Document:

Exhibit 10.1

 

 

 

SHARE
PURCHASE AGREEMENT

 

by
and among

 

Novo
Integrated Sciences, Inc.,

 

SwagCheck
Inc.

 

and

 

the
shareholders of SwagCheck Inc.

 

     

    	- ii -

    

 

TABLE
OF CONTENTS

 

	Article I. DEFINITIONS	1
	 	 
	Section 1.01 Definitions.	1
	Section 1.02 Interpretive Provisions.	6
	 	 
	Article II. SHARE PURCHASE	8
	 	 
	Section 2.01 Purchased Shares.	8
	Section 2.02 Purchase Price.	8
	Section 2.03 Satisfaction of Purchase Price.	8
	Section 2.06 Closing.	8
	Section 2.07 Tax Consequences.	8
	Section 2.08 Conveyance Taxes.	8
	 	 
	Article III. REPRESENTATIONS, COVENANTS, AND WARRANTIES
    CONCERNING SWAG	9
	 	 
	Section 3.01 Corporate Existence and Power of SWAG.	9
	Section 3.02 Due Authorization.	9
	Section 3.03 No Other Agreement to Purchase.	9
	Section 3.04 No Violation.	9
	Section 3.05 Valid Obligation.	9
	Section 3.06 SWAG Assets.	10
	Real
    Property. SWAG does not own any real property used by SWAG in connection with the SWAG Business.	10
	Section 3.08 Intellectual Property.	10
	Section 3.09 Insurance.	10
	Section 3.10 No Expropriation.	11
	Section 3.11 Contracts.	11
	Section 3.12 Compliance with Legal Requirements,
    Licenses.	11
	Section 3.13 Consents and Approvals.	11
	Section 3.14 Financial Statements.	12
	Section 3.15 Books and Records.	12
	Section 3.16 Absence of Changes.	12
	Section 3.17 Non-Arm’s Length Transactions.	13
	Section 3.18 Tax Matters.	13
	Section 3.19 Litigation.	14
	Section 3.20 Employees and Employee Matters:	14
	Section 3.21 Employee Benefit Plans.	14
	Section 3.22 No Liabilities.	14
	Section 3.23 Brokerage.	14

 

     

    	- iii -

    

 

	Article IV. REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE
    Sellers	15
	 	 
	Section 4.01 Capacity.	15
	Section 4.02 Execution and Delivery.	15
	Section 4.03 Corporate Action.	15
	Section 4.04 No Violation.	15
	Section 4.05 Litigation.	15
	Section 4.06 Ownership.	16
	Section 4.07 Finder’s Fees.	16
	Section 4.08 Independent Legal Advice.	16
	 	 
	Article V. REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE
    COMPANY	16
	 	 
	Section 5.01 Organization.	16
	Section 5.02 Due Authorization.	16
	Section 5.03 No Violation.	17
	Section 5.04 Valid Issuance of Stock Consideration.	17
	Section 5.05 Consents and Approvals.	17
	Section 5.06 Information.	17
	Section 5.07 SEC Reports; Securities Law Compliance.	17
	Section 5.08 Brokerage.	18
	 	 
	Article VI. CONDITIONS TO CLOSING	18
	 	 
	Section 6.01 Condition to the Obligations of all of the
    Parties.	18
	Section 6.02 Condition to the Obligations of the
    Company.	18
	Section 6.03 Condition to the Obligations of the SWAG
    Parties.	19
	 	 
	Article VII. CLOSING DELIVERABLES	20
	 	 
	Section 7.01 Delivery of Books and Records.	20
	Section 7.02 Third Party Consents and Certificates.	20
	Section 7.03 Actions Prior to Closing.	20
	Section 7.04 Limitations on Actions.	20
	Section 7.05 Documents to be Delivered by the SWAG Parties at
    the Closing.	21
	Section 7.06 Documents to be Delivered by the Company at the
    Closing.	21
	 	 
	Article VIII. INDEMNIFICATION	21
	 	 
	Section 8.01 Indemnification of Company.	21
	Section 8.02 Indemnification of the SWAG Parties.	21
	Section 8.03 Third Party Claims. With respect to any
    Third-Party Claims:	21
	Section 8.04 Direct Claims.	23
	Section 8.05 Cooperation.	23
	Section 8.06 Certain Limitations.	23
	Section 8.07 Insurance and Other Reductions.	24
	Section 8.08 Investigation..	24
	Section 8.09 Indemnification as Sole Remedy.	24
	Section 8.10 Time Limit.	24
	Section 8.11 Purchase Price Adjustment..	24

 

     

    	- iv -

    

 

	Article IX. DISPUTE RESOLUTION	25
	 	 
	Section 9.01 Arbitration:	25
	Section 9.02 Waiver of Jury Trial; Exemplary Damages:	26
	 	 
	Article X. DEFAULT	26
	 	 
	Section 10.01 Default by the Company.	26
	Section 10.02 Default by the SWAG Parties.	26
	 	 
	Article XI. MISCELLANEOUS	27
	 	 
	Section 11.01 Brokers.	27
	Section 11.02 Governing Law.	27
	Section 11.03 Notices.	27
	Section 11.04 Entire Agreement.	28
	Section 11.05 Independent Legal Advice.	28
	Section 11.06 Attorneys’ Fees.	28
	Section 11.07 Confidentiality.	29
	Section 11.08 Public Announcements and Filings.	29
	Section 11.09 Schedules; Knowledge.	29
	Section 11.10 Third Party Beneficiaries.	29
	Section 11.11 Expenses.	29
	Section 11.12 [Intentionally deleted].	29
	Section 11.13 Arm’s Length Bargaining: No Presumption
    Against Drafter.	29
	Section 11.14 Sections and Headings.	29
	Section 11.15 Exhibits and Schedules.	29
	Section 11.16 No Assignment or Delegation.	30
	Section 11.17 Commercially Reasonable Efforts.	30
	Section 11.18 Further Assurances.	30
	Section 11.19 Specific Performance.	30
	Section 11.20 Severability.	30
	Section 11.21 Counterparts.	30

 

     

    	- v -

    

 

Company
Disclosure Schedule

SWAG
Disclosure Schedule

 

	EXHIBIT A		 OPHIR Collection
Purchase and Sale Agreement and Related Court Orders from the U.S. Distrcit Court Central District of California
	 	 	 
	EXHIBIT B		 OPHIR Collection
Professional Opinion of Value (dated December 16, 2022)

 

    	 

     

    

 

SHARE
PURCHASE AGREEMENT

 

Dated
as of December 23, 2022

 

This
Share Purchase Agreement (the “Agreement”) is entered into as of the date first set forth above (the “Signing
Date”) by and between (i) Novo Integrated Sciences, Inc., a Nevada corporation (“Company/NVOS or Buyer”),
(ii) SwagCheck Inc.., a Delaware corporation (“SWAG”), and (iii) all SwagCheck Shareholders (“SWAGSHAR”)
all of which are referred to as the (“Sellers”). If the OPHIR Collection, a precious gem collection, is sold to another
party, SWAG reserves the right to substitute property of equal or greater value with the price of the sale subject to the agreement of
the parties.

 

Each
of the Company, SWAG and the Sellers, may be referred to herein individually as a “Party” and collectively as the
“Parties.” The Sellers and SWAG collectively may be referred to herein as the “SWAG Parties”.

 

RECITALS

 

WHEREAS,
Company is a public company, the common stock, $0.001 par value per share (the “Common Stock”), of which is registered
under the Securities Act, and listed on the NASDAQ Stock Market (“NASDAQ”) under the symbol “NVOS”,
which files periodic reports with the Securities and Exchange Commission (the “SEC”) pursuant to the Securities Exchange
Act of 1934, as amended (the “Exchange Act”); and

 

WHEREAS,
SWAG is in the business of creating and marketing NFT based programs utilizing specific collateral assets, in particular, assets as described
in a Letter of Intent between the parties; and

 

WHEREAS
the Sellers own shares in SWAG (the “SWAG Shares”); and

 

WHEREAS,
the Company, SWAG, and the Sellers agree to enter into this definitive Share Purchase Agreement pursuant to which, on Closing, NVOS will
become a one hundred percent (100%) shareholder in SWAG, and the Sellers will receive ONE DOLLAR in addition to other cash consideration
as specified herein.

 

NOW
THEREFORE, on the stated premises and for and in consideration of the mutual covenants, agreements, representations, warranties and
indemnities of the Parties herein contained and the mutual benefits to the Parties to be derived here from, and intending to be legally
bound hereby, it is hereby agreed as follows:

 

Article
I. DEFINITIONS

 

Section
1.01 Definitions. For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have
the respective meanings set forth below and grammatical variations of such terms shall have corresponding meanings:

 

		(a)	“Action”
                                            means any legal action, suit, claim, investigation, hearing or proceeding, including any
                                            audit, claim or assessment for Taxes or otherwise.

 

     

    	- 2 -

    

 

		(b)	“Affiliate”
                                            means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled
                                            by, or under common Control with such Person.

 

		(c)	“Agreement”
                                            has the meaning set forth in the introductory paragraph.

 

		(d)	“Assets”
                                            means all the assets, real and personal, tangible and intangible, of SWAG as applicable,
                                            including but not limited to a specific right of purchase of a precious gem collection referred
                                            to as the OPHIR Collection (“Gems”).

 

		(e)	“Business
                                            Day” means any day that is not a Saturday, Sunday or other day on which banking
                                            institutions in Ontario are closed for commercial banking.

 

		(f)	“Buyer”
                                            has the meaning set forth in the Preamble.

 

		(g)	“Closing
                                            Date” has the meaning set forth in Section 2.05.

 

		(h)	“Closing”
                                            has the meaning set out in Section 2.05.

 

		(i)	“Company”
                                            has the meaning set forth in the Preamble.

 

		(j)	“Contracts”
                                            means all contracts, leases, deeds, mortgages, licences, commitments, undertakings, indentures,
                                            joint ventures and all other agreements, commitments and legally binding arrangements, whether
                                            written or oral.

 

		(k)	“Control”
                                            of a Person means the possession, directly or indirectly, of the power to direct or cause
                                            the direction of the management and policies of such Person, whether through the ownership
                                            of voting securities, by contract, or otherwise. “Controlled”, “Controlling”
                                            and “under common Control with” have correlative meanings. Without limiting the
                                            foregoing, a Person (the “Controlled Person”) shall be deemed Controlled by (a)
                                            any other Person (the “10% Owner”) (i) owning beneficially, as meant in Rule
                                            13d-3 under the Exchange Act, securities entitling such Person to cast 10% or more of the
                                            votes for election of directors or equivalent governing authority of the Controlled Person
                                            or (ii) entitled to be allocated or receive 10% or more of the profits, losses, or distributions
                                            of the Controlled Person; (b) an officer, director, general partner, partner (other than
                                            a limited partner), manager, or member (other than a member having no management authority
                                            that is not a 10% Owner ) of the Controlled Person; or (c) a spouse, Company, lineal descendant,
                                            sibling, aunt, uncle, niece, nephew, mother-in-law, father-in-law, sister-in-law, or brother-in-law
                                            of an Affiliate of the Controlled Person or a trust for the benefit of an Affiliate of the
                                            Controlled Person or of which an Affiliate of the Controlled Person is a trustee.

 

		(l)	“Currency”
                                            delineation for this Agreement, unless delineated in any other currency, all amounts expressed
                                            using the symbol “$” or “dollar” refer to the lawful money of the
                                            United States.

 

		(m)	“Escrow
                                            Agent” means an agent selected by the Company whose sole purpose is to hold and
                                            execute the closing of this transaction as identified herein.

 

     

    	- 3 -

    

 

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

 

		(o)	“GAAP”
                                            means generally accepted accounting principles in respect of as set forth in accordance with
                                            USGAAP.

 

		(p)	“Governmental
                                            Authority” means any federal, state, provincial, local, municipal, domestic, foreign
                                            or multinational government, court, arbitrator, regulatory, administrative or other agency,
                                            commission or authority or other governmental entity, instrumentality, department, division,
                                            unity branch or authority.

 

		(q)	“Indemnified
                                            Party” means the Person claiming an entitlement to indemnification pursuant to
                                            Article VIII.

 

		(r)	“Indemnifying
                                            Party” has the Party against whom a claim of indemnification is made pursuant to
                                            Article VIII.

 

		(s)	“Intellectual
                                            Property” means, collectively, all industrial and intellectual property rights
                                            and all rights associated therewith, throughout the world, including patents and patent applications
                                            therefor and all reissues, divisionals, renewals, extensions, provisionals, continuations
                                            and continuations-in-part thereof, patent rights, trademarks, trademark registrations and
                                            applications therefor, trade dress rights, trade names, service marks, service mark registrations
                                            and applications therefor, and any and all goodwill associated with and symbolized by the
                                            foregoing items, copyrights, copyright registrations and applications therefor, franchises,
                                            licenses, inventions, trade secrets, know-how, customer lists, supplier lists, proprietary
                                            process and formulae, software source code and object code, testing code, build scripts,
                                            algorithms, net lists, architectures, structures, screen displays, photographs, images, layouts,
                                            inventions, development tools, designs, blueprints, specifications, technical drawings (or
                                            similar information in electronic format) [and all documentation and media constituting,
                                            describing or relating to the foregoing, including manuals, development journals or logs,
                                            programmers’ notes, memoranda, records, databases and data collections and all rights
                                            therein, all moral and economic rights of authors and inventors thereof, however denominated,
                                            and any similar or equivalent rights to any of the foregoing, all rights to any Actions of
                                            any nature available to or being pursued by the Company or the SWAG Parties, as applicable,
                                            relating to the foregoing and all tangible embodiments of the foregoing.

 

		(t)	“Knowledge
                                            of the Company” and similar phrases means the knowledge of the directors and officers
                                            of the Company after reasonable inquiry.

 

		(u)	“Knowledge
                                            of the SWAG Parties” and similar phrases means the knowledge of the SWAG Parties
                                            after reasonable inquiry of senior employees of SWAG that are reasonably expected to have
                                            knowledge of the matter that is the subject of the relevant representations and warranties.

 

		(v)	“Law”
                                            means any domestic or foreign, federal, state, provincial, municipal or local law, statute,
                                            ordinance, code, rule, or regulation having the force of law.

 

     

    	- 4 -

    

 

		(w)	“Liability”
                                            means any debt, liability or obligation, whether accrued or fixed, absolute or contingent,
                                            matured or unmatured, determined or undeterminable, known or unknown, and whether due or
                                            to be become due, including those arising under any Legal Requirement and those arising under
                                            any Contract.

 

		(x)	“Lien”
                                            means any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in
                                            respect of such asset, and any conditional sale or voting agreement or proxy, including any
                                            agreement to give any of the foregoing.

 

		(y)	“LOI
                                            Effective Date” means November 11, 2022.

 

		(z)	“LOI”
                                            means the non-binding letter the Parties agreed to, dated November 11, 2022, which generally
                                            recorded the terms and conditions of a definitive agreement between the Parties for the Company
                                            to directly, or indirectly, acquire one hundred percent (100%) of SWAG.

 

		(aa)	“Losses,”
                                            in respect of any matter, means all claims, demands, proceedings, losses, damages, liabilities,
                                            deficiencies, costs and expenses (including, without limitation, all legal and other professional
                                            fees and disbursements, interest, penalties and amounts paid in settlement) arising directly
                                            as a consequence of such matter.

 

		(bb)	“Material
                                            Adverse Effect” means a material and adverse change or a material and adverse effect,
                                            individually or in the aggregate, on the condition (financial or otherwise) of a Party taken
                                            as a whole, whether or not arising from transactions in the ordinary course of business;
                                            except, in each case, to the extent resulting from (i) the announcement of the transactions
                                            contemplated in this Agreement, the execution of this Agreement or the performance of obligations
                                            hereunder, including the impact of any of the foregoing on relationships with customers,
                                            suppliers or employees, (ii) conditions affecting the global economy or the financial, credit,
                                            commodities or capital markets as a whole, (iii) changes generally affecting the industries
                                            in which the Companies conduct the Business, (iv) any change in, adoption of, or change in
                                            the interpretation or adoption of any applicable Law or GAAP, (v) any national or international
                                            political or social conditions, including the engagement, escalation or continuation of Canada
                                            or the Unites States in hostilities, or the occurrence of any military or terrorist attack
                                            upon Canada or the United States, or their respective diplomatic or consular offices or upon
                                            any military installation or personnel of Canada or the United States, (vi) pandemics or
                                            epidemics including the COVID-19 pandemic, (vii) earthquakes, hurricanes, floods or other
                                            natural disasters, (viii) the failure by the Companies to meet any revenue or earnings projections,
                                            forecasts or predictions, (ix) any action taken by, or with the consent of, the Company Parties
                                            relating to SWAG, or (x) any action by SWAG, the SWAGSHAR or their Affiliates required to
                                            be taken, or permitted to be taken, by this Agreement; provided, in the case of any of the
                                            foregoing clauses (ii), (iii), (iv), (v), and (vi), such event, charge or action does not
                                            have a materially disproportionate effect on the Party relative to other Persons operating
                                            in the same industry in North America.

 

     

    	- 5 -

    

 

		(cc)	“Nasdaq”
                                            means the Nasdaq Stock Market.

 

		(dd)	“Order”
                                            means any decree, order, judgment, writ, award, injunction, rule, or consent of or by a Governmental
                                            Authority.

 

		(ee)	“Ordinary
                                            Course” means, in relation to the conduct of the SWAG Business, any transaction
                                            that constitutes an ordinary day-to-day business activity of SWAG conducted in a manner consistent
                                            with SWAG’s past practice;

 

		(ff)	“Person”
                                            means an individual, corporation, partnership (including a general partnership, limited partnership
                                            or limited liability partnership), limited liability company, association, trust or other
                                            entity or organization, including a government, domestic or foreign, or political subdivision
                                            thereof, or an agency or instrumentality thereof.

 

		(gg)	“Purchase
                                            Price” has the meaning set forth in Section 2.02.

 

		(hh)	“Related
                                            Party” means, (A) with respect to a particular individual: (i) the individual’s
                                            Family; (ii) any Person that is directly or indirectly controlled by any one or more members
                                            of such individual’s Family; (iii) any Person in which members of such individual’s
                                            Family hold (individually or in the aggregate) a Material Interest; and (iv) any Person with
                                            respect to which one or more members of such individual’s Family serves as a director,
                                            officer, partner, executor or trustee (or in a similar capacity); (B) with respect to a specified
                                            Person other than an individual: (i) any Person that directly or indirectly controls, is
                                            directly or indirectly controlled by or is directly or indirectly under common control with
                                            such specified Person; (ii) any Person that holds a Material Interest in such specified Person;
                                            (iii) each Person that serves as a director, officer, partner, executor or trustee of such
                                            specified Person (or in a similar capacity); (iv)any Person in which such specified Person
                                            holds a Material Interest; and (v) any Person with respect to which such specified Person
                                            serves as a general partner or a trustee (or in a similar capacity); and, for purposes of
                                            this definition, (a) “control” (including “controlling,”
                                            “controlled by”, and “under common control with”) means
                                            the possession, direct or indirect, of the power to direct or cause the direction of the
                                            management and policies of a Person, whether through the ownership of voting securities,
                                            by contract or otherwise, and shall be construed as such term is used in the rules promulgated
                                            under the Securities Act; (b) the “Family” of an individual includes (i)
                                            the individual, (ii) the individual’s spouse, (iii) any other natural person who is
                                            related to the individual or the individual’s spouse within the second degree and (iv)
                                            any other natural person who resides with such individual; and (c) “Material Interest”
                                            means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Exchange
                                            Act) of voting securities or other voting interests representing at least ten percent
                                            (10%) of the outstanding voting power of a Person or equity securities or other equity interests
                                            representing at least ten percent (10%) of the outstanding equity securities or equity interests
                                            in a Person.

 

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

 

		(jj)	“Tax
                                            Return” means any return, information return, declaration, claim for refund or
                                            credit, report or any similar statement, and any amendment thereto, including any attached
                                            schedule and supporting information, whether on a separate, consolidated, combined, unitary
                                            or other basis, that is filed or required to be filed with any Taxing Authority in connection
                                            with the determination, assessment, collection or payment of a Tax or the administration
                                            of any Law relating to any Tax.

 

     

    	- 6 -

    

 

		(kk)	“Tax(es)”
                                            means any federal, state, provincial, local or foreign tax, charge, fee, levy, custom, duty,
                                            deficiency, or other assessment of any kind or nature imposed by any Taxing Authority (including
                                            any income (net or gross), gross receipts, profits, windfall profit, sales, use, goods and
                                            services, ad valorem, franchise, license, withholding, employment, social security, workers
                                            compensation, unemployment compensation, employment, payroll, transfer, excise, import, real
                                            property, personal property, intangible property, occupancy, recording, minimum, alternative
                                            minimum, environmental or estimated tax), including any liability therefor as a transferee
                                            (including under Section 6901 of the Code or similar provision of applicable Law) or successor,
                                            as a result of Treasury Regulation Section 1.1502-6 or similar provision of applicable Law
                                            or as a result of any Tax sharing, indemnification or similar agreement, together with any
                                            interest, penalty, additions to tax or additional amount imposed with respect thereto.

 

		(ll)	“Taxing
                                            Authority” means the Internal Revenue Service and any other Authority responsible
                                            for the collection, assessment or imposition of any Tax or the administration of any Law
                                            relating to any Tax.

 

		(mm)	“SWAG
                                            Business” has the meaning set forth in the Recitals.

 

		(nn)	“SWAG
                                            Organizational Documents” has the meaning set forth in Section 3.01.

 

		(oo)	“SWAG
                                            Shareholder” or “SWAGSHAR” has the meaning set forth in the
                                            Recitals.

 

		(pp)	“SWAG
                                            Shares” has the meaning set forth in the Recitals.

 

		(qq)	“Third
                                            Party Claim” has the meaning set forth in Section 8.03(a).

 

		(rr)	“Transaction
                                            Documents” means, collectively, (i) this Share Purchase Agreement, and (ii) any
                                            other agreements, instruments and documents required to be delivered at the Closing.

 

		(ss)	“USD”
                                            means United States of America dollars and refers to the lawful money of the United States
                                            of America. Within this Agreement, all references to Dollars are in United States dollars.

