms, except as the enforceability hereof may be limited by (i) applicable bankruptcy,
insolvency, moratorium, reorganization or similar laws in effect which affect the enforcement of creditors’ rights generally
or (ii) general principles of equity, whether considered in a proceeding at law or in equity.

 

3.4            Neither
the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (a) violate
in a material respect any statute, regulation, rule, judgment, order or other restriction of any government, governmental agency
or court to which Select is subject; (b) result in a material breach of, or constitute a default under, any agreement, contract,
lease, license or instrument to which Select is a party or by which Select is bound; or (c) conflict with or result in any
breach of any provision of the articles of incorporation or bylaws of Select.

 

3.5            No
investment bank, financial advisor, broker or finder has acted for Select in connection with this Agreement or the transactions
contemplated hereby, and no investment bank, financial advisor, broker or finder is entitled to any brokerage or finder’s
fee or other commissions in respect of such transactions based upon agreements, arrangements or understandings made by or on behalf
of Select.

 

3.6            Select
is acquiring the Purchased Interests for its own account for investment only and shall not resell, transfer or otherwise dispose
of, directly or indirectly, the Purchased Interests in violation of the Securities Act of 1933 (as amended) and applicable state
laws.

 

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3.7            Select
has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its
purchase of the Purchased Interests hereunder and the other transactions contemplated hereby, and is entering into such transactions
with a full understanding of all of the terms, conditions and risks thereof and knowingly and willingly assumes such terms, conditions
and risks. Select acknowledges and agrees that it has made its own inquiry and investigation into, and, based thereon, has formed
an independent judgment concerning, the Company and its business and operations, and has had, and has, full access to such information
about the Company and its business and operations as Select requires. SELECT REPRESENTS, WARRANTS AND AGREES THAT, EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES OF EACH SELLER AS EXPRESSLY SET FORTH IN ‎Article II
HEREOF, NONE OF THE SELLERS (OR ANY OF THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES) MAKES OR HAS MADE,
OR SHALL BE DEEMED TO HAVE MADE, TO SELECT, THE COMPANY OR ANY OF THEIR AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES ANY
REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE WHATSOEVER (ORAL OR WRITTEN, EXPRESS OR IMPLIED) RELATING TO THE PURCHASED INTERESTS
OR OTHERWISE IN CONNECTION WITH THE PURCHASE AND SALE OF THE PURCHASED INTERESTS AND THE OTHER TRANSACTIONS CONTEMPLATED HEREBY,
AND NO PERSON HAS BEEN AUTHORIZED BY SUCH SELLER TO MAKE ANY REPRESENTATION OR WARRANTY RELATING TO THE PURCHASED INTERESTS OR
OTHERWISE IN CONNECTION WITH THE PURCHASE AND SALE OF THE PURCHASED INTERESTS AND THE OTHER TRANSACTIONS CONTEMPLATED HEREBY, AND
REPRESENTS, WARRANTS AND AGREES THAT IN DETERMINING TO ENTER INTO AND PERFORM THIS AGREEMENT, SELECT HAS NOT RELIED UPON ANY
REPRESENTATION, WARRANTY, COVENANT OR AGREEMENT (ORAL OR WRITTEN, EXPRESS OR IMPLIED), RELATING TO THE PURCHASED INTERESTS OR OTHERWISE
IN CONNECTION WITH THE PURCHASE AND SALE OF THE PURCHASED INTERESTS AND THE OTHER TRANSACTIONS CONTEMPLATED HEREBY, OTHER THAN
THE RESPECTIVE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF EACH SELLER EXPRESSLY SET FORTH HEREIN.

 

Article IV

MISCELLANEOUS

 

4.1            Survival
of Representations, Warranties and Agreements. The covenants, representations and warranties of each party contained herein
shall survive the Closing. The representations and warranties of a party (the “Representing Party”) shall not
be affected or deemed waived by reason of any investigation made (or not made) by or on behalf of the party benefiting from such
representation or warranty (the “Benefiting Party”), including any investigations made (or not made) by any
of the Benefiting Party’s advisors, agents, consultants or representatives, or by reason of the fact that the Benefiting
Party or any of such advisors, agents, consultants or representatives knew or should have known that any such representation or
warranty is or might be inaccurate or untrue.

 

4.2            Indemnification.
Each party agrees to indemnify, defend and hold harmless the other party or parties, as the case may be, its or their respective
managers, partners, directors, officers, members, equityholders, employees, attorneys, accountants, agents and representatives,
and its or their respective heirs, successors and permitted assigns (collectively, the “Indemnified Parties”)
from and against all liabilities, losses and damages, together with all reasonable and documented out-of-pocket costs and expenses
related thereto (including, without limitation, reasonable and documented out-of-pocket legal fees and expenses), based upon, arising
out of, resulting from or otherwise in connection with (a) any material inaccuracy or breach of any representation or warranty
of such party herein, or (b) any material breach of any covenant or agreement of such party herein.

 

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4.3            Interpretation
and Waiver. Each of the parties hereto acknowledges and agrees that the transactions contemplated by this Agreement (the “Transactions”)
are intended to be in lieu of, and will for all purposes hereafter be, deemed to constitute, an exercise of the WCAS Put Exercise,
Dignity Put Exercise and applicable Additional Put Exercise (collectively, the “Second Put Exercise”) with respect
to the Put Valuation Request Period for the fiscal year beginning on January 1, 2021 (the “Second Put Period”).
Each Seller hereby waives any rights to assert a separate put exercise for the Second Put Period. Further, in connection with the
Transactions, each Seller hereby (i) waives any rights granted to it under Sections 9.3(a), 9.3(e) and
9.3(f) of the LLC Agreement with respect to the Interests included in the Second Put Exercise and the Second Put Period
(including, without limitation, the right to engage an investment bank to determine the Company Enterprise Value or Put Price Per
Interest) and (ii) acknowledges and agrees that the Transactions shall be deemed to satisfy Select’s obligations and
liabilities set forth under Sections 9.3(a), 9.3(e) and 9.3(f) of the LLC Agreement in all respects,
in each case solely with respect to the Interests included in the Second Put Exercise and the Second Put Period. Except for the
express waivers set forth herein, all other provisions of the LLC Agreement, including all of Sellers’ rights in relation
to a WCAS Put Exercise, Dignity Put Exercise or applicable Additional Put Exercise, as applicable, for Put Valuation Request Periods
other than the Second Put Period, shall remain unaffected and in full force and effect, and the express waivers set forth herein
shall not constitute or be construed as waivers of, or a commitment on the part of any of the Sellers to waive, any other rights
of the Sellers under the LLC Agreement; provided that, as set forth in the Mini Put Agreement, with respect to the WCAS Put Exercise,
Dignity Put Exercise and applicable Additional Put Exercise during the Put Valuation Request Period for the fiscal year beginning
on January 1, 2022 (the “Third Put Period”), the term “Applicable Percentage” shall
mean “the quotient obtained by dividing (i) the number of Company Interests that WCAS elects to sell to SEM in connection
with such Put Exercise by (ii) the lesser of WCAS’ Put Cap and the amount of Interests then held by WCAS during the
Third Put Period.”

 

4.4            Notices.
All notices and other communications by Select or the Sellers hereunder shall be in writing to the other party or parties, as the
case may be, and shall be delivered personally, delivered by nationally recognized overnight courier service, sent by certified
or registered mail, postage prepaid, or sent by facsimile (subject to electronic confirmation of such facsimile transmission) or
electronic mail. Any such notice or communication shall be deemed to have been duly given (i) when delivered, if personally
delivered, (ii) the first Business Day after it is deposited with a nationally recognized overnight courier service, if sent
by nationally recognized overnight courier service during a Business Day (and otherwise two Business Days after it is so deposited),
(iii) the day of sending, if sent by facsimile or electronic mail prior to 5:00 p.m. (New York City time) on any Business
Day or the next succeeding Business Day if sent by facsimile or electronic mail after 5:00 p.m. (New York City time) on any
Business Day or on any day other than a Business Day or (iv) five Business Days after the date of mailing, if mailed by certified
or registered mail, postage prepaid, in each case, to the following address, electronic mail address or facsimile number, or to
such other address or addresses, electronic mail address or addresses or facsimile number or numbers as such party may subsequently
designate to the other parties hereto by notice given hereunder:

 

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if to Select:

 

Select Medical Corporation

4714 Gettysburg Road

P.O. Box 2034

Mechanicsburg, PA 17055

Attention: Michael E. Tarvin

E-Mail: MTarvin@selectmedical.com

Facsimile: (717) 412-9142

 

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

 

Dechert
LLP

2929 Arch Street

Philadelphia, PA 19104

Attention: Stephen M. Leitzell

E-Mail: stephen.leitzell@dechert.com

Facsimile: (215) 994-2222

 

if to any Seller, to the Seller’s
address, facsimile number or electronic mail address set forth opposite such Seller’s name on Schedule I attached
to each Seller’s signature page.

 

4.5           Seller
Notification. Select or the Company shall promptly (and in any event prior to Closing) notify each of the Sellers in case (i) any
of the Option Sellers indicates to Select or the Company that such Option Seller intends to not exercise its, his or her Vested
Options (or any part thereof) or (ii) any of the Sellers indicates to Select or the Company that such Seller intends to not
sell the Purchased Interests held by such Seller pursuant to this Agreement.

 

4.6           No
Assignment; No Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations of any party
hereunder shall be assigned, delegated or otherwise transferred by any of the parties hereto without the prior written consent
of the other party or parties, as the case may be, and any purported assignment, delegation or transfer without such consent shall
be null and void. Subject to the preceding sentence, the provisions hereof shall inure to the benefit of, and be binding upon,
the successors, permitted assigns, heirs, executors and administrators of the parties hereto. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or the respective successors and permitted assigns,
heirs, executors and administrators of the parties hereto or the Indemnified Parties (solely with respect to their rights to indemnification
pursuant to Section 4.2) any rights, remedies, obligations or liabilities under or by reason of this Agreement, except
as expressly provided by this Agreement, and except as thus expressly provided no person other than the parties hereto or the respective
successors and permitted assigns, heirs, executors and administrators of the parties hereto or the Indemnified Parties (solely
with respect to their rights to indemnification pursuant to Section 4.2) shall have any standing as a third-party beneficiary
with respect to this Agreement or the transactions contemplated hereby.

 

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4.7            Severability.
If any term, provision, agreement, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other
competent authority to be invalid, void or unenforceable, the remainder of the terms, provisions, agreements, covenants and restrictions
of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that the economic or legal substance of the transactions contemplated hereby not thereby be affected in any manner
materially adverse to any party hereto. Upon such a determination, the parties shall (subject to the proviso in the preceding sentence)
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a
reasonably acceptable manner in order that the transactions contemplated hereby may be consummated as originally contemplated to
the fullest extent possible.

 

4.8            Cooperation;
Further Assurances. From and after the Closing Date, upon the request of Select, on the one hand, or any Seller, on the other
hand, such other party, as applicable, shall execute and deliver such instruments, documents or other writings as may be reasonably
necessary to confirm and carry out, and to effectuate fully the intent and purposes of, this Agreement.

 

4.9            Entire
Agreement. This Agreement embodies the complete agreement and understanding among the parties hereto with respect to the subject
matter hereof, and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written
or oral, that may have related to the subject matter hereof in any way. For the avoidance of doubt, this Agreement, the First Put
Agreement and the Mini Put Agreement shall be deemed separate and distinct and this Agreement shall not supersede or otherwise
affect the First Put Agreement or the Mini Put Agreement.

 

4.10          Amendments
and Waivers. This Agreement may be amended, modified, superseded or canceled, and any of the terms, representations, warranties
or covenants hereof may be waived, only by written instrument executed by each of the parties hereto or, in the case of a waiver,
by the party waiving compliance.

 

4.11          Counterparts,
Execution, Headings. This Agreement may be executed and delivered (including by facsimile transmission or by electronic mail
with a PDF scanned attachment) in one or more counterparts, each of which shall be an original, but all of which together shall
constitute one and the same instrument. The article and section headings contained in this Agreement are solely for the purpose
of reference, and are not part of the agreement of the parties and shall not in any way affect the meaning or interpretation of
this Agreement.

 

4.12          Construction.
Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the LLC Agreement. Unless the
context of this Agreement otherwise requires: (i) words of any gender include each other gender; (ii) words using the
singular or plural number also include the plural or singular number, respectively; (iii) the terms “hereof,”
 “herein,” “hereby” and derivative or similar words refer to this entire Agreement; (iv) the terms
 “ Article” or “Section” refer to the specified Article or Section of this Agreement; (v) the
term “including” means “including without limitation”; (vi) the term “foreign” is used
with respect to the United States; and (vii) “dollars” and “$” refer to United States Dollars. Whenever
this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified.

 

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4.13          Governing
Law. This Agreement, and any claims arising out of or relating to this Agreement, the subject matter hereof or the transactions
contemplated hereby (whether at law or in equity, whether sounding in contract, tort, statute or otherwise), shall be governed
by and construed and enforced in accordance with the laws of the State of Delaware, without regard to, or otherwise giving effect
to, any law, body of law or other rule that would cause or otherwise require the application of the laws of any other jurisdiction.

 

4.14          Venue;
Jurisdiction. Any action or proceeding against either Select or any Seller arising out of or relating to this Agreement, the
subject matter hereof or the transactions contemplated hereby (whether at law or in equity, whether sounding in contract, tort,
statute or otherwise), shall be brought exclusively in the Delaware Court of Chancery (or, if but only if, the Delaware Court of
Chancery declines to accept jurisdiction, the Superior Court of the State of Delaware), and Select, the Company and each of the
Sellers irrevocably submit to the exclusive jurisdiction and venue of such courts in respect of any such action or proceeding,
agree that such courts are convenient forums for such purpose, agree not to transfer or remove any such action or proceeding to
any other court, and agree that service of process in any such action or proceeding may be effected in any manner (other than via
telecopy, electronic mail or facsimile transmission) by which notices may be delivered pursuant to, and at the address specified
in, Section ‎4.4 hereof, in addition
to any other method of service permitted by applicable law. Any actions or proceedings to enforce an order or judgment issued by
such courts may be brought in any jurisdiction. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY IN THE COURTS OF THE STATE OF DELAWARE, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND
UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

4.15          Waiver
of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, SELECT, THE COMPANY AND EACH SELLER HEREBY
WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM
IN RESPECT OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SUBJECT MATTER HEREOF OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER AT LAW OR IN EQUITY, WHETHER SOUNDING IN CONTRACT, TORT, STATUTE OR OTHERWISE). SELECT, THE COMPANY
AND EACH SELLER ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTY OR PARTIES, AS THE CASE MAY BE, THAT THIS SECTION ‎4.15
CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH IT IS RELYING, AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY. SELECT, THE COMPANY OR ANY SELLER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION ‎4.15
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

    10

     

    

 

4.16          No
Strict Construction. The parties have participated jointly in the negotiation and drafting of this Agreement with counsel sophisticated
in transactions of this type. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party
by virtue of the authorship of any provisions of this Agreement.

 

4.17          Publicity.
No party hereto shall, directly or indirectly issue any press release or make any public statement regarding this Agreement or
the Transactions without the prior written consent of the other parties hereto and this Agreement and the Transaction shall be
deemed Confidential Information and subject to the confidentiality obligations set forth in the LLC Agreement; provided,
however, that either party hereto may, without the prior consent of the other parties, issue a press release or make a public
statement regarding this Agreement or the Transactions as may be required by applicable law.

 

4.18          Expenses.
Each of the Sellers and Select shall bear their own expenses and legal fees incurred on their behalf with respect to this Agreement
and the Transactions. The Company shall be responsible for all out-of-pocket fees and expenses incurred by the Company relating
to the Transactions or the preparation of this Agreement.

 

4.19          Specific
Performance. The parties hereto agree that if any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached, irreparable damage would occur, no adequate remedy at law would exist and damages
would be difficult to determine, and that the parties hereto shall be entitled (without necessity of posting bond or other security)
to injunctive relief to prevent breaches of, and to specific performance of, the provisions hereof, in addition to any other remedy
at law or in equity. The rights and remedies of the parties hereto shall be cumulative (and not alternative).

 

[The remainder of this page has
been intentionally left blank.]

 

    11

     

    

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	SELECT:
	 	 
	 	SELECT MEDICAL CORPORATION
	 	 
	 	By:	/s/ Michael E. Tarvin
	 	 	Name: Michael E. Tarvin
	 	 	Title: Executive Vice President, General
	 	 	Counsel and Secretary

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	THE COMPANY:
	 	 
	 	CONCENTRA GROUP HOLDINGS
	 	PARENT, LLC
	 	 
	 	By:	/s/ Michael E. Tarvin
	 	 	Name: Michael E. Tarvin
	 	 	Title: Executive Vice President and
	 		Secretary

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	SELLERS:
	 	 
	 	DIGNITY HEALTH HOLDING
	 	CORPORATION
	 	 
	 	By:	/s/ Daniel Morissette
	 	 	Name:  Daniel Morissette
	 	 	Title:    SEVP & CFO

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	WELSH, CARSON, ANDERSON & STOWE
	 	XII, L.P.
	 	 
	 	By:	WCAS XII ASSOCIATES LLC
	 	 	its general partner
	 	 
	 	 	By:	/s/ Jonathan Rather
	 	 	 	Name:  Jonathan Rather
	 	 	 	Title:    Managing Member

 

	 	WELSH, CARSON, ANDERSON & STOWE
	 	XII DELAWARE, L.P.
	 	 
	 	By:	WCAS XII ASSOCIATES CAYMAN L.P.
	 	 	its general partner
	 	 	 
	 	 	By: 	WCAS XII ASSOCIATES LLC,
	 	 	 	ITS GENERAL PARTNER
	 	 
	 	 	 	By:	/s/ Jonathan Rather
	 	 	 	 	Name:  Jonathan Rather
	 	 	 	 	Title:    Managing Member
	 	 
	 	 
	 	 

 

	 	WELSH, CARSON, ANDERSON & STOWE 
	 	XII DELAWARE II, L.P.
	 	 
	 	By:	WCAS XII ASSOCIATES LLC
	 	 	its general partner
	 	 
	 	 	By:	/s/ Jonathan Rather
	 	 	 	Name:  Jonathan Rather
	 	 	 	Title:    Managing Member

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

	 	WELSH, CARSON, ANDERSON & STOWE
	 	XII CAYMAN, L.P.
	 	 
	 	By:	WCAS XII ASSOCIATES CAYMAN L.P.
	 	 	its general partner
	 	 
	 	 	By:	WCAS XII ASSOCIATES LLC
	 	 	 	its general partner
	 	 
	 	 	 	By:	/s/ Jonathan Rather
	 	 	 	 	Name:  Jonathan Rather
	 	 	 	 	Title:    Managing Member

 

	 	WCAS XII CO-INVESTORS LLC
	 	 
	 	By:	/s/ Jonathan Rather
	 	 	Name:  Jonathan Rather
	 	 	Title:    Managing Member

 

	 	WCAS MANAGEMENT CORPORATION
	 	 
	 	By:	/s/ Jonathan Rather
	 	 	Name:  Jonathan Rather
	 	 	Title:    Treasurer

 

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	CRESSEY & COMPANY FUND IV LP
	 	 
	 	By:	CRESSEY & COMPANY GP LP
	 	 	its general partner
	 	 
	 	 	By: 	 CRESSEY & COMPANY LLC
	 	 	 	its general partner
	 	 
	 	 	 	By:	/s/ Bryan Cressey
	 	 	 	Name:  Bryan Cressey
	 	 	 	Title:    Partner

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	DAEG HOLDINGS, LLC
	 	 
	 
	 	By:	 /s/ James M. Greenwood
	 	 	Name: James M. Greenwood

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	JKC TR HOLDINGS, LLC
	 	 
	 
	 	By:	/s/ John K. Carlyle
	 	 	Name:	John K. Carlyle
	 	 	Title:	Manager

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	DTLT PRIVATE HOLDINGS, LLC
	 	 
	 
	 	By:	/s/ Daniel J. Thomas
	 	 	Name: Daniel J. Thomas

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ John A. deLorimier
	 	 	Name:	John A. deLorimier

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Matthew T. DiCanio
	 	 	Name:	Matthew T. DiCanio

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Giovanni Gallara
	 	 	Name:	Giovanni Gallara

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the date hereof: 

 

	 	By:	/s/ Gregory M. Gilbert
	 	 	Name:	Gregory M. Gilbert

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Michael A. Kosuth
	 	 	Name:	Michael A. Kosuth

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	 /s/ Douglas R. McAndrew
	 	 	Name:	Douglas R. McAndrew

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	WKN TR HOLDINGS, LLC
	 	 
	 
	 	By:	 /s/ W. Keith Newton
	 	 	Name: W. Keith Newton
	 	 	Title: President and Chief Executive Officer

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ James J. Talalai
	 	 	Name:	James J. Talalai

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ John R. Anderson, D.O.
	 	 	Name:	John R. Anderson, D.O.

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Jonathan P. Conser
	 	 	Name:	Jonathan P. Conser

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Danielle Kendall
	 	 	Name:	Danielle Kendall

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Su Zan Nelson
	 	 	Name:	Su Zan Nelson

 

[Signature
Page to Interest Purchase Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date hereof:

 

	 	By:	/s/ Donnie E. Venhaus
	 	 	Name:	Donnie E. Venhaus

 

[Signature
Page to Interest Purchase Agreement]Exhibit 10.1

 

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

 

	Principal Amount: $53,500.00	Issue Date: December 29, 2020
	Purchase Price:  $53,500.00	 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED,
BIOSOLAR, INC., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order
of POWER UP LENDING GROUP LTD., a Virginia corporation, or registered assigns (the “Holder”) the sum of $53,500.00
together with any interest as set forth herein, on December 29, 2021 (the “Maturity Date”), and to pay interest on
the unpaid principal balance hereof at the rate of ten percent (10%)(the “Interest Rate”) per annum from the date hereof
(the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment
or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal
or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from
the due date thereof until the same is paid (“Default Interest”). Interest shall be computed on the basis of a 365
day year and the actual number of days elapsed. Interest shall commence accruing on the Issue Date and shall be payable upon the
earlier of prepayment, acceleration, each conversion and the Maturity Date. All payments due hereunder (to the extent not converted
into common stock, $0.0001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made
in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give
to the Borrower by written notice made in accordance with the provisions of this Note. Each capitalized term used herein, and not
otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof,
pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

     

     

    

 

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The following terms
shall apply to this Note:

 

Article
I. CONVERSION RIGHTS

 

1.1 
Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning on the
date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and
(ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount
of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares
of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower
into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”)
determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder
be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1)
the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which
may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted
portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which
the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more
than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership
limitations on conversion as set forth in the section may NOT be waived by the Holder. The number of shares of Common Stock
to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the
applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit
A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided
that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”);
however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business
day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal
amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest,
if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.2 Conversion
Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined herein)
(subject to equitable adjustments by the Borrower relating to the Borrower’s securities or the securities of any subsidiary
of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The "Variable
Conversion Price" shall mean 61% multiplied by the Market Price (as defined herein) (representing a discount rate of 39%).
“Market Price” means the average of the lowest two (2) Trading Prices (as defined below) for the Common Stock during
the fifteen (15) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price”
means, for any security as of any date, the closing bid price on the OTCQB, OTCQX, Pink Sheets electronic quotation system or applicable
trading market (the “OTC”) as reported by a reliable reporting service (“Reporting Service”) designated
by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security, the closing bid price of such
security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price
of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such
security that are listed in the “pink sheets”. If the Trading Price cannot be calculated for such security on such
date in the manner provided above, the Trading Price shall be the fair market value as reasonably determined by the Borrower. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange
or other securities market on which the Common Stock is then being traded.

 

    2

     

    

  

1.3 Authorized
Shares. The Borrower covenants that during the period the Note is outstanding, the Borrower will reserve from its authorized
and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock
upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have
authorized and reserved six times the number of shares that would be issuable upon full conversion of the Note (assuming that the
4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion Price of the Note (as defined in
Section 1.2) in effect from time to time, initially 43,852,459 shares)(the
“Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from
time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make
any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible
at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall
be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority
to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note.

 

If, at any time the Borrower
does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

 

1.4 Method
of Conversion.

 

(a) Mechanics
of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period beginning on the date
which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii)
the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to
time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section
1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder).

 

(b) Surrender
of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount
so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower,
so as not to require physical surrender of this Note upon each such conversion.

 

    3

     

    

 

(c) Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other
reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section
1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for
the Common Stock issuable upon such conversion within two (2) business days after such receipt (the “Deadline”) (and,
solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms
hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the
holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued
and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations
hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to
receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall
have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for
Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same,
any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce
the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower,
and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection
with such conversion.

 

(d) Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable
upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the
Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion
to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit
and Withdrawal at Custodian (“DWAC”) system.

 

(e) Failure
to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including
actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this
Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $2,000
per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver
Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e.,
transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect
delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which
it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month
in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in
accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance
with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting
from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly,
the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.

 

1.5 
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless:
(i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (iii) such shares are
transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the
shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).

 

    4

     

    

 

Any restrictive legend
on certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed and the Borrower shall
issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer agent shall have received
an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without registration under the
Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in the case of the Common
Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration
statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In the event that the Company
does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to
an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Note.

 

1.6 Effect
of Certain Events.

 

(a) Effect
of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all
of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more
than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the
Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be
an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the
consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person”
shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(b) Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all
of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event,
as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another
class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially
all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder
of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities
or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately
prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate
provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof
(including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion
of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter
deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a)
it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written
notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation
of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during
which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower)
assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations,
mergers, sales, transfers or share exchanges.

    5

     

    

  

(c) Adjustment
Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets)
to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or
distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this
Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets
which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder
been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

 

1.7 Prepayment.
Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth on the table immediately
following this paragraph (the “Prepayment Periods”) or as otherwise agreed to between the Borrower and the Holder,
the Borrower shall have the right, exercisable on not more than three (3) Trading Days prior written notice to the Holder of the
Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.7. Any notice
of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered
addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which
shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment
(the “Optional Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined below)
to Holder, or upon the direction of the Holder as specified by the Holder in a writing to the Borrower (which shall direction to
be sent to Borrower by the Holder at least one (1) business day prior to the Optional Prepayment Date). If the Borrower exercises
its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash equal to the percentage (“Prepayment
Percentage”) as set forth in the table immediately following this paragraph opposite the applicable Prepayment Period, multiplied
by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred
to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4 hereof (the “Optional Prepayment
Amount”).

 

	 	 	Prepayment Period	 	Prepayment

Percentage	 
	1.	 	The period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date.	 	 	120	%
	2.	 	The period beginning on the date which is thirty-one (31) days following the Issue Date and ending on the date which is sixty (60) days following the Issue Date.	 	 	125	%
	3.	 	The period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date.	 	 	130	%
	4.	 	The period beginning on the date that is ninety-one (91) days from the Issue Date and ending one hundred twenty (120) days following the Issue Date.	 	 	135	%
	5.	 	The period beginning on the date that is one hundred twenty-one (121) days from the Issue Date and ending one hundred fifty (150) days following the Issue Date.	 	 	140	%
	6.	 	The period beginning on the date that is one hundred fifty-one (151) days from the Issue Date and ending one hundred eighty (180) days following the Issue Date.	 	 	145	%

 

    6

     

    

 

After the expiration
of the Prepayment Periods set forth above, the Borrower may submit an Optional Prepayment Notice to the Holder. Upon receipt by
the Holder of the Optional Prepayment Notice post Prepayment Periods, the prepayment shall be subject to the Holder’s and
the Borrower’s agreement with respect to the applicable Prepayment Percentage.

 

Notwithstanding anything
contained herein to the contrary, the Holder’s conversion rights herein shall not be affected in any way until the Note is
fully paid (funds received by the Holder) pursuant to an Optional Prepayment Notice.

 

Article
II.  CERTAIN COVENANTS

 

2.1 Sale
of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s
written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business.
Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

Article
III.  EVENTS OF DEFAULT

 

If any of the following
events of default (each, an “Event of Default”) shall occur:

 

3.1 Failure
to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether
at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.

 

3.2 Conversion
and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that
it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with
the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form)
any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when
required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer
agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued
to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs
its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or
to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the
Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement,
statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue
uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for two
(2) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current
in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed,
hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder
advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by
the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

    7

     

    

  

3.3 Breach
of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any
collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20)
days after written notice thereof to the Borrower from the Holder.

 

3.4 Breach
of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement
or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement),
shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have)
a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5 Receiver
or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply
for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such
a receiver or trustee shall otherwise be appointed.

 

3.6 Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under
any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the
Borrower.

 

3.7 Delisting
of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically
includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

3.8 Failure
to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or
the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.9 Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.10Cessation
of Operations.Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts
as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.11Financial
Statement Restatement.The restatement of any financial statements filed by the Borrower with the SEC at any time after
180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement
would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder
with respect to this Note or the Purchase Agreement.

 

    8

     

    

  

3.12 
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form
as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares
of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.13 Cross-Default. 
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default
by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable
notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements,
in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the
terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements”
means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the
Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other
Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted
with each other loan transaction and with all other existing and future debt of Borrower to the Holder.

 

Upon the occurrence and during the continuation
of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in
full satisfaction of its obligations hereunder, an amount equal to the Default Amount (as defined herein).  UPON THE OCCURRENCE
AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE
AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT
AMOUNT (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default
specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note
or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice
to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the
remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified
in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date
of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in
clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4(e) hereof (the then outstanding principal
amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be
known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all
without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at
law or in equity. 

 

If the Borrower fails
to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder
shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient
authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number
of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.

 

    9

     

    

 

Article
IV. MISCELLANEOUS

 

4.1 Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

4.2 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

If to the
Borrower, to:

 

BIOSOLAR, INC.

27936 Lost Canyon Road, Suite
202

Santa Clarita, CA 91387

Attn: David
Lee, Chief Executive Officer

Fax:

Email: david@biosolar.com

 

If to the Holder:

 

POWER UP LENDING GROUP
LTD.

111 Great
Neck Road, Suite 214

Great Neck,
NY 11021

Attn: Curt Kramer, Chief
Executive Officer

e-mail:
info@poweruplending.com

 

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

 

Naidich Wurman
LLP

111 Great
Neck Road, Suite 216

Great Neck,
NY 11021

Attn: Allison
Naidich

facsimile:
516-466-3555

e-mail:
allison@nwlaw.com

    10

     

    

  

4.3 Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term
“Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes
issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4 Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and
its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a)
of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other lending arrangement; and may be assigned by the Holder
without the consent of the Borrower.

 

4.5 Cost
of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6 Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Virginia without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note
shall be brought only in the state courts of New York or in the federal courts located in the Eastern District of New York. The
parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder
waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and
costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

4.7 Purchase
Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

 

4.8 Remedies.
The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for
a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the
Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law
or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing
any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic
loss and without any bond or other security being required.

 

    11

     

    

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be signed in its name by its duly authorized officer this on December 29, 2020

 

	BIOSOLAR,
    INC.	 
	 	 	 
	By:	/s/
    David Lee	 
	 	David Lee	 
	 	Chief Executive Officer	 

 

    12

     

    

 

EXHIBIT A -- NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert $_________________ principal amount of the Note (defined below) into that number
of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth
below, of BIOSOLAR, INC., a Nevada corporation (the “Borrower”) according to the conditions of the convertible note
of the Borrower dated as of December 29, 2020 (the “Note”), as of the date written below. No fee will be charged to
the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable
instructions:

 

		☐	The
                                         Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice
                                         of Conversion to the account of the undersigned or its nominee with DTC through its Deposit
                                         Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name
                                         of DTC Prime Broker:
	 	 	Account
                                         Number:

 

		☐	The undersigned hereby requests that the Borrower issue
a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s
calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment
hereto:

 

POWER UP LENDING GROUP LTD.

111 Great Neck Road, Suite 214

Great Neck, NY 11021

Attention: Certificate Delivery

e-mail: info@poweruplendinggroup.com

 

	 	Date of conversion: 	_____________
	 	Applicable Conversion Price:	$____________
	 	Number of shares of common stock to be issued 	 
	 	pursuant to conversion of the Notes: 	______________
	 	Amount of Principal Balance due remaining	 
	 	under the Note after this conversion:	______________

 

	 	POWER UP LENDING GROUP LTD.	 
	 	 	 	 
	 	By:		 
	 	Name:	Curt Kramer	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	 	Date: __________________	 

 

 

13

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