Document:

Exhibit
4.2

 

THIS
NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA
FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

BLUE
STAR FOODS CORP.

 

Form
of Senior Secured

Convertible
Promissory

Note
due January 24, 2024

 

	Note
    No. 2022-001	$5,750,000
	Dated:
    January 24, 2022 (the “Issuance Date”)	 

 

For
value received, BLUE STAR FOODS CORP., a Delaware corporation (the “Maker” or the “Company”), hereby
promises to pay to the order of Lind Global Fund II LP, a Delaware limited partnership (together with its successors and representatives,
the “Holder”), in accordance with the terms hereinafter provided, the principal amount of FIVE MILLION SEVEN HUNDRED
FIFTY THOUSAND DOLLARS ($5,750,000.00) (the “Principal Amount”).

 

All
payments under or pursuant to this Senior Secured Convertible Promissory Note (this “Note”) shall be made in United
States Dollars in immediately available funds to the Holder at the address of the Holder set forth in the Purchase Agreement (as hereinafter
defined) or at such other place as the Holder may designate from time to time in writing to the Maker or by wire transfer of funds to
the Holder’s account, instructions for which are attached hereto as Exhibit A. The outstanding principal balance of this
Note shall be due and payable on January 24, 2024 (the “Maturity Date”) or at such earlier time as provided herein;
provided, that the Holder, in its sole discretion, may extend the Maturity Date to any date after the original Maturity Date. In the
event that the Maturity Date shall fall on Saturday or Sunday, such Maturity Date shall be the next succeeding Business Day. All calculations
made pursuant to this Note shall be rounded down to three decimal places.

 

    	 

    	 

    

 

ARTICLE
1

 

1.1
Purchase Agreement. This Note has been executed and delivered pursuant to the Securities Purchase Agreement, dated as of January
24, 2022 (as the same may be amended from time to time, the “Purchase Agreement”), by and between the Maker and the
Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth for such terms in the Purchase Agreement.

 

1.2
Interest. Other than as set forth in Section 2.2 herein, this Note shall not bear interest.

 

1.3
Principal Installment Payments. Commencing on the date that is 180 days from the Issuance Date, the Maker shall pay to the Holder
the Outstanding Principal Amount hereunder in eighteen (18) consecutive monthly installments, on such date and each one (1) month anniversary
thereof (each, a “Payment Date” and collectively the “Monthly Payments”), an amount equal to Three
Hundred Thirty Three Thousand Three Hundred Thirty Three Dollars ($333,333), until the Outstanding Principal Amount has been paid in
full prior to or on the Maturity Date or, if earlier, upon acceleration, conversion or redemption of this Note in accordance with the
terms herein. The Monthly Payments shall, at the Maker’s option, be made in (i) cash, (ii) Repayment Shares, or (iii) a combination
of cash and Repayment Shares; provided that the number of Repayment Shares shall be determined by dividing the Principal Amount being
paid in shares of Common Stock by the Repayment Share Price; provided, however, that no portion of the Principal Amount may be paid in
Repayment Shares unless (1) such Repayment Shares (A) may be immediately resold under Rule 144 without restriction on the number
of shares to be sold or manner of sale, or (B) are registered for resale under the 1933 Act and the registration statement is in effect
and lawfully usable to effect immediate sales of such Repayment Shares. The Company must provide advance written notice to the Holder
of whether it will elect to pay a Monthly Payment in cash, Repayment Shares or a combination thereof as follows: (i) with respect to
the first Monthly Payment, at least thirty (30) days before the Payment Date, and (ii) with respect to each Monthly Payment thereafter,
within three (3) Business Days of the prior Payment Date; provided, however, that if no such notice is provided within the timeframes
set forth above, such Monthly Payments shall be made in Repayment Shares. If the Maker elects to make such Monthly Payment in Repayment
Shares or a combination of cash and Repayment Shares, and at the time of such Payment Date, the Repayment Share Price is deemed to be
the Floor Price, then in addition to issuing the Repayment Shares at the Repayment Share Price, the Maker will also pay to the Holder
a cash amount equal to the following formula:

 

(A – B) x C

 

Where:

 

A: Number of shares of Common
Stock that would be issued to the Holder on such Payment Date determined by dividing the Principal Amount being paid in shares of Common
Stock by ninety percent (90%) of the average of the five (5) lowest daily VWAPs during the twenty (20) Trading Days prior to such Payment
Date (notwithstanding the Floor Price);

 

B:
Number of Repayment Shares issued to the Holder in connection with such Payment Date; and

 

C:
the VWAP on the Payment Date.

 

1.4
Prepayment. The Maker may repay all, but not less than all, of the then Outstanding Principal Amount upon delivering a Prepayment
Notice. If the Maker elects to prepay this Note pursuant to this Section 1.4, the Holder shall have the right, upon written notice
to the Maker (a “Prepayment Conversion Notice”) within five (5) Business Days of the Holder’s receipt of a Prepayment
Notice, to convert up to twenty five percent (25%) of the Principal Amount (the “Maximum Amount”) at the lesser of
the Repayment Share Price or the Conversion Price (each as defined below), in accordance with the provisions of Article 3, specifying
the Principal Amount (up to the Maximum Amount) that the Holder will convert. Upon delivery of a Prepayment Notice, the Maker irrevocably
and unconditionally agrees to, within five (5) Business Days of receiving a Prepayment Conversion Notice, and if no Prepayment Conversion
Notice is received, within ten (10) Business Days of delivery of a Prepayment Notice: (i) repay the amount of the Outstanding Principal
Amount minus the Principal Amount set forth in the Prepayment Conversion Notice and (ii) issue the applicable Conversion Shares to the
Holder in accordance with Article 3, as applicable. The foregoing notwithstanding, the Maker may not deliver a Prepayment Notice with
respect to any Outstanding Principal Amount that is subject to a Conversion Notice delivered by the Holder in accordance with Article
3.

 

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1.5
Delisting from a Trading Market. If at any time the Common Stock ceases to be listed on a Trading Market, (i) the Holder may deliver
a demand for payment to the Company and, if such a demand is delivered, the Company shall, within ten (10) Business Days following receipt
of the demand for payment from the Holder, pay all of the Outstanding Principal Amount or (ii) the Holder may, at its election, after
the six-month anniversary of the Issuance Date or earlier if a Registration Statement covering the Conversion Shares has been declared
effective, upon notice to the Company in accordance with Section 5.1, convert all or a portion of the Outstanding Principal Amount
and the Conversion Price shall be adjusted to the lower of (A) the then-current Conversion Price and (A) eighty percent (80%) of the
average of the three (3) lowest daily VWAPs during the twenty (20) Trading Days prior to delivery by the Holder of its notice of conversion
pursuant to this Section 1.5.

 

1.6
Payment on Non-Business Days. Whenever any payment to be made shall be due on a day which is not a Business Day, such payment
may be due on the next succeeding Business Day.

 

1.7
Transfer. This Note may be transferred or sold, subject to the provisions of Section 5.8 of this Note, or pledged, hypothecated
or otherwise granted as security by the Holder.

 

1.8
Replacement. Upon receipt of a duly executed and notarized written statement from the Holder with respect to the loss, theft or
destruction of this Note (or any replacement hereof), or, in the case of a mutilation of this Note, upon surrender and cancellation of
such Note, the Maker shall issue a new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated Note.

 

1.9
Use of Proceeds. The Maker shall use the proceeds of this Note as set forth in the Purchase Agreement.

 

1.10
Status of Note and Security Interest. The obligations of the Maker under this Note shall be senior to all other existing Indebtedness
and equity of the Company. Upon any Liquidation Event (as hereinafter defined), the Holder will be entitled to receive, before any distribution
or payment is made upon, or set apart with respect to, any Indebtedness of the Maker or any class of capital stock of the Maker, an amount
equal to the Outstanding Principal Amount. For purposes of this Note, “Liquidation Event” means a liquidation pursuant to
a filing of a petition for bankruptcy under applicable law or any other insolvency or debtor’s relief, an assignment for the benefit
of creditors, or a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Maker.

 

1.11
Secured Note; Guarantee. The full amount of this Note is secured by the Collateral (as defined in the respective Security Agreements)
identified and described as security therefor in the Security Agreements. In additional, upon the execution and delivery of a Guaranty
as contemplated by the Purchase Agreement, then from and after such date all of the obligations of the Maker under this Note will be
guaranteed by its Subsidiaries, and the obligations under the guarantee will be secured by the Collateral of such Subsidiary.

 

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1.12
Tax Treatment. The Maker and the Holder agree that for U.S. federal income tax purposes, and applicable state, local and non-U.S.
income tax purposes, this Note is not intended to be, and shall not be, treated as indebtedness. Neither the Maker nor the Holder shall
take any contrary position on any tax return, or in any audit, claim, investigation, inquiry or proceeding in respect of Taxes, unless
otherwise required pursuant to a final determination within the meaning of Section 1313 of the Internal Revenue Code of 1986, as amended
(the “Code”), or any analogous provision of applicable state, local or non-U.S. law.

 

ARTICLE
2

 

2.1
Events of Default. An “Event of Default” under this Note shall mean the occurrence of any of the events defined
in the Purchase Agreement, and any of the additional events described below:

 

(a)
any default in the payment of (i) the Principal Amount or any accrued and unpaid interest hereunder when due, or any principal or interest
owing under any other Note; or (ii) liquidated damages in respect of this Note or any other Note as and when the same shall become due
and payable (whether on the Maturity Date or by acceleration or otherwise);

 

(b)
the Maker or any Subsidiary shall fail to observe or perform any other covenant, condition or agreement contained in this Note or any
Transaction Document;

 

(c)
the Maker’s notice to the Holder, including by way of public announcement, at any time, of its inability to comply (including for
any of the reasons described in Section 3.6(a) hereof) or its intention not to comply with proper requests for conversion of this
Note into shares of Common Stock;

 

(d)
the Maker shall fail to (i) timely deliver the shares of Common Stock as and when required in Section 3.2; or (ii) make the payment
of any fees and/or liquidated damages under this Note, the Purchase Agreement or the other Transaction Documents;

 

(e)
default shall be made in the performance or observance of any material covenant, condition or agreement contained in the Purchase Agreement
or any other Transaction Document that is not covered by any other provisions of this Section 2.1;

 

(f)
at any time the Maker shall fail to have a sufficient number of shares of Common Stock authorized, reserved and available for issuance
to satisfy the potential conversion in full (disregarding for this purpose any and all limitations of any kind on such conversion) of
this Note or upon exercise of the Warrant;

 

(g)
any representation or warranty made by the Maker or any of its Subsidiaries herein or in the Purchase Agreement, this Note, the Warrant
or any other Transaction Document shall prove to have been false or incorrect or breached in a material respect on the date as of which
made;

 

(h)
unless otherwise approved in writing in advance by the Holder, the Maker shall, or shall announce an intention to pursue or consummate
a Change of Control, or a Change of Control shall be consummated, or the Maker shall negotiate, propose or enter into any agreement,
understanding or arrangement with respect to any Change of Control;

 

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(i)
the Maker or any of its Subsidiaries shall (A) default in any payment of any amount or amounts of principal of or interest (if any) on
any Indebtedness (other than the Indebtedness hereunder and the Permitted Senior Debt), the aggregate principal amount of which Indebtedness
is in excess of $250,000 or (B) default in the observance or performance of any other agreement or condition relating to any such Indebtedness
or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist,
the effect of which default or other event or condition is to cause, or to permit the holder or holders or beneficiary or beneficiaries
of such Indebtedness to cause with the giving of notice if required, such Indebtedness to become due prior to its stated maturity, or
any Subsidiary shall (A) default in any payment of any amount or amounts of principal of or interest (if any) on any Permitted Senior
Debt or (B) default in the observance or performance of any other agreement or condition relating to any such Permitted Senior Debt or
contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist,
the effect of which default or other event or condition is to cause, or to permit the holder or holders or beneficiary or beneficiaries
of such Permitted Senior Debt to cause with the giving of notice if required, such Permitted Senior Debt to become due prior to its stated
maturity;

 

(j)
the Maker or any of its Subsidiaries shall: (i) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets; (ii) make a general assignment
for the benefit of its creditors; (iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect)
or under the comparable laws of any jurisdiction (foreign or domestic); (iv) file a petition seeking to take advantage of any bankruptcy,
insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights generally; (v) acquiesce
in writing to any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect)
or under the comparable laws of any jurisdiction (foreign or domestic); (vi) issue a notice of bankruptcy or winding down of its operations
or issue a press release regarding same; or (vii) take any action under the laws of any jurisdiction (foreign or domestic) analogous
to any of the foregoing;

 

(k)
a proceeding or case shall be commenced in respect of the Maker or any of its Subsidiaries, without its application or consent, in any
court of competent jurisdiction, seeking: (i) the liquidation, reorganization, moratorium, dissolution, winding up, or composition or
readjustment of its debts; (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any substantial
part of its assets in connection with the liquidation or dissolution of the Maker or any of its Subsidiaries; or (iii) similar relief
in respect of it under any law providing for the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii)
shall continue undismissed, or unstayed and in effect, for a period of forty-five (45) days or any order for relief shall be entered
in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction
(foreign or domestic) against the Maker or any of its Subsidiaries or action under the laws of any jurisdiction (foreign or domestic)
analogous to any of the foregoing shall be taken with respect to the Maker or any of its Subsidiaries and shall continue undismissed,
or unstayed and in effect for a period of forty-five (45) days;

 

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(l)
one or more final judgments or orders for the payment of money aggregating in excess of $250,000 (or its equivalent in the relevant currency
of payment) are rendered against one or more of the Company and its Subsidiaries;

 

(m)
the failure of the Maker to instruct its transfer agent to remove any legends from shares of Common Stock and issue such unlegended certificates
to the Holder within three (3) Trading Days of the Holder’s request so long as the Holder has provided reasonable assurances to
the Maker that such shares of Common Stock can be sold pursuant to Rule 144 or any other applicable exemption;

 

(n)
the Maker’s shares of Common Stock are no longer publicly traded or cease to be listed on the Trading Market or, after the six
month anniversary of the Issuance Date, any Investor Shares may not be immediately resold under Rule 144 without restriction on the number
of shares to be sold or manner of sale, unless such Investor Shares have been registered for resale under the 1933 Act and may be sold
without restriction;

 

(o)
the Maker proposes to or does consummate a “going private” transaction as a result of which the Common Stock will no longer
be registered under Sections 12(b) or 12(g) of the 1934 Act;

 

(p)
there shall be any SEC or judicial stop trade order or trading suspension stop-order or any restriction in place with the transfer agent
for the Common Stock restricting the trading of such Common Stock;

 

(q)
the Depository Trust Company places any restrictions on transactions in the Common Stock or the Common Stock is no longer tradeable through
the Depository Trust Company Fast Automated Securities Transfer program;

 

(r)
the Company’s Market Capitalization is below $10 million for ten (10) consecutive days; or

 

(s)
the occurrence of a Material Adverse Effect in respect of the Maker, or the Maker and its Subsidiaries taken as a whole.