 

Section
1.02 Interpretive Provisions.

 

		(a)	Unless
                                            the express context otherwise requires, in this Agreement:

 

		(i)	the
                                            words “hereof,” “herein,” and “hereunder”
                                            and words of similar import, when used in this Agreement, shall refer to this Agreement as
                                            a whole and not to any particular provision of this Agreement;

 

     

    	- 7 -

    

 

		(ii)	terms
                                            defined in the singular shall have a comparable meaning when used in the plural, and vice-
                                            versa;

 

		(iii)	references
                                            herein to a specific Section, Subsection, Recital, Schedule, or Exhibit shall refer, respectively,
                                            to Sections, Subsections, Recitals, Schedules, or Exhibits of this Agreement;

 

		(iv)	wherever
                                            the word “include,” “includes,” or “including”
                                            is used in this Agreement, it shall be deemed to be followed by the words “without
                                            limitation”;

 

		(v)	words
                                            importing the singular number only shall include the plural and vice versa, words importing
                                            gender shall include all genders and words importing persons shall include individuals, corporations,
                                            partnerships, associations, trusts, unincorporated organizations, governmental bodies and
                                            other legal or business entities of any kind whatsoever;

 

		(vi)	references
                                            herein to any Person shall include such Person’s heirs, executors, personal representatives,
                                            administrators, successors and assigns; provided, however, that nothing contained in this
                                            Section 1.02(a)(vi) is intended to authorize any assignment or transfer not otherwise permitted
                                            by this Agreement;

 

		(vii)	references
                                            herein to a Person in a particular capacity or capacities shall exclude such Person in any
                                            other capacity;

 

		(viii)	references
                                            herein to any contract or agreement (including this Agreement) mean such contract or agreement
                                            as amended, supplemented, or modified from time to time in accordance with the terms thereof;

 

		(ix)	with
                                            respect to the determination of any period of time the word “from” means “from
                                            and including” and the words “to” and “until”
                                            each means “to and including”;

 

		(x)	references
                                            herein to any Law or any license mean such Law or license as amended, modified, codified,
                                            re-enacted, supplemented or superseded in whole or in part, and in effect from time to time;
                                            and

 

		(xi)	references
                                            herein to any Law shall be deemed also to refer to all rules and regulations promulgated
                                            thereunder.

 

		(xii)	Unless
                                            otherwise expressly provided, all accounting terms, determinations and computations used
                                            in this Agreement shall be interpreted and all financial information shall be prepared in
                                            accordance with USGAAP.

 

     

    	- 8 -

    

 

Article
II. SHARE PURCHASE

 

Section
2.01 Purchased Shares. On the terms and subject to the conditions of this Agreement, the Sellers agree to sell, assign and
transfer to Buyer, free and clear of all Encumbrances, and NVOS agrees to purchase from the Sellers, effective as of the Closing Date,
the equivalent of one hundred percent (100%) of all SWAG stock in consideration for the Purchase Price.

 

Section
2.02 Purchase Price. The purchase price (the “Purchase Price”) payable to the Sellers, by NVOS for one hundred
percent (100%) of all SWAG stock shall be ONE Dollar ($1.00) for Satisfaction of Purchase Price. The Buyer shall pay the Purchase Price
at Closing by certified funds or cash.

 

Section
2.05 Closing. The closing of the Share Purchase (the “Closing”) shall occur on the date of this Agreement
or such other date as the Company and the SWAGSHAR may agree in writing (the “Closing Date”). Prior to the Closing
Date, the Parties shall have either been satisfied with or provided their waiver (by the Party for whose benefit the conditions exist)
of the conditions to Closing set forth in Article VI, at the offices of Novo Integrated Sciences Inc., at 4:00 p.m. EST, or at such other
date, time or place as the Company and the SWAGSHAR may agree in writing. At the Closing:

 

		(a)	SAWGSHAR
                                            shall deliver certificates representing the transfer of shares to the Sellers, in
                                            addition to the Organizational Documents of SWAG and

 

		(b)	The
                                            Company and the SWAG Parties shall execute, acknowledge, and deliver (or shall ensure to
                                            be executed, acknowledged, and delivered), any and all certificates, opinions, financial
                                            statements, schedules, agreements, resolutions, rulings or other instruments required by
                                            this Agreement to be so delivered at or prior to the Closing, together with such other items
                                            as may be reasonably requested by the Parties and their respective legal counsel in order
                                            to effectuate or evidence the transactions contemplated hereby.

 

Section
2.06 Tax Consequences. For U.S. federal income tax purposes, the Share Purchase is not intended to be a “reorganization”
within the meaning of the Code and the Treasury Regulations. Each Party is responsible for their own taxable consequences as a result
of the Share Purchase.

 

Section
2.07 Conveyance Taxes. The respective beneficiaries will pay all sales, use, value added, transfer, stamp, registration, documentary,
excise, real property transfer or gains, or similar Taxes incurred as a result of the transactions contemplated by this Agreement.

 

     

    	- 9 -

    

 

Article
III. REPRESENTATIONS, COVENANTS, AND WARRANTIES CONCERNING SWAG

 

Each
of the SWAG Parties represents and warrants to the Company as follows, except as set forth in the SWAG Disclosure Schedule, attached
hereto, referencing the applicable Section of this Article III to which such disclosure related, and acknowledges that Buyer is relying
on such representations and warranties in connection with its purchase of the SWAG Shares and the other transactions contemplated by
this Agreement.

 

Section
3.01 Corporate Existence and Power of SWAG. SWAG is a Delaware] corporation duly organized, validly existing, and in good standing
under the Laws of Delaware and has the power and is duly authorized under all applicable Laws, regulations, ordinances, and orders of
public authorities to carry on its business in all material respects as it is now being conducted. SWAG has delivered to the Company
complete and correct copies of the organizational documents of SWAG as of the Closing Date (the “SWAG Organizational Documents”).
SWAG has full legal power and authority to carry on the SWAG Business as it is now being conducted and as now proposed to be conducted
and to own or lease its properties and assets. Except as set forth in the SWAG Disclosure Schedule, SWAG does not have any subsidiaries
or direct or indirect interest (by way of stock ownership, partnership ownership, joint venture ownership, or otherwise) in any firm,
corporation, limited liability company, partnership, association or business.

 

Section
3.02 Due Authorization. The execution, delivery and performance of this Agreement does not, and the consummation of the transactions
contemplated hereby will not, violate (i) any provision of the SWAG Organizational Documents, or (ii) any applicable Law. SWAG has taken
all actions required by Law, the SWAG Organizational Documents or otherwise to authorize the execution, delivery and performance of this
Agreement and to consummate the transactions herein contemplated. This Agreement has been duly executed and delivered by SWAG and upon
its execution and delivery will constitute a valid and legally binding agreement in accordance with its terms.

 

Section
3.03 No Other Agreement to Purchase. No person or entity, other than the Company, has any written or oral agreement or option
or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement or option for the purchase or
acquisition from the SWAG of any shares in SWAG or any assets from SWAG necessary to carry on the SWAG Business in the manner carried
on immediately prior to the date of this Agreement other than pursuant to normal purchase orders for inventory accepted by the SWAG in
the Ordinary Course.

 

Section
3.04 No Violation. The execution and delivery of this Agreement and the Transaction Documents by SWAG and the consummation
of the transactions herein and therein provided for will not result in the breach or violation of any of the provisions of, or constitute
a default under, or conflict with or cause the acceleration of any obligation of the SWAG under (whether after giving notice, lapsed
time or otherwise): (i) any Material Contract; (i) any provision of the SWAG Organizational Documents; (ii) any judgment, decree, order
or award of any Governmental Authority having jurisdiction over SWAG; (iii) any license, permit, approval, consent or authorization held
by SWAG or necessary to the operation of the SWAG Business; (iv) any applicable Legal Requirement; and (vi) the creation or imposition
of any Encumbrance (other than any Permitted Encumbrances) on the SWAG Purchased Shares or the Assets of SWAG.

 

Section
3.05 Valid Obligation. This Agreement and all of the other Transaction Agreements executed by SWAG in connection herewith constitute,
or will when entered into, constitute the valid and binding obligations of SWAG, enforceable in accordance with its or their terms, except
as may be limited by bankruptcy, insolvency, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally
and subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any
proceeding therefore may be brought.

 

     

    	- 10 -

    

 

Section
3.06 SWAG Assets. The SWAG Assets are owned by SWAG as the sole legal and beneficial owner thereof, with a good and marketable
title thereto, or SWAG has a valid leasehold interest in, or license of, or right to use, free and clear of all Encumbrances, other than
Permitted Encumbrances, and include all of the properties and assets (whether real, personal, or mixed and whether tangible or intangible,
including the right to any commissions associated with the SWAG Business) which are shown on the balance sheet forming part of the Interim
Financial Statements, or which are used by SWAG to carry on the SWAG Business immediately prior to the date of this Agreement, other
than any properties and assets which have been sold or otherwise disposed of in the Ordinary Course since the Interim Balance Sheet Date.
No Related Party owns any SWAG Assets which are used in the SWAG Business immediately prior to the date of this Agreement. The SWAG Assets
are sufficient to operate the SWAG Business in the manner conducted immediately [(10) days], prior to the date of this Agreement all
material respects other than any properties and assets which have been sold or otherwise disposed of in the Ordinary Course of business.
The following assets are excluded from the sale: software, websites, marketing materials and all other personal property not related
to the OPHIR Collection. That property will inure to the benefit of the SWAGSHAR.

 

Section
3.07 Real Property. SWAG does not own any real property used by SWAG in connection with the SWAG
Business.

 

Section
3.08 Intellectual Property.

 

		(a)	Section
                                            3.09 of the SWAG Disclosure Schedule sets forth a complete and correct list of all of the
                                            (i) registrations, issuances, and pending applications for Intellectual Property that are
                                            owned by SWAG, including all patents, trademarks, copyrights, Internet domain names, and
                                            applications for any of the foregoing; (ii) software owned by SWAG; and (iii) material unregistered
                                            Intellectual Property that are owned by SWAG.

 

		(b)	All
                                            required maintenance fees for Intellectual Property that are owed by SWAG have been paid
                                            to the relevant Governmental Authority through the Closing Date, and to the Knowledge of
                                            the SWAG Parties, there are no judgments, rulings, or agreements that affect the validity,
                                            enforceability, ownership, or scope of rights, with respect to any Intellectual Property
                                            owned by SWAG.

 

		(c)	No
                                            written claim has been brought or made against SWAG by notice to SWAG, and, to the Knowledge
                                            of the SWAG Parties, no facts exist that would support a claim (i) alleging that the SWAG
                                            IP Rights infringe on or misappropriates the Intellectual Property of another Person; (ii)
                                            challenging the ownership, right to use or validity of SWAG IP Rights; or (iii) opposing
                                            or attempting to cancel SWAG IP Rights.

 

		(d)	SWAG
                                            has not made any claim, received any notice of any, and to the Knowledge of the SWAG Parties
                                            there is no, infringement, misappropriation, interference, or conflict, with respect to any
                                            of SWAG IP Rights by any third party.

 

Section
3.09 Insurance. Section 3.10 of the SWAG Disclosure Schedule lists all insurance policies maintained by SWAG as of the date
hereof. To the Knowledge of the SWAG Parties, SWAG is not in default with respect to any material provisions contained in any such insurance
policy and have not failed to give any notice or present any claim under any such insurance policy in a due and timely fashion. The SWAG
Parties have provided a true copy of each insurance policy referred to in this Section 3.09(j) of the SWAG Disclosure Schedule to the
Company.

 

     

    	- 11 -

    

 

Section
3.10 No Expropriation. In the past 12 months, no part of the SWAG Assets have been taken or expropriated by any federal, state,
municipal or other authority, nor has any notice or proceeding in respect thereof been given or commenced. To the Knowledge of the SWAG
Parties there is no intent or proposal to give any such notice or commence any such proceedings.

 

Section
3.11 Contracts. Section 3.12 of the SWAG Disclosure Schedule sets forth a true and complete list of each Material Contract,
not including the Leases but including any Material Contracts entered into with customers of SWAG. [There are no agreements or understandings
between SWAG and any customer of any kind or nature, including, without limitation, agreements with respect to refunds, credits, allowances,
discounts or free services or products.] No consent of any party to any Material Contract is required for the execution, delivery or
performance of this Agreement or the consummation of the transactions contemplated hereby. To the Knowledge of the SWAG Parties:

 

		(a)	SWAG
                                            has performed all of the obligations required to be performed by it and is entitled to all
                                            benefits under, and is not in default or alleged to be in default in respect of, any Material
                                            Contract in any material respect; and

 

		(b)	all
                                            such Material Contracts are in good standing and in full force and effect, and no event,
                                            condition or occurrence exists which, after notice or lapse of time or both, would constitute
                                            a default under any Material Contract.

 

Section
3.12 Compliance with Legal Requirements, Licenses. In the two years prior to the date of this Agreement, SWAG has complied
in all material respects with all Legal Requirements applicable to the SWAG Business. Section 3.13 of the SWAG Disclosure Schedule sets
forth a complete and accurate list of all material licenses, permits, approvals, consents, certificates, registrations and authorizations,
whether governmental, regulatory or otherwise, and all applications therefor (the “Licenses”) held by or granted to
SWAG, and there are no other material licenses, permits, approvals, consents, certificates, registrations or authorizations necessary
to carry on the SWAG Business or to own or lease any of the SWAG Assets. Each License is valid, subsisting and in good standing and SWAG
is not in default or breach of any License and, to the Knowledge of the SWAG Parties, no proceeding is pending or threatened to revoke
or limit any License. SWAG has provided a true and complete copy of each License and all amendments thereto to the Buyer.

 

Section
3.13 Consents and Approvals. There is no requirement to make any filing with, give any notice to or to obtain any license,
permit, certificate, registration, authorization, consent or approval (“Governmental Approvals”) of, any Governmental
Authority as a condition to the lawful consummation of the transactions contemplated by this Agreement. There is no requirement under
any Material Contract to give any notice to, or to obtain the consent or approval of, any party to such Material Contract relating to
the consummation of the transactions contemplated by this Agreement.

 

     

    	- 12 -

    

 

Section
3.14 Financial Statements. The Annual Financial Statements and the Interim Financial Statements (the “Financial Statements”)
have been prepared in accordance with USGAAP applied on a basis consistent with prior periods, subject to adjustment in the case of the
Annual Financial Statements and Interim Financial Statements based on the financial information provided by SWAG, are correct and complete
and present fairly, in all material respects, the assets, liabilities and financial condition of SWAG as at the respective dates of the
Financial Statements and the sales, earnings and results of operations of SWAG for the respective periods covered by the Financial Statements.
As at the date hereof, to the Knowledge of SWAG there has not been any material adverse change to the financial position and condition
of SWAG as compared to that shown on or reflected in the Financial Statements. SWAG has provided true and complete copies of the Financial
Statements to the Buyer.

 

Section
3.15 Books and Records. The books and records of SWAG, all of which have been made available to Buyer, are complete and correct
in all material respects and have been maintained in accordance with standard business practices.

 

Section
3.16 Absence of Changes. Since the date of the Interim Balance Sheet Date, the SWAG Business has been conducted only in the
ordinary and normal course consistent with past practice and, except as disclosed in Schedule Section 3.17, there has not been:

 

		(a)	any
                                            Material Adverse Effect;

 

		(b)	any
                                            material damage, destruction or loss (whether or not covered by insurance) affecting the
                                            SWAG Business;

 

		(c)	any
                                            obligation or liability (whether absolute, accrued, contingent or otherwise, and whether
                                            due or to become due) incurred by SWAG, in connection with the SWAG Business, other than
                                            those incurred in the Ordinary Course;

 

		(d)	any
                                            payment, discharge or satisfaction of any Encumbrance or material liability, or obligation
                                            of SWAG (whether absolute, accrued, contingent or otherwise, and whether due or to become
                                            due) other than payment of accounts payable and tax liabilities incurred in the Ordinary
                                            Course and as disclosed in Schedule 3.17;

 

		(e)	any
                                            license, sale, assignment, transfer, disposition, pledge, mortgage or granting of a security
                                            interest or other Encumbrance on or over any material SWAG Assets, other than sales of inventory
                                            in the Ordinary Course and disposal of obsolete or unusable SWAG Assets;

 

		(f)	any
                                            cancellation of any claims or any amendment, termination, or waiver of any rights of value
                                            to SWAG Assets in amounts exceeding Two Thousand Dollars ($2,000) in each instance or Ten
                                            Thousand Dollars ($10,000) in the aggregate;

 

		(g)	any
                                            sale, assignment, license or other transfer of any Intellectual Property;

 

		(h)	any
                                            forward purchase commitments in excess of the requirements of the SWAG Business for normal
                                            operating inventories or at prices higher than the current market prices;

 

     

    	- 13 -

    

 

		(i)	any
                                            forward sales commitments other than as provided for in any Material Contract or in the Ordinary
                                            Course ;

 

		(j)	any
                                            material change in the accounting or tax practices followed by SWAG including any material
                                            Tax elections,

 

		(k)	any
                                            material change adopted by SWAG in its depreciation or amortization policies or rates;

 

		(l)	any
                                            material change in the credit terms offered to customers of, or by suppliers to, the SWAG
                                            Business;

 

		(m)	any
                                            material delay or postponement of the payment of material accounts payable outside the Ordinary
                                            Course; or

 

Section 3.17 Non-Arm’s
Length Transactions. Since the Interim Balance Sheet Date, SWAG has not made any payment or loan to or borrowed any moneys from
or is otherwise indebted to, any Related Party. SWAG is not a party to any Contract, nor has it engaged in any transaction with any Related
Party, except as contemplated by this Agreement. No Related Party:

 

		(a)	owns,
                                            directly or indirectly, any interest in (except for shares representing less than one per
                                            cent (1%) of the outstanding shares of any class or series of any publicly traded company),
                                            or is an officer, director, employee, partner, or consultant of, any person which is, or
                                            is engaged in business as, a competitor of the SWAG Business or a lessor, lessee, supplier,
                                            distributor, sales agent or customer of the SWAG Business;

 

		(b)	owns,
                                            directly or indirectly, in whole or in part, any property that the SWAG Business uses in
                                            the operations of the SWAG Business; or

 

		(c)	has
                                            any cause of action or other claim whatsoever against or owes any amount to SWAG in connection
                                            with the SWAG Business, except for any liabilities reflected in the Financial Statements
                                            and claims in the ordinary course of business such as for accrued vacation pay and accrued
                                            benefits under employee plans.

 

Section 3.18 Tax
Matters. All federal, state, provincial, county, local and foreign taxes, including without limitation, income, gross receipts,
excise, import, ad valorem, property, franchise, license, sales, use, payroll, severance and windfall profits taxes, including any penalty,
addition to tax, interest, assessment or other charge imposed thereon (collectively, “Taxes”), due and payable by
SWAG for any period ending prior to the Closing Date have been paid in ful1. There are no federal, state, or local tax Encumbrances upon
any of the SWAG Assets. All Tax Returns required to be filed by or with respect to SWAG prior to the Closing Date have been filed and
all Taxes due as shown thereon have been paid. All such Tax Returns are true, correct and complete and accurately set forth all items
to the extent required to be reflected or incurred in such Tax Returns by applicable Legal Requirements. To the Knowledge of the SWAG
Parties, no issues have been raised (or are currently pending) by any Governmental Authority the adverse determination of which could
result in an Encumbrance upon any SWAG Assets. No waivers of statutes of limitations as to any tax matters have been given or requested
with respect to SWAG. SWAG has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or
owing to any employee, creditor, independent contractor or other third party and no person treated as an independent contractor has been
reclassified as an employee by any governmental authority. SWAG is not a party to any Tax allocation or Tax sharing agreement. To the
Knowledge of the SWAG Parties, there is no obligation to file Tax Returns in any jurisdiction in which SWAG currently is not filing such
Tax Return.

 

     

    	- 14 -

    

 

Section
3.19 Litigation. There are no actions, suits or proceedings (whether or not purportedly on behalf of SWAG) pending or, to the
Knowledge of the SWAG Parties, threatened against or affecting, the SWAG Assets or SWAG Business, at law or in equity or before or by
any Governmental Authority. The SWAG Parties are not aware of any ground on which any such action, suit or proceeding might be commenced
with any reasonable likelihood of success unless otherwise disclosed herein.

 

Section
3.20 Employees and Employee Matters:

 

		(a)	The
                                            SWAG Disclosure Schedule sets forth a true and complete list of all officers and directors
                                            and employees.

 

		(b)	(i)
                                            There are no pending claims by any employee, independent contractor, agent, former employee,
                                            independent contractor or agent against SWAG other than for compensation and benefits due
                                            in the ordinary course of employment, (ii) there are no pending claims against SWAG arising
                                            out of any statute, ordinance or regulation relating to employment practices or occupational
                                            or safety and health standards, (iii) there are no pending or, to the Knowledge of the SWAG
                                            Parties, threatened, labor disputes, strikes or work stoppages against SWAG, (iv) to the
                                            Knowledge of the SWAG Parties, there are no union organizing activities in process or contemplated;
                                            and (v) there are no workers’ compensation claims of any nature pending against SWAG
                                            and there have not, within the two years prior to the date of this Agreement any such settled
                                            claims. To the Knowledge of the SWAG Parties, in the two years prior to the date of this
                                            Agreement there have not been any unasserted or threatened workers’ compensation claims
                                            against SWAG.

 

		(c)	All
                                            employees and independent contractors who perform services for SWAG which require a license
                                            have been duly licensed by the applicable governmental agency in the applicable jurisdiction.

 

Section
3.21 Employee Benefit Plans. The SWAG Disclosure Schedule lists all plans, programs, agreements, commitments and arrangements
maintained by or on behalf of SWAG that provide benefits or compensation to, or for the benefit of, any employee or former employee (the
“Plans”). Only employees and former employees (and eligible dependents and beneficiaries of such employees and former
employees) participate in the Plans.

 

Section
3.22 No Liabilities. To the Knowledge of the SWAG Parties, there are no material liabilities of SWAG whether or not accrued
and whether or not determined or determinable other than as disclosed in the Financial Statements or incurred in the ordinary course
of the SWAG Business of the nature required to be reflected as liabilities on a balance sheet prepared in accordance with GAAP.

 

Section
3.23 Brokerage. SWAG has not dealt with, and is not obligated to make any payment to, any finder, broker, investment banker
or financial advisor in connection with any of the transactions contemplated by this Agreement or the negotiations looking toward the
consummation of such transactions.

 

     

    	- 15 -

    

 

Article
IV. REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE Sellers

 

Each
SWAG Shareholder, (collectively referred to as the “SWAG Shareholder” or the “SWAG Shareholders”) severally (as
to itself and not any other SWAG Shareholder), represents and warrants to the Company as follows:

 

Section
4.01 Capacity. The SWAG Shareholders have the power and authority to own or hold the SWAG Shares held by them. The SWAG Shareholders
have the power and authority to enter into this Agreement and to perform its obligations hereunder.

 

Section
4.02 Execution and Delivery. This Agreement and any other Transaction Documents contemplated by this Agreement has been duly
executed and delivered by the SWAG Shareholders and will result in legally binding obligations of the SWAG Shareholders enforceable against
in accordance with the respective terms and provisions hereof and thereof, except as may be limited by bankruptcy, insolvency, moratorium
or other similar Laws affecting the enforcement of creditors’ rights generally and subject to the qualification that the availability
of equitable remedies is subject to the discretion of the court before which any proceeding therefore may be brought.

 

Section
4.03 Corporate Action. The execution and delivery of this Agreement and such other Transaction Documents and the consummation
of the transaction have been duly authorized by all necessary corporate action on the part of all such SWAG Shareholders, as may be required.

 

Section
4.04 No Violation. The execution and delivery of this Agreement, the transfer of the SWAG Shares held by the SWAG
Shareholders, as applicable, and the performance, observance or compliance with the terms of this Agreement by the SWAG Shareholders
will not violate, constitute a default under, conflict with, or give rise to any requirement for a waiver or consent under: any
provision of law or any order of any court or other governmental agency applicable to the SWAG Shareholders; the organizational
documents of the SWAG Shareholders, if applicable any provision of any agreement, instrument or other obligation to which the SWAG
Shareholders are a party or by which the SWAG Shareholders are bound; or any applicable judgment, writ, decree, order or Laws
applicable to the SWAG Shareholders.

 

Section
4.05 Litigation. There is no pending suit, action, legal proceeding, litigation or governmental investigation of any sort
or, to the Knowledge of the SWAG Shareholders without further inquiry, threatened or contemplated, which would: in any manner
restrain or prevent the SWAG Shareholders from effectually or legally exchanging the SWAG Shares held by the SWAG Shareholders in
accordance with this Agreement; cause any Encumbrance to be attached to the SWAG Shares held by the SWAG Shareholders; divest title
to the SWAG Purchased Shares held by the SWAG Shareholders; or make the Company or SWAG liable for damages in connection with the
transaction contemplated herein.

 

     

    	- 16 -

    

 

Section 4.06 Ownership. The
SWAG Shareholders are the registered owners of all SWAG Shares. The SWAG Shareholders have good and marketable title to all SWAG
Securities, free of all Encumbrances other than Permitted Encumbrances and no person or entity has any agreement or option or right
capable of becoming an agreement or option for the purchase from the SWAG Shareholders of any of the SWAG Shares held by it other
than the Buyer. The SWAG Shareholders have good right, full power and absolute authority to sell, transfer and assign all of the
SWAG Shares held by it to the Buyer for the purpose and in the manner as provided for in this Agreement. The SWAG Shares held by the
SWAG Shareholders constitute all of the SWAG Shares owned or controlled, directly or indirectly, by the SWAG Shareholders. The SWAG
Shares held by the SWAG Shareholders are not subject to any shareholder, pooling, escrow or similar agreements to which the SWAG
Shareholders are a party.

 

Section 4.07 Finder’s
Fees. The SWAG Shareholders have not
entered into any agreement that would entitle any person to any valid claim against the Company for a broker’s commission,
finder’s fee, or any like payment in respect of the exchange of the SWAG Shares or any other matters contemplated by this
Agreement.

 

Section 4.08 Independent
Legal Advice. The SWAG Shareholders hereby
acknowledges that they has been afforded the opportunity to obtain independent legal advice, and confirms by the execution and
delivery of this Agreement that they have either done so or waived their right to do so in connection with the entering into of this
Agreement.

 

Article
V. REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to the SWAG Parties as follows, except as set forth in the Company Disclosure Schedule, attached hereto,
referencing the applicable Section of this Article V to which such disclosure related and acknowledges and confirms that the SWAG Parties
are relying on such representations and warranties in connection with their entering into this Agreement and the other Transaction Documents
including their sale of the SWAG Shares and the other transactions contemplated therein , as follows:

 

Section 5.01 Organization. Company
is a corporation validly existing under the laws of the state of Nevada and has the power and is duly authorized under all
applicable Laws, regulations, ordinances, and orders of public authorities to carry on its business in all material respects as it
is now being conducted. The Company has the corporate power to enter into this Agreement and the Transaction Documents to which it
is a party and to perform its respective obligations hereunder and thereunder.

 

Section 5.02 Due
Authorization. This Agreement and the
Transaction Documents have been duly authorized, executed and delivered by the Company as applicable and are a legal, valid and
binding obligation, enforceable by the SWAG Parties in accordance with their respective terms, except as may be limited by
bankruptcy, insolvency, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and subject
to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any
proceeding therefore may be brought.

 

     

    	- 17 -

    

 

Section 5.03 No
Violation. The execution and delivery of
this Agreement and the Transaction Documents by the Company and the consummation of the transactions herein provided for will not
result in (a) the breach or violation of any of the provisions of, or constitute a default under, or conflict with or cause the
acceleration of any obligation of the Company: (i) any Contract to which the Company is a party or by which it is bound; (ii) any
provision of the constituting documents or resolutions of the board of directors and stockholders of the Company; (iii) any
judgment, decree, order or award of any Governmental Authority having jurisdiction over the Company; (iv) any license, permit,
approval, consent or authorization held by the Company or necessary to the operation of its respective businesses; or (v) any
applicable Legal Requirement; or (b) the creation or imposition of any Encumbrance on any of its respective assets.

 

Section 5.04 Consents
and Approvals. There is no requirement to
make any filing with, give any notice to or to obtain any Governmental Approvals of, any Governmental Authority as a condition to
the lawful consummation of the transactions contemplated by this Agreement. There is no requirement under any Contract relating to
the Company to which the Company is a party or by which it is bound to give any notice to, or to obtain the consent or approval of,
any party to such agreement, instrument or commitment relating to the consummation of the transactions contemplated by this
Agreement.

 

Section 5.05 Information. The
information concerning the Company set forth in this Agreement and the Company Disclosure Schedule is complete and accurate in all
material respects and does not contain any untrue statements of a material fact or omit to state a material fact required to make
the statements made, in light of the circumstances under which they were made, not misleading.

 

Section 5.06 SEC
Reports; Securities Law Compliance. The
Company Shares are listed and posted for trading on the Nasdaq, and the Company is in compliance in all material respects with the
policies and requirements of the Nasdaq. The Company has filed with or furnished to the SEC on a timely basis all reports, forms,
schedules and other documents required to be filed or furnished, as the case may be, by the Company (collectively, the
“Company SEC Documents”). No Company SEC Documents are filed on a confidential basis or otherwise not available
to the public. As of its filing date (or, if amended or supplemented, as of the date of the most recent amendment or supplement and
giving effect to such amendment or supplement), each Company SEC Document complied in all material respects with the applicable
requirements of the Securities Act, the Exchange Act and the Sarbanes-Oxley Act, and any rules and regulations
promulgated thereunder, as the case may be, and none of the Company SEC Documents contained any untrue statement of a material fact
or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. As of the date of this Agreement, there are no material outstanding or
unresolved comments in comment letters received from the SEC with respect to the Company SEC Documents and, to the Knowledge of the
Company, none of the Company SEC Documents is the subject of outstanding SEC comment or outstanding SEC investigation or other
governmental investigation regarding the accounting practices of the Company. The Company is in compliance in all material respects
with the applicable provisions of the Sarbanes-Oxley Act and the listing and corporate governance rules and regulations of
the NASDAQ.

 

Section 5.07 Brokerage. Company
has not dealt with, and is not obligated to make any payment to, any finder, broker, investment banker or financial advisor in
connection with any of the transactions contemplated by this Agreement or the negotiations looking toward the consummation of such
transactions.

 

     

    	- 18 -

    

 

Article
VI. CONDITIONS TO CLOSING

 

Section 6.01 Condition
to the Obligations of all of the Parties. The obligations of all of the Parties to consummate the Closing are subject to the
satisfaction, or waiver by each of the Parties, at or before the Closing Date, of all the following conditions:

 

		(a)	No
                                            provisions of any applicable Law, and no Order shall prohibit or impose any condition on
                                            the consummation of the Closing;

 

		(b)	There
                                            shall not be any Action brought by a third-Party non-Affiliate to enjoin or otherwise restrict
                                            the consummation of the Closing; and

 

		(c)	The
                                            Parties shall have received all necessary approvals from all required Authorities to consummate
                                            the transactions contemplated herein.

 

		(d)	The
                                            Parties executing a mutual Non-Disclosure Agreement.

 

Section
6.02 Condition to the Obligations of the Company. The obligations of the Company to consummate the Closing are subject to
the satisfaction (or waiver by the Company), at or before the Closing Date, of the following conditions:

 

		(a)	the
                                            Company shall have completed its due diligence investigation of SWAG to the Company’s
                                            satisfaction in the Company’s sole discretion;

 

		(b)	at
                                            the time of the Closing, SWAG will have no liabilities, contingent or otherwise;

 

		(c)	the
                                            Closing shall not result in SWAG losing any rights presently held under any contract or arrangement;

 

		(d)	The
                                            representations and warranties made by the SWAG Parties in this Agreement shall have been
                                            true and correct when made and shall be true and correct in all material respects (other
                                            than representations and warranties which are qualified as to materiality, which shall be
                                            true and correct in all respects) at the Closing Date with the same force and effect as if
                                            such representations and warranties were made at and as of the Closing Date, except for changes
                                            therein permitted by this Agreement; All SWAG Assets, are free and clear of all Encumbrances,
                                            with SWAG having the full right, title, privileges, claims and interest in, whether owned
                                            or leased, real or personal, tangible or intangible;

 

		(e)	Each
                                            of the SWAG Parties shall have performed or complied with all covenants and conditions required
                                            by this Agreement to be performed or complied with by such SWAG Parties prior to or at the
                                            Closing;

 

		(f)	The
                                            Consents shall have been delivered to the Company;

 

		(g)	No
                                            Order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or
                                            restraining order shall have been enacted, entered, promulgated or enforced by any court
                                            or governmental or regulatory authority or instrumentality which prohibits the consummation
                                            of the transactions contemplated hereby;

 

     

    	- 19 -

    

 

		(h)	The
                                            SWAG Parties shall have each have approved this Agreement and the transactions contemplated
                                            herein; and

 

		(i)	All
                                            consents, approvals, waivers, or amendments pursuant to all contracts, licenses, permits,
                                            trademarks and other intangibles in connection with the transactions contemplated herein,
                                            or for the continued operation of SWAG after the Closing Date on the basis as presently operated
                                            shall have been obtained.

 

		(j)	The
                                            SWAG Parties shall have provided a proper Bill of Sale and Purchase and Sale Agreement to
                                            the OPHIR Collection to the Buyer prior to the closing to allow for a proper legal review.

 

		(k)	All
                                            regulatory approvals required by the Company in respect of the Transaction shall have been
                                            received by the Company.

 

Section
6.03 Condition to the Obligations of the SWAG Parties. The obligations of the SWAG Parties to consummate the Closing
are subject to the satisfaction (or waiver by any of the SWAG Parties), at or before the Closing Date, of the following conditions:

 

		(a)	The
                                            Company shall have performed or complied with all covenants and conditions required by this
                                            Agreement to be performed or complied with by the Company prior to or at the Closing;

 

		(b)	No
                                            Order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or
                                            restraining order shall have been enacted, entered, promulgated or enforced by any court
                                            or governmental or regulatory authority or instrumentality which prohibits the consummation
                                            of the transactions contemplated hereby;

 

		(c)	The
                                            Company’s Board of Directors shall have approved this Agreement and the transactions
                                            contemplated herein;

 

		(d)	A
                                            total amount of Ninety Million ($90,000,000.00) will be distributed as follows: (i) Sixty
                                            Million Dollars directly to the court-appointed receiver for the purchase of the OPHIR Collection
                                            by SWAG, and (ii) the Mark-up of Thirty Million Dollars directly for the benefit of the SWAGSHARE.
                                            The $90,000,000 is to be provided by a competent financing party.

 

		(e)	Provide
                                            SWAG with a binding Letter of Intent by a competent financing party for financing in the
                                            amount of at least $90,000,000.00 by midnight EST December 27, 2022 with a closing date no
                                            later than December 30, 2022 by 5:00 p.m. EST.

 

     

    	- 20 -

    

 

Article
VII. CLOSING DELIVERABLES

 

Section 7.01 Delivery
of Books and Records. At the Closing, the SWAG Parties shall deliver to the Company, all organizational documents, books of account,
contracts, records, and all other books or documents of SWAG now in the possession of SWAG.

 

Section 7.02 Third
Party Consents and Certificates. Prior to the Closing Date, the Company and the SWAG Parties agree to cooperate with each other
in order to obtain any required third-Party consents to this Agreement and the transactions herein contemplated.

 

Section 7.03 Actions
Prior to Closing. From and after the date of this Agreement until the Closing Date and except as set forth in the Company Schedules,
if any, or the SWAG Schedules, or as permitted or contemplated by the LOI and this Agreement, the Company and SWAG, respectively, will
each:

 

		(a)	carry
                                            on its business in substantially the same manner as it has heretofore;

 

		(b)	maintain
                                            and keep its properties in states of good repair and condition as at present, except for
                                            depreciation due to ordinary wear and tear and damage due to casualty;

 

		(c)	maintain
                                            in full force and effect insurance comparable in amount and in scope of coverage to that
                                            now maintained by it;

 

		(d)	perform
                                            in all material respects all of its obligations under material contracts, leases, and instruments
                                            relating to or affecting its assets, properties, and business;

 

		(e)	fully
                                            comply with and perform in all material respects all obligations and duties imposed on it
                                            by all federal and state Laws (including without limitation, the federal securities Laws)
                                            and all rules, regulations, and orders imposed by federal or state governmental authorities.

 

Section 7.04 Limitations
on Actions. From and after the date of this Agreement until the Closing Date, except as required by this Agreement neither the
Company nor SWAG will:

 

		(a)	make
                                            any changes in their charter documents, except as contemplated by this Agreement;

 

		(b)	enter
                                            into or amend any contract, agreement, or other instrument of any of the types described
                                            in such Party’s schedules, except that a Party may enter into or amend any contract,
                                            agreement, or other instrument in the ordinary course of business involving the sale of goods
                                            or services; or

 

		(c)	sell
                                            any assets or discontinue any operations, sell any shares of capital stock or conduct any
                                            similar transactions other than in the ordinary course of business.

 

     

    	- 21 -

    

 

Section 7.05 Documents
to be Delivered by the SWAG Parties at the Closing. At the Closing, the SWAG Parties shall deliver:

 

		(a)	a
                                            Certificate of Status, dated within 7 business days of the Closing Date, certifying the good
                                            standing and legal existence of SWAG, issued by the appropriate authority;

 

		(b)	such
                                            other documents and items as may reasonably be requested by the Company to effect the transactions
                                            contemplated hereunder.

 

Section 7.06 Documents
to be Delivered by the Company at the Closing. At the Closing, the Company shall deliver to the SWAG Parties or certain other
parties as set forth herein:

 

		(a)	each
                                            of the other Transaction Documents, as applicable, duly executed by the applicable Company
                                            Party;

 

		(b)	such
                                            other documents and items as may reasonably be requested by the SWAG Parties to effect the
                                            transactions contemplated hereunder.

 

Article
VIII. INDEMNIFICATION

 

Section 8.01 Indemnification
of Company. From and after the Closing Date, the SWAG Parties (the “SWAG Indemnifying Party”) hereby agree,
jointly and severally (except in respect of the representations and warranties of the Sellers in Article IV which shall be severally
each in respect of itself), to indemnify and hold harmless to the fullest extent permitted by applicable law the Company, each of its
Affiliates and each of its and their respective members, managers, partners, directors, officers, employees, stockholders, attorneys
and agents and permitted assignees (each a “Company Indemnified Party”), against and in respect of any and all out-of-pocket
loss, cost, payments, demand, penalty, forfeiture, expense, liability, judgment, deficiency or damage (excluding indirect, consequential,
special, punitive damages, diminution of value or claim or loss of profits) (including reasonable costs of investigation and attorneys’
fees and other costs and expenses) (all of the foregoing collectively, “Losses”) incurred or sustained by any Company
Indemnified Party as a result of any breach of any of the representations, warranties or covenants of the SWAG Parties contained herein.

 

Section 8.02 Indemnification
of the SWAG Parties. The Company (the “Company Indemnifying Party”) hereby agree, jointly and severally, to
indemnify and hold harmless to the fullest extent permitted by applicable law the SWAG Parties and each of its officers, directors, employees,
stockholders, attorneys and agents and permitted assignees (each a “SWAG Indemnified Party”), against and in respect
of any and all Losses incurred or sustained by any SWAG Indemnified Party as a result of or in connection with any breach or inaccuracy
of any of the representations, warranties, covenants and agreements of the Company contained herein or in any of the additional agreements
or any certificate or other writing delivered pursuant hereto.

 

Section
8.03 Third Party Claims. With respect to any Third-Party Claims:

 

		(a)	An
                                            Indemnified Party shall give the Indemnifying Party prompt notice (an “Indemnification
                                            Notice”) of any Third-Party Action with respect to which such Indemnified Party
                                            seeks indemnification pursuant to Section 8.01 or Section 8.02 (a “Third Party Claim”),
                                            which shall describe in reasonable detail the Loss that has been or may be suffered by the
                                            Indemnified Party. The failure to give the Indemnification Notice shall not impair any of
                                            the rights or benefits of such Indemnified Party under Section 8.01 or Section 8.02, except
                                            to the extent such failure materially and adversely affects the ability of the Indemnifying
                                            Party to defend such claim or increases the amount of such liability.

 

     

    	- 22 -

    

 

		(b)	In
                                            the case of any Third Party Claims as to which indemnification is sought by any Indemnified
                                            Party, such Indemnified Party shall be entitled, at the sole expense and liability of the
                                            Indemnifying Party, to exercise full control of the defense, compromise or settlement of
                                            any Third Party Claim unless the Indemnifying Party, within a reasonable time after the giving
                                            of an Indemnification Notice by the Indemnified Party (but in any event within ten (10) days
                                            thereafter), shall (i) deliver a written confirmation to such Indemnified Party that the
                                            indemnification provisions of Section 8.01 or Section 8.02 are applicable to such Action
                                            and the Indemnifying Party will indemnify such Indemnified Party in respect of such Action
                                            pursuant to the terms of this Section 7.07(e) and, notwithstanding anything to the contrary,
                                            shall do so without asserting any challenge, defense, limitation on the Indemnifying Party’s
                                            liability for Losses, counterclaim or offset, (ii) notify such Indemnified Party in writing
                                            of the intention of the Indemnifying Party to assume the defense thereof, and (iii) retain
                                            legal counsel reasonably satisfactory to such Indemnified Party to conduct the defense of
                                            such Third Party Claim.

 

		(c)	If
                                            the Indemnifying Party assumes the defense of any such Third Party Claim pursuant to Section
                                            8.03(b), then the Indemnified Party shall cooperate with the Indemnifying Party in any manner
                                            reasonably requested in connection with the defense, and the Indemnified Party shall have
                                            the right to be kept fully informed by the Indemnifying Party and their legal counsel with
                                            respect to the status of any legal proceedings, to the extent not inconsistent with the preservation
                                            of attorney-client or work product privilege. If the Indemnifying Party so assumes the defense
                                            of any such Third Party Claim, the Indemnified Party shall have the right to employ separate
                                            counsel and to participate in (but not control) the defense, compromise, or settlement thereof,
                                            but the fees and expenses of such counsel employed by the Indemnified Party shall be at the
                                            expense of such Indemnified Party unless (i) the Indemnifying Party has agreed to pay such
                                            fees and expenses, or (ii) the named Parties to any such Third Party Claim (including any
                                            impleaded Parties) include an Indemnified Party and the Indemnifying Party and the Indemnified
                                            Party shall have been advised by its counsel that there may be a conflict of interest between
                                            such Indemnified Party and the Indemnifying Party in the conduct of the defense thereof,
                                            and in any such case the reasonable fees and expenses of such separate counsel shall be borne
                                            by the Indemnifying Party.

 

		(d)	If
                                            the Indemnifying Party elects to assume the defense of any Third Party Claim pursuant to
                                            Section 8.03(b), the Indemnified Party shall not pay, or permit to be paid, any part of any
                                            claim or demand arising from such asserted liability unless the Indemnifying Party withdraws
                                            from or fails to vigorously prosecute the defense of such asserted liability, or unless a
                                            judgment is entered against the Indemnified Party for such liability. If the Indemnifying
                                            Party does not elect to defend, or if, after commencing or undertaking any such defense,
                                            the Indemnifying Party fails to adequately prosecute or withdraw such defense, the Indemnified
                                            Party shall have the right to undertake the defense or settlement thereof, at the Indemnifying
                                            Party’s expense. Notwithstanding anything to the contrary, the Indemnifying Party shall
                                            not be entitled to control, but may participate in, and the Indemnified Party (at the expense
                                            of the Indemnifying Parties) shall be entitled to have sole control over, the defense or
                                            settlement of (x) that part of any Third Party Claim (i) that seeks a temporary restraining
                                            order, a preliminary or permanent injunction or specific performance against the Indemnified
                                            Party, or (ii) to the extent such Third Party Claim involves criminal allegations against
                                            the Indemnified Party. In the event the Indemnified Party retains control of the Third-Party
                                            Claim, the Indemnified Party will not settle the subject claim without the prior written
                                            consent of the Indemnifying Party, which consent will not be unreasonably withheld or delayed.

 

		(e)	If
                                            the Indemnified Party undertakes the defense of any such Third Party Claim pursuant to Section
                                            8.03(b) and proposes to settle the same prior to a final judgment thereon or to forgo appeal
                                            with respect thereto, then the Indemnified Party shall give the Indemnifying Party prompt
                                            written notice thereof and the Indemnifying Party shall have the right to participate in
                                            the settlement, assume or reassume the defense thereof or prosecute such appeal, in each
                                            case at the Indemnifying Party’s expense. The Indemnifying Party shall not, without
                                            the prior written consent of such Indemnified Party settle or compromise or consent to entry
                                            of any judgment with respect to any such Third Party Claim (i) in which any relief other
                                            than the payment of money damages is or may be sought against such Indemnified Party, or
                                            (ii) which does not include as an unconditional term thereof the giving by the claimant,
                                            person conducting such investigation or initiating such hearing, plaintiff or petitioner
                                            to such Indemnified Party of a release from all liability with respect to such Third Party
                                            Claim and all other Actions (known or unknown) arising or which might arise out of the same
                                            facts.

 

     

    	- 23 -

    

 

Section 8.04 Direct
Claims. With respect to any Direct Claim, following receipt of notice from the Indemnified Party of the Claim, the Indemnifying
Party shall have sixty (60) days to make such investigation of the Direct Claim as is considered necessary or desirable. For the purpose
of such investigation, the Indemnified Party shall make available to the Indemnifying Party the information relied upon by the Indemnified
Party to substantiate the Direct Claim, together with all such other information as the Indemnifying Party may reasonably request. If
all Parties agree at or prior to the expiration of such sixty (60) day period (or any mutually agreed upon extension thereof) to the
validity and amount of such Direct Claim, the Indemnifying Party shall immediately pay to the Indemnified Party the full agreed upon
amount of the Direct Claim, failing which the matter shall be referred to binding arbitration in such manner as the Parties may agree
or shall be determined by a court of competent jurisdiction.

 

Section 8.05 Cooperation.
The Indemnified Party and the Indemnifying Party shall co-operate fully with each other with respect to Third Party Claims and
shall keep each other fully advised with respect thereto (including supplying copies of all relevant documentation promptly as it becomes
available).

 

Section 8.06 Certain
Limitations. The indemnification provided for in Section 8.02 and Section 8.03 shall be subject to the following limitations:

 

		(a)	The
                                            Sellers shall not be liable to the Company Indemnified Parties for indemnification under
                                            Section 8.01 until the aggregate amount of all Losses in respect of indemnification under
                                            Section 8.01 exceeds $35,000, in which event Sellers shall be required to pay or be liable
                                            for all such Losses in excess of $35,000;

 

		(b)	The
                                            aggregate amount of all Losses for which the Company shall be liable under Section 8.02 shall
                                            not exceed the Purchase Price; and

 

		(c)	An
                                            Indemnified Party is not entitled to double recovery for any Losses though they may have
                                            resulted from the breach, inaccuracy, or failure to perform of more than one of the representations,
                                            warranties, covenants, or obligations of the Indemnifying Party to this Agreement or be based
                                            on different theories of liability or causes of action.

 

     

    	- 24 -

    

 

Section 8.07 Insurance
and Other Reductions. Any indemnification payments hereunder shall be reduced by (i) any insurance proceeds or other third-Party
reimbursement actually received; or (ii) any net Tax benefit to the indemnified Party, and (iii) to the extent adjusted in the Purchase
Price pursuant to this Agreement, and if already paid by the Indemnifying Party shall promptly be repaid by the Indemnified Party to
the Indemnifying Party. Nothing in this Agreement shall in any way restrict or limit the general obligation at Law of a Party to mitigate
any Loss that it may suffer or incur by reason of the breach by the other Party of any representation, warranty or covenant of that other
Party under this Agreement. If any such Loss can be reduced by any recovery, settlement or otherwise under or pursuant to any insurance
coverage, or pursuant to any claim, recovery, settlement or payment by or against any other Person, a Party shall take all commercially
reasonable steps to enforce such recovery, settlement or payment. If the Indemnified Party fails to make all reasonable efforts to mitigate
any such Loss then the Indemnifying Party shall not be required to indemnify any Indemnified Party to the extent of the Loss that could
have been avoided if the Indemnified Party had made such efforts.

 

Section
8.08 Investigation. No Indemnified Party shall be entitled to indemnification, payment of Loss
or other remedies based on any representation, warranty, covenant or obligation of another Party contained in or made pursuant to this
Agreement or any Transaction Document if the Indemnified Party had knowledge of such inaccuracy or breach at the Closing.

 

Section
8.09 Indemnification as Sole Remedy. Following Closing,
subject to an Indemnified Party’s right to obtain equitable relief, the indemnification provided for in this Article 8 shall be
the sole and exclusive remedy and recourse for any matters arising out of this Agreement.

 

Section 8.10 Time
Limit. The obligations of the SWAG Indemnifying Party and the Company Indemnifying Party under Section 8.01 and Section 8.02
in respect of a breach of representations and warranties shall expire 12 months from the Closing Date and in respect of covenants shall
survive until fulfilled in accordance with its terms, except with respect to (i) an indemnification claim asserted in accordance with
the provisions of this Agreement prior to such date which remains unresolved, for which the obligation to indemnify shall continue until
such claim is resolved; and (ii) resolved claims for which payment has not yet been paid to the Indemnified Party.

 

Section
8.11 Purchase Price Adjustment. Any indemnification received under this Article 8 shall be
treated by the Parties and their respective Affiliates, to the extent permitted by Law, as an adjustment to the Purchase Price.

 

     

    	- 25 -

    

 

Article
IX. DISPUTE RESOLUTION

 

Section
9.01 Arbitration:

 

		(a)	The
                                            Parties shall promptly submit any dispute, claim, or controversy arising out of or relating
                                            to this Agreement (including with respect to the meaning, effect, validity, termination,
                                            interpretation, performance, or enforcement of this Agreement) or any alleged breach thereof
                                            (including any action in tort, contract, equity, or otherwise), to binding arbitration before
                                            one arbitrator (the “Arbitrator”). Binding arbitration shall be the sole
                                            means of resolving any dispute, claim, or controversy arising out of or relating to this
                                            Agreement (including with respect to the meaning, effect, validity, termination, interpretation,
                                            performance, or enforcement of this Agreement) or any alleged breach thereof (including any
                                            claim in tort, contract, equity, or otherwise).

 

		(b)	If
                                            the Parties cannot agree upon the Arbitrator within ten (10) Business Days of the commencement
                                            of the efforts to so agree on an Arbitrator, each of the Parties shall select one arbitrator
                                            and the two arbitrators so selected shall select the Arbitrator.

 

		(c)	The
                                            laws of the State of Florida shall apply to any arbitration hereunder. In any arbitration
                                            hereunder, this Agreement and any agreement contemplated hereby shall be governed by the
                                            laws of the State of Florida applicable to a contract negotiated, signed, and wholly to be
                                            performed in the State of Florida, which laws the Arbitrator shall apply in rendering his
                                            decision. The Arbitrator shall issue a written decision, setting forth findings of fact and
                                            conclusions of law, within sixty (60) days after he shall have been selected. The Arbitrator
                                            shall have no authority to award punitive or other exemplary damages.

 

		(d)	The
                                            arbitration shall be held in Florida in accordance with and under the then-current provisions
                                            of the rules of the Arbitration Act, except as otherwise provided herein.

 

		(e)	On
                                            application to the Arbitrator, any Party shall have rights to discovery to the same extent
                                            as would be provided under the Federal Rules of Civil Procedure, and the Federal Rules of
                                            Evidence shall apply to any arbitration under this Agreement; provided, however, that the
                                            Arbitrator shall limit any discovery or evidence such that his decision shall be rendered
                                            within the period referred to in Section 9.01(c).

 

		(f)	The
                                            Arbitrator may, at his discretion and at the expense of the Party who will bear the cost
                                            of the arbitration, employ experts to assist him in his determinations.

 

		(g)	The
                                            costs of the arbitration proceeding and any proceeding in court to confirm any arbitration
                                            award or to obtain relief, as applicable (including actual attorneys’ fees and costs),
                                            shall be borne by the unsuccessful Party and shall be awarded as part of the Arbitrator’s
                                            decision, unless the Arbitrator shall otherwise allocate such costs in such decision. The
                                            determination of the Arbitrator shall be final and binding upon the Parties and not subject
                                            to appeal.

 

		(h)	Any
                                            judgment upon any award rendered by the Arbitrator may be entered in and enforced by any
                                            court of competent jurisdiction. The Parties expressly consent to the non-exclusive jurisdiction
                                            of the courts (Federal and state) in Florida to enforce any award of the Arbitrator or to
                                            render any provisional, temporary, or injunctive relief in connection with or in aid of the
                                            Arbitration. The Parties expressly consent to the personal and subject matter jurisdiction
                                            of the Arbitrator to arbitrate any and all matters to be submitted to arbitration hereunder.
                                            None of the Parties hereto shall challenge any arbitration hereunder on the grounds that
                                            any Party necessary to such arbitration (including the Parties) shall have been absent from
                                            such arbitration for any reason, including that such Party shall have been the subject of
                                            any bankruptcy, reorganization, or insolvency proceeding.

 

     

    	- 26 -

    

 

Section
9.02 Waiver of Jury Trial; Exemplary Damages:

 

		(a)	EACH
                                            PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
                                            IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
                                            OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN (WHETHER BASED ON
                                            CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
                                            AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
                                            PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
                                            ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
                                            BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 9.02(a).

 

		(b)	Each
                                            of the Parties acknowledge that each has been represented in connection with the signing
                                            of this waiver by independent legal counsel selected by the respective Party and that such
                                            Party has discussed the legal consequences and import of this waiver with legal counsel.
                                            Each of the Parties further acknowledge that each has read and understands the meaning of
                                            this waiver and grants this waiver knowingly, voluntarily, without duress and only after
                                            consideration of the consequences of this waiver with legal counsel.

 

Article
X. DEFAULT

 

Section 10.01 Default
by the Company. Prior to Closing, if the
Company fails to perform any of its obligations under this Agreement, or is in breach in any material respect of any representation,
warranty, covenant or agreement on the part of the Company set forth in this Agreement, and, if such breach or failure is capable of
being cured, such failure or breach has not been cured within 10 days after receipt of notice of such breach by the Company, then
the Company shall be in default hereunder (such event, a “Company Default”). In the event of a Company Default,
the SWAG Parties shall be entitled to bring an action for specific performance of this Agreement or proceed against the Company for
payment for any damages actually incurred by the SWAG Parties as a result of such Company Default.

 

Section 10.02 Default
by the SWAG Parties. Prior to Closing, if
the SWAG Parties fail to perform any of its obligations under this Agreement, or is in breach in any material respect of any
representation, warranty, covenant or agreement on the part of SWAG Parties set forth in this Agreement, and, if such breach or
failure is capable of being cured, such failure or breach has not been cured within 10 days after receipt of notice of such breach
by SWAG Parties, then SWAG Parties shall be in default hereunder (such event, an “SWAG Parties Default”). In the
event of an SWAG Parties Default, the Company shall be entitled to bring an action for specific performance of this Agreement or
proceed against the SWAG Parties for payment for any damages actually incurred by the Company as a result of such SWAG Parties
Default.

 

     

    	- 27 -

    

 

Article
XI. MISCELLANEOUS

 

Section 11.01 Brokers. The
Company and the SWAG Parties agree that there were no finders or brokers involved in bringing the Parties together or who were
instrumental in the negotiation, execution, or consummation of this Agreement. The Company and the SWAG Parties each agree to
indemnify the other against any claim by any third person other than those described above for any commission, brokerage, or
finder’s fee arising from the transactions contemplated hereby based on any alleged agreement or understanding between the
Indemnifying Party and such third person, whether express or implied from the actions of the Indemnifying Party.

 

Section 11.02 Governing
Law. This Agreement shall be governed by,
enforced, and construed under and in accordance with the Laws of the State of Florida, without giving effect to the principles of
conflicts of law thereunder. Each of the Parties (a) irrevocably consents and agrees that any legal or equitable action or
proceedings arising under or in connection with this Agreement shall be brought exclusively in the state or federal courts of the
USA with jurisdiction in Florida. By execution and delivery of this Agreement, each Party hereto irrevocably submits to and accepts,
with respect to any such action or proceeding, generally and unconditionally, the jurisdiction of the aforesaid courts, and
irrevocably waives any and all rights such Party may now or hereafter have to object to such jurisdiction.

 

Section
11.03 Notices.

 

		(a)	Any
                                            notice or other communications required or permitted hereunder shall be in writing and shall
                                            be sufficiently given if personally delivered to it or sent by email, overnight courier or
                                            registered mail or certified mail, postage prepaid, addressed as follows:

 

If
to Novo Integrated Sciences, Inc.:

Novo
Integrated Sciences, Inc.

Attn:
Robert Mattacchione, CEO

11120
NE 2nd Street, Suite 100

Bellevue,
WA 98004

Email:
Robert.mattacchione@novointegrated.com

 

For
The Company, with a copy, which shall not constitute notice, to:

Anthony
L.G. PLLC

Attn:
Laura Anthony, Esq.

625
N. Flagler Drive, Suite 600

West
Palm Beach, Florida 33401

Email:
lanthony@anthonypllc.com

 

If
to SWAG or SWAGSHAR Representative:

Email:
Bob Davidoff 

 

and,
if to any of the Sellers, to the address as set forth below their signatures on the signature page hereof.

 

     

    	- 28 -

    

 

		(b)	Any
                                            Party may change its address for notices hereunder upon notice to each other Party in the
                                            manner for giving notices hereunder.

 

		(c)	Any
                                            notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered,
                                            (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted
                                            by email with return receipt requested and received and (iv) three (3) days after mailing,
                                            if sent by registered or certified mail.

 

Section 11.04 Entire
Agreement. This Agreement and the
Transaction Documents constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes
all prior agreements, understandings, negotiations, and discussions, whether written or oral including the LOI. There are no
conditions, covenants, agreements, representations, warranties, or other provisions, express or implied, collateral, statutory or
otherwise, relating to the subject matter hereof except as herein provided.

 

Section 11.05 Independent
Legal Advice. Each of the Parties hereby
acknowledges that it has been afforded the opportunity to obtain independent legal advice and confirms by the execution and delivery
of this Agreement that they have either done so or waived their right to do so in connection with the entering into of this
Agreement.

 

Section 11.06 Attorneys’
Fees. In the event that any Party
institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the
prevailing Party shall be reimbursed by the losing Party for all costs, including reasonable attorney’s fees, incurred in
connection therewith and in enforcing or collecting any judgment rendered therein.

 

Section 11.07 Confidentiality. Each
Party agrees that, unless and until the transactions contemplated by this Agreement have been consummated, it and its
representatives will hold in strict confidence all data and information obtained with respect to another Party or any subsidiary
thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such
other Party, and shall not use such data or information or disclose the same to others, except (i) to the extent such data or
information is published, is a matter of public knowledge, or is required by Law to be published; or (ii) to the extent that such
data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In the event
of the termination of this Agreement, each Party shall return to the applicable other Party all documents and other materials
obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials relating thereto,
and each Party will continue to comply with the confidentiality provisions set forth herein.

 

     

    	- 29 -

    

 

Section 11.08 Public
Announcements and Filings. Until the
Closing Date, unless required by applicable Law or regulatory authority, none of the Parties will issue any report, statement, or
press release to the general public, to the trade, to the general trade or trade press, or to any third Party (other than its
advisors and representatives in connection with the transactions contemplated hereby) or file any document, relating to this
Agreement and the transactions contemplated hereby, except as may be mutually agreed by the Parties. The Parties acknowledge and
agree that the Company is obligated to file a Form 8-K pursuant to the Exchange Act relating to this Agreement and the transactions
contemplated herein (the “Form 8-K”). In addition, the Parties acknowledge and agree that information related to
this Agreement and the transactions contemplated herein shall be provided to prospective investors in the Company, on a confidential
basis.

 

Section 11.09 Schedules;
Knowledge. Each Party is presumed to have
full knowledge of all information set forth in the other Party’s schedules delivered pursuant to this Agreement.

 

Section 11.10 Third
Party Beneficiaries. This contract is
strictly between the Company, and the SWAG Parties; and, except as specifically provided, no other Person and no director, officer,
partner, stockholder, employee, agent, independent contractor or any other Person shall be deemed to be a third-Party beneficiary of
this Agreement.

 

Section 11.11 Expenses. Except
as otherwise specifically set forth herein, the Parties shall bear their own respective expenses (including, but not limited to, all
compensation and expenses of counsel, financial advisors, consultants, actuaries, and independent accountants) incurred in
connection with this Agreement and the consummation of the transactions contemplated hereby.

 

Section 11.12 [Intentionally
deleted].  

 

Section 11.13 Arm’s
Length Bargaining: No Presumption Against Drafter.
This Agreement has been negotiated at arm’s-length by Parties of equal bargaining strength, each represented by counsel or
having had but declined the opportunity to be represented by counsel and having participated in the drafting of this Agreement. This
Agreement creates no fiduciary or other special relationship between the Parties, and no such relationship otherwise exists. No
presumption in favor of or against any Party in the construction or interpretation of this Agreement or any provision hereof shall
be made based upon which Person might have drafted this Agreement or such provision.

 

Section 11.14 Sections
and Headings. The division of this
Agreement into Articles, Sections and subsections and the insertion of headings are for convenience of reference only and shall not
affect the interpretation of this Agreement.

 

Section 11.15 Exhibits
and Schedules. Any matter, information or
item disclosed in the Schedules delivered under any specific representation, warranty or covenant or Schedule number hereof, shall
be deemed to have been disclosed for all purposes of this Agreement in response to every representation, warranty, or covenant in
this Agreement, even in the absence of an explicit cross reference. The inclusion of any matter, information or item in any Schedule
to this Agreement shall not be deemed to constitute an admission of any liability by the Company to any third Party or otherwise
imply, that any such matter, information or item is material or creates a measure for materiality for the purposes of this
Agreement. Matters disclosed in the Schedules are not necessarily limited to matters required by the Agreement to be disclosed in
the Schedules. Such additional matters are set forth for information purposes and do not necessarily include all matters of a
similar nature. Unless otherwise stated in the Schedules, all of the information contained in the Schedules is provided as of the
date of this Agreement.

 

     

    	- 30 -

    

 

Section 11.16 No
Assignment or Delegation. No Party may
assign any right or delegate any obligation hereunder, including by merger, consolidation, operation of law, or otherwise, without
the written consent of the Company and SWAGSHAR and any purported assignment or delegation without such consent shall be void, in
addition to constituting a material breach of this Agreement. This Agreement shall be binding on the permitted successors and
assigns of the Parties.

 

Section 11.17 Commercially
Reasonable Efforts. Subject to the terms
and conditions herein provided, the SWAG Parties and the Company shall use their respective commercially reasonable efforts to
perform or fulfill all conditions and obligations to be performed or fulfilled by it under this Agreement so that the transactions
contemplated hereby shall be consummated as soon as practicable, and to take, or cause to be taken, all actions and to do, or cause
to be done, all things necessary, proper or advisable under applicable Laws and regulations to consummate and make effective this
Agreement and the transactions contemplated herein.

 

Section 11.18 Further
Assurances. Each Party shall execute and
deliver such documents and take such action, as may reasonably be considered within the scope of such Party’s obligations
hereunder, necessary to effectuate the transactions contemplated by this Agreement.

 

Section 11.19 Specific
Performance. The Parties agree that
irreparable damage would occur in the event that any of the provisions of this Agreement were not performed by them in accordance
with the terms hereof or were otherwise breached and that each Party hereto shall be entitled to an injunction or injunctions,
specific performance and other equitable relief to prevent breaches of the provisions hereof and to enforce specifically the terms
and provisions hereof, without the proof of actual damages, in addition to any other remedy to which they are entitled at law or in
equity. Each Party agrees to waive any requirement for the security or posting of any bond in connection with any such equitable
remedy and agrees that it will not oppose the granting of an injunction, specific performance, or other equitable relief on the
basis that (a) the other Party has an adequate remedy at law, or (b) an award of specific performance is not an appropriate remedy
for any reason at law or equity.

 

Section 11.20 Severability. If
any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or
provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as
possible in a mutually acceptable manner in order that the transactions contemplated herein may be consummated as originally
contemplated to the greatest extent possible.

 

Section 11.21 Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall
be but a single instrument. The execution and delivery of a facsimile or other electronic transmission of a signature to this
Agreement shall constitute delivery of an executed original and shall be binding upon the person whose signature appears on the
transmitted copy.

 

[Signatures
Appear on Following Page]

 

     

    	- 31 -

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first-above written.

 

	 	Novo Integrated Sciences, Inc.
	 	 
	 	/s/ Robert Mattacchione
	 	Name:	Robert Mattacchione
	 	Title:	CEO
	 	 
	 	SwagCheck Inc.
	 	 
	 	/s/ Simon Levin
	 	Name:	Simon Levin

	 	Title:	Owner, CEO SwagCheck Inc.
	 	 
	 	SwagCheck Inc. Shareholders
	 	 
	 	/s/ Simon Levin
	 	Name:	Simon Levin
	 	 	 
	 	/s/ Robert Davidoff
	 	Name:	Robert Davidoff
	 	 	 
	 	/s/ Jason Olsen
	 	Name:	Jason Olsen
	 	 	 
	 	/s/ Sam Li
	 	Name:	Sam Li
	 	 	 
	 	/s/ Oliver Winterbone
	 	Name:	 Oliver Winterbone

 

[End
of Signatures]Document

Exhibit 4.1

[FORM OF SERIES [A][B-1][B-2] SENIOR CONVERTIBLE NOTE]

THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS NOTE.
Nikola Corporation

SERIES [A][B-1][B-2] Senior Convertible Note Due [2023][2024]

						
	Issuance Date: [●], 20__	Original Principal Amount: U.S. $[●]

FOR VALUE RECEIVED, Nikola Corporation, a Delaware corporation (the “Company”), hereby promises to pay to [BUYER] or its registered assigns (“Holder”) the amount set forth above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity Date, or upon 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 (as defined below) from the date set forth above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon the Maturity Date or upon acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof).  This Series [A][B-1][B-2] Senior Convertible Note Due [2023][2024] (including all Senior Convertible Notes issued in exchange, transfer or replacement hereof, this “Note”) is one of an issue of Senior Convertible Notes (collectively, the “Notes”, and such other Senior Convertible Notes, the “Other Notes”) issued pursuant to (i) Section 1 of that certain Securities Purchase Agreement, dated as of December __, 2022 (the “Subscription Date”), by and among the Company and the investors (the “Buyers”) referred to therein, as amended from time to time (the “Securities Purchase Agreement”), [INSERT IN INITIAL NOTE ONLY: and (ii)][INSERT IN ADDITIONAL NOTES ONLY: (ii) the Indenture, (iii) a Supplemental Indenture, and (iv)] the Company’s Registration Statement on Form S-3 (File number 333-264068 ) (the “Registration Statement”).  Certain capitalized terms used herein are defined in Section 31.

1.PAYMENTS OF PRINCIPAL. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest on such outstanding Principal and accrued and unpaid Late Charges (as defined in Section 23(c)) on such Principal and Interest. Other than as specifically permitted or required by this Note, the Company may not prepay any portion of the outstanding Principal, Make-Whole Amount, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal, Make-Whole Amount and Interest, if any.  Notwithstanding anything herein to the contrary, with respect to any conversion or redemption hereunder, as applicable, the Company shall convert or redeem, as applicable, First, all accrued and unpaid Late Charges on any Principal and Interest hereunder and under any other Notes held by the Holder and all other amounts owed to the Holder under any other Transaction Document (as such term is defined in the Securities Purchase Agreement), Second, all accrued and unpaid Interest and Make-Whole Amount, if any, hereunder and under any Other Notes held by such Holder, Third, all other amounts (other than Principal) outstanding under any Other Notes

held by such Holder and, Fourth, all Principal outstanding hereunder and under any Other Notes held by such Holder, in each case, allocated pro rata among this Note and such Other Notes held by such Holder.
2.INTEREST; INTEREST RATE.
(a)Interest on this Note shall commence accruing on the Issuance Date and shall be computed on the basis of a 360-day year consisting of twelve 30-day months and shall be payable in arrears on the first calendar day of each calendar quarter (each, an “Interest Date”) with the first Interest Date being [TBD].  Interest shall be payable on each Interest Date, to the record holder of this Note on the applicable Interest Date, in shares of Common Stock (“Interest Shares”) so long as there has been no Equity Conditions Failure; provided, however, that the Company may, at its option following notice to the Holder, pay Interest on any Interest Date in cash (“Cash Interest”) or in a combination of Cash Interest and Interest Shares.  The Company shall deliver a written notice (each, an “Interest Election Notice”) to each holder of the Notes on or prior to the tenth (10th) Trading Day immediately prior to the applicable Interest Date (each, an “Interest Notice Due Date”) (the date such notice is delivered to all of the holder, the “Interest Notice Date”) which notice (i) either (A) confirms that Interest to be paid on such Interest Date shall be paid entirely in Interest Shares or (B) elects to pay Interest as Cash Interest or a combination of Cash Interest and Interest Shares and specifies the amount of Interest that shall be paid as Cash Interest and the amount of Interest, if any, that shall be paid in Interest Shares and (ii) if such Interest payment includes Interest Shares, certifies that there has been no Equity Conditions Failure as of the Interest Notice Date; provided, however, that the Company shall be deemed to have certified that no Equity Conditions Failure exists if the Company does not deliver any notice to the contrary.  If an Equity Conditions Failure has occurred as of the Interest Notice Date, then unless the Company has elected to pay such Interest as Cash Interest, the Interest Election Notice shall indicate that unless the Holder waives the Equity Conditions Failure, the Interest shall be paid as Cash Interest.  Notwithstanding anything herein to the contrary, if no Equity Conditions Failure has occurred as of the Interest Notice Date but an Equity Conditions Failure subsequently occurs at any time prior to the applicable Interest Date, (A) the Company shall provide the Holder a subsequent notice to that effect and (B) unless the Holder waives the Equity Conditions Failure, the Interest shall be paid in cash.  Interest to be paid on an Interest Date in Interest Shares shall be paid in a number of fully paid and nonassessable shares (rounded to the nearest whole share in accordance with Section 3(a)) of Common Stock equal to the quotient of (1) the amount of Interest payable on such Interest Date less any Cash Interest paid and (2) the Interest Conversion Price in effect on the applicable Interest Date.  
(b)When any Interest Shares are to be paid on an Interest Date, the Company shall (A) provided that the Company’s transfer agent (the “Transfer Agent”) is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (“FAST”), credit such aggregate number of Interest Shares to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (B) if the Transfer Agent is not participating in FAST, issue and deliver on the applicable Interest Date, to the address set forth in the register maintained by the Company for such purpose pursuant to the Securities Purchase Agreement or to such address as specified by the Holder in writing to the Company at least two (2) Business Days prior to the applicable Interest Date, a certificate, registered in the name of the Holder or its designee, for the number of Interest
2

Shares to which the Holder shall be entitled. Any Cash Interest payable on an Interest Date shall be paid to the Holder in accordance with Section 23(c).
(c)Prior to the payment of Interest on an Interest Date, Interest on this Note shall accrue at the Interest Rate and be payable by way of inclusion of the Interest in the Conversion Amount on each Conversion Date in accordance with Section 3(b)(i) or upon any redemption in accordance with Section 10 or any required payment upon any Bankruptcy Event of Default.  From and after the occurrence and during the continuance of any Event of Default, the Interest Rate in effect with respect to such determination shall automatically be increased to twelve and a half percent (12.5%) per annum (the “Default Rate”).  In the event that such Event of Default is subsequently cured (and no other Event of Default then exists, including, without limitation, for the Company’s failure to pay such Interest at the Default Rate on the applicable Interest Date), the adjustment referred to in the preceding sentence shall cease to be effective as of the calendar day immediately following the date of such cure; provided that the Interest as calculated and unpaid at such increased rate during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default through and including the date of such cure of such Event of Default.
3.CONVERSION OF NOTES.  At any time on or after January 9, 2023, this Note shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock (as defined below), on the terms and conditions set forth in this Section 3.
(a)Conversion Right.  Subject to the provisions of Section 3(d), at any time or times on or after January 9, 2023, the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable shares of Common Stock in accordance with Section 3(c), at the Conversion Rate (as defined below).  The Company shall not issue any fraction of a share of Common Stock upon any conversion.  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, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent (as defined below)) that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount.
(b)Conversion Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”).
(c)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 deliver (whether via electronic mail or otherwise), 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 (each, a “Conversion Notice”) to the Company [INSERT IN
3

ADDITIONAL NOTES ONLY: and the Trustee].  If required by Section 3(c)(iii), within two (2) Trading Days following a conversion of this Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to the Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated by Section 17(b)).  On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice, the Company shall transmit by electronic mail an acknowledgment, in the form attached hereto as Exhibit II, of confirmation of receipt of such Conversion Notice (each, an “Initial Acknowledgement”) to the Holder [INSERT IN ADDITIONAL NOTES ONLY:, the Trustee] and the Transfer Agent which confirmation shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein.  On or before the second (2nd) Trading Day following the date on which the Company has received a Conversion Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the applicable Conversion Date of such shares of Common Stock issuable pursuant to such Conversion Notice) (each, an “Initial Share Delivery Deadline”), whether or not the Company shall have delivered an Acknowledgment with respect thereto, the Company shall (1) provided that the Transfer Agent is participating in FAST, credit such aggregate number of shares of Common Stock equal to the quotient of (x) the applicable Conversion Amount, divided by (y) the applicable Conversion Base Price then in effect (each, a “Base Conversion Share”) to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (2) if the Transfer Agent is not participating in FAST, upon the request of the Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for such Base Conversion Shares.  On or before the second (2nd) Trading Day following the end of the Conversion Measuring Period, if the Holder has not elected in such Conversion Notice to waive the right to make a Remainder Eligible Election with respect to such Conversion Notice, the Holder shall deliver a written notice to the Company [INSERT IN ADDITIONAL NOTES ONLY:, the Trustee] and the Transfer Agent with respect to the remaining shares of Common Stock, if any, to be issued to the Holder in such conversion in the form attached hereto as Exhibit III (each, a “Remainder Conversion Notice”).  On or before the first (1st) Trading Day following the date of receipt of a Remainder Conversion Notice, the Company shall transmit by electronic mail an acknowledgment, in the form attached hereto as Exhibit IV, of confirmation of receipt of such Conversion Notice (each, an “Additional Acknowledgement”, and together with each Initial Acknowledgement, each an “Acknowledgment”) to the Holder [INSERT IN ADDITIONAL NOTES ONLY:, the Trustee] and the Transfer Agent which confirmation shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein.  On or prior to the second (2nd) Trading Day following the date on which the Company has received a Remainder Conversion Notice (each, an “Additional Share Delivery Deadline”, and together with each Initial Share Delivery Deadline, each a “Share Delivery Deadline”), the Company shall deliver to the Holder such number of additional shares of Common Stock, if any, equal to the difference of (I) the quotient of (x) the applicable Conversion
4

Amount, divided by (y) the applicable Conversion Price less (II) the aggregate number of applicable Base Conversion Shares with respect thereto (each, a “Remaining Conversion Share”); provided, that in the event of the Conversion Price Floor Condition, on or prior to the fourth (4th) Trading Day after applicable Conversion Date (or, if later, the applicable Additional Share Delivery Deadline, if any), the Company shall also deliver to the Holder the applicable Conversion Floor Amount (which, for the avoidance of doubt, shall not include any cash payment with respect to any Exchange Cap Shares (as defined below) and shall not be in duplication of any Exchange Cap Amount (as defined below)).  If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as reasonably practicable and in no event later than two (2) Business Days after receipt of this Note and at its own expense, issue and deliver to the Holder (or its designee) a new Note (in accordance with Section 17(d)) representing the outstanding Principal (and accrued and unpaid Interest and Make-Whole Amount thereon) not converted.  The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.
(ii)Company’s Failure to Timely Convert.  If on or prior to the Share Delivery Deadline (A) if the Transfer Agent is not participating in FAST, the Company shall fail to issue and deliver to the Holder (or its designee) a certificate and register such shares of Common Stock on the Company’s share register or (B) if the Transfer Agent is participating in FAST, the Transfer Agent shall fail to credit the balance account of the Holder or the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder or pursuant to the Company’s obligation pursuant to clause (II) below (collectively, a “Conversion Failure”), and if on or after such Share Delivery Deadline the Holder acquires (in an open market transaction, stock loan or otherwise) shares of Common Stock corresponding to all or any portion of the number of shares of Common Stock issuable upon such conversion that the Holder is entitled to receive from the Company and has not received from the Company in connection with (or as a result of) such Conversion Failure (a “Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall, within two (2) Business Days after receipt of 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, stock loan costs and other out-of-pocket expenses, if any) for the shares of Common Stock so acquired (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate (and to issue such shares of Common Stock) or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (II) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit the balance account of such Holder or such Holder’s designee, as
5

applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of shares of Common Stock multiplied by (y) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Conversion Notice and ending on the date of such issuance and payment under this clause (II) (the “Buy-In Payment Amount”).  Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the conversion of this Note as required pursuant to the terms hereof.
(iii)Registration; Book-Entry.  [INSERT IN INITIAL ONLY: The Company][INSERT IN ADDITIONAL NOTES ONLY: The Trustee] shall maintain a register (the “Register”) for the recordation of the names and addresses of the holders of each Note and the principal amount of the Notes held by such holders (the “Registered Notes”) [INSERT IN ADDITIONAL NOTES ONLY: as provided in Section [  ] of the Indenture].  The entries in the Register shall be conclusive and binding for all purposes absent manifest error.  The Company and the holders of the Notes shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without limitation, the right to receive payments of Principal, Make-Whole Amount and Interest hereunder) notwithstanding notice to the contrary.  A Registered Note may be assigned, transferred or sold in whole or in part only by registration of such assignment or sale on the Register.  Upon its receipt of a written request to assign, transfer or sell all or part of any Registered Note by the holder thereof, [INSERT IN INITIAL ONLY: the Company][INSERT IN ADDITIONAL NOTES ONLY: the Trustee] shall record the information contained therein in the Register and issue one or more new Registered Notes in the same aggregate principal amount as the principal amount of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 16, provided that if the Company does not so record an assignment, transfer or sale (as the case may be) of all or part of any Registered Note within two (2) Business Days of such a request, then the Register shall be automatically deemed updated to reflect such assignment, transfer or sale (as the case may be).  Notwithstanding anything to the contrary set forth in this Section 2 [INSERT IN ADDITIONAL NOTES ONLY: or in the Indenture or in any applicable Supplemental Indenture], following conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion Amount represented by this Note is being converted (in which event this Note shall be delivered to the Company following conversion thereof as contemplated by Section 3(c)(i)) 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 Note upon physical surrender of this Note. The Holder [INSERT IN ADDITIONAL NOTES ONLY:, the Trustee] and the Company shall maintain records showing the Principal, Make-Whole Amount, Interest and Late Charges converted and/or paid (as the case may be) and the dates of such conversions,
6

and/or payments (as the case may be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion.  If the Company does not update the Register to record such Principal, Make-Whole Amount, Interest and Late Charges converted and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) within two (2) Business Days of such occurrence, then the Register shall be automatically deemed updated to reflect such occurrence. Any Holder that sells a participation in this Note shall, acting solely for this purpose as a non-fiduciary agent of the Company, maintain a register substantially similar to the Register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the participated Notes (the “Participant Register”); provided such Holder shall have no obligation to disclose all or any portion of the Participant Register (including the identity of any participant) to the Company except to the extent that such disclosure is necessary to establish that the Note is in registered form under Treasury Regulations Section 5f.103-1(c). The entries in the Participant Register shall be conclusive and binding absent manifest error, and Holder shall treat the Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Note notwithstanding any notice to the contrary. This Section 3(c)(iii) shall be construed so that the Note is at all times maintained in “registered form” within the meaning of Internal Revenue Code of 1986, as amended (the “IRC”) Sections 163(f), 871(h)(2) and 881(c)(2) and any related regulations (or any successor provisions of the IRC or such regulations).
(iv)Pro Rata Conversion; Disputes.  In the event that the Company receives a Conversion Notice from more than one holder of Notes for the same Conversion Date and the Company can convert some, but not all, of such portions of the Notes submitted for conversion, the Company, subject to Section 3(d), shall convert from each holder of Notes electing to have Notes converted on such date a pro rata amount of such holder’s portion of its Notes submitted for conversion based on the principal amount of Notes submitted for conversion on such date by such holder relative to the aggregate principal amount of all Notes submitted for conversion on such date.  In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection with a conversion of this Note, the Company shall issue to the Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 22.
(d)Limitations on Conversions.
(i)Beneficial Ownership.  The Company shall not effect the conversion of any portion of this Note, and the Holder shall not have the right to convert any portion of this Note pursuant to the terms and conditions of this Note and any such conversion shall be null and void and treated as if never made, to the extent that after giving effect to such conversion, the Holder together with the other Attribution Parties collectively would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such conversion.  For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall
7

include the number of shares of Common Stock held by the Holder and all other Attribution Parties plus the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred stock or warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 3(d)(i).  For purposes of this Section 3(d)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act.  For purposes of determining the number of outstanding shares of Common Stock the Holder may acquire upon the conversion of this Note without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in the most recent of (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported Outstanding Share Number”).  If the Company receives a Conversion Notice from the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this Section 3(d)(i), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of shares of Common Stock to be purchased pursuant to such Conversion Notice.  For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was reported.  In the event that the issuance of shares of Common Stock to the Holder upon conversion of this Note results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares.  Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective until the sixty-first (61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that
8

(i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of Notes that is not an Attribution Party of the Holder.  For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act.  No prior inability to convert this Note pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of convertibility.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(d)(i) to the extent necessary to correct this paragraph (or any portion of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 3(d)(i) or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitation contained in this paragraph may not be waived and shall apply to a successor holder of this Note. 
(ii)[INSERT IN INITIAL NOTES: [Intentionally Omitted]][INSERT IN ADDITIONAL NOTES: Principal Market Regulation The Company shall not issue any shares of Common Stock upon conversion of this Note or otherwise pursuant to the terms of this Note if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue upon conversion of the Notes or otherwise pursuant to the terms of this Note without breaching the Company’s obligations under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules and regulations, including rules related to the aggregate of offerings under NASDAQ Listing Rule 5635(d), 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 Principal Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder.  Until such approval or such written opinion is obtained, no Buyer shall be issued in the aggregate, upon conversion or exercise (as the case may be) of any Notes or otherwise pursuant to the terms of the Notes, shares of Common Stock in an amount greater than the product of (i) the Exchange Cap as of the Issuance Date multiplied by (ii) the quotient of (1) the original principal amount of Notes issued to such Buyer pursuant to the Securities Purchase Agreement on the Initial Closing Date (as defined in the Securities Purchase Agreement) divided by (2) the aggregate original principal amount of all Notes issued to the Buyers pursuant to the Securities Purchase Agreement on the Initial Closing Date (with respect to each Buyer, the “Exchange Cap Allocation”).  In the event that any Buyer shall sell or otherwise transfer any of such Buyer’s Notes, the transferee shall be allocated a pro rata portion of such Buyer’s Exchange Cap Allocation with respect to such portion of such Notes so transferred, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation so allocated to such transferee.  Upon conversion and exercise in full of a holder’s Notes, the difference
9

(if any) between such holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder upon such holder’s conversion in full of such Notes shall be allocated, to the respective Exchange Cap Allocations of the remaining holders of Notes on a pro rata basis in proportion to the shares of Common Stock underlying the Notes then held by each such holder of Notes.  At any time the Company is prohibited from issuing shares of Common Stock pursuant to this Section 3(d)(ii) (the “Exchange Cap Shares”), the Company shall pay cash in exchange for the cancellation of such portion of this Note convertible into such Exchange Cap Shares at a price equal to the sum of (i) the product of (x) such number of Exchange Cap Shares and (y) the greater of (I) Closing Sale Price of the Common Stock on the applicable Conversion Date and (II) the greatest VWAP of the Common Stock on any of the three (3) Trading Days during the period commencing on, and including, such Conversion Date, and (ii) to the extent of any Buy-In related thereto (but without duplication with respect to the underlying Exchange Cap Shares), any Buy-In Payment Amount, any brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith (collectively, the “Exchange Cap Share Cancellation Amount”).]
(e)Right of Alternate Conversion Upon an Event of Default.
(i)General.  Subject to Section 3(d), at any time during an Event of Default Redemption Right Period (as defined below) (regardless of whether such Event of Default has been cured, or if the Company has delivered an Event of Default Notice to the Holder or if the Holder has delivered an Event of Default Redemption Notice to the Company or otherwise notified the Company that an Event of Default has occurred), the Holder may, at the Holder’s option, convert (each, an “Alternate Conversion”, and the date of such Alternate Event of Default Conversion, each, an “Alternate Conversion Date”) all, or any part of, the Conversion Amount (such portion of the Conversion Amount subject to such Alternate Conversion, the “Alternate Conversion Amount”) into shares of Common Stock at an alternate conversion rate equal to the quotient of (x) Redemption Premium of the Conversion Amount divided by (y) the Conversion Price.
(ii)Mechanics of Alternate Conversion.  On any Alternate Conversion Date, the Holder may voluntarily convert any Alternate Conversion Amount pursuant to Section 3(c) (with “Redemption Premium of the Conversion Amount” replacing “Conversion Amount” in clause (x) of the definition of Conversion Rate above with respect to such Alternate Conversion) by designating in the Conversion Notice delivered pursuant to this Section 3(e) of this Note that the Holder is electing an Alternate Conversion.  Notwithstanding anything to the contrary in this Section 3(e), but subject to Section 3(d), until the Company delivers shares of Common Stock representing the applicable Alternate Conversion Amount to the Holder, such Alternate Conversion Amount may be converted by the Holder into shares of Common Stock pursuant to Section 3(c) without regard to this Section 3(e).
10

4.RIGHTS UPON EVENT OF DEFAULT.
(a)Event of Default.  Each of the following events shall constitute an “Event of Default” and each of the events in clauses (vi), (vii) and (viii) shall constitute a “Bankruptcy Event of Default”:
(i)the suspension from trading or the failure of the Common Stock to be trading or listed (as applicable) on an Eligible Market for a period of five (5) consecutive Trading Days;
(ii)the Company’s (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock within five (5) Trading Days after the applicable Conversion Date or (B) written notice to any holder of the Notes, including, without limitation, by way of public announcement or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion of any Notes into shares of Common Stock that is requested in accordance with the provisions of the Notes, other than pursuant to Section 3(d);
(iii)except to the extent the Company is in compliance with Section 9(b) below, at any time following the tenth (10th) consecutive day that the Holder’s Authorized Share Allocation (as defined in Section 9(a) below) is less than the number of shares of Common Stock that the Holder would be entitled to receive upon a conversion of the full Conversion Amount of this Note (without regard to any limitations on conversion set forth in Section 3(d) or otherwise);
(iv)the Company’s failure to pay to the Holder any amount of Principal, Make-Whole Amount, Interest, Late Charges or other amounts when and as due under this Note (including, without limitation, the Company’s failure to pay any redemption payments or amounts hereunder) or any other Transaction Document or any other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated hereby and thereby, except, in the case of a failure to pay any Make-Whole Amount, Interest, Late Charges or other amounts when and as due, in which case only if such failure remains uncured for a period of at least three (3) Trading Days;
(v)the Company fails to remove any restrictive legend on any certificate or any shares of Common Stock issued to the Holder upon conversion or exercise (as the case may be) of any Securities (as defined in the Securities Purchase Agreement) acquired by the Holder under the Securities Purchase Agreement (including this Note) as and when required by such Securities or the Securities Purchase Agreement, unless otherwise then prohibited by applicable federal securities laws, and any such failure remains uncured for at least five (5) days;
(vi)bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed within thirty (30) days of their initiation;
11

(vii)the commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company or any Subsidiary in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any such action or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under federal, state or foreign law;
(viii)the entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or (ii) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law, or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment or other similar document unstayed and in effect for a period of thirty (30) consecutive days;
(ix)failure by the Company or any Subsidiary to pay final judgments aggregating in excess of $30,000,000 (or a foreign currency equivalent) other than any judgments covered by indemnities provided by, or insurance policies issued by, reputable and creditworthy companies, which final judgments remain unpaid, undischarged and unstayed for a period of more than thirty (30) days after such judgment becomes final (with no right to appeal thereof), and in the event such judgment is covered by insurance, an enforcement proceeding has been commenced by any creditor upon such judgment or decree which is not promptly stayed;
(x)default by the Company and/or any Subsidiary with respect to any Debt in excess of $30,000,000 (or its foreign currency equivalent) in the aggregate of the Company, and/or any such Subsidiary, whether such Debt now exists or shall
12

hereafter be created (i) resulting in such Debt becoming or being declared due and payable prior to its stated maturity or (ii) constituting a failure to pay the principal of any such indebtedness when due and payable (after the expiration of all applicable grace periods) at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise and, in each such case, such indebtedness is not discharged, or such acceleration is not otherwise cured or rescinded within 30 days;
(xi)other than as specifically set forth in another clause of this Section 4(a), any representation or warranty made by the Company in any Transaction Document shall prove to have been false or misleading in any material respect when so made or the Company or any Subsidiary breaches any covenant or other term or condition of any Transaction Document, except, in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of five (5) consecutive Trading Days;
(xii)a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether any Event of Default has occurred;
(xiii)any breach or failure in any respect by the Company or any Subsidiary to comply with any provision of Section 13 of this Note [INSERT IN ADDITIONAL NOTES ONLY: or Section [   ] of the applicable Supplemental Indenture];
(xiv)any Material Adverse Effect (as defined in the Securities Purchase Agreement) occurs; 
(xv)any Event of Default (as defined in the Other Notes) occurs and is continuing with respect to any Other Notes.
(b)Notice of an Event of Default; Redemption Right.  Upon actual knowledge by the Company of the occurrence of an Event of Default with respect to this Note or any Other Note, the Company shall within one (1) Business Day deliver written notice thereof via electronic mail and overnight courier (with next day delivery specified) (an “Event of Default Notice”) to the Holder [INSERT IN ADDITIONAL NOTES ONLY: and the Trustee.  The obligation of the Company to deliver an Event of Default Notice is in addition to, and may not be substituted by, the Trustee’s delivery of notice of the same Event of Default to the Holder in accordance with Section [   ] of the Indenture].  At any time after the earlier of the Holder’s receipt of an Event of Default Notice and the Holder becoming aware of an Event of Default (such earlier date, the “Event of Default Right Commencement Date”) and ending (such ending date, the “Event of Default Right Expiration Date”, and each such period, an “Event of Default Redemption Right Period”) on the twentieth (20th) Trading Day after the later of (x) the date such Event of Default is cured and (y) the Holder’s receipt of an Event of Default Notice that includes (I) a reasonable description of the applicable Event of Default, (II) a certification as to whether, in the opinion of the Company, such Event of Default is capable of being cured and, if applicable, a reasonable description of any existing plans of the Company to cure such Event of Default and (III) a certification as to the date the Event of Default occurred
13

and, if cured on or prior to the date of such Event of Default Notice, the applicable Event of Default Right Expiration Date, the Holder may require the Company to redeem (regardless of whether such Event of Default has been cured on or prior to the Event of Default Right Expiration Date) all or any portion of this Note by delivering written notice thereof (the “Event of Default Redemption Notice”) to the Company [INSERT IN ADDITIONAL NOTES ONLY: and the Trustee] which Event of Default Redemption Notice shall indicate the portion of this Note the Holder is electing to redeem.  Each portion of this Note subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the Company at a price equal to the greater of (i) the product of (A) the Conversion Amount to be redeemed multiplied by (B) the Redemption Premium and (ii) the product of (X) the Conversion Rate (calculated assuming an Alternate Conversion as of the date of the Event of Default Redemption Notice) with respect to the Conversion Amount in effect at such time as the Holder delivers an Event of Default Redemption Notice multiplied by (Y) the product of (1) the Redemption Premium multiplied by (2) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date immediately preceding such Event of Default and ending on the Trading Day immediately prior to the date the Company makes the entire payment required to be made under this Section 4(b) (the “Event of Default Redemption Price”).  Redemptions required by this Section 4(b) shall be made in accordance with the provisions of Section 10.  To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the Company, such redemptions shall be deemed to be voluntary prepayments.  Notwithstanding anything to the contrary in this Section 3(e), but subject to Section 3(d), until the Event of Default Redemption Price (together with any Late Charges thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 4(b) (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder into Common Stock pursuant to the terms of this Note and any such Conversion Amount converted (whether by Alternate Conversion or otherwise) shall reduce the Event of Default Redemption Price hereunder on a dollar-for-dollar basis.  In the event of the Company’s redemption of any portion of this Note under this Section 4(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder.  Accordingly, any redemption premium due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.  Any redemption upon an Event of Default shall not constitute an election of remedies by the Holder, and all other rights and remedies of the Holder shall be preserved.
(c)Mandatory Redemption upon Bankruptcy Event of Default. Notwithstanding anything to the contrary herein, and notwithstanding any conversion that is then required or in process, upon any Bankruptcy Event of Default, whether occurring prior to or following the Maturity Date, the Company shall immediately pay to the Holder an amount in cash representing (i) all outstanding Principal, Make-Whole Amount, accrued and unpaid Interest and accrued and unpaid Late Charges on such Principal, Make-Whole Amount and Interest, multiplied by (ii) the Redemption Premium, in addition to any and all other amounts due hereunder, without the requirement for any notice or demand or other action by the Holder or any other person or entity, provided that the Holder may, in its sole
14

discretion, waive such right to receive payment upon a Bankruptcy Event of Default, in whole or in part, and any such waiver shall not affect any other rights of the Holder hereunder, including any other rights in respect of such Bankruptcy Event of Default, any right to conversion, and any right to payment of the Event of Default Redemption Price or any other Redemption Price, as applicable.  
5.RIGHTS UPON FUNDAMENTAL TRANSACTION.
(a)Assumption.  The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity (if other than the Company) assumes in writing all of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of this Section 5(a) (which written assumption document shall be subject to the approval, not to be unreasonably withheld, of the Required Holders prior to such Fundamental Transaction), and delivers to each holder of Notes in exchange for such Notes a security of the Successor Entity (substantially similar to the Notes in all material respects) and evidenced by a written instrument in form and substance reasonably satisfactory to the Required Holders, including, without limitation, having a principal amount and interest rate equal to the principal amounts then outstanding and the interest rates of the Notes held by such holder, having similar conversion rights as the Notes and having similar ranking to the Notes and (ii) the Successor Entity (or Parent Entity, as applicable) (if other than the Company) is a publicly traded corporation whose common stock (or the equivalent) is quoted on or listed for trading on an Eligible Market.  Upon the occurrence of any Fundamental Transaction, the Successor Entity (if other than the Company) shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity (if other than the Company)), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.  Upon consummation of a Fundamental Transaction, the Successor Entity (if other than the Company) shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time after the consummation of such Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 6 and 14, which shall continue to be receivable thereafter)) issuable upon the conversion or redemption of the Notes prior to such Fundamental Transaction, such shares of the publicly traded common stock (or their equivalent) of the Successor Entity (or its Parent Entity, as applicable) (if other than the Company) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Note been converted immediately prior to such Fundamental Transaction (without regard to any limitations on the conversion of this Note), as adjusted in accordance with the provisions of this Note. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 5(a) to permit the Fundamental Transaction without the assumption of this Note.  The provisions of this Section 5 shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of this Note.

15

(b)Notice of a Change of Control; Redemption Right.  No later than ten (10) Trading Days prior to the expected consummation of a Change of Control (the “Change of Control Date”), but not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof via electronic mail or overnight courier to the Holder [INSERT IN ADDITIONAL NOTES ONLY: and the Trustee] (a “Change of Control Notice”).  At any time during the period beginning after the Holder’s receipt of a Change of Control Notice or the Holder becoming aware of a Change of Control if a Change of Control Notice is not delivered to the Holder in accordance with the immediately preceding sentence (as applicable) and ending on twenty (20) Trading Days after the later of (A) the date of consummation of such Change of Control or (B) the date of receipt of such Change of Control Notice or (C) the date of the public announcement of such Change of Control, the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change of Control Redemption Notice”) to the Company [INSERT IN ADDITIONAL NOTES ONLY: and the Trustee], which Change of Control Redemption Notice shall indicate the Conversion Amount the Holder is electing to redeem.  The portion of this Note subject to redemption pursuant to this Section 5 shall be redeemed by the Company in cash at a price equal to the greatest of (i) the product of (w) the Change of Control Redemption Premium multiplied by (y) the Conversion Amount being redeemed, (ii) the product of (x) the Change of Control Redemption Premium multiplied by (y) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient determined by dividing (I) the greatest Closing Sale Price of the shares of Common Stock during the period beginning on the date immediately preceding the earlier to occur of (1) the consummation of the applicable Change of Control and (2) the public announcement of such Change of Control and ending on the date the Holder delivers the Change of Control Redemption Notice by (II) the Conversion Price then in effect and (iii) the product of (y) the Change of Control Redemption Premium multiplied by (z) the product of (A) the Conversion Amount being redeemed multiplied by (B) the quotient of (I) the aggregate cash consideration and the aggregate cash value of any non-cash consideration per share of Common Stock to be paid to the holders of the shares of Common Stock upon consummation of such Change of Control (any such non-cash consideration constituting publicly-traded securities shall be valued at the highest of the Closing Sale Price of such securities as of the Trading Day immediately prior to the consummation of such Change of Control, the Closing Sale Price of such securities on the Trading Day immediately following the public announcement of such proposed Change of Control and the Closing Sale Price of such securities on the Trading Day immediately prior to the public announcement of such proposed Change of Control) divided by (II) the Conversion Price then in effect (the “Change of Control Redemption Price”).  Redemptions required by this Section 5  shall be made in accordance with the provisions of Section 10 and shall have priority to payments to stockholders in connection with such Change of Control.  To the extent redemptions required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the Company, such redemptions shall be deemed to be voluntary prepayments.  Notwithstanding anything to the contrary in this Section 5, but subject to Section 3(d), until the Change of Control Redemption Price (together with any Late Charges thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 5(b) (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder into
16

Common Stock pursuant to Section 3.  In the event of the Company’s redemption of any portion of this Note under this Section 5(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder.  Accordingly, any redemption premium due under this Section 5(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.
6.RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.
(a)Purchase Rights.  In addition to any adjustments pursuant to Sections 7 or 14 below, if at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at the Conversion Price as of the applicable record date) immediately prior to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to the extent of any such excess) and such Purchase Right to such extent shall be held in abeyance (and, if such Purchase Right has an expiration date, maturity date or other similar provision, such term shall be extended by such number of days held in abeyance, if applicable) for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance (and, if such Purchase Right has an expiration date, maturity date or other similar provision, such term shall be extended by such number of days held in abeyance, if applicable)) to the same extent as if there had been no such limitation).
(b)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 Note, at the Holder’s option  (i) in addition
17

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 Note) 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 Note 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 reasonably satisfactory to the Required Holders.  The provisions of this Section 6 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 Note.
7.RIGHTS UPON ISSUANCE OF OTHER SECURITIES.
(a)[Intentionally Omitted]
(b)Adjustment of Reference Price upon Subdivision or Combination of Common Stock.  Without limiting any provision of Section 6 or Section 14, if the Company at any time on or after the Subscription Date subdivides (by any stock split, stock dividend, stock combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Reference Price in effect immediately prior to such subdivision will be proportionately reduced.  Without limiting any provision of Section 6 or Section 14, if the Company at any time on or after the Subscription Date combines (by any stock split, stock dividend, stock combination, recapitalization or other similar transaction) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Reference Price in effect immediately prior to such combination will be proportionately increased.  Any adjustment pursuant to this Section 7(b) shall become effective immediately after the effective date of such subdivision or combination.  If any event requiring an adjustment under this Section 7(b) occurs during the period that a Reference Price is calculated hereunder, then the calculation of such Reference Price shall be adjusted appropriately to reflect such event.
(c)Holder’s Right of Adjusted Conversion Price.  In addition to and not in limitation of the other provisions of this Section 7 or in the Securities Purchase Agreement, if the Company in any manner issues or sells or enters into any agreement to issue or sell, any Common Stock, Options or Convertible Securities (other than with respect to a Permitted ATM or the Permitted Equity Lines (each as defined in the Securities Purchase Agreement)) or additional Notes pursuant to the Securities Purchase Agreement (or, for the avoidance of doubt, the Company’s 8.00% / 11.00% Convertible Senior PIK Toggle Notes due 2026 (the “2026 Notes”) (any such securities, “Variable Price Securities”) regardless of whether securities have been sold pursuant to such agreement and whether such agreement has subsequently been terminated, prior to or after the Subscription Date that are issuable pursuant to such agreement or convertible into or exchangeable or exercisable for shares of Common Stock, in each case, at a price which varies or may vary with the
18

market price of the shares of Common Stock, including by way of one or more reset(s) to a fixed price, but exclusive of such formulations reflecting customary anti-dilution provisions (such as share splits, share combinations, share dividends and similar transactions) (each of the formulations for such variable price being herein referred to as, the “Variable Price”), the Company shall provide written notice thereof via electronic mail and overnight courier to the Holder on the date of such agreement and the issuance of such Common Stock, Convertible Securities or Options.  From and after the date the Company enters into such agreement or issues any such Variable Price Securities (other than with respect to a Permitted ATM or pursuant to the Permitted Equity Lines or the 2026 Notes), the Holder shall have the right, but not the obligation, in its sole discretion to substitute the Variable Price for the Conversion Price upon conversion of this Note by designating in the Conversion Notice delivered upon any conversion of this Note that solely for purposes of such conversion the Holder is relying on the Variable Price rather than the Conversion Price then in effect.  The Holder’s election to rely on a Variable Price for a particular conversion of this Note shall not obligate the Holder to rely on a Variable Price for any future conversion of this Note.  
(d)Other Events.  In the event that the Company (or any Subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 7 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), then the Company’s board of directors shall in good faith determine and implement an appropriate adjustment in the Reference Price so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 7(d) will increase the Reference Price as otherwise determined pursuant to this Section 7, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding absent manifest error and whose fees and expenses shall be borne by the Company.
(e)Calculations.  All calculations under this Section 7 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as applicable.  The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.
(f)Voluntary Adjustment by Company.  Subject to the rules and regulations of the Nasdaq Stock Market, the Company may at any time during the term of this Note, with the prior written consent of the Required Holders (as defined in the Securities Purchase Agreement), reduce the then current Reference Price of each of the Notes to any amount and for any period of time deemed appropriate by the board of directors of the Company.
8.NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined in the Securities Purchase Agreement), Bylaws (as defined in the Securities
19

Purchase Agreement) or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of any shares of Common Stock receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the conversion of this Note.  Notwithstanding anything herein to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted to convert this Note in full for any reason (other than pursuant to restrictions set forth in Section 3(d) hereof), the Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as necessary to permit such conversion into shares of Common Stock.
9.RESERVATION OF AUTHORIZED SHARES.
(a)Reservation.  So long as any Notes remain outstanding, the Company shall at all times reserve at least 150% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion, including without limitation, Alternate Conversions, of all of the Notes then outstanding (without regard to any limitations on conversions and assuming such Notes remain outstanding until the Maturity Date) at the lowest Conversion Price then in effect (the “Required Reserve Amount”).  The Required Reserve Amount (including, without limitation, each increase in the number of shares so reserved) shall be allocated pro rata among the holders of the Notes based on the original principal amount of the Notes held by each holder on the Initial Closing Date or increase in the number of reserved shares, as the case may be (the “Authorized Share Allocation”).  In the event that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee shall be allocated a pro rata portion of such holder’s Authorized Share Allocation.  Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Notes shall be allocated to the remaining holders of Notes, pro rata based on the principal amount of the Notes then held by such holders.
(b)Insufficient Authorized Shares.  If, notwithstanding Section 9(a), and not in limitation thereof, at any time while any of the Notes remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of the Notes at least a number of shares of Common Stock equal to the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Notes then outstanding.  Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the
20

number of authorized shares of Common Stock.  In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.  Notwithstanding the foregoing, if at any such time of an Authorized Share Failure, the Company is able to obtain the written consent of a majority of the shares of its issued and outstanding shares of Common Stock to approve the increase in the number of authorized shares of Common Stock, the Company may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information Statement on Schedule 14C.  In the event that the Company is prohibited from issuing shares of Common Stock pursuant to the terms of this Note due to the failure by the Company to have sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such unavailable number of shares of Common Stock, the “Authorized Failure Shares”), in lieu of delivering such Authorized Failure Shares to the Holder, the Company shall pay cash in exchange for the redemption of such portion of the Conversion Amount convertible into such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and (y) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date the Holder delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the Company and ending on the date of such issuance and payment under this Section 9(a); and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorized Failure Shares, any brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith (but without any duplication of any Buy-In Payment Amount).  Nothing contained in Section 9(a) or this Section 9(b) shall limit any obligations of the Company under any provision of the Securities Purchase Agreement.
10.SUBSEQUENT PLACEMENT OPTIONAL REDEMPTION
(a)General.  At any time an Equity Conditions Failure exists at the time of consummation of a Subsequent Placement (as defined in the Securities Purchase Agreement)(in each case, other than with respect to Excluded Securities (as defined in the Securities Purchase Agreement)) (each, an “Eligible Subsequent Placement”), the Holder shall have the right, in its sole discretion, to require that the Company redeem (each, an “Subsequent Placement Optional Redemption”) all, or any portion, of the Conversion Amount under this Note not in excess of (together with any Subsequent Placement Optional Redemption Amount (as defined in the applicable other Note of the Holder) of any other Notes of the Holder) the Holder’s Holder Pro Rata Amount of 100% of the gross proceeds of such Eligible Subsequent Placement (the “Eligible Subsequent Placement Optional Redemption Amount”) by delivering written notice thereof (each, an “Subsequent Placement Optional Redemption Notice”) to the Company.  To be effective, a Subsequent Placement Optional Redemption Notice, must be delivered to the Company no later than tenth (10th) Trading Day following the later of (x) the date of consummation of the related Eligible Subsequent Placement and (y) the date the Company delivers written notice to the Holder with respect to the related Eligible Subsequent Placement.  Notwithstanding the foregoing, if the Holder is participating in an Eligible Subsequent
21

Placement, upon the written request of the Holder, the Company shall apply all, or any part, as set forth in such written request, of any amounts that would otherwise be payable to the Holder in such Subsequent Placement Optional Redemption, on a dollar-for-dollar basis, against the purchase price of the securities to be purchased by the Holder in such Eligible Subsequent Placement.  
(b)Mechanics.  Each Subsequent Placement Optional Redemption Notice shall indicate that all, or such applicable portion, as set forth in the applicable Subsequent Placement Optional Redemption Notice, of the Eligible Subsequent Placement Optional Redemption Amount the Holder is electing to have redeemed (each, a “Subsequent Placement Optional Redemption Amount”) and the date of such Subsequent Placement Optional Redemption (each, a “Subsequent Placement Optional Redemption Date”), which shall be the later of (x) the fifth (5th) Business Day after the date of the applicable Subsequent Placement Optional Redemption Notice and (y) the date of the consummation of such Eligible Subsequent Placement.  The portion of this Note subject to redemption pursuant to this Section 10 shall be redeemed by the Company in cash at a price equal to 100% of the Subsequent Placement Optional Redemption Amount (each, a “Subsequent Placement Optional Redemption Price”).  Redemptions required by this Section 10 shall be made in accordance with the provisions of Section 11.
11.REDEMPTIONS.
(a)Mechanics.  The Company [INSERT IN ADDITIONAL NOTES ONLY:, or at the Company’s direction, the Trustee,] shall deliver the applicable Event of Default Redemption Price to the Holder in cash within five (5) Business Days after the Company’s receipt of the Holder’s Event of Default Redemption Notice.  If the Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b), the Company [INSERT IN ADDITIONAL NOTES ONLY:, or at the Company’s direction, the Trustee,] shall deliver the applicable Change of Control Redemption Price to the Holder in cash concurrently with the consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control and within five (5) Business Days after the Company’s receipt of such notice otherwise.  The Company shall deliver the applicable Subsequent Placement Optional Redemption Price to the Holder in cash on the applicable Subsequent Placement Optional Redemption Date.  Notwithstanding anything herein to the contrary, in connection with any redemption hereunder at a time the Holder is entitled to receive a cash payment under any of the other Transaction Documents, at the option of the Holder delivered in writing to the Company, the applicable Redemption Price hereunder shall be increased by the amount of such cash payment owed to the Holder under such other Transaction Document and, upon payment in full or conversion in accordance herewith, shall satisfy the Company’s payment obligation under such other Transaction Document.  In the event of a redemption of less than all of the Conversion Amount of this Note, the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section 17(d)) representing the outstanding Principal which has not been redeemed.  In the event that the Company does not pay the applicable Redemption Price to the Holder within the time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company to promptly return to the Holder all or any
22

portion of this Note representing the Conversion Amount that was submitted for redemption and for which the applicable Redemption Price (together with any Late Charges thereon) has not been paid.  Upon the Company’s receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount, (y) the Company shall immediately return this Note, or issue a new Note (in accordance with Section 17(d)), to the Holder, and in each case the principal amount of this Note or such new Note (as the case may be) shall be increased by an amount equal to the difference between (1) the applicable Redemption Price (as the case may be, and as adjusted pursuant to this Section 10, if applicable) minus (2) the Principal portion of the Conversion Amount submitted for redemption.  The Holder’s delivery of a notice voiding a Redemption Notice and exercise of its rights following such notice shall not affect the Company’s obligations to make any payments of Late Charges which have accrued prior to the date of such notice with respect to the Conversion Amount subject to such notice.
(b)Redemption by Other Holders.  Upon the Company’s receipt of notice from any of the holders of the Other Notes for redemption or repayment as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4(b) or Section 5(b) (each, an “Other Redemption Notice”), the Company shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to the Holder by electronic mail a copy of such notice.  If the Company receives a Redemption Notice and one or more Other Redemption Notices, during the seven (7) Business Day period beginning on and including the date which is two (2) Business Days prior to the Company’s receipt of the Holder’s applicable Redemption Notice and ending on and including the date which is two (2) Business Days after the Company’s receipt of the Holder’s applicable Redemption Notice and the Company is unable to redeem all principal, make-whole amount, interest and other amounts designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day period, then the Company shall redeem a pro rata amount from each holder of the Notes (including the Holder) based on the principal amount of the Notes submitted for redemption pursuant to such Redemption Notice and such Other Redemption Notices received by the Company during such seven (7) Business Day period.
12.VOTING RIGHTS.  The Holder shall have no voting rights as the holder of this Note, except as required by law (including, without limitation, the Delaware General Corporation Law) and as expressly provided in this Note.
13.COVENANTS.  Until all of the Notes have been converted, redeemed or otherwise satisfied in accordance with their terms:
(a)Rank.  The Company shall designate all payments due under this Note as senior unsecured Indebtedness, and (a) the Notes shall rank pari passu with all Other Notes and (b) shall be at least pari passu in right of payment with all other Debt of the Company and its Subsidiaries.
(b)Incurrence of Indebtedness.  The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, incur or guarantee, assume or suffer to exist any Debt (other than the Debt evidenced by this Note and the Other Notes)
23

with a maturity date (or subject to acceleration) prior to the 91st calendar day after the Maturity Date, unless the proceeds from the issuance of such Debt are used to repay all amounts then due on the Notes and the other Transaction Documents.
(c)Restricted Payments and Investments.  The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Debt (other than the Notes) whether by way of payment in respect of principal of (or premium, if any) or interest on, such Debt or make any Investment, as applicable, if at the time such payment with respect to such Debt and/or Investment, as applicable, is due or is otherwise made or, after giving effect to such payment, (i) an event constituting an Event of Default has occurred and is continuing or (ii) an event that with the passage of time and without being cured would constitute an Event of Default has occurred and is continuing; provided, however, that the Company may make any such payment if the Company concurrently makes the payment of the Event of Default Redemption Price on the outstanding portion of this Note.
(d)Change in Nature of Business.  The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, engage in any material line of business substantially different from those material lines of business conducted by or publicly contemplated to be conducted by the Company and each of its Subsidiaries on the Subscription Date.  
(e)Preservation of Existence, Etc.  The Company shall maintain and preserve its existence, rights and privileges, and become or remain duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary.
(f)Maintenance of Properties, Etc.  The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties that are necessary in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases to which it is a party as lessee or under which it occupies property, in each case that is necessary in the proper conduct of its business, so as to prevent any loss or forfeiture thereof or thereunder.
(g)Maintenance of Intellectual Property.  The Company will, and will cause each of its Subsidiaries to, take all action necessary or advisable to maintain all of the Intellectual Property Rights (as defined in the Securities Purchase Agreement) of the Company and/or any of its Subsidiaries that are necessary or material to the conduct of its business in full force and effect.
(h)Maintenance of Insurance.  The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real
24

properties leased or owned by it) and business, in such amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated.
(i)Transactions with Affiliates.  The Company shall not, nor shall it permit any of its Subsidiaries to, enter into, renew, extend or be a party to, any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any kind or the rendering of services of any kind) with any affiliate, except (i) intercompany transactions, (ii) reasonable and customary director, officer and employee compensation and other customary benefits including retirement, health, stock option and other benefit plans and indemnification arrangements approved by the Company’s board of directors, and (iii) transactions in the ordinary course of business in a manner and to an extent consistent with past practice and/or necessary for the prudent operation of its business, for fair consideration and on terms no less favorable to it or its Subsidiaries than would be obtainable in a comparable arm’s length transaction with a Person that is not an affiliate thereof.
(j)Restricted Issuances.  The Company shall not, directly or indirectly, without the prior written consent of the holders of a majority in aggregate principal amount of the Notes then outstanding, (i) issue any Notes (other than as contemplated by the Securities Purchase Agreement and the Notes) or (ii) issue any other securities that would cause a breach or default under the Notes, unless the proceeds from the issuance of such securities are used to repay all amounts due on the Notes and the other Transaction Documents or (iii) issue any shares of Common Stock pursuant to any equity line or at-the-market offering during the three (3) Trading Day period immediately following any Conversion Date hereunder. 
(k)Taxes.  The Company and its Subsidiaries shall pay when due all taxes, fees or other charges of any nature whatsoever (together with any related interest or penalties) now or hereafter imposed or assessed against the Company and its Subsidiaries or their respective assets or upon their ownership, possession, use, operation or disposition thereof or upon their rents, receipts or earnings arising therefrom (except where the failure to pay would not, individually or in the aggregate, have a material effect on the Company or any of its Subsidiaries).  The Company and its Subsidiaries shall file on or before the due date therefor all personal property tax returns (except where the failure to file would not, individually or in the aggregate, have a material effect on the Company or any of its Subsidiaries). Notwithstanding the foregoing, the Company and its Subsidiaries may contest, in good faith and by appropriate proceedings, taxes for which they maintain adequate reserves therefor in accordance with GAAP.
(l)Independent Investigation.  At the reasonable request of the Holder either (x) at any time when an Event of Default has occurred and is continuing, (y) upon the occurrence of an event that with the passage of time or giving of notice would constitute an Event of Default or (z) at any time the Holder reasonably believes an Event of Default may have occurred or be continuing, the Company shall hire an independent, reputable investment bank selected by the Company and approved by the Required Holders to
25

investigate as to whether any breach of this Note has occurred (the “Independent Investigator”).  If the Independent Investigator determines that such breach of this Note has occurred, the Independent Investigator shall notify the Company of such breach and the Company shall deliver written notice to each holder of a Note of such breach.  In connection with such investigation, the Independent Investigator may, during normal business hours, inspect all contracts, books, records, personnel, offices and other facilities and properties of the Company and its Subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them, the records of its legal advisors and accountants (including the accountants’ work papers) and any books of account, records, reports and other papers not contractually required of the Company to be confidential or secret, or subject to attorney-client or other evidentiary privilege, and the Independent Investigator may make such copies and inspections thereof as the Independent Investigator may reasonably request.  The Company shall furnish the Independent Investigator with such financial and operating data and other information with respect to the business and properties of the Company as the Independent Investigator may reasonably request.  The Company shall permit the Independent Investigator to discuss the affairs, finances and accounts of the Company with, and to make proposals and furnish advice with respect thereto to, the Company’s officers, directors, key employees and independent public accountants or any of them (and by this provision the Company authorizes said accountants to discuss with such Independent Investigator the finances and affairs of the Company and any Subsidiaries), all at such reasonable times, upon reasonable notice, and as often as may be reasonably requested.
14.DISTRIBUTION OF ASSETS.  In addition to any adjustments pursuant to Sections 6 or 7, if the Company shall declare or make any dividend or other distributions of its assets (or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”), then the Holder will be entitled to such Distributions as if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note and assuming for such purpose that the Note was converted at the Conversion Price as of the applicable record date) immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for such Distributions (provided, however, that to the extent that the Holder’s right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership) to the extent of any such excess) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution
26

or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation).
15.AMENDING THE TERMS OF THIS NOTE.  Except for Section 3(d), which may not be amended, modified or waived by the parties hereto, the prior written consent of the Required Holders shall be required for any amendment, modification or waiver to this Note.  Any amendment, modification or waiver so approved shall be binding upon all existing and future holders of this Note and any Other Notes; provided, however, that no such change, waiver or, as applied to any of the Notes held by any particular holder of Notes, shall, without the written consent of that particular holder, (i) reduce the amount of Principal, reduce the amount of accrued and unpaid Interest or Make-Whole Amount, or extend the Maturity Date, of the Notes, (ii) disproportionally and adversely affect any rights under the Notes of any holder of Notes; or (iii) modify any of the provisions of, or impair the right of any holder of Notes under, this Section 15.
16.TRANSFER.  This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by the Holder without the consent of the Company, subject only to the provisions of Section 3(c)(iii) hereof and to the provisions of the Leak-Out Agreements (as defined in the Securities Purchase Agreement).
17.REISSUANCE OF THIS NOTE.
(a)Transfer.  If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section 17(d)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 17(d)) to the Holder representing the outstanding Principal not being transferred.  The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.
(b)Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note.  [INSERT IN ADDITIONAL NOTES ONLY: Upon compliance with Section [   ] of the Indenture, the Company shall execute and, following authentication of such new Note, deliver to the Holder a new Note (in accordance with Section 17(d)) representing the outstanding Principal.
(c)Note Exchangeable for Different Denominations.  This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 17(d) and in principal amounts of at least $1,000) representing in the aggregate the outstanding Principal of this
27

Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender.
(d)Issuance of New Notes.  Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 17(a) or Section 17(c), the Principal designated by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, [INSERT IN INITIAL NOTES ONLY: and (v)][INSERT IN ADDITIONAL NOTES ONLY: (v) shall be duly authenticated in accordance with the Indenture and (vi)] shall represent accrued and unpaid Interest, Make-Whole Amount and Late Charges on the Principal, Make-Whole Amount and Interest of this Note, from the Issuance Date.
18.REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief).  No failure on the part of the Holder to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Holder of any right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  In addition, the exercise of any right or remedy of the Holder at law or equity or under this Note or any of the documents shall not be deemed to be an election of Holder’s rights or remedies under such documents or at law or equity.  The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.  Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.  The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.  The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Note (including, without limitation, compliance with Section 7).
19.PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS.  If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note and/or any other Transaction Document or to enforce the provisions of this Note
28

and/or any other Transaction Document or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the reasonable out-of-pocket costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, reasonable attorneys’ fees and disbursements.  The Company expressly acknowledges and agrees that no amounts due under this Note and/or any other Transaction Document, as applicable, shall be affected, or limited, by the fact that the purchase price paid for this Note was less than the original Principal amount hereof.
20.CONSTRUCTION; HEADINGS.  This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed against any such Person as the drafter hereof.  The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note.  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 Note instead of just the provision in which they are found.  Unless expressly indicated otherwise, all section references are to sections of this Note.  Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have the meanings ascribed to such terms on the Initial Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.
21.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 privilege.  No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.  Notwithstanding the foregoing, nothing contained in this Section 21 shall permit any waiver of any provision of Section 3(d).
22.DISPUTE RESOLUTION. 
(a)Submission to Dispute Resolution.
(i)In the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, Conversion Base Price, a VWAP or a fair market value or the arithmetic calculation of a Conversion Rate or the applicable Redemption Price (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company or the Holder (as the case may be) shall submit the dispute to the other party via electronic mail (A) if by the Company, within two (2) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder at any time after the Holder learned of the circumstances giving rise to such dispute.  If the Holder and the Company are unable to promptly resolve such dispute relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price, such Conversion Base Price, such VWAP or such fair market value, or the arithmetic
29

calculation of such Conversion Rate or such applicable Redemption Price (as the case may be), at any time after the second (2nd) Business Day following such initial notice by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder may, at its sole option, select an independent, reputable investment bank to resolve such dispute.
(ii)The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in accordance with the first sentence of this Section 22 and (B) written documentation supporting its position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following the date on which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”) (it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline).  Unless otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other than the Required Dispute Documentation).
(iii)The Company and the Holder shall use their reasonable best efforts to cause such investment bank to determine the resolution of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline.  The fees and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error.
(b)Miscellaneous.  The Company expressly acknowledges and agrees that (i) this Section 22 constitutes an agreement to arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under § 7501, et seq.  of the New York Civil Practice Law and Rules (“CPLR”) and that the Holder is authorized to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 22, (ii) the terms of this Note and each other applicable Transaction Document shall serve as the basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines are required to be made by such investment bank in connection with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings,
30

determinations and the like to the terms of this Note and any other applicable Transaction Documents, (iii) the Holder (and only the Holder), in its sole discretion, shall have the right to submit any dispute described in this Section 22 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 22 and (iv) nothing in this Section 22 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters described in this Section 22).
23.NOTICES; CURRENCY; PAYMENTS.
(a)Notices.  Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement.  The Company shall provide the Holder and the Trustee with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of such action and the reason therefore.  Without limiting the generality of the foregoing, the Company will give written notice to the Holder [INSERT IN ADDITIONAL NOTES ONLY: and the Trustee] (i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, or (B) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.
(b)Currency.  All dollar amounts referred to in this Note are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Note shall be paid in U.S. Dollars.  All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation.  “Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Note, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation (it being understood and agreed that where an amount is calculated with reference to, or over, a period of time, the date of calculation shall be the final date of such period of time).
(c)Payments.  Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, unless otherwise expressly set forth herein, such payment shall be made in lawful money of the United States of America by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing (which address, in the case of each of the Buyers, shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement), provided that the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request and the Holder’s wire transfer instructions.  Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day. Any amount of Principal or other amounts due
31

under the Transaction Documents which is not paid when due (except to the extent such amount is simultaneously accruing Interest at the Default Rate hereunder) shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at the rate of fifteen percent (15%) per annum from the date such amount was due until the same is paid in full (“Late Charge”).  
24.CANCELLATION.  After all Principal, Make-Whole Amount, accrued Interest, Late Charges and other amounts at any time owed on this Note or any other Transaction Documents have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.
25.WAIVER OF NOTICE.  To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement.
26.GOVERNING LAW.  This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note 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. Except as otherwise required by Section 22 above, the Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  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 to limit in any way any right to serve process in any manner permitted by law.  Nothing contained herein (i) shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, or to enforce a judgment or other court ruling in favor of the Holder or (ii) shall limit, or shall be deemed or construed to limit, any provision of Section 22. THE COMPANY 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 IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.
27.JUDGMENT CURRENCY.
(a)If for the purpose of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 27 referred to as the “Judgment Currency”) an amount due in U.S. dollars under this Note, the conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:
32

(i)the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other jurisdiction that will give effect to such conversion being made on such date: or 
(ii)the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 27(a)(ii) being hereinafter referred to as the “Judgment Conversion Date”).
(b)If in the case of any proceeding in the court of any jurisdiction referred to in Section 27(a)(ii) above, there is a change in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of US dollars which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.
(c)Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Note.
28.TAX MATTERS.
(a)Any and all payments by the Company hereunder, including any amounts (or shares of Common Stock) received on a conversion or redemption of the Note and any amounts on account of interest or deemed interest, shall be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, unless the Company is required to withhold or deduct any amounts for, or on account of any applicable law (each, a “Withheld Amount”).  If the Company shall be required to deduct any Withheld Amount from or in respect of any sum payable hereunder to the Holder, (i) the sum payable shall be increased by the amount by which the sum payable would otherwise have to be increased (the “tax make-whole amount”) to ensure that after making all required deductions (including deductions applicable to the tax make-whole amount) the Holder would receive an amount equal to the sum it would have received had no such deductions been made, (ii) the Company shall make such deductions and (iii) the Company shall pay the full amount withheld or deducted to the relevant governmental authority within the time required.
(i)In addition, the Company agrees to pay to the relevant governmental authority in accordance with applicable law any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment made hereunder or in connection with the execution, delivery, registration or performance of, or otherwise with respect to, this Note (“Other Taxes”). 

33

(ii)The Company shall deliver to the Holder official receipts, if any, in respect of any taxes payable hereunder promptly after payment of such taxes or other evidence of payment reasonably acceptable to the Holder.
(iii)If the Company fails to pay any amounts in accordance with this Section 28, the Company shall indemnify the Holder within ten (10) calendar days after written demand therefor, for the full amount of any such taxes, plus any related interest or penalties, that are paid by the Holder to the relevant governmental authority as a result of such failure.
(iv)The obligations of the Company under this Section 28(a) shall survive the termination of this Note and the payment of the Note and all other amounts payable hereunder.
(b)Each Holder and beneficial owner of this Note, by the acceptance of this Note or acquisition of any beneficial interest therein, and the Company each mutually covenant and agree, to treat this Note as indebtedness for all purposes and will not take any action contrary to such characterization, including filing any tax returns or financial statements inconsistent therewith.
(c)Each Holder and beneficial owner of a Note, by the acceptance of such Note or acquisition of any beneficial interest therein, covenants and agrees, for the benefit of the Company, to the extent it is legally able to do so, to provide to the Company and its paying agent (if any) such properly completed and executed reasonable documentation, information or certification (including, but not limited to, Internal Revenue Service Forms W-8BEN, W-8BEN-E, W-8IMY, W-8ECI, W-8EXP and W-9, (or any successor forms) and portfolio interest certificates) as (1) would reduce or eliminate withholding taxes imposed on any amount payable by the Company (and its paying agent, if any) and/or (2) may be helpful (as reasonably determined by the Company or its paying agent) for the Company (and its paying agent, if any) to satisfy its obligations relating to FATCA, withholding (including backup withholding) and information reporting under the Code and any other applicable law.
(d)To the extent this Note is subject to Section 871(m) of the Code, for purposes of Section 871(m) of the Code and the regulations thereunder, the Common Stock is not expected to have a dividend during the life of the Note and therefore the estimate of the dividend amount for such purposes is zero.
29.SEVERABILITY.  If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be
34

conferred upon the parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).
30.MAXIMUM PAYMENTS.  Without limiting Section 9(d) of the Securities Purchase Agreement, nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law.  In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Holder and thus refunded to the Company.
31.CERTAIN DEFINITIONS.  For purposes of this Note, the following terms shall have the following meanings:
(a)“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.
(b)“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.
(c) “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control” of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.
(d)“Attribution Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act.  For clarity, the purpose of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.  
(e)“Bloomberg” means Bloomberg, L.P.
(f)“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee”  or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks
35

in The City of New York generally are open for use by customers on such day.
(g)"Capital Lease” means, with respect to any Person, any lease of any property which, in conformity with GAAP, is required to be capitalized on the balance sheet of such Person.
(h)“Change of Control” means any Fundamental Transaction other than (i) any merger of the Company or any of its, direct or indirect, wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization or reclassification of the shares of Common Stock in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and, directly or indirectly, are, in all material respects, the holders of the voting power of the surviving entity (or entities with the authority or voting power to elect the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification, including, for the avoidance of doubt, any stock split or reverse stock split of the Common Stock that effects a reclassification of the Common Stock to adjust the par value to be the same as the par value immediately prior to such split, or (iii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company or any of its Subsidiaries.
(i)“Change of Control Redemption Premium” means 115%.
(j)“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices).  If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by the Company and the Holder.  If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 22. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during
36

such period.
(k)“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.
(l) “Common Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.
(m)“Conversion Amount” means the sum of (A) the portion of the Principal of this Note to be converted, redeemed or otherwise with respect to which this determination is being made, (B) accrued and unpaid Interest with respect to such Principal of this Note, (C) the Make-Whole Amount, if any, (D) accrued and unpaid Late Charges with respect to such Principal of this Note, Make-Whole Amount and Interest, and (E) any other unpaid amounts pursuant to the Transaction Documents, if any.
(n)“Conversion Base Price” means that price which shall be the lower of (i) the applicable Reference Price as in effect on the applicable Conversion Date of the applicable conversion, and (ii) the greater of (x) the Floor Price and (y) 100% of the VWAP of the Common Stock as of the Conversion Date.
(o)“Conversion Floor Amount” means an amount in cash, to be delivered by wire transfer of immediately available funds pursuant to wire instructions delivered to the Company by the Holder in writing, equal to the product obtained by multiplying (A) the higher of (I) the highest price that the Common Stock trades at on the Trading Day immediately preceding the relevant Conversion Date and (II) the applicable Conversion Price and (B) the difference obtained by subtracting (I) the number of shares of Common Stock delivered (or to be delivered) to the Holder on the applicable Share Delivery Deadline with respect to such Conversion from (II) the quotient obtained by dividing (x) the applicable Conversion Amount that the Holder has elected to be the subject of the applicable conversion, by (y) the applicable Conversion Price without giving effect to clause (x) of such definition or clause.
(p)“Conversion Floor Price Condition” means that the relevant Conversion Price or Conversion Base Price, as applicable, is being determined based on sub-clause (x) of such definition.
(q) “Conversion Price” means that price which shall be the lower of (i) the applicable Reference Price as in effect on the applicable Conversion Date of the applicable conversion, (ii) the Conversion Base Price with respect to such conversion and (iii) the greater of (x) the Floor Price and (y) as elected in writing by the Holder in the applicable Conversion Notice or other written notice to the Company, either (A) as applicable, (1) with respect to any Conversion Notice delivered to the Company on or after the close of the Principal Market on such applicable Conversion Date, 100% of the VWAP of the Common Stock as of such Conversion Date or (2) with respect to any Conversion Notice delivered to the Company prior to the close of the Principal Market on such applicable
37

Conversion Date (or any other determination of the Conversion Price under any Transaction Document that is not with respect to a conversion), 100% of the VWAP of the Common Stock as of the Trading Day immediately prior to such Conversion Date and (B) 95% of the price computed as the quotient of (I) the sum of the VWAP of the Common Stock for each of the three (3) Trading Days during the period commencing on, and including, such Conversion Date, divided by (II) three (3) (such period, the “Conversion Measuring Period”, and any election by the Holder to apply clause (iii)(y)(B) of this definition to any conversion, a “Remainder Eligible Election”).  All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock during such Conversion Measuring Period.
(r)“Convertible Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.
(s)“Current Public Information Failure“ means either (x) the Company fails for any reason to satisfy the requirements of Rule 144(c)(1) of the 1933 Act, including, without limitation, the failure to satisfy the current public information requirement under Rule 144(c) of the 1933 Act or (y) the Company has ever been an issuer described in Rule 144(i)(1)(i) of the 1933 Act or becomes such an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) of the 1933 Act.
(t)“Current Subsidiary” means any Person in which the Company, on the Subscription Date, directly or indirectly, (i) owns a majority of the outstanding capital stock or holds any equity or similar interest of such Person having ordinary voting power for the election of directors or other similar governing body or (ii) controls, manages or operates all, or any material part of the business, operations and/or administration of such Person, and all of the foregoing, collectively, “Current Subsidiaries”.
(u)"Debt” means, with respect to any Person, without duplication: 
(1)         all indebtedness of such Person for borrowed money; 
(2)       all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; 
(3)       all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments; 
(4)       all obligations of such Person to pay the deferred and unpaid purchase price of property or services which are recorded as liabilities under GAAP, excluding trade payables arising in the ordinary course of business; 
(5)       all obligations of such Person as lessee under any Capital Lease; 
(6)    all Debt of other Persons Guaranteed by such Person to the extent so
38

Guaranteed; 
(7)       all Debt of other Persons secured by a Lien on any asset of such Person, whether or not such Debt is assumed by such Person; and 
(8)       all obligations of such Person under Hedging Agreements.
The amount of Debt of any Person will be deemed to be:
(A) with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving rise to the obligation;
(B) with respect to any Hedging Agreement, the net amount payable if such Hedging Agreement terminated at that time due to default by such Person; or
(C) otherwise, the outstanding principal amount thereof.
Notwithstanding the foregoing, the term “Debt” shall not include:
(1) any lease, concession or license of property (or Guarantee thereof) accounted for as an operating lease in accordance with GAAP;
(2) contingent obligations in the ordinary course of business, other than Guarantees or other assumptions of Debt;
(3) in connection with the purchase by the Company or any Subsidiary of the Company of any business, any post-closing payment adjustments or purchase price holdbacks to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet, such payment depends on the performance of such business after the closing or to satisfy warranties or other unperformed obligations of the applicable seller; provided, however, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the amount is paid in a timely manner;
(4) deferred or prepaid revenues in the ordinary course of business;
(5) accrued expenses, accounts payables, taxes payable and other short-term payables in the ordinary course of business; or
(6) any contingent obligations in respect of workers’ compensation claims, early retirement or termination obligations, pension fund obligations or contributions or similar claims, obligations or contributions or social security or wage taxes.
(v)“Eligible Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.
39

(w)“Equity Conditions” means, with respect to an given date of determination: (i) on each day during the period beginning thirty calendar days prior to the applicable date of determination and ending on and including the applicable date of determination (the “Equity Conditions Measuring Period”), the Common Stock (including all Underlying Securities (as defined in the Securities Purchase Agreement)) is listed or designated for quotation (as applicable) on an Eligible Market and shall not have been suspended from trading on an Eligible Market (other than suspensions of not more than two (2) days and occurring prior to the applicable date of determination due to business announcements by the Company) nor shall delisting or suspension by an Eligible Market have been threatened (with a reasonable prospect of delisting occurring after giving effect to all applicable notice, appeal, compliance and hearing periods) or reasonably likely to occur or pending as evidenced by (A) a writing by such Eligible Market or (B) the Company falling below the minimum listing maintenance requirements of the Eligible Market on which the Common Stock is then listed or designated for quotation (as applicable); (ii) during the Equity Conditions Measuring Period, the Company shall have delivered all shares of Common Stock issuable upon conversion of this Note on a timely basis as set forth in Section 2 hereof and all other shares of capital stock required to be delivered by the Company on a timely basis as set forth in the other Transaction Documents; (iii) any shares of Common Stock to be issued in connection with the event requiring determination (or issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination) may be issued in full without violating Section 3(d) hereof; (iv) any shares of Common Stock to be issued in connection with the event requiring determination (or issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination (without regards to any limitations on conversion set forth herein)) may be issued in full without violating the rules or regulations of the Eligible Market on which the Common Stock is then listed or designated for quotation (as applicable); (v) on each day during the Equity Conditions Measuring Period, no public announcement of a pending, proposed or intended Fundamental Transaction shall have occurred which has not been abandoned, terminated or consummated; (vi) on each day during the Equity Conditions Measuring Period, no Current Public Information Failure then exists or is continuing; (vii) on each day during the Equity Conditions Measuring Period, the Holder shall not be in (and no other holder of Notes shall be in) possession of any material, non-public information provided to any of them by the Company, any of its Subsidiaries or any of their respective affiliates, employees, officers, representatives, agents or the like; (viii) on each day during the Equity Conditions Measuring Period, the Company otherwise shall have been in compliance with each, and shall not have breached any representation or warranty in any material respect (other than representations or warranties subject to material adverse effect or materiality, which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, including, without limitation, the Company shall not have failed to timely make any payment pursuant to any Transaction Document; (ix) on each Trading Day during the Equity Conditions Measuring Period, there shall not have occurred any Volume Failure or Price Failure as of such applicable date of determination; (x) on each day during the Equity Conditions Measuring Period, (A) no Authorized Share Failure shall exist or be continuing and all shares of Common Stock to be issued in connection with the event requiring this determination (or issuable upon conversion of the Conversion
40

Amount being redeemed in the event requiring this determination at the Conversion Price then in effect (without regard to any limitations on conversion set forth herein)) (each, a “Required Minimum Securities Amount”) are available under the certificate of incorporation of the Company and reserved by the Company to be issued pursuant to the Notes and (B) all shares of Common Stock to be issued in connection with the event requiring this determination (or issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination (without regards to any limitations on conversion set forth herein)) may be issued in full without resulting in an Authorized Share Failure; (xi) on each day during the Equity Conditions Measuring Period, there shall not have occurred and there shall not exist an Event of Default or an event that with the passage of time or giving of notice would constitute an Event of Default; (xii) on each day during the Equity Conditions Measuring Period, no bone fide dispute shall exist, by and between any of holder of Notes, the Company, the Principal Market (or such applicable Eligible Market in which the Common Stock of the Company is then principally trading) and/or FINRA with respect to any term or provision of any Note or any other Transaction Document and (xiii) the shares of Common Stock issuable pursuant the event requiring the satisfaction of the Equity Conditions are duly authorized and listed and eligible for trading without restriction on an Eligible Market.
(x)“Equity Conditions Failure” means, as applicable, that on any day (i) with respect to any election by the Company to pay any Interest in Interest Shares hereunder, during the period commencing on the Trading Day immediately prior to the applicable Interest Notice Date through the applicable Interest Date or (ii) otherwise, on such applicable date of determination, the Equity Conditions have not been satisfied (or waived in writing by the Holder).
(y)“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Note (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
(z)“Fiscal Quarter” means each of the fiscal quarters adopted by the Company for financial reporting purposes that correspond to the Company’s fiscal year as of the date hereof that ends on December 31.
(aa)“Floor Price” means $[    ]1 (or such lower amount as permitted, from time to time, by the Principal Market), subject to adjustment for stock splits, stock dividends, stock combinations, recapitalizations or other similar events.
(bb)“Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related

1 Insert 20% of the Nasdaq “market price” as of the Trading Day ended immediately prior to the time of execution of the Securities Purchase Agreement.
41

transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries” (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Note calculated as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger or other transaction requiring other stockholders of the Company to surrender their shares of Common Stock without approval of the stockholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
42

in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.
(cc) “GAAP” means United States generally accepted accounting principles, consistently applied.
(dd)“Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.
(ee)“Guarantee” means, any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt or other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for purposes of assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or to protect such obligee against loss in respect thereof, in whole or in part; provided that the term “Guarantee” does not include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning.
(ff)“Hedging Agreement” means (i) any interest rate swap agreement, interest rate cap agreement or other agreement designed to protect against fluctuations in interest rates; (ii) any foreign exchange forward contract, currency swap agreement or other agreement designed to protect against fluctuations in foreign exchange rates or (iii) any commodity or raw material futures contract or any other agreement designed to protect against fluctuations in raw material prices.
(gg)“Holder Pro Rata Amount” means a fraction (i) the numerator of which is the original Principal amount of this Note on the Initial Closing Date and (ii) the denominator of which is the aggregate original principal amount of all Notes issued to the initial purchasers pursuant to the Securities Purchase Agreement on the Initial Closing Date.
(hh) “Indebtedness” shall have the meaning ascribed to such term in the Securities Purchase Agreement.
(ii)“Initial Closing Date” shall have the meaning set forth in the Securities Purchase Agreement, which date is the date the Company initially issued Initial Notes (as defined in the Securities Purchase Agreement) pursuant to the terms of the Securities Purchase Agreement.
(jj)[INSERT IN INITIAL NOTES ONLY: [Intentionally Omitted]][INSERT IN ADDITIONAL NOTES ONLY: “Indenture” means that certain Indenture for Debt Securities dated as of the Initial Closing Date, by and between the Company and the Trustee, as may be amended, modified or supplemented from time to time, including,
43

without limitation, by any Supplemental Indenture (as defined below).]
(kk)“Interest Conversion Price” means that price which shall be the lower of (i) the applicable Reference Price as in effect on the applicable Interest Date, and (ii) the greater of (x) the Floor Price and (y) 95% of the price computed as the quotient of (I) the sum of the VWAP of the Common Stock for each of the three (3) Trading Days during the period ending on, and including, the Trading Day immediately prior to such applicable Interest Date, divided by (II) three (3) (such period, the “Interest Conversion Price Measuring Period”).  All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock during such Interest Conversion Price Measuring Period.
(ll)  “Interest Date” means, with respect to any given Fiscal Quarter, the first Trading Day of such Fiscal Quarter.
(mm)“Interest Rate” means, as of any date of determination, five percent (5%) per annum, subject to adjustment from time to time in accordance with Section 1.
(nn) “Investment” means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any Person, or any loan, advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of another Person or the purchase of any assets of another Person for greater than the fair market value of such assets.
(oo)“Lien” means any mortgage, security interest, pledge, lien, charge or other similar encumbrance of any kind whatsoever (including any conditional sale or other title retention agreement or Capital Lease).
(pp)“Make-Whole Amount” means, as of any given date and as applicable, in connection with any conversion, redemption or other repayment hereunder, an amount equal to the amount of additional Interest that would accrue under this Note at the Interest Rate then in effect assuming for calculation purposes that the outstanding Principal of this Note as of the Closing Date remained outstanding through and including the Maturity Date.
(qq) “Maturity Date” shall mean [            ]2; provided, however, the Maturity Date may be extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default shall have occurred and be continuing or any event shall have occurred and be continuing that with the passage of time and the failure to cure would result in an Event of Default or (ii) through the date that is twenty (20) Business Days after the consummation of a Fundamental Transaction in the event that a Fundamental Transaction is publicly announced or a Change of Control Notice is delivered prior to the Maturity Date, provided further that if a Holder elects to convert some or all of this Note pursuant to Section 2 hereof, and the Conversion Amount would be limited pursuant to Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as such provision shall not limit the conversion of this Note.
(rr)“New Subsidiary” means, as of any date of determination, any Person in which the Company after the Subscription Date, directly or indirectly, (i) owns or acquires any a majority of the outstanding capital stock or holds any equity or similar interest of such 

2  Insert first anniversary of the applicable Issuance Date.
44

Person having ordinary voting power for the election of directors or other similar governing body or (ii) controls, operates or manages all, or any material part of the business, operations and/or administration of such Person, and all of the foregoing, collectively, “New Subsidiaries”.
(ss)“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.
(tt)“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.
(uu) “Permitted Lien” means 
(1)       any Lien securing Debt of the Company or a Subsidiary of the Company owing to the Company or to any of its Subsidiaries; 
(2)       Liens imposed by law, such as materialmen’s, workmen’s or repairmen’s, carriers’, warehousemen’s and mechanic’s Liens or other similar Liens, in each case for sums not yet overdue by more than 30 calendar days or being contested in good faith by appropriate proceedings; 
(3)       Liens for taxes, assessments or other governmental charges not yet due or payable or subject to penalties for non-payment or which are being contested in good faith by appropriate proceedings; 
(4)       pledges or deposits under worker’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts or leases, or to secure public or statutory obligations, surety bonds, customs duties and the like, or for the payment of rent, in each case incurred in the ordinary course of business and not securing Debt;
(5)       Liens consisting of easements, rights-of-way, zoning restrictions, restrictions on the use of real property, and defects and irregularities in the title thereto, landlords’ Liens and other similar Liens none of which interfere materially with the use of the property covered thereby in the ordinary course of business and which do not, in the Company’s opinion, materially detract from the value of such properties; 
(6)       Liens securing reimbursement obligations with respect to letters of credit that encumber documents and other property relating to such letters of credit and the proceeds thereof;
45

(7)       Liens on assets pursuant to merger agreements, stock or asset purchase agreements and similar agreements in respect of the disposition of such assets; 
(8)       judgment liens incurred as a result of a judgment by a court of competent jurisdiction, so long as no Event of Default then exists as a result thereof; 
(9)       Liens on property (including Capital Stock (as defined in the Indenture)) of a Person existing at the time such Person becomes a Subsidiary or is merged with or into or consolidated with the Company or any Subsidiary; provided that such Liens were in existence prior to the contemplation of such Person becoming a Subsidiary or such merger or consolidation, were not incurred in contemplation thereof and do not extend to any assets other than those of the Person that becomes a Subsidiary or is merged with or into or consolidated with the Company or any Subsidiary;
(10)     Liens in the ordinary course of business on insurance policies and proceeds thereof, or other deposits, to secure insurance premium financings;
(11)     Liens on cash (or the accounts in which such cash is held) or other property arising in connection with the defeasance, discharge or redemption of Debt;
(12)     Liens on specific items of inventory or other goods (and the proceeds thereof) of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created in the ordinary course of business for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;
(13)     leases, licenses, subleases and sublicenses of assets in the ordinary course of business and Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of assets entered into in the ordinary course of business;
(14)     (i) mortgages, liens, security interests, restrictions, encumbrances or any other matters of record that have been placed by any developer, landlord or other third party on property over which the Company or any Subsidiary has easement rights or on any real property leased by the Company or any Subsidiary and subordination or similar agreements relating thereto and (ii) any condemnation or eminent domain proceedings or compulsory purchase order affecting real property; 
(15)     Liens securing or arising by reason of any netting or set-off arrangement entered into in the ordinary course of banking or other trading activities; or
(16)     pledges of goods, the related documents of title and/or other related documents arising or created in the ordinary course of business or operations as Liens only for Debt to a bank or financial institution directly relating to the goods or documents on or over which the pledge exists.
(vv)“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.
46

(ww)“Price Failure” means, with respect to a particular date of determination, the VWAP of the Common Stock on any Trading Day during the twenty (20) Trading Day period ending on the Trading Day immediately preceding such date of determination fails to exceed $2.00 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions occurring after the Subscription Date).  All such determinations to be appropriately adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during any such measuring period.
(xx)“Principal Market” means The Nasdaq Global Select Market (or such applicable Eligible Market in which the Common Stock is then principally traded).
(yy)“Redemption Notices” means, collectively, the Event of Default Redemption Notices, the Subsequent Placement Optional Redemption Notices and the Change of Control Redemption Notices, and each of the foregoing, individually, a “Redemption Notice.”
(zz)“Redemption Premium” means 115%.
(aaa)“Redemption Prices” means, collectively, Event of Default Redemption Prices, the Subsequent Placement Optional Redemption Prices and the Change of Control Redemption Prices, and each of the foregoing, individually, a “Redemption Price.”
(bbb)“Reference Price” means $[    ]3, subject to adjustment as provided herein.
(ccc)“SEC” means the United States Securities and Exchange Commission or the successor thereto.
(ddd)“Securities Purchase Agreement” means that certain securities purchase agreement, dated as of the Subscription Date, by and among the Company and the initial holders of the Notes pursuant to which the Company issued the Notes, as may be amended from time to time.
(eee)“Subscription Date” means December__, 2022.
(fff)“Subsidiaries” means, as of any date of determination, collectively, all Current Subsidiaries and all New Subsidiaries, and each of the foregoing, individually, a “Subsidiary.”
(ggg)“Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.
(hhh)“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental

3 Insert 250% of the Closing Bid Price as of the Trading Day ended immediately prior to the applicable Issuance Date.
47

Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.
(iii)[INSERT IN INITIAL NOTES: [Intentionally Omitted]][INSERT IN ADDITIONAL NOTES ONLY: “Supplemental Indenture” shall have the meaning ascribed to such term in the Securities Purchase Agreement, as each such supplemental indenture may be amended, modified or supplemented from time to time.]
(jjj)“Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.
(kkk)[INSERT IN INITIAL NOTES ONLY: [Intentionally Omitted]][INSERT IN ADDITIONAL NOTES ONLY: “Trustee” means [        ], in its capacity as trustee under the Indenture, or any successor or any additional trustee appointed with respect to the Notes pursuant to the Indenture.]
(lll)“Volume Failure” means, with respect to a particular date of determination, the aggregate daily dollar trading volume (as reported on Bloomberg) of the Common Stock on the Principal Market on any Trading Day during the twenty (20) Trading Day period ending on the Trading Day immediately preceding such date of determination (such period, the “Volume Failure Measuring Period”), is less than $10,000,000 (as adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions occurring after the Subscription Date).
(mmm)“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded), during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg through its “VAP” function (set to 09:30 start time and 16:00 end time) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as
48

reported in The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices).  If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder.  If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 22. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period.
32.DISCLOSURE.  Upon delivery by the Company to the Holder (or receipt by the Company from the Holder) of any notice in accordance with the terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company or any of its Subsidiaries, the Company shall on or prior to 9:00 am, New York City time on the Business Day immediately following such notice delivery date, publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise.  In the event that the Company believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to the Holder explicitly in writing in such notice (or immediately upon receipt of notice from the Holder, as applicable), and in the absence of any such written indication in such notice (or notification from the Company immediately upon receipt of notice from the Holder), the Holder shall be entitled to presume that information contained in the notice does not constitute material, non-public information relating to the Company or any of its Subsidiaries.  Nothing contained in this Section 32 shall limit any obligations of the Company, or any rights of the Holder, under Section 4(l) of the Securities Purchase Agreement.
33.ABSENCE OF TRADING AND DISCLOSURE RESTRICTIONS.  The Company acknowledges and agrees that the Holder is not a fiduciary or agent of the Company and that the Holder shall have no obligation to (a) maintain the confidentiality of any information provided by the Company or (b) refrain from trading any securities while in possession of such information in the absence of a written non-disclosure agreement signed by an officer of the Holder that explicitly provides for such confidentiality and trading restrictions.  In the absence of such an executed, written non-disclosure agreement, the Company acknowledges that the Holder may freely trade in any securities issued by the Company, may possess and use any information provided by the Company in connection with such trading activity, and may disclose any such information to any third party.
[signature page follows]
49

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

			
	NIKOLA CORPORATION

	By:_________________________________
	Name:
	Title:

[INSERT IN ADDITIONAL NOTES ONLY: CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated herein referred to in the within-mentioned Indenture and the applicable Supplemental Indenture.

Dated: ________________, 20__

			
	[TRUSTEE]

	By:________________________________
	Name:
	Title:]

Senior Convertible Note - Signature Page

EXHIBIT I 

NIKOLA CORPORATION
CONVERSION NOTICE

Reference is made to the Series [A][B-1][B-2] Senior Convertible Note Due [2023][2024] (the “Note”) issued to the undersigned by Nikola Corporation, a Delaware corporation (the “Company”).  In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock, $0.0001 par value per share (the “Common Stock”), of the Company, as of the date specified below.  Capitalized terms not defined herein shall have the meaning as set forth in the Note.

																					
	Date of
Conversion:					
		Aggregate Principal to be converted:				
		Aggregate accrued and unpaid Interest, Make-Whole Amount and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest and Aggregate Make-Whole Amount to be converted:				
							
	AGGREGATE CONVERSION AMOUNT
TO BE CONVERTED:				

Please confirm the following information:

																					
	Conversion Base Price:				
	TOTAL NUMBER OF SHARES OF COMMON STOCK TO BE ISSUED:				

     
☐ Check here if waiving the right to make a Remainder Eligible Election.

Please issue the Common Stock into which the Note is being converted to Holder, or for its benefit, as follows:

						
	☐	Check here if requesting delivery as a certificate to the following name and to the following address:

																		
		Issue to:			
						
						
						
		☐	Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows: 
		
						
		DTC Participant:			
		DTC Number:			
		Account
Number			

												
	Date:	____________	___,	_____________
				
	Name of registered holder
				
	By:			
		Name:		
		Title:		
				
		Tax ID:		
		E-mail Address:	

Exhibit II

ACKNOWLEDGMENT

The Company hereby (a) acknowledges this Conversion Notice, and (b) hereby directs _________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated _____________, 20__ from the Company and acknowledged and agreed to by ________________________.

						
	NIKOLA CORPORATION
	By:_________________________________	
	Name:	
	Title:	

EXHIBIT III  

NIKOLA CORPORATION
REMAINDER CONVERSION NOTICE

Reference is made to the Series [A][B-1][B-2] Senior Convertible Note Due [2023][2024] (the “Note”) issued to the undersigned by Nikola Corporation, a Delaware corporation (the “Company”).  In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock, $0.0001 par value per share (the “Common Stock”), of the Company, as of the date specified below.  Capitalized terms not defined herein shall have the meaning as set forth in the Note.

																					
	Original Date of
Conversion:					
		Aggregate Principal to be converted:				
		Aggregate accrued and unpaid Interest, Make-Whole Amount and accrued and unpaid Late Charges with respect to such portion of the Aggregate Principal and such Aggregate Interest and Aggregate Make-Whole Amount to be converted:				
							
	AGGREGATE CONVERSION AMOUNT
TO BE CONVERTED:				

Please confirm the following information:

Holder is electing to use the following Conversion Price (check below):

															
	☐	the Floor Price: 			
					
	☐	100% of the VWAP of the Common Stock as of the Trading Day immediately 
		prior to the date hereof: 		
					
	☐	95% of the VWAP of the Common Stock during the three (3) Trading Days 
		period commencing on		
	Number of shares of Common Stock to be issued (without adjustment for Base Conversion		

						
	Shares previously issued):	
		
	Number of Base Conversion Shares previously issued:	
		
	TOTAL NUMBER OF SHARES OF COMMON STOCK TO BE ISSUED:	

Please issue the Common Stock into which the Note is being converted to Holder, or for its benefit, as follows:

																		
		☐	Check here if requesting delivery as a certificate to the following name and to the following address:
		
						
		Issue to:			
						
						
						
		☐	Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows: 
		
						
		DTC Participant:			
		DTC Number:			
		Account
Number			

												
	Date:	____________	___,	_____________
				
	Name of registered holder
				
	By:			
		Name:		
		Title:		
				
		Tax ID:		
		E-mail Address:	

Exhibit IV

ACKNOWLEDGMENT

The Company hereby (a) acknowledges this Conversion Notice, and (b) hereby directs _________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated _____________, 20__ from the Company and acknowledged and agreed to by ________________________.

						
	NIKOLA CORPORATION
	By:_________________________________	
	Name:	
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}]]