 

For
the avoidance of doubt, any default pursuant to clause (i) above shall not be subject to any cure periods pursuant to the instrument
governing such Indebtedness or this Note.

 

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2.2
Remedies Upon an Event of Default.

 

(a)
Upon the occurrence of any Event of Default, the Maker shall be obligated to pay to the Holder the Mandatory Default Amount, which Mandatory
Default Amount shall be earned by the Holder on the date the Event of Default giving rise thereto occurs and shall be due and payable
on the earlier to occur of the Maturity Date, upon conversion, redemption or prepayment of this Note or the date on which all amounts
owing hereunder have been accelerated in accordance with the terms hereof.

 

(b)
Upon the occurrence of any Event of Default, the Maker shall, as promptly as possible but in any event within one (1) Business Day of
such Event of Default, notify the Holder of the occurrence of such Event of Default, describing the event or factual situation giving
rise to the Event of Default and specifying the relevant subsection or subsections of Section 2.1 hereof under which such Event
of Default has occurred.

 

(c)
Upon the occurrence and during the continuance of an Event of Default, the Holder may at any time at its option (1) declare the
Mandatory Default Amount due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand,
protest or notice, all of which are hereby expressly unconditionally and irrevocably waived by the Maker and (2) exercise all other rights
and remedies available to it under the Transaction Documents; provided, however, that (x) upon the occurrence of an Event of Default
described above, the Holder, in its sole and absolute discretion, may: (a) from time-to-time demand that all or a portion of the Outstanding
Principal Amount be converted into shares of Common Stock at the lower of (i) the then-current Conversion Price and (ii) eighty-percent
(80%) of the average of the three (3) lowest daily VWAPs during the twenty (20) Trading Days prior to the delivery by the Holder of the
applicable notice of conversion or (b) exercise or otherwise enforce any one or more of the Holder’s rights, powers, privileges,
remedies and interests under this Note, the Purchase Agreement, the other Transaction Documents or applicable law and (y) upon the occurrence
of an Event of Default described in Section 2.1(j) above, the Mandatory Default Amount shall become immediately due and payable
without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Maker. No course of delay on
the part of the Holder shall operate as a waiver thereof or otherwise prejudice the rights of the Holder. No remedy conferred hereby
shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

ARTICLE
3

 

3.1
Conversion.

 

(a)
Conversion. At any time following the date that is the earlier of (i) the date that is the six (6) month anniversary of the Issuance
Date or (ii) the date of effectiveness of a Registration Statement covering the applicable Conversion Shares (as set forth in the Purchase
Agreement), this Note shall be convertible (in whole or in part), at the option of the Holder, into such number of fully paid and non-assessable
shares of Common Stock as is determined by dividing (x) that portion of the Outstanding Principal Amount that the Holder elects to convert
(the “Conversion Amount”) by (y) the Conversion Price then in effect on the date on which the Holder delivers a notice
of conversion, in substantially the form attached hereto as Exhibit B (the “Conversion Notice”), in accordance
with Section 5.1 to the Maker. Any such conversion pursuant to this Section 3.1(a) shall be applied to reduce subsequent
Monthly Payments in reverse chronological order, i.e., those to be made on the latest date or dates following the date of conversion.
The Holder shall deliver this Note to the Maker at the address designated in the Purchase Agreement at such time that this Note is fully
converted. With respect to partial conversions of this Note, the Maker shall keep written records of the amount of this Note converted
as of the date of such conversion (each, a “Conversion Date”).

 

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(b)
Conversion Price. The “Conversion Price” means $5.00 and shall be subject to adjustment as provided herein.

 

3.2
Delivery of Conversion Shares. As soon as practicable after the occurrence of any event requiring the issuance of shares of Common
Stock issuable upon conversion of this Note (“Conversion Shares”), including with respect to repayment of principal
in Repayment Shares as permitted under this Note, and in any event within one (1) Business Day thereafter (such date, the “Share
Delivery Date”), the Maker shall, at its expense, cause to be issued in the name of and delivered to the Holder, or as the
Holder may direct, a certificate or certificates evidencing the number of fully paid and nonassessable shares of Common Stock to which
the Holder shall be entitled, in such denominations as may be requested by the Holder, which certificate or certificates shall be free
of restrictive and trading legends, except for any such legends as may be required under the Securities Act. In lieu of delivering physical
certificates for the shares of Common Stock issuable upon the occurrence of any event requiring the issuance of Conversion Shares in
accordance with this Note, provided the Company’s transfer agent is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer program or a similar program, upon request of the Holder, the Company shall cause its transfer agent
to electronically transmit such shares of Common Stock issuable to the Holder (or its designee), by crediting the account of the Holder’s
(or such designee’s) broker with DTC through its Deposit and Withdrawal At Custodian (“DWAC”) system (provided
that the same time periods herein as for stock certificates shall apply) as instructed by the Holder (or its designee); provided, that
such issuance shall only be made through DTC’s DWAC system if such Conversion Shares will be issued free of restrictive legends.

 

3.3
Ownership Cap. Notwithstanding anything to the contrary contained herein, the Holder shall not be entitled to receive shares representing
Equity Interests upon conversion of this Note, including with respect to repayment of principal in Repayment Shares as permitted under
this Note, to the extent (but only to the extent) that such exercise or receipt would cause the Holder Group (as defined below) to become,
directly or indirectly, a “beneficial owner” (within the meaning of Section 13(d) of the 1934 Act and the rules and regulations
promulgated thereunder) of a number of Equity Interests of a class that is registered under the 1934 Act which exceeds the Maximum Percentage
(as defined in the Purchase Agreement) of the Equity Interests of such class that are outstanding at such time. Any purported delivery
of Equity Interests in connection with the conversion of this Note prior to the termination of this restriction in accordance herewith
shall be void and have no effect to the extent (but only to the extent) that such delivery would result in the Holder Group becoming
the beneficial owner of more than the Maximum Percentage of the Equity Interests of a class that is registered under the 1934 Act that
is outstanding at such time. If any delivery of Equity Interests owed to the Holder following conversion of this Note is not made, in
whole or in part, as a result of this limitation, the Company’s obligation to make such delivery shall not be extinguished and
the Company shall deliver such Equity Interests as promptly as practicable after the Holder gives notice to the Company that such delivery
would not result in such limitation being triggered or upon termination of the restriction in accordance with the terms hereof. To the
extent limitations contained in this Section 3.3 apply, the determination of whether this Note is convertible and of which portion
of this Note is convertible shall be the sole responsibility and in the sole determination of the Holder, and the submission of a notice
of conversion shall be deemed to constitute the Holder’s determination that the issuance of the full number of Conversion Shares
requested in the notice of conversion is permitted hereunder, and the Company shall not have any obligation to verify or confirm the
accuracy of such determination. For purposes of this Section 3.3, (i) the term “Maximum Percentage” shall mean
4.99%; provided, that if at any time after the date hereof the Holder Group beneficially owns in excess of 4.99% of any class of Equity
Interests in the Company that is registered under the 1934 Act, then the Maximum Percentage shall automatically increase to 9.99% so
long as the Holder Group owns in excess of 4.99% of such class of Equity Interests (and shall, for the avoidance of doubt, automatically
decrease to 4.99% upon the Holder Group ceasing to own in excess of 4.99% of such class of Equity Interests); and (ii) the term “Holder
Group” shall mean the Holder plus any other Person with which the Holder is considered to be part of a group under Section
13 of the 1934 Act or with which the Holder otherwise files reports under Sections 13 and/or 16 of the 1934 Act. In determining the number
of Equity Interests of a particular class outstanding at any point in time, the Holder may rely on the number of outstanding Equity Interests
of such class as reflected in (x) the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission, as the case may be, (y) a more recent public announcement by the Company or (z) a more recent
notice by the Company or its transfer agent to the Holder setting forth the number of Equity Interests of such class then outstanding.
For any reason at any time, upon written or oral request of the Holder, the Company shall, within one (1) Business Day of such request,
confirm orally and in writing to the Holder the number of Equity Interests of any class then outstanding. The provisions of this Section
3.3 shall be construed, corrected and implemented in a manner so as to effectuate the intended beneficial ownership limitation herein
contained.

 

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3.4
Adjustment of Conversion Price.

 

(a)
Until the Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment from time to time as follows
(but shall not be increased, other than pursuant to Section 3.4(a)(i) hereof):

 

(i)
Adjustments for Stock Splits and Combinations. If the Maker shall at any time or from time to time after the Closing Date (but
whether before or after the Issuance Date) effect a split or other subdivision of the outstanding Common Stock, the applicable Conversion
Price in effect immediately prior to the stock or share split shall be proportionately decreased. If the Maker shall at any time or from
time to time after the Closing Date (but whether before or after the Issuance Date), combine the outstanding shares of Common Stock,
the applicable Conversion Price in effect immediately prior to the combination shall be proportionately increased. Any adjustments under
this Section 3.4(a)(i) shall be effective at the close of business on the date the stock split or combination occurs.

 

(ii)
Adjustments for Certain Dividends and Distributions. If the Maker shall at any time or from time to time after the Closing Date
(but whether before or after the Issuance Date) make or issue or set a record date for the determination of holders of Common Stock entitled
to receive a dividend or other distribution payable in shares of Common Stock, then, and in each event, the applicable Conversion Price
in effect immediately prior to such event shall be decreased as of the time of such issuance or, in the event such record date shall
have been fixed, as of the close of business on such record date, by multiplying the applicable Conversion Price then in effect by a
fraction:

 

(1)
the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date; and

 

(2)
the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend
or distribution.

 

(iii)
Adjustment for Other Dividends and Distributions. If the Maker shall at any time or from time to time after the Closing Date (but
whether before or after the Issuance Date) make or issue or set a record date for the determination of holders of Common Stock entitled
to receive a dividend or other distribution payable in other than shares of Common Stock, then, and in each event, an appropriate revision
to the applicable Conversion Price shall be made and provision shall be made (by adjustments of the Conversion Price or otherwise) so
that the Holder of this Note shall receive upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon,
the number of securities of the Maker or other issuer (as applicable) or cash or other property that it would have received had this
Note been converted into Common Stock in full (without regard to any conversion limitations herein) on the date of such event and had
thereafter, during the period from the date of such event to and including the Conversion Date, retained such securities (together with
any distributions payable thereon during such period) or assets, giving application to all adjustments called for during such period
under this Section 3.4(a)(iii) with respect to the rights of the holders of this Note; provided, however, that if such
record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor,
the Conversion Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions.

 

(iv)
Adjustments for Reclassification, Exchange or Substitution. If the Common Stock at any time or from time to time after the Closing
Date (but whether before or after the Issuance Date) shall be changed to the same or different number of shares or other securities of
any class or classes of stock or other property, whether by reclassification, exchange, substitution or otherwise (other than by way
of a stock split or combination of shares or stock dividends provided for in Sections 3.4(a)(i), (ii) and (iii) hereof, or a reorganization,
merger, consolidation, or sale of assets provided for in Section 3.4(a)(vii) hereof), then, and in each event, an appropriate
revision to the Conversion Price shall be made and provisions shall be made (by adjustments of the Conversion Price or otherwise) so
that the Holder shall have the right thereafter to convert this Note into the kind and amount of shares of stock or other securities
or other property receivable upon reclassification, exchange, substitution or other change, by holders of the number of shares of Common
Stock into which such Note might have been converted immediately prior to such reclassification, exchange, substitution or other change,
all subject to further adjustment as provided herein.

 

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(v)
Adjustments for Issuance of Additional Shares of Common Stock. In the event the Maker shall at any time or from time to time after
the Closing Date (but whether before or after the Issuance Date) issue or sell any additional shares of Common Stock (“Additional
Shares of Common Stock”), other than (A) as provided in this Note (including the foregoing subsections (i) through (iv) of
this Section 3.4(a)), pursuant to any Equity Plan (including pursuant to Common Stock Equivalents (as defined below) granted or
issued under any Equity Plan), (B) pursuant to Common Stock Equivalents granted or issued prior to the Closing Date, (C) Exempted Securities,
or (D) pursuant to the terms of this Note, in any case, at an effective price per share that is less than the Conversion
Price then in effect or without consideration, then the Conversion Price upon each such issuance shall be reduced to a price equal to
the consideration per share paid for such Additional Shares of Common Stock. For purposes of clarification, the amount of consideration
received for such Additional Shares of Common Stock shall not include the value of any additional securities or other rights received
in connection with such issuance of Additional Shares of Common Stock (i.e. warrants, rights of first refusal or other similar rights).

 

(vi)
Issuance, Amendment or Adjustment of Common Stock Equivalents. Except for Exempted Securities, if (x) the Maker, at any time after
the Closing Date (but whether before or after the Issuance Date), shall issue any securities convertible into or exercisable or exchangeable
for, directly or indirectly, Common Stock (“Convertible Securities”), or any rights or warrants or options to purchase
any such Common Stock or Convertible Securities, other than Common Stock Equivalents granted or issued under any Equity Plan (collectively
with the Convertible Securities, the “Common Stock Equivalents”) and the price per share for which shares of Common
Stock may be issuable pursuant to any such Common Stock Equivalent shall be less than the applicable Conversion Price then
in effect, or (y) the price per share for which shares of Common Stock may be issuable under any Common Stock Equivalents is amended
or adjusted, pursuant to the terms of such Common Stock Equivalents or otherwise, and such price as so amended or adjusted shall be less
than the applicable Conversion Price in effect at the time of such amendment or adjustment, then, in each such case (x) or (y), the applicable
Conversion Price upon each such issuance or amendment or adjustment shall be adjusted as provided in subsection (vi) of this Section
3.4(a) as if the maximum number of shares of Common Stock issuable upon conversion, exercise or exchange of such Common Stock Equivalents
had been issued on the date of such issuance or amendment or adjustment.

 

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(vii)
Consideration for Stock. In case any shares of Common Stock or any Common Stock Equivalents shall be issued or sold:

 

(1)
[Reserved].

 

(2)
in the event of any consolidation or merger of the Maker in which the Maker is not the surviving corporation or in which the previously
outstanding shares of Common Stock of the Maker shall be changed into or exchanged for the stock or other securities of another corporation
or other property, or in the event of any sale of all or substantially all of the assets of the Maker for stock, shares or other securities
or other property of any corporation, the Maker shall be deemed to have issued shares of its Common Stock, at a price per share equal
to the valuation of the Maker’s Common Stock based on the actual exchange ratio on which the transaction was predicated, as applicable,
and the fair market value on the date of such transaction of all such stock or securities or other property of the other corporation.
If any such calculation results in adjustment of the applicable Conversion Price, or the number of shares of Common Stock issuable upon
conversion of the Note, the determination of the applicable Conversion Price or the number of shares of Common Stock issuable upon conversion
of the Note immediately prior to such merger, consolidation or sale, shall be made after giving effect to such adjustment of the number
of shares of Common Stock issuable upon conversion of the Note. In the event Common Stock is issued with other shares or securities or
other assets of the Maker for consideration which covers both, the consideration computed as provided in this Section 3.4(a)(vii)
shall be allocated among such securities and assets as determined in good faith by the Board of Directors of the Maker, and approved
by the Holder.

 

(viii)
Record Date. In case the Maker shall take record of the holders of its Common Stock for the purpose of entitling them to subscribe
for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of Common Stock shall be deemed
to be such record date.

 

(b)
No Impairment. The Maker shall not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of
assets, consolidation, merger, 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 to be observed or performed hereunder by the Maker, but will at all times in good faith assist in
the carrying out of all the provisions of this Section 3.4 and in the taking of all such action as may be necessary or appropriate
in order to protect the conversion rights of the Holder against impairment. In the event the Holder shall elect to convert this Note
as provided herein, the Maker cannot refuse conversion based on any claim that the Holder or anyone associated or affiliated with the
Holder has been engaged in any violation of law, violation of an agreement to which the Holder is a party or for any reason whatsoever,
unless, an injunction from a court, or notice, restraining and or adjoining conversion of this Note shall have issued and the Maker posts
a surety bond for the benefit of the Holder in an amount equal to one hundred fifty percent (150%) of the Principal Amount of the Note
the Holder has elected to convert, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and
the proceeds of which shall be payable to the Holder (as liquidated damages) in the event it obtains judgment.

 

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(c)
Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of shares
of Common Stock issuable upon conversion of this Note pursuant to this Section 3.4, the Maker at its expense shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment
and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Maker shall, upon written request
of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth such adjustments and readjustments,
the applicable Conversion Price in effect at the time, and the number of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon the conversion of this Note. Notwithstanding the foregoing, the Maker shall not
be obligated to deliver a certificate unless such certificate would reflect an increase or decrease of at least one percent (1%) of such
adjusted amount.

 

(d)
Issue Taxes. The Maker shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that may be
payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided, however,
that the Maker shall not be obligated to pay any transfer taxes resulting from any transfer requested by the Holder in connection with
any such conversion.

 

(e)
Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of any fractional
shares to which the Holder would otherwise be entitled, the Maker shall pay cash equal such fractional shares multiplied by the Conversion
Price then in effect.

 

(f)
Reservation of Common Stock. The Maker shall at all times while this Note shall be outstanding, reserve and keep available out
of its authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to time be sufficient to effect
the conversion of this Note (disregarding for this purpose any and all limitations of any kind on such conversion). The Maker shall,
from time to time, use all commercially reasonable efforts to increase the authorized number of shares of Common Stock or take other
effective action if at any time the unissued number of authorized shares shall not be sufficient to satisfy the Maker’s obligations
under this Section 3.4(f).

 

(g)
Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note require registration
or listing with or approval of any governmental authority, stock exchange or other regulatory body under any federal or state law or
regulation or otherwise before such shares may be validly issued or delivered upon conversion, the Maker shall, at its sole cost and
expense, in good faith and as expeditiously as possible, secure such registration, listing or approval, as the case may be.

 

(h)
Effect of Events Prior to the Issuance Date. If the Issuance Date of this Note is after the Closing Date, then, if the Conversion
Price or any other right of the Holder of this Note would have been adjusted or modified by operation of any provision of this Note had
this Note been issued on the Closing Date, such adjustment or modification shall be deemed to apply to this Note as of the Issuance Date
as if this Note had been issued on the Closing Date.

 

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3.5
Prepayment Following a Change of Control.

 

(a)
Mechanics of Prepayment at Option of Holder in Connection with a Change of Control. No sooner than fifteen (15) days prior to
entry into an agreement for a Change of Control nor later than ten (10) days prior to the consummation of a Change of Control, but not
prior to the public announcement of such Change of Control, the Maker shall deliver written notice (“Notice of Change of Control”)
to the Holder. At any time after receipt of a Notice of Change of Control (or, in the event a Notice of Change of Control is not delivered
at least ten (10) days prior to a Change of Control, at any time within ten (10) days prior to a Change of Control), the Holder may require
the Maker to prepay, effective immediately prior to the consummation of such Change of Control, an amount equal to 105% of the Outstanding
Principal Amount(the “COC Repayment Price”), by delivering written notice thereof (“Notice of Prepayment
at Option of Holder Upon Change of Control”) to the Maker.

 

(b)
Payment of COC Repayment Price. Upon the Maker’s receipt of a Notice(s) of Prepayment at Option of Holder Upon Change of
Control from the Holder, the Maker shall deliver the COC Repayment Price to the Holder immediately prior to the consummation of the Change
of Control; provided that the Holder’s original Note shall have been so delivered to the Maker.

 

3.6
Inability to Fully Convert.

 

(a)
Holder’s Option if Maker Cannot Fully Convert. If, upon the Maker’s receipt of a Conversion Notice or as otherwise
required under this Note, including with respect to repayment of principal in Repayment Shares as permitted under this Note, the Maker
cannot issue shares of Common Stock for any reason, including, without limitation, because the Maker (x) does not have a sufficient number
of shares of Common Stock authorized and available or (y) is otherwise prohibited by applicable law or by the rules or regulations of
any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Maker or any of its
securities from issuing all of the Common Stock which is to be issued to the Holder pursuant to this Note, then the Maker shall issue
as many shares of Common Stock as it is able to issue and, with respect to the unconverted portion of this Note or with respect to any
shares of Common Stock not timely issued in accordance with this Note, the Holder, solely at Holder’s option, can elect to:

 

(i)
require the Maker to prepay that portion of this Note for which the Maker is unable to issue Common Stock or for which shares of Common
Stock were not timely issued (the “Mandatory Prepayment”) at a price equal to the number of shares of Common Stock
that the Maker is unable to issue multiplied by the VWAP on the date of the Conversion Notice (the “Mandatory Prepayment Price”);

 

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(ii)
void its Conversion Notice and retain or have returned, as the case may be, this Note that was to be converted pursuant to the Conversion
Notice (provided that the Holder’s voiding its Conversion Notice shall not affect the Maker’s obligations to make any payments
which have accrued prior to the date of such notice); or

 

(iii)
defer issuance of the applicable Conversion Shares until such time as the Maker can legally issue such shares; provided, that the Principal
Amount underlying such Conversion Shares shall remain outstanding until the delivery of such Conversion Shares; provided, further, that
if the Holder elects to defer the issuance of the Conversion Shares, it may exercise its rights under either clause (i) or (ii) above
at any time prior to the issuance of the Conversion Shares upon two (2) Business Days’ notice to the Maker.

 

(b)
Mechanics of Fulfilling Holder’s Election. The Maker shall immediately send to the Holder, upon receipt of a Conversion
Notice from the Holder, which cannot be fully satisfied as described in Section 3.6(a) above, a notice of the Maker’s inability
to fully satisfy the Conversion Notice (the “Inability to Fully Convert Notice”). Such Inability to Fully Convert
Notice shall indicate (i) the reason why the Maker is unable to fully satisfy the Holder’s Conversion Notice; and (ii) the amount
of this Note which cannot be converted. The Holder shall notify the Maker of its election pursuant to Section 3.6(a) above by
delivering written notice to the Maker (“Notice in Response to Inability to Convert”).

 

(c)
Payment of Mandatory Prepayment Price. If the Holder shall elect to have its Note prepaid pursuant to Section 3.6(a)(i)
above, the Maker shall pay the Mandatory Prepayment Price to the Holder within five (5) Business Days of the Maker’s receipt of
the Holder’s Notice in Response to Inability to Convert; provided that prior to the Maker’s receipt of the Holder’s
Notice in Response to Inability to Convert the Maker has not delivered a notice to the Holder stating, to the satisfaction of the Holder,
that the event or condition resulting in the Mandatory Prepayment has been cured and all Conversion Shares issuable to the Holder can
and will be delivered to the Holder in accordance with the terms of this Note. If the Maker shall fail to pay the applicable Mandatory
Prepayment Price to the Holder on the date that is one (1) Business Day following the Maker’s receipt of the Holder’s Notice
in Response to Inability to Convert, in addition to any remedy the Holder may have under this Note and the Purchase Agreement, such unpaid
amount shall bear interest at the rate of two percent (2%) per month (prorated for partial months) until paid in full. Until the full
Mandatory Prepayment Price is paid in full to the Holder, the Holder may (i) void the Mandatory Prepayment with respect to that portion
of the Note for which the full Mandatory Prepayment Price has not been paid and (ii) receive back such Note.

 

(d)
No Rights as Stockholder. Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the conversion
of this Note, the right to vote or to receive dividends or to consent or to receive notice as a stockholder in respect of any meeting
of stockholders for the election of directors of the Maker or of any other matter, or any other rights as a stockholder of the Maker.

 

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3.7
Compensation for Buy-In on Failure to Timely Deliver Conversion Shares. In addition to any other rights available to the Holder,
if the Company fails to cause its transfer agent to transmit to the Holder Conversion Shares or any other shares pursuant to a conversion,
including with respect to repayment of principal in Repayment Shares as permitted under this Note, on or before the Share Delivery Date,
and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the
Holder anticipated receiving upon such conversion (a “Buy-In”), then the Company shall (a) pay in cash to the Holder
the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the Common Stock
so purchased exceeds (y) the amount obtained by multiplying (1) the number of Conversion Shares that the Company was required to deliver
to the Holder in connection with the conversion at issue times (2) the price at which the sell order giving rise to such purchase obligation
was executed, and (b) at the option of the Holder, either reinstate the portion of the Note and equivalent number of Conversion Shares
for which such conversion was not honored (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number
of shares of Common Stock that would have been issued had the Company timely complied with its conversion and delivery obligations hereunder.
For example, if the Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted conversion of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under
clause (a) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue a decree of specific performance and/or injunctive relief with respect to
the Company’s failure to timely deliver shares of Common Stock s upon conversion of the Note as required pursuant to the terms
hereof.

 

ARTICLE
4

 

4.1
Covenants. For so long as any Note is outstanding, without the prior written consent of the Holder:

 

(a)
Compliance with Transaction Documents. The Maker shall, and shall cause its Subsidiaries to, comply with its obligations under
this Note and the other Transaction Documents.

 

(b)
Payment of Taxes, Etc. The Maker shall, and shall cause each of its Subsidiaries to, promptly pay and discharge, or cause to be
paid and discharged, when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the income,
profits, property or business of the Maker and the Subsidiaries, except for such failures to pay that, individually or in the aggregate,
have not had and would not reasonably be expected to have a Material Adverse Effect; provided, however, that any such tax, assessment,
charge or levy need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if
the Maker or such Subsidiaries shall have set aside on its books reserves with respect thereto in accordance with generally accepted
accounting principles, and provided, further, that the Maker and such Subsidiaries will pay all such taxes, assessments, charges or levies
forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefor.

 

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(c)
Corporate Existence. The Maker shall, and shall cause each of its Subsidiaries to, maintain in full force and effect its corporate
existence, rights and franchises (other than the existence, rights and franchises of the Subsidiaries of the Maker that the board of
directors of the Maker determine are no longer necessary or useful to the operation of the Maker’s business) and all licenses and
other rights to use property owned or possessed by it and reasonably deemed to be necessary to the conduct of its business.

 

(d)
Investment Company Act. The Maker shall conduct its businesses in a manner so that it will not become subject to, or required
to be registered under, the Investment Company Act of 1940, as amended.

 

(e)
Sale of Collateral; Liens. From the date hereof until the full release of the security interest in the Collateral, (i) the Maker
and its Subsidiaries shall not sell, lease, transfer or otherwise dispose of any of the Collateral or any of their other assets, or attempt
or contract to do so, other than sales of inventory in the ordinary course of business consistent with past practices; and (ii) the Maker
and its Subsidiaries shall not, directly or indirectly, create, permit or suffer to exist, and shall defend the Collateral and any of
their other assets against and take such other action as is necessary to remove, any lien, security interest or other encumbrance on
the Collateral or such other assets (except for the pledge, assignment and security interest created under the Security Agreements and
Permitted Liens).

 

(f)
Prohibited Transactions. The Company hereby covenants and agrees not to enter into any Prohibited Transactions until thirty (30)
days after such time as this Note has been converted into Conversion Shares or repaid in full.

 

(g)
Repayment of This Note. If (i) the Company or any Subsidiary issues any Indebtedness (other than this Note and the Permitted Senior
Debt), or issues any Preferred Stock, other than Exempted Securities, or (ii) the outstanding principal balance under all Line of Credit
Facilities exceeds the Permitted Senior Debt Cap at any time, then in either case, unless otherwise waived in writing by and at the discretion
of the Holder, the Company will (1) immediately utilize the proceeds of such issuance to repay this Note; provided, however,
notwithstanding the foregoing, (X) the Company shall not provide any additional credit support for the Lighthouse Facility; and (Y) until
such time as the Lighthouse Post Closing Event has occurred, (a) the Company shall not permit any Subsidiary to issue any additional
Indebtedness (or amend or otherwise modify the Lighthouse Documents as in effect on the date hereof to increase the size of the Lighthouse
Facility or to otherwise permit any Subsidiary or other Person to borrow any additional amounts thereunder than what exists on the date
hereof), and the only Indebtedness of the Subsidiaries shall be the Indebtedness arising under the Lighthouse Facility; and (b) the aggregate
principal amount outstanding under the Lighthouse Facility shall not exceed $2,750,000 at any time, and (2) if the Company issues any
Equity Interests other than Exempted Securities for aggregate proceeds of more than ten million dollars ($10,000,000), unless otherwise
waived in writing by and at the discretion of the Holder, the Company will direct twenty percent (20%) of the proceeds from such issuance
to repay this Note. Any such repayment of the Note shall be made with a 5% premium.

 

(h) Stockholder
Approval. If ninety percent (90%) of the average of the five (5) lowest daily VWAPs during the twenty (20) Trading Days prior to any
Payment Date is less than the Floor Price, then the Company shall, pursuant to Section 5.13 of the Purchase Agreement, hold a special
meeting of stockholders to obtain Stockholder Approval.

 

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4.2
Set-Off. This Note shall be subject to the set-off provisions set forth in the Purchase Agreement.

 

ARTICLE
5

 

5.1
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via email at the email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business
Day after the date of transmission, if such notice or communication is delivered via email at the email address specified in this Section
on a day that is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on
such date, (c) the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d)
upon actual receipt by the party to whom such notice is required to be given. The addresses for such notices and communications shall
be as set forth in the Purchase Agreement.

 

5.2
Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without
reference to principles of conflict of laws or choice of laws.

 

5.3
Headings. The headings herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof. The language used in this Note will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party. This Note shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Note.

 

5.4
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, at law or in equity (including, without limitation, a decree of specific
performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the provisions giving
rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages for any failure by the Maker to
comply with the terms of this Note. 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 thereof and shall not, except as expressly provided herein, be
subject to any other obligation of the Maker (or the performance thereof). The Maker acknowledges that a breach by it of its obligations
hereunder will cause irreparable and material harm to the Holder and that the remedy at law for any such breach would be inadequate.
Therefore, the Maker agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to
all other available rights and remedies, at law or in equity, to equitable relief, including but not limited to an injunction restraining
any such breach or threatened breach, without the necessity of showing economic loss and without any bond or other security being required.

 

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5.5
Enforcement Expenses. The Maker agrees to pay all costs and expenses of enforcement of this Note, including, without limitation,
reasonable attorneys’ fees and expenses.

 

5.6
Binding Effect. The obligations of the Maker and the Holder set forth herein shall be binding upon the successors and assigns
of each such party, whether or not such successors or assigns are permitted by the terms herein.

 

5.7
Amendments; Waivers. No provision of this Note may be waived or amended except in a written instrument signed by the Company and
the Holder. No waiver of any default with respect to any provision, condition or requirement of this Note shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.8
Compliance with Securities Laws. The Holder of this Note acknowledges that this Note is being acquired solely for the Holder’s
own account and not as a nominee for any other party, and for investment, and that the Holder shall not offer, sell or otherwise dispose
of this Note in violation of securities laws. This Note and any Note issued in substitution or replacement therefor shall be stamped
or imprinted with a legend in substantially the following form:

 

“THIS
NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.”

 

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5.9
Jurisdiction; Venue. Any action, proceeding or claim arising out of, or relating in any way to this Note shall be brought and
enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York.
The Company and the Holder irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive, and hereby waive
any objection to such exclusive jurisdiction or that such courts represent an inconvenient forum. The prevailing party in any such action
shall be entitled to recover its reasonable and documented attorneys’ fees and out-of-pocket expenses relating to such action or
proceeding.

 

5.10
Parties in Interest. This Note shall be binding upon, inure to the benefit of and be enforceable by the Maker, the Holder and
their respective successors and permitted assigns.

 

5.11
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.

 

5.12
Maker Waivers. Except as otherwise specifically provided herein, the Maker and all others that may become liable for all or any
part of the obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all other demands
and notices in connection with the delivery, acceptance, performance and enforcement of this Note, and do hereby consent to any number
of renewals of extensions of the time or payment hereof and agree that any such renewals or extensions may be made without notice to
any such persons and without affecting their liability herein and do further consent to the release of any person liable hereon, all
without affecting the liability of the other persons, firms or Maker liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY
JURY.

 

(a)
No delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto, shall
operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights on
any one occasion be deemed a waiver of the same right or rights on any future occasion.

 

(b)
THE MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE
LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS
MAY DESIRE TO USE.

 

5.13
Definitions. Capitalized terms used herein and not defined shall have the meanings set forth in the Purchase Agreement. For the
purposes hereof, the following terms shall have the following meanings:

 

(a)
“Convertible Securities” means any securities convertible into or exercisable or exchangeable for, directly or indirectly,
shares of Common Stock.

 

(b)
“Common Stock Equivalents” means any rights or warrants or options to purchase any shares of Common Stock or Convertible
Securities, other than rights or warrants or options to purchase any shares of Common Stock or Convertible Securities granted or issued
under any Equity Plan.

 

(c)
“Floor Price” means $1.50 per share.

 

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(d)
“Indebtedness” means, with respect
to the Maker or any Subsidiary: (a) all obligations for borrowed money; (b) all obligations evidenced by bonds, debentures, notes, or
other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, current swap
agreements, interest rate hedging agreements, interest rate swaps, or other financial products; (c) all capital lease obligations that
exceed $150,000 in the aggregate in any fiscal year; (d) all obligations or liabilities secured by a lien or encumbrance on any asset
of the Maker or any Subsidiary, irrespective of whether such obligation or liability is assumed; (e) all obligations for the deferred
purchase price of assets, together with trade debt and other accounts payable that exceed $150,000 in the aggregate in any fiscal year;
(f) all synthetic leases; (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed,
co-made, discounted or sold with recourse) any of the foregoing obligations of any other person; (h) trade debt; and (i) endorsements
for collection or deposit.

 

(e)
“Mandatory Default Amount” means
an amount equal to one hundred twenty percent (120%) of the Outstanding Principal Amount of this Note on the date on which the first
Event of Default has occurred hereunder.

 

(f)
“Market Capitalization” means,
as of any date of determination, the product of (a) the number of issued and outstanding shares of Common Stock as of such date (exclusive
of any shares of Common Stock issuable upon the exercise of options or warrants or conversion of any convertible securities), multiplied
by (b) the closing price of the Common Stock on the Trading Market on the date of determination.

 

(g)
“Outstanding Principal Amount”
means, at the time of determination, the Principal Amount outstanding after giving effect to any adjustments, conversions or prepayments
pursuant to the terms hereof.

 

(h)
“Repayment Shares” means shares
of Common Stock issued to the Holder by the Maker as payment for interest and/or the Principal Amount, pursuant to Section 1.3
of this Note.

 

(i)
“Repayment Share Price” means
ninety percent (90%) of the average of the five (5) lowest daily VWAPs during the twenty (20) Trading Days prior to the Payment Date;
provided however, that, if the Company has not yet obtained Stockholder Approval, the Repayment Share Price shall not be less than the
Floor Price.

 

(j)
“Trading Day” means a day on
which the Common Stock is traded on a Trading Market.

 

(k)
“VWAP” means, as of any date,
the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading
Market, the daily volume weighted average price of one share of Common Stock trading in the ordinary course of business on the applicable
Trading Price for such date (or the nearest preceding date) on such Trading Market as reported by Bloomberg Financial L.P.; (b) if the
Common Stock is not then listed on a Trading Market and if the Common Stock is traded in the over-the-counter market, as reported by
the OTCQX or OTCQB markets, the volume weighted average price of one share of Common Stock for such date (or the nearest preceding date)
on the OTCQX or OTCQB markets, as reported by Bloomberg Financial L.P.; (c) if the Common Stock is not then listed or quoted on a Trading
Market or on the OTCQX or OTCBQ markets and if prices for the Common Stock are then reported in the “Pink Sheets” published
by the OTC Markets Group (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price
of one share of Common Stock so reported, as reported by Bloomberg Financial L.P.; or (d) in all other cases, the fair market value of
one share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to
the Company.

 

[Signature
Pages Follow]

 

    	20

    	 

    

 

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

 

	 	BLUE
    STAR FOODS CORP.
	 	 	 
	 	By:	/s/
    John Keeler
	 	Name: 	John
    Keeler
	 	Title:	Chief
    Executive Officer

 

    	 

    	 

    

 

EXHIBIT
A

 

WIRE
INSTRUCTIONS

 

	Name
    of Bank: 	City
    National Bank
	 	400
    Park Avenue
	 	New
    York, NY 10022
	Routing
    #:	026-013-958
	For
    credit to:	Lind
    Global Fund II LP
	Account
    #:	072760182

 

    	 

    	 

    

 

EXHIBIT
B

 

FORM
OF CONVERSION NOTICE

 

(To
be Executed by the Registered Holder in order to Convert the Note)

 

The
undersigned hereby irrevocably elects to convert $ ________________ of the principal amount of the above Note No. ___ into shares of
Common Stock of Blue Star Foods Corp. (the “Maker”) according to the conditions hereof, as of the date written below.

 

Date
of Conversion:

 

Conversion
Price:

 

Number
of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the Conversion Date:

 

	 	[HOLDER]
	 	 	                 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

	 	Address:Exhibit
10.57

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (as amended, supplemented, restated and/or modified from time to time, this “Agreement”)
is entered into as of January 24, 2022, by and between Blue Star Foods Corp., a Delaware corporation (the “Company”),
and Lind Global Fund II LP, a Delaware limited partnership (the “Investor”).

 

BACKGROUND

 

A. The
board of directors (the “Board of Directors”) of the Company has authorized the issuance to Investor of the Note (as
defined below) and the Warrant (as defined below).

 

B The
Investor desires to purchase the Note and the Warrant on the terms and conditions set forth in this Agreement.

 

C. Concurrently
with (or, in the case of the Company’s Subsidiaries, and in accordance with the terms of this Agreement, after) the execution of
this Agreement, the Company, its Subsidiares and the Investor will enter into certain security agreements and guarantees, as listed on
Exhibit A (the “Security Documents”), pursuant to which (a) the Company will grant a first priority security
interest in substantially all of its assets to secure its obligations hereunder and under the other Transaction Documents; (b) to the
extent applicable, the Company’s Subsidiaries will guarantee all of the Company’s obligations under the Transaction Documents;
and (c) to the extent applicable, such Subsidiaries will grant a second priority security interest (junior in priority only to the Permitted
Senior Debt as defined herein) in substantially all of their respective assets to secure the Subsidiaries’ obligations under any
such guarantee.

 

NOW
THEREFORE, in consideration of the foregoing recitals and the covenants and agreements set forth herein, and intending hereby to be legally
bound, the Company and the Investor hereby agree as follows:

 

1.
DEFINITIONS. As used in this Agreement,
the following terms shall have the following meanings specified or indicated below, and such meanings shall be equally applicable to
the singular and plural forms of such defined terms:

 

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

 

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

 

“Acquisition”
means the acquisition by the Company or any direct or indirect Subsidiary of the Company of a majority of the Equity Interests or substantially
all of the assets and business of any Person, whether by direct purchase of Equity Interests, asset purchase, merger, consolidation or
like combination.

 

“Affiliate”
means a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control
with, the Person specified.

 

“Agreement”
has the meaning set forth in the preamble.

 

    	 

    	 

    

 

“Blue
Sky Application” has the meaning set forth in Section 9.3(a).

 

“Board
of Directors” has the meaning set forth in the recitals.

 

“Business
Day” means any day other than a Saturday, Sunday or any other day on which banks are permitted or required to be closed in
New York City.

 

“Capital
Stock” means the Common Stock, the Preferred Stock and any other classes of shares in the capital stock of the Company.

 

“Change
of Control” means, with respect to the Company, on or after the date of this Agreement:

 

	 	(a)	a
    change in the composition of the Board of Directors of the Company at a single shareholder meeting where a majority of the individuals
    that were directors of the Company immediately prior to the start of such shareholder meeting are no longer directors at the conclusion
    of such meeting, without prior written consent of the Investor;
	 	 	 
	 	(b)	a
    change, without prior written consent of the Investor, in the composition of the Board of Directors of the Company prior to the termination
    of this Agreement where a majority of the individuals that were directors as of the date of this Agreement cease to be directors
    of the Company prior to the termination of this Agreement;
	 	 	 
	 	(c)	other
    than a shareholder that holds such a position at the date of this Agreement, if a Person comes to have beneficial ownership, control
    or direction over more than forty percent (40%) of the voting rights attached to any class of voting securities of the Company; or
	 	 	 
	 	(d)	the
    sale or other disposition by the Company or any of its Subsidiaries in a single transaction, or in a series of transactions, of all
    or substantially all of their respective assets.

 

“Closing”
has the meaning set forth in Section 2.2.

 

“Closing
Date” has the meaning set forth in Section 2.2.

 

“Code”
has the meaning set forth in Section 2.1.

 

“Commitment
Fee” means an amount equal to One Hundred Fifty Thousand Dollars ($150,000).

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share.

 

“Company”
has the meaning set forth in the preamble.

 

    	2

    	 

    

 

“Company
Security Agreement” means that certain Security Agreement dated as of the date hereof by and between the Company and the Investor,
as the same may be amended, restated, modified and or supplemented from time to time in accordance with the terms thereof.

 

“Conversion
Shares” means the shares of Common Stock issuable upon the full or any partial conversion of the Note.

 

“Disclosure
Letter” has the meaning set forth in Section 3.

 

“Effectiveness
Period” has the meaning set forth in Section 9.2(a).

 

“Equity
Interests” means and includes capital stock, membership interests and other similar equity securities, and shall also include
warrants or options to purchase capital stock, membership interests or other equity interests.

 

“Event”
means any event, change, development, effect, condition, circumstance, matter, occurrence or state of facts.

 

“Event
of Default” has the meaning set forth in Section 7.1.

 

“Exempted
Securities” means (a) equity securities issued by reason of a dividend, stock split, split-up or other distribution on shares
of Common Stock, (b) shares of Common Stock or rights, warrants or options to purchase Common Stock issued to employees or directors
of, or consultants or advisors to, the Company or any of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the
Board of Directors (“Equity Plans”), or (c) shares of Common Stock actually issued upon the exercise of options, warrants
or shares of Common Stock actually issued upon the conversion or exchange of any securities convertible into Common Stock, in each case
issued to employees or directors of, or consultants or advisors to, the Company or any of its Subsidiaries pursuant to an Equity Plan
and provided that such issuance is pursuant to the terms of the applicable option, warrant or convertible security.

 

“Form
8-K” has the meaning set forth in Section 5.10.

 

“Funding
Amount” means an amount equal to Five Million Dollars ($5,000,000).

 

“Guarantor
Security Agreement” means that certain Security Agreement dated after the date hereof by and among the Company’s Subsidiaries
and the Investor, as the same may be amended, restated, modified and or supplemented from time to time in accordance with the terms thereof.

 

“Guaranty”
means that certain Guaranty dated after the date hereof from the Company’s Subsidiaries in favor of the Investor, as the same may
be amended, restated, modified and or supplemented from time to time in accordance with the terms thereof.

 

“HSR
Act” has the meaning set forth in Section 5.15.

 

“Indebtedness”
has the meaning set forth in the Note.

 

    	3

    	 

    

 

“Investor”
has the meaning set forth in the preamble.

 

“Investor
Group” shall mean the Investor plus any other Person with which the Investor is considered to be part of a group under Section
13 of the 1934 Act or with which the Investor otherwise files reports under Sections 13 and/or 16 of the 1934 Act.

 

“Investor
Party” has the meaning set forth in Section 5.11(a).

 

“Investor
Shares” means the Conversion Shares, the Warrant Shares, the Repayment Shares and any other shares issued or issuable to the
Investor pursuant to this Agreement, the Note or the Warrant.

 

“IP
Rights” has the meaning set forth in Section 3.10.

 

“Law”
means any law, rule, regulation, order, judgment or decree, including, without limitation, any federal and state securities Laws.

 

“Legend
Removal Date” shall have the meaning set forth in Section 5.1(c).

 

“Lighthouse
Documents” shall mean, collectively, (a) that Loan and Security Agreement dated as of March 31, 2021 by and among John Keeler
& Co. Inc., a Florida corporation, Coastal Pride Seafood, LLC, a Florida limited liability company and Lighthouse Financial Corp.
(as amended and in effect from time to time, the “Lighthouse Credit Agreement”); and (b) all other agreements executed in
connection therewith and which constitute a “Loan Document” under, and as defined in, the Lighthouse Credit Agreement.

 

“Lighthouse
Facility” shall mean the credit facility evidenced by the Lighthouse Documents as in effect on the date hereof.

 

“Lighthouse
Post Closing Event” shall mean the Investor having been satisfied that the following has occurred: (a) each of John Keeler
& Co. Inc., a Florida corporation, Coastal Pride Seafood, LLC, a Florida limited liability company and any other Subsidiary of the
Company party to a Lighthouse Document shall have executed and delivered to the Investor the Guaranty, the Guarantor Security Agreement
and any other document or agreement required thereby; and (b) Lighthouse Financial Corp. and the Investor shall have entered into an
intercreditor agreement in form and substance satisfactory to the Investor (which, for the avoidance of double, will not contain any
payment subordination provisions) which, among other things, permits the Company’s Subsidiaries to enter into the Guaranty and
the Guarantor Security Agreement.

 

“Line
of Credit Facility” means one or more credit facilities, whether existing on the date hereof or entered into after the date
hereof, between a Subsidiary of the Company and the applicable lender thereunder (the “Line of Credit Lender”), the
proceeds of which are used for such Subsidiary’s working capital purposes. “Line of Credit Facilities” is the
collective terms used for the Line of Credit Facility of all of the Subsidiaries. The parties acknowledge and agree that the Lighthouse
Facility is, as of the date hereof, a Line of Credit Facilitiy.

 

“Losses”
has the meaning set forth in Section 5.11(a).

 

    	4

    	 

    

 

“Material
Adverse Effect” means any material adverse effect on (i) the businesses, properties, assets, prospects, operations, results
of operations or financial condition of the Company, or the Company and the Subsidiaries, taken as a whole, or (ii) the ability of the
Company to consummate the transactions contemplated by this Agreement or to perform its obligations hereunder or under the Security Documents
to which it is a party, the Note or the Warrants or the ability of any Subsidiary to consummate the transactions contemplated by any
Security Document to which it is a party or to perform its obligations thereunder; provided, however, that none of the following
shall be deemed either alone or in combination to constitute, and none of the following shall be taken into account in determining whether
there has been or would be, a Material Adverse Effect: (a) any adverse effect resulting from or arising out of general economic conditions;
(b) any adverse effect resulting from or arising out of general conditions in the industries in which the Company and the Subsidiaries
operate; (c) any adverse effect resulting from any changes to applicable Law; or (d) any adverse effect resulting from or arising out
of any natural disaster or any acts of terrorism, sabotage, military action or war or any escalation or worsening thereof; provided,
further, that any event, occurrence, fact, condition or change referred to in clauses (a) through (d) immediately above shall
be taken into account in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the extent
that such event, occurrence, fact, condition or change has a disproportionate effect on the Company and/or the Subsidiaries compared
to other participants in the industries in which the Company and the Subsidiaries operate.

 

“Maximum
Percentage” means 4.99%; provided, that if at any time after the date hereof the Investor Group beneficially owns in
excess of 4.99% of any class of Equity Interests in the Company that is registered under the 1934 Act, then the Maximum Percentage shall
automatically increase to 9.99% so long as the Investor Group owns in excess of 4.99% of such class of Equity Interests (and shall, for
the avoidance of doubt, automatically decrease to 4.99% upon the Investor Group ceasing to own in excess of 4.99% of such class of Equity
Interests).

 

“Money
Laundering Laws” has the meaning set forth in Section 3.25.

 

“New
Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights,
options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become convertible or
exchangeable into or exercisable for such equity securities.

 

“Note”
has the meaning set forth in Section 2.1.

 

“Notice
Termination Time” has the meaning set forth in Section 10.2.

 

“Obligor”
means the Company and each of its Subsidiaries.

 

“OFAC”
has the meaning set forth in Section 3.23.

 

“Offer
Notice” has the meaning set forth in Section 10.1.

 

“Organizational
Documents” has the meaning set forth in Section 3.3.

 

    	5

    	 

    

 

“Permitted
Liens” means, with respect to the Company or any Subsidiary, any of the following: (a) mechanics and materialman Liens (as
such term is defined in the Security Agreement) and other statutory Liens (including Liens for taxes, fees, assessments and other governmental
charges or levies) in respect of any amount (i) which is not at the time overdue or (ii) which may be overdue but the validity of which
is being contested at the time in good faith by appropriate proceedings and for which the Company or such Subsidiary has maintained adequate
reserves, in each case so long as the holder of such Lien has not taken any action to foreclose or otherwise exercise any remedies with
respect to such Lien; (b) in the case of a Subsidiary, Liens in favor of a Line of Credit Lender which secures Permitted Senior Debt;
and (c) Liens which are permitted in writing by the Secured Party in its sole and absolute discretion.

 

“Permitted
Senior Debt” means Indebtedness of a Subsidiary under a Line of Credit Facility, so long as (a) the Company has not provided
a guarantee or other credit support with respect thereto (or, in the case of the Lighthouse Facility, to the extent the Company has provided
a guarantee or other credit support with respect thereto, the Company has not pledged any of its assets to secure such Indebtedness);
(b) the aggregate principal amount outstanding under all such Line of Credit Facilities does not exceed $5,000,000 at any time (the “Permitted
Senior Debt Cap”), provided, notwithstanding the foregoing, until such time as the Lighthouse Post Closing
Event has been satisfied, (i) the aggregate principal amount outstanding under the Lighthouse Facility shall not exceed $2,750,000 at
any time; (ii) there shall be no other Line of Credit Facilities in existence; and (iii) no Subsidiary shall incur any other additional
Indebtedness; (c) the Company has provided prior written notice to the Investor prior to any Subsidiary entering into any such Line of
Credit Facility (or, with respect to any Line of Credit Facility existing on the date hereof, has described such Line of Credit Facility
in the Company’s Disclosure Letter) and, to the extent requested by the Investor, copies of the loan documentation relating thereto;
and (d) other than with respect to the Lighthouse Facility, immediately upon such Subsidiary entering into any such Line of Credit Facility,
the applicable Line of Credit Lender and the Investor shall have entered into an intercreditor agreement in form and substance satisfactory
to the Investor (which, for the avoidance of double, will not contain any payment subordination provisions).

 

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

 

“Preferred
Stock” has the meaning set forth in Section 3.4(a).

 

“Prepayment
Right” has the meaning set forth in Section 2.4.

 

“Press
Release” has the meaning set forth in Section 5.10.

 

“Principal
Amount” has the meaning set forth in Section 2.1.

 

“Proceedings”
has the meaning set forth in Section 3.6.

 

“Prohibited
Transaction” means a transaction with a third party or third parties in which the Company issues or sells (or arranges or agrees
to issue or sell):

 

(a) any
debt, equity or equity-linked securities (including options or warrants) that are convertible into, exchangeable or exercisable for,
or include the right to receive shares of the Company’s Capital Stock:

 

(i) at
a conversion, repayment, exercise or exchange rate or other price that is based on, and/or varies with, a discount to the future trading
prices of, or quotations for, shares of Common Stock; or

 

    	6

    	 

    

 

(ii) at
a conversion, repayment, exercise or exchange rate or other price that is subject to being reset at some future date after the initial
issuance of such debt, equity or equity-linked security or upon the occurrence of specified or contingent events (other than warrants
that may be repriced by the Company); or

 

(b) any
securities in a capital or debt raising transaction or series of related transactions which grant to an investor the right to receive
additional securities based upon future transactions of the Company on terms more favorable than those granted to such investor in such
first transaction or series of related transactions;

 

and
are deemed to include transactions generally referred to as at-the-market transactions (ATMs) or equity lines of credit and stand-by
equity distribution agreements, and convertible securities and loans having a similar effect. Notwithstanding the foregoing, and for
the avoidance of doubt, rights issuances, shareholder purchase plans, Equity Plans, convertible securities, or issuances of Equity Interests,
based on (and not lower than) the trading price of the Common Stock on the Trading Market but each at a fixed price per share, shall
not be deemed to be a Prohibited Transaction.

 

“Prospectus”
means the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to
the terms of the offering of any portion of the Investor Shares covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus, and
any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

 

“register,”
“registered” and “registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of
such Registration Statement or document.

 

“Registration
Statement” means any registration statement of the Company filed under the 1933 Act that covers the resale of any of the Investor
Shares pursuant to the provisions of this Agreement, including the Prospectus and amendments and supplements to such Registration Statement,
and including post-effective amendments, all exhibits and all material incorporated by reference in such Registration Statement.

 

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

 

“SEC
Documents” has the meaning set forth in Section 3.5(a).

 

“Securities”
means the Note, the Warrant and the Investor Shares.

 

    	7

    	 

    

 

“Securities
Termination Event” means either of the following has occurred:

 

(a) trading
in securities generally in the United States has been suspended or limited for a consecutive period of greater than three (3) Business
Days; or

 

(b) a
banking moratorium has been declared by the United States or the New York State authorities and is continuing for a consecutive period
of greater than three (3) Business Days.

 

“Security
Agreements” means, collectively, the Company Security Agreement and the Guarantor Security Agreement and each, individually,
a “Security Agreement”.

 

“Security
Documents” has the meaning set forth in the recitals.

 

“Stockholder
Approval” shall mean the approval of the holders of a majority of the outstanding shares of the Company’s voting Common
Stock: (a) if and to the extent legally required, to amend the Company’s Certificate of Incorporation to increase the number of
authorized shares of Common Stock by at least the number of shares of Common Stock equal to the number of shares of Common Stock issuable
hereunder, or (b) to ratify and approve all of the transactions contemplated by the Transaction Documents, including the issuance of
all of the Investor Shares (as such term is defined in each of such documents) issued and potentially issuable to the Investor thereunder,
all as may be required by the applicable rules and regulations of the Trading Market (or any successor entity).

 

“Subsequent
Financing” has the meaning set forth in Section 10.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of
the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned,
or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Company.

 

“Trading
Day” means a day on which the Common Stock is traded on a Trading Market.

 

“Trading
Market” means whichever of the New York Stock Exchange, NYSE American, or the Nasdaq Stock Market (including the Nasdaq Capital
Market), on which the Common Stock is listed or quoted for trading on the date in question.

 

“Transaction
Documents” means this Agreement, the Security Documents, the Note, the Warrant and any other documents or agreements executed
or delivered in connection with the transactions contemplated hereunder.

 

    	8

    	 

    

 

“VWAP”
means, as of any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of one share of Common Stock trading in the ordinary course of
business at the applicable Trading Price for such date (or the nearest preceding date) on such Trading Market as reported by Bloomberg
Financial L.P.; (b) if the Common Stock is not then listed on a Trading Market and if the Common Stock is traded in the over-the-counter
market, as reported by the OTCQX or OTCQB Markets, the volume weighted average price of one share of Common Stock for such date (or the
nearest preceding date) on the OTCQX or OTCQB Markets, as reported by Bloomberg Financial L.P.; (c) if the Common Stock is not then listed
or quoted on a Trading Market or on the OTCQX or OTCQB Markets and if prices for the Common Stock are then reported in the “Pink
Sheets” published by the OTC Markets Group (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price of one share of Common Stock so reported, as reported by Bloomberg Financial L.P.; or (d) in all other cases,
the fair market value of one share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and
reasonably acceptable to the Company.

 

“Warrant”
has the meaning set forth in Section 2.1.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrant.

 

2.
PURCHASE AND SALE OF THE NOTE AND THE WARRANT

 

2.1
Purchase and Sale of the Note and the Warrant. Subject to the terms and conditions set forth herein, at the Closing, the Company
shall issue and sell to the Investor, and the Investor shall purchase from the Company, for the Funding Amount (a) a convertible promissory
note, in the form attached hereto as Exhibit B (the “Note”), in the principal amount of Five Million Seven
Hundred Fifty Thousand Dollars ($5,750,000) (the “Principal Amount”) and (b) a Common Stock purchase warrant, in the
form attached hereto as Exhibit C, registered in the name of the Investor, pursuant to which the Investor shall have the right
to acquire 1,000,000 shares of Common Stock (the “Warrant”). The Investor and the Company agree that for U.S. federal
income tax purposes and applicable state, local and non-U.S. tax purposes, the Funding Amount shall be allocable among the Note and the
Warrant based on the relative fair market values thereof. Neither the Investor nor the Company shall take any contrary position on any
tax return, or in any audit, claim, investigation, inquiry or proceeding in respect of taxes, unless otherwise required pursuant to a
final determination within the meaning of Section 1313 of the Internal Revenue Code of 1986, as amended (the “Code”),
or any analogous provision of applicable state, local or non-U.S. law.

 

2.2 Closing.
The closing hereunder, including payment for and delivery of the Note and the Warrant, shall take place remotely via the exchange of
documents and signatures, no later than 10 Business Days following the execution and delivery of this Agreement, subject to satisfaction
or waiver of the conditions set forth in Section 6, or at such other time and place as the Company and the Investor agree upon,
orally or in writing (the “Closing,” and the date of the Closing being the “Closing Date”).

 

    	9

    	 

    

 

2.3 Commitment
Fee. At the Closing, the Company shall pay to the Investor the Commitment Fee, in United States dollars and in immediately available
funds. The Commitment Fee shall be paid by being offset against the Funding Amount payable by the Investor at Closing.

 

2.4 Prepayment
Right. As set forth in the Note, in its sole discretion and upon giving the prior written notice set forth in the Note, the Company
will have the right to pre-pay the entire then-outstanding principal amount of the Note at any time (the “Prepayment Right”);
provided, that in the event that the Company elects to exercise its Prepayment Right, the Investor will have the option to convert
up to twenty-five percent (25%) of the Principal Amount of the Note, at a price per share equal to the lesser of the Repayment Share
Price or the Conversion Price (as each such term is defined in the Note).

 

2.5
Senior Obligation. As an inducement for the Investor to enter into this Agreement and to purchase the Note, all obligations
of (a) the Company pursuant to the Transaction Documents shall be secured by a first priority security interest in and lien upon substantially
all of the assets of the Company; and (b) each Subsidiary pursuant to the Transaction Documents to which it is a party shall be secured
by (i) with respect to any Subsidiary which has Permitted Senior Debt, so long as the Permitted Senior Debt remains outstanding and is
secured by the Permitted Liens, a second priority security interest in and lien upon substantially all of the assets of each Subsidiary
and, (ii) if such Subsidiary has no Permitted Senior Debt or the Permitted Senior Debt is no longer outstanding, or is no longer secured
by a Permitted Lien, then a first priority security interest in and lien upon substantially all of the assets of each Subsidiary. No
Subsidiary shall grant any Liens (as such term is defined in the Security Agreement) on any of its assets other than the Permitted Liens.

 

3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company represents and warrants to the Investor and covenants with the Investor that, except as is set forth in the Disclosure Letter
being delivered to the Investor as of the date hereof and as of the Closing Date (the “Disclosure Letter”), the following
representations and warranties are true and correct:

 

3.1
Organization and Qualification. The Company is a corporation duly organized and validly existing in good standing under the
Laws of the State of Delaware and has the requisite corporate power and authority to own its properties and to carry on its business
as now being conducted. The Company is duly qualified to do business and is in good standing (if a good standing concept exists in such
jurisdiction) in every jurisdiction in which the ownership of its property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

 

3.2
Authorization; Enforcement; Compliance with Other Instruments. The Company and each of its Subsidiaries (as applicable) has
the requisite corporate or other organizational power and authority to execute the Transaction Documents to which it is a party, to issue
and sell the Note and the Warrant pursuant hereto (in the case of the Company), and to perform its obligations under the Transaction
Documents to which it is a party, including issuing the Investor Shares on the terms set forth in this Agreement. The execution and delivery
of the Transaction Documents by the Company and, as applicable, its Subsidiaries and the issuance and sale of the Securities by the Company
pursuant hereto, including without limitation the reservation of the Investor Shares for future insuance, have been duly and validly
authorized by the Company’s Board of Directors and any similar governing body of a Subsidiary and no further consent or authorization
is required by the Company, its Subsidiaries, their respective Board of Directors or other governing bodies, their respective stockholders
or any other Person in connection therewith. The Transaction Documents have been duly and validly executed and delivered by the Obligors
party thereto and constitute valid and binding obligations of each Obligor, enforceable against such Obligor in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally, the enforcement of creditors’ rights
and remedies.

 

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3.3
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and its Subsidiaries (as
applicable) and the issuance and sale of the Note and the Warrant hereunder will not (a) conflict with or result in a violation of the
Company’s Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws, or any Subsidiary’s
organizational and governing documents (collectively, the “Organizational Documents”), (b) conflict with, or constitute
a material default (or an event which, with notice or lapse of time or both, would become a material default) under, or give to others
any right of termination, amendment, acceleration or cancellation of, any material agreement to which the Company or any of the Subsidiaries
is a party, or (c) subject to the making of the filings referred to in Section 5, violate in any material respect any Law or any
rule or regulation of the Trading Market applicable to the Company or any of the Subsidiaries or by which any of their properties or
assets are bound or affected. Assuming the accuracy of the Investor’s representations in Section 4 and subject to the making
of the filings referred to in Section 5, (i) no approval or authorization will be required from any governmental authority or
agency, regulatory or self-regulatory agency or other third party (including the Trading Market) in connection with the issuance of the
Note and the Warrant and the other transactions contemplated by this Agreement (including the issuance of the Investor Shares) and (ii)
the issuance of the Note and the Warrant, and the issuance of the Investor Shares, as applicable, will be exempt from the registration
and qualification requirements under the 1933 Act and all applicable state securities Laws.

 

3.4
Capitalization and Subsidiaries.

 

(a) The
authorized Capital Stock of the Company consists of 100,000,000 shares of Common Stock and 5,000,000 shares of preferred stock to be
designated by the Board of Directors (the “Preferred Stock”). As of the close of business on September 30, 2021, 23,352,730
shares of Common Stock and no shares of Preferred Stock were issued and outstanding; and since September 30, 2021, and through the date
of this Agreement, the Company has issued 1,333,777 additional shares of Common Stock and no additional shares of Preferred Stock. As
of September 30, 2021, (i) no shares of Common Stock are issuable upon exercise of options granted under the 2018 Equity Incentive Plan,
and (ii) 1,853,250 shares of Common Stock are reserved for issuance upon exercise of outstanding warrants with exercise prices ranging
from $2.00 to $2.40 per share. The Company has duly reserved up to 1,150,000 shares of Common Stock, subject to adjustment pursuant to
the terms of the Note, for issuance upon conversion of the Note and has duly reserved up to 1,000,000 shares of Common Stock, subject
to adjustment pursuant to the terms of the Warrant, for issuance upon exercise of the Warrant. The Conversion Shares, when issued upon
conversion of the Note in accordance with its terms, the Warrant Shares, if and when issued upon exercise of the Warrants in accordance
with its terms, and the Repayment Shares, when issued upon repayment of the Note in accordance with its terms, will be validly issued,
fully paid and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. No shares of the Company’s
Capital Stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the
Company. The Company’s Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws, on file
on the SEC’s EDGAR website are true and correct copies of the Amended and Restated Certificate of Incorporation, as amended, and
Amended and Restated Bylaws as in effect as of the date of hereof. The Company is not in violation of any provision of its Organizational
Documents.

 

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(b) Schedule
3.4(b) lists each direct and indirect Subsidiary of the Company existing on the date hereof and indicates for each Subsidiary (i)
the authorized capital stock or other Equity Interests of such Subsidiary as of the date hereof, (ii) the number and kind of shares or
other ownership interests of such Subsidiary that are issued and outstanding as of the date hereof, and (iii) the owner of such shares
or other ownership interests. No Subsidiary has any outstanding stock options, warrants or other instruments pursuant to which such Subsidiary
may at any time or under any circumstances be obligated to issue any shares of its capital stock or other Equity Interests. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary. No Subsidiary has any outstanding
stock options, warrants or other instruments pursuant to which such Subsidiary may at any time or under any circumstances be obligated
to issue any shares of its capital stock or other Equity Interests. Each Subsidiary is duly organized and validly existing in good standing
under the laws of its jurisdiction of formation (if a good standing concept exists in such jurisdiction) and has all requisite power
and authority to own its properties and to carry on its business as now being conducted.

 

(c) Neither
the Company nor any Subsidiary is bound by any agreement or arrangement pursuant to which it is obligated to register the sale of any
securities under the 1933 Act. There are no outstanding securities of the Company or any of the Subsidiaries which contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to redeem or purchase any security of the Company or any Subsidiary. There are no outstanding securities or instruments
containing anti-dilution or similar provisions that will be triggered by the issuance of the Note, the Warrant or the Investor Shares.
Neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar
plan or agreement.

 

(d) The
issuance and sale of any of the Securities will not obligate the Company to issue shares of Common Stock or other securities, or to satisfy
any related contractual obligations, to any other Person and will not result in the adjustment of the exercise, conversion, exchange,
or reset price of any outstanding securities.

 

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(e) As
of the date of this Agreement, the Company has capacity under the rules and regulations of the Trading Market to issue up to 75,328,682
shares of Common Stock (or securities convertible into or exercisable for Common Stock) without obtaining Stockholder Approval, subject
to Nasdaq Rule 5635.

 

3.5
SEC Documents; Financial Statements.

 

(a) As
of the date hereof, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits
included therein and financial statements and schedules thereto and documents incorporated by reference therein being hereinafter referred
to as the “SEC Documents”). As of their respective filing dates, the SEC Documents complied in all material respects
with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

(b) As
of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with generally accepted accounting principles, and audited by a firm that is a member a member
of the Public Companies Accounting Oversight Board consistently applied, during the periods involved (except as may be otherwise indicated
in such financial statements or the notes thereto, or, in the case of unaudited interim statements, to the extent they may exclude footnotes
or may be condensed or summary statements) and fairly present in all material respects the consolidated financial position of the Company
as of the dates thereof and the consolidated results of its operations and consolidated cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments). No other written information provided by or on behalf of
the Company to the Investor in connection with the Investor’s purchase of the Note and the Warrant which is not included in the
SEC Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstance under which they are or were made, not misleading.

 

(c) The
Company and each of the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain
asset accountability, (iii) reasonable controls to safeguard assets are in place and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

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3.6
Litigation and Regulatory Proceedings. There are no material actions, causes of action, suits, claims, proceedings, inquiries
or investigations (collectively, “Proceedings”) before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the executive officers of Company or any of the Subsidiaries, threatened against
or affecting the Company or any of the Subsidiaries, the Common Stock or any other class of issued and outstanding shares of the Company’s
Capital Stock, or any of the Company’s or the Subsidiaries’ officers or directors in their capacities as such and, to the
knowledge of the executive officers of the Company, there is no reason to believe that there is any basis for any such Proceeding.

 

3.7
No Undisclosed Events, Liabilities or Developments. No event, development or circumstance has occurred or exists, or to the
knowledge of the executive officers of the Company is reasonably anticipated to occur or exist that (a) would reasonably be anticipated
to have a Material Adverse Effect or (b) would be required to be disclosed by the Company under applicable securities Laws on a registration
statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced.

 

3.8
Compliance with Law. The Company and each of the Subsidiaries have conducted and are conducting their respective businesses
in compliance in all material respects with all applicable Laws and are in compliance in all material respects with the rules and regulations
of the Trading Market. The Company is not aware of any facts which could reasonably be anticipated to lead to have the effect of delisting
the Common Stock from the Trading Market, nor has the Company received any notification that the Trading Market is currently contemplating
terminating such listing.

 

3.9
Employee Relations. Neither the Company nor any Subsidiary is involved in any union labor dispute nor, to the knowledge of
the Company, is any such dispute threatened. Neither the Company nor any Subsidiary is a party to any collective bargaining agreement.
No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company’s
employ or otherwise terminate such officer’s employment with the Company.

 

3.10
Intellectual Property Rights. The Company and each Subsidiary owns or possesses adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and other intellectual property rights (collectively, “IP Rights”) necessary
to conduct their respective businesses as now conducted. None of the material IP Rights of the Company or any of the Subsidiaries are
expected to expire or terminate within three (3) years from the date of this Agreement. Neither the Company nor any Subsidiary is infringing,
misappropriating or otherwise violating any IP Rights of any other Person. No claim has been asserted, and no Proceeding is pending,
against the Company or any Subsidiary alleging that the Company or any Subsidiary is infringing, misappropriating or otherwise violating
the IP Rights of any other Person, and, to the Company’s knowledge, no such claim or Proceeding is threatened, and the Company
is not aware of any facts or circumstances which might give rise to any such claim or Proceeding. The Company and the Subsidiaries have
taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their material IP Rights.

 

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3.11
Environmental Laws. Except, in each case, as would not be reasonably anticipated to have a Material Adverse Effect, the Company
and the Subsidiaries (a) are in compliance with any and all applicable Laws relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or contaminants, (b) have received and hold all permits, licenses
or other approvals required of them under all such Laws to conduct their respective businesses and (c) are in compliance with all terms
and conditions of any such permit, license or approval.

 

3.12
Title to Assets. The Company and the Subsidiaries have good and marketable title to all personal property owned by them which
is material to their respective businesses, in each case free and clear of all liens, encumbrances and defects other than, with respect
to any Subsidiary, the Permitted Liens. Any real property and facilities held under lease by the Company or any Subsidiary are held under
valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and the Subsidiaries.

 

3.13
Insurance. The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses
in which the Company and the Subsidiaries are engaged. Neither the Company nor any of the Subsidiaries has been refused any insurance
coverage sought or applied for, and the Company has no reason to believe that it will not be able to renew all existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers.

 

3.14
Regulatory Permits. The Company and the Subsidiaries have in full force and effect all certificates, approvals, authorizations
and permits from all regulatory authorities and agencies necessary to own, lease or operate their respective properties and assets and
conduct their respective businesses, and neither the Company nor any Subsidiary has received any notice of Proceedings relating to the
revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations
or permits with respect to which the failure to hold would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

3.15
No Materially Adverse Contracts, Etc. Neither the Company nor any of the Subsidiaries is (a) subject to any charter, corporate
or other legal restriction, or any judgment, decree or order which in the judgment of the Company’s officers has or is expected
in the future to have a Material Adverse Effect or (b) a party to any contract or agreement which in the judgment of the Company’s
management has or would reasonably be anticipated to have a Material Adverse Effect.

 

    	15

    	 

    

 

3.16
Taxes. The Company and the Subsidiaries each has made or filed, or caused to be made or filed, all United States federal and
other material tax returns, reports and declarations required by any jurisdiction to which it is subject and has paid all taxes and other
governmental assessments and charges that are material in amount, required to be paid by it, regardless of whether such amounts are shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith by appropriate proceedings
and for which it has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the
periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction.

 

3.17 Solvency.
After giving effect to the receipt by the Company of the proceeds from the transactions contemplated by this Agreement (a) the Company’s
fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing
debts and other liabilities (including known contingent liabilities) as they mature; and (b) the current cash flow of the Company, together
with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of
the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company
does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash
to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that
it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction.

 

3.18 Investment
Company. The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

3.19
Certain Transactions. Other than as disclosed in the SEC Documents, there are no contracts, transactions, arrangements or
understandings between the Company or any of its Subsidiaries, on the one hand, and any director, officer or employee thereof on the
other hand, that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the SEC in the Company’s
Form 10-K or proxy statement pertaining to an annual meeting of stockholders.

 

3.20
No General Solicitation. Neither the Company, nor any of its Affiliates, nor any person acting on its behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale
of the Note or the Warrant pursuant to this Agreement.

 

3.21
Acknowledgment Regarding the Investor’s Purchase of the Note and the Warrant. The Company’s Board of Directors
has approved the execution of the Transaction Documents and the issuance and sale of the Note and the Warrant, based on its own independent
evaluation and determination that the terms of the Transaction Documents are reasonable and fair to the Company and in the best interests
of the Company and its stockholders. The Company and each of its Subsidiaries are entering into this Agreement and the Security Documents
to which they are party, and the Company is issuing and selling the Note and the Warrant, voluntarily and without economic duress. The
Company has had independent legal counsel of its own choosing review the Transaction Documents and advise the Company with respect thereto.
The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm’s length purchaser with respect
to the Note and the Warrant and the transactions contemplated hereby and that neither the Investor nor any person affiliated with the
Investor is acting as a financial advisor to, or a fiduciary of, the Company (or in any similar capacity) with respect to execution of
the Transaction Documents or the issuance of the Note and the Warrant or any other transaction contemplated hereby.

 

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3.22
No Brokers’, Finders’ or Other Advisory Fees or Commissions. No brokers, finders or other similar advisory fees
or commissions will be payable by the Company or any Subsidiary or by any of their respective agents with respect to the issuance of
the Note or any of the other transactions contemplated by this Agreement.

 

3.23 OFAC.
None of the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or person acting on behalf of the Company and/or any Subsidiary has been or is currently subject to any United States sanctions administered
by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”); and the Company
will not directly or indirectly use any proceeds received from the Investor, or lend, contribute or otherwise make available such proceeds
to its Subsidiaries or to any affiliated entity, joint venture partner or other person or entity, to finance any investments in, or make
any payments to, any country or person currently subject to any of the sanctions of the United States administered by OFAC.

 

3.24 No
Foreign Corrupt Practices. None of the Company or any of the Subsidiaries has, directly or indirectly: (a) made or authorized any
contribution, payment or gift of funds or property to any official, employee or agent of any governmental authority of any jurisdiction
except as otherwise permitted under applicable Law; or (b) made any contribution to any candidate for public office, in either case,
where either the payment or the purpose of such contribution, payment or gift was, is, or would be prohibited under the Foreign Corrupt
Practices Act or the rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering
a similar subject matter applicable to the Company or its Subsidiaries and their respective operations and the Company has instituted
and maintained policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance
with such legislation.

 

3.25 Anti-Money
Laundering. The operations of each of the Company and the Subsidiaries are and have been conducted at all times in compliance with
all applicable anti-money laundering laws, regulations, rules and guidelines in its jurisdiction of incorporation and in each other jurisdiction
in which such entity, as the case may be, conducts business (collectively, the “Money Laundering Laws”) and no action,
suit or proceeding by or before any court or governmental authority involving the Company or its Subsidiaries with respect to any of
the Money Laundering Laws is, to the knowledge of the Company, pending, threatened or contemplated.

 

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3.26 Disclosure.
The Company confirms that neither it, nor to its knowledge, any other Person acting on its behalf has provided the Investor or its agents
or counsel with any information that the Company believes constitutes material, non-public information. The Company understands and confirms
that the Investor will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All
disclosures provided to the Investor regarding the Company, its business and the transactions contemplated hereby, furnished by or on
behalf of the Company (including the Company’s representations and warranties set forth in this Agreement) are true and correct
in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.
The Investor represents and warrants to the Company as follows:

 

4.1
Organization and Qualification. The Investor is a limited partnership, duly organized and validly existing in good standing
under the laws of the State of Delaware.

 

4.2
Authorization; Enforcement; Compliance with Other Instruments. The Investor has the requisite power and authority to enter
into this Agreement and the Security Agreement, to purchase the Note and the Warrant and to perform its obligations under the Transaction
Documents. The execution and delivery of the Transaction Documents to which it is a party have been duly and validly authorized by the
Investor’s governing body and no further consent or authorization is required. The Transaction Documents to which it is a party
have been duly and validly executed and delivered by the Investor and constitute valid and binding obligations of the Investor, enforceable
against the Investor in accordance with their terms, except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors’ rights and remedies.

 

4.3
No Conflicts. The execution, delivery and performance of the Transaction Documents to which it is a party by the Investor
and the purchase of the Note and the Warrant by the Investor will not (a) conflict with or result in a violation of the Investor’s
organizational documents, (b) conflict with, or constitute a material default (or an event which, with notice or lapse of time or both,
would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
material agreement, contract, indenture mortgage, indebtedness or instrument to which the Investor is a party, or (c) violate in any
material respect any Law applicable to the Investor or by which any of the Investor’s properties or assets are bound or affected.
No approval or authorization will be required from any governmental authority or agency, regulatory or self-regulatory agency or other
third party in connection with the purchase of the Note and the Warrant and the other transactions contemplated by this Agreement.

 

4.4
Investment Intent; Accredited Investor. The Investor is purchasing the Note and the Warrant for its own account, for investment
purposes, and not with a view towards distribution. The Investor is an “accredited investor” as such term is defined in Rule
501(a) of Regulation D of the 1933 Act. The Investor has, by reason of its business and financial experience, such knowledge, sophistication
and experience in financial and business matters and in making investment decisions of this type that it is capable of (a) evaluating
the merits and risks of an investment in the Note, the Warrant and the Investor Shares and making an informed investment decision, (b)
protecting its own interests and (c) bearing the economic risk of such investment for an indefinite period of time.

 

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4.5
No Other Representations. Except for the representations and warranties set forth in this Agreement and in other Transaction
Documents, the Investor makes no other representations or warranties to the Company.

 

5.
OTHER AGREEMENTS OF THE PARTIES.

 

5.1 Legends,
etc.

 

(a) Securities
may only be disposed of pursuant to an effective registration statement under the 1933 Act, to the Company or pursuant to an available
exemption from or in a transaction not subject to the registration requirements of the 1933 Act, and in compliance with any applicable
state securities laws.

 

(b) Certificates
evidencing the Securities will contain the following legend, so long as is required by this Section 5.1(b) or Section 5.1(c):

 

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

 

The
Company acknowledges and agrees that the Investor may from time to time pledge, and/or grant a security interest in some or all of the
Securities, in accordance with applicable securities laws, pursuant to a bona fide margin agreement in connection with a bona fide margin
account and, if required under the terms of such agreement or account, the Investor may transfer pledged or secured Securities to the
pledgees or secured parties. Such a pledge or transfer would not be subject to approval or consent of the Company and no legal opinion
of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may
be required in connection with a subsequent transfer following default by the Investor transferee of the pledge. No notice shall be required
of such pledge. At the Company’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured
party of Securities may reasonably request in connection with a pledge or transfer of the Securities including the preparation and filing
of any required prospectus supplement under Rule 424(b)(3) of the 1933 Act or other applicable provision of the 1933 Act to appropriately
amend the list of selling shareholders thereunder.

 

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(c) Certificates
evidencing the Investor Shares shall not contain any legend (including the legend set forth in Section 5.1(b)): (i) while a Registration
Statement is effective under the 1933 Act, (ii) following any sale of such Investor Shares pursuant to Rule 144, (iii) while such Investor
Shares are eligible for sale without restriction under Rule 144(k), or (iv) if such legend is not required under applicable requirements
of the 1933 Act (including judicial interpretations and pronouncements issued by the Staff of the SEC). The Company shall cause its counsel
to issue any legal opinion or instruction required by the Company’s transfer agent to comply with the requirements set forth in
this Section. At such time as a legend is no longer required for the Investor Shares under this Section 5.1(c), the Company will,
no later than three (3) Business Days following the delivery by the Investor to the Company or the Company’s transfer agent of
a certificate representing Investor Shares containing a restrictive legend (such third Business Day, the “Legend Removal Date”),
deliver or cause to be delivered to the Investor a certificate representing such Investor Shares that is free from all restrictive and
other legends. In addition to any other remedies available to the Investor, the Company shall pay to the Investor, in cash, as partial
liquidated damages and not as a penalty, for each $1,000 of Investor Shares (based on the VWAP of the Common Stock on the date such Investor
Shares are submitted to the Company or the Company’s transfer agent) delivered for removal of the restrictive or other legend,
$5 per Trading Day for each Trading Day after the Legend Removal Date until such Investor Shares are delivered without a legend. The
Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions
on transfer set forth in this Section except as it may reasonably determine are necessary or appropriate to comply or to ensure compliance
with those applicable laws that are enacted or modified after the Closing.

 

5.2 Furnishing
of Information. As long as the Investor owns the Securities, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the 1934 Act. As long as the Investor owns the Securities, if the Company is not required to file reports pursuant to such laws, it will
prepare and furnish to the Investor and make publicly available in accordance with Rule 144(c) such information as is required for the
Investor to sell the Investor Shares under Rule 144. The Company further covenants that it will take such further action as any holder
of the Securities may reasonably request, all to the extent required from time to time to enable such Person to sell such Investor Shares
without registration under the 1933 Act within the limitation of the exemptions provided by Rule 144 or other applicable exemptions.

 

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5.3 Integration.
The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with
the offer or sale of the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities
to the Investor, or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any
Trading Market that would require, under the rules of the Trading Market, the Stockholder Approval.

 

5.4 Notification
of Certain Events. The Company shall give prompt written notice to the Investor of (a) the occurrence or non-occurrence of any Event,
the occurrence or non-occurrence of which would render any representation or warranty of the Company contained in this Agreement or any
other Transaction Document, if made on or immediately following the date of such Event, untrue or inaccurate in any material respect,
(b) the occurrence of any Event that, individually or in combination with any other Events, has had or could reasonably be expected to
have a Material Adverse Effect, (c) any failure of the Company to comply with or satisfy any covenant or agreement to be complied with
or satisfied by it hereunder or any Event that would otherwise result in the nonfulfillment of any of the conditions to the Investor’s
obligations hereunder, (d) any written notice or other written communication from any Person alleging that the consent of such Person
is or may be required in connection with the consummation of the transactions contemplated by this Agreement or any other Transaction
Document, (e) any Proceeding pending or, to the Company’s knowledge, threatened against a party relating to the transactions contemplated
by this Agreement or any other Transaction Document, (f) any Subsidiary entering into a Line of Credit Facility (provided, such notice
shall be delivered not less than ten (10) days prior to such Subsidiary entering into such Line of Credit Facility), and (g) any default,
alleged default, breach or alleged breach by any Subsidiary under any Line of Credit Facility, or any proposed amendment thereto (prior
to the date such amendment will be entered into) or any action a Line of Credit Facility Lender has taken, or provided notice of its
intention to take, with respect to any Subsidiary’s assets.

 

5.5
Available Stock. The Company shall at all times keep authorized and reserved and available for issuance, free of preemptive
rights, such number of shares of Common Stock equal to the number of Investor Shares as are issuable upon repayment or conversion in
full of the Note and exercise in full of the Warrant at any time. If the Company determines at any time that it does not have a sufficient
number of authorized shares of Common Stock to reserve and keep available for issuance as described in this Section 5.5, the Company
shall use all commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking Stockholder Approval
for the authorization of such additional shares.

 

5.6
Use of Proceeds. The Company will use the proceeds from the sale of the Note and the Warrant for general working capital purposes.

 

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5.7 Repayment
of Note. Other than as set forth on Schedule 5.7 hereto (which shall include all Indebtedness owing under all Line of Credit Facilities
existing on the Closing Date), neither the Company nor any Subsidiary has any Indebtedness. Neither the Company nor any Subsidiary shall
make any voluntary cash prepayments on any Indebtedness at any time while any amounts are owing under the Note other than cash payments
the Company or such Subsidiary, as applicable, is required to make pursuant to the express terms thereof existing on the date hereof.
If (i) the Company or any Subsidiary issues any Indebtedness other than the Permitted Senior Debt, or issues any Preferred Stock, other
than Exempted Securities, or (ii) the outstanding principal balance under all Line of Credit Facilities exceeds the Permitted Senior
Debt Cap at any time, then in either case, unless otherwise waived in writing by and at the discretion of the Investor, the Company will
immediately utilize the proceeds of such issuance (or cause such Subsidiary to immediately utilize the proceeds of such issuance) to
repay the Note; provided, however, notwithstanding the foregoing, (1) the Company shall not provide any additional credit
support for the Lighthouse Facility; and (2) until such time as the Lighthouse Post Closing Event has occurred, (x) the Company shall
not permit any Subsidiary to issue any additional Indebtedness (or amend or otherwise modify the Lighthouse Documents as in effect on
the date hereof to increase the size of the Lighthouse Facility or to otherwise permit any Subsidiary or other Person to borrow any additional
amounts thereunder than what exists on the date hereof), and the only Indebtedness of the Subsidiaries shall be the Indebtedness arising
under the Lighthouse Facility; and (y) the aggregate principal amount outstanding under the Lighthouse Facility shall not exceed $2,750,000
at any time. If the Company issues any Equity Interests, other than Exempted Securities, for aggregate proceeds to the Company of greater
than $10,000,000, excluding offering costs or other expenses, unless otherwise waived in writing by and at the discretion of the Investor,
the Company will direct 20% of such proceeds from such issuance to repay the Note.

 

5.8 Intercreditor
Agreement. In the event that (a) the Company or any Subsidiary incurs Indebtedness or issues convertible debt securities to a seller
as partial consideration paid to such seller in connection with an Acquisition, unless otherwise waived in writing by the Investor, as
a condition to consummation of such Acquisition, the holder of such Indebtedness or convertible debt securities shall enter into an intercreditor
agreement with the Company and the Investor on terms reasonably satisfactory to the Investor; and (b) any Subsidiary incurs any Permitted
Senior Debt after the date hereof or otherwise amends or modifies the Lighthouse Documents in any respect, as a condition to the incurrence
of such Permitted Senior Debt, the Line of Credit Lender, such Subsidiary and the Investor shall enter into an intercreditor agreement
on terms reasonably satisfactory to the Investor.

 

5.9 Prohibited
Transactions. The Company hereby covenants and agrees not to enter into any Prohibited Transactions without the Investor’s
prior written consent, until the later of (a) thirty (30) days after such time as the Note has been repaid in full, as applicable, and/or
has been converted into Conversion Shares and (b) the date on which the Investor ceases to hold any shares of Common Stock or have the
right to acquire any shares of Common Stock.

 

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5.10 Securities
Laws Disclosure; Publicity. The Company shall, by 9:00 a.m. (New York City time) on the Trading Day immediately following the date
hereof, issue a press release disclosing the material terms of the transactions contemplated hereby (the “Press Release”),
and shall, within four (4) days following the date hereof, file a Current Report on Form 8-K (the “Form 8-K”) disclosing
the material terms of the transactions contemplated hereby and including this Agreement as an exhibit thereto; provided, that the Company
may not issue the Press Release without the Investor’s prior written consent. The Company shall provide a copy of the draft Form
8-K to the Investor for review prior to release and the Company shall incorporate the Investor’s reasonable comments. The Company
shall not issue any press release nor otherwise make any such public statement regarding the Investor or the Transaction Documents without
the prior written consent of the Investor, except if such disclosure is made in a manner consistent with the Press Release or Form 8-K,
or is required by law, in which case the Company shall (a) ensure that such disclosure is restricted and limited in content and scope
to the maximum extent permitted by Law to meet the relevant disclosure requirement and (b) provide a copy of the proposed disclosure
to the Investor for review prior to release and the Company shall incorporate the Investor’s reasonable comments. Following the
execution of this Agreement, the Investor and its Affiliates and/or advisors may place announcements on their respective corporate websites
and in financial and other newspapers and publications (including, without limitation, customary “tombstone” advertisements)
describing the Investor’s relationship with the Company under this Agreement in a manner consistent with the Press Release or Form
8-K and including the name and corporate logo of the Company. Notwithstanding anything herein to the contrary, to comply with United
States Treasury Regulations Section 1.6011-4(b)(3)(i), each of the Company and the Investor, and each employee, representative or other
agent of the Company or the Investor, may disclose to any and all persons, without limitation of any kind, the U.S. federal and state
income tax treatment, and the U.S. federal and state income tax structure, of the transactions contemplated hereby and all materials
of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment and tax structure
insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to such recipient.

 

5.11 Indemnification
of the Investor.

 

(a) The
Company will indemnify and hold the Investor, its Affiliates and their respective directors, officers, managers, shareholders, members,
partners, employees and agents and permitted successors and assigns (each, an “Investor Party”) harmless from any
and all damages, losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation and defense (collectively, “Losses”)
that any such Investor Party may suffer or incur as a result of or relating to:

 

(i) any
breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any Transaction Document;

 

(ii) any
misrepresentation made by the Company in any Transaction Document or in any SEC Document;

 

(iii) any
omission to state any material fact necessary in order to make the statements made in any SEC Document, in light of the circumstances
under which they were made, not misleading;

 

(iv) any
Proceeding before or by any court, public board, government agency, self-regulatory organization or body based upon, or resulting from
the execution, delivery, performance or enforcement of any of the Transaction Documents or the consummation of the transactions contemplated
thereby, and whether or not the Investor is party thereto by claim, counterclaim, crossclaim, as a defendant or otherwise, or if such
Proceeding is based upon, or results from, any of the items set forth in clauses (i) through (iii) above.

 

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(b) In
addition to the indemnity contained herein, the Company will reimburse each Investor Party for its reasonable legal and other expenses
(including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses
are incurred.

 

(c) The
provisions of this Section 5.11 shall survive the termination or expiration of this Agreement.

 

5.12 Non-Public
Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide the Investor
or its agents or counsel with any information that the Company believes constitutes material, non-public information. To the extent the
Company provides the Investor with material, non-public information, the Company shall publicly disclose such information within forty
eight (48) hours of providing the information to the Investor; provided, however, in the event that such material non-public information
is provided to Investor pursuant to Section 10, the Company shall publicly disclose such information within twenty (20) Business
Days of providing the information to the Investor. The Company understands and confirms that the Investor shall be relying on the foregoing
representation in effecting transactions in securities of the Company.

 

5.13 Stockholder
Approval. If required by the rules and regulations of the Trading Market or to otherwise fulfill any of its obligations under the
Transaction Documents, the Company shall hold a special meeting of stockholders (which may also be at the annual meeting of stockholders)
on or before the 60th calendar day following the date hereof for the purpose of obtaining the Stockholder Approval; provided, however,
such sixty (60) calendar days shall be increased to ninety (90) calendar days in the event the Company receives comments to its proxy
statement from the SEC, with the recommendation of the Board of Directors that such proposal be approved, and the Company shall solicit
proxies from its stockholders in connection therewith in the same manner as all other management proposals in such proxy statement and
all management-appointed proxyholders shall vote their proxies in favor of such proposal. If the Company does not obtain Stockholder
Approval at the first meeting, the Company shall call a meeting every four months thereafter to seek Stockholder Approval until the date
the Stockholder Approval is obtained.

 

5.14 Listing
of Securities. The Company shall: (a) in the time and manner required by each Trading Market on which the Common Stock is listed,
prepare and file with such Trading Market a Listing of Additional Shares form covering the Investor Shares, (b) take all steps necessary
to cause such shares to be approved for listing on each Trading Market on which the Common Stock is listed as soon as possible thereafter,
(c) provide to the Investor evidence of such Trading Market’s completion of review of the Listing of Additional Shares form, and
(d) maintain the listing of such shares on each such Trading Market.

 

5.15 Antitrust
Notification. If the Investor determines, in its sole judgment and upon the advice of counsel, that the issuance of the Note, the
Warrant or the Investor Shares pursuant to the terms hereof would be subject to the provisions of the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”), the Company shall file as soon as practicable after the date on which the
Company receives notice from the Investor of the applicability of the HSR Act and a request to so file with the United States Federal
Trade Commission and the United States Department of Justice the notification and report form required to be filed by it pursuant to
the HSR Act in connection with such issuance.

 

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5.16 Change
of Prime Broker, Custodian. The Investor has informed the Company of the names of its prime broker and its share custodian. The Investor
shall notify the Company of any change in its prime broker or share custodian within three (3) Business Days of such change having taken
effect.

 

5.17 Share
Transfer Agent. The Company has informed the Investor of the name of its share transfer agent and represents and warrants that the
transfer agent participates in the Depository Trust Company Fast Automated Securities Transfer program. The Company shall not change
its share transfer agent without the prior written consent of the Investor.

 

5.18 Tax
Treatment. The Investor and the Company agree that for U.S. federal income tax purposes, and applicable state, local and non-U.S.
income tax purposes, the Note is not intended to be, and shall not be, treated as indebtedness. Neither the Investor nor the Company
shall take any contrary position on any tax return, or in any audit, claim, investigation, inquiry or proceeding in respect of taxes,
unless otherwise required pursuant to a final determination within the meaning of Section 1313 of the Code, or any analogous provision
of applicable state, local or non-U.S. law.

 

5.19 Set-Off.

 

(a) The
Investor may set off any of its obligations to the Company (whether or not due for payment), against any of the Company’s obligations
to the Investor (whether or not due for payment) under this Agreement and/or any other Transaction Document.

 

(b) The
Investor may do anything necessary to effect any set-off undertaken in accordance with this Section 5.19 (including varying the
date for payment of any amount payable by the Investor to the Company).

 

5.20 Ongoing
Compliance with Laws. The Company and each of the Subsidiaries shall (a) conduct their respective businesses in compliance in all
material respects with all applicable Laws and (b) take all steps necessary to ensure that their continued performance of the Transaction
Documents and their obligations thereunder do not violate in any material respect any Law or any rule or regulation of the Trading Market
applicable to the Company or any of the Subsidiaries or by which any of their properties or assets are bound or affected.

 

5.21 Foreign
Subsidiaries. To the extent so requested by the Investor, the Company shall, promptly upon such Investor’s request, cause any
Subsidiary organized in any jurisdiction outside of the United States of America, to execute and deliver guarantees and security documents
as the Investor reasonably determines is necessary to provide an enforceable guaranty and grant of security interest under all applicable
local laws and to perfect the Investor’s security interest in all such Subsidiary’s assets.

 

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6. CLOSING
CONDITIONS

 

6.1 Conditions
Precedent to the Obligations of the Investor. The obligations of the Investor to fund the Note and acquire the Warrant are subject
to the satisfaction or waiver by the Investor, at or before the Closing, of each of the following conditions:

 

(a) Required
Documentation. The Company must have delivered to the Investor copies of all resolutions duly adopted by the Board of Directors of
the Company, or any such other documentation of the Company approving the Agreement, the Transaction Documents and any of the transactions
contemplated hereby or thereby;

 

(b) Consents
and Permits. The Company must have obtained and delivered to the Investor copies of all necessary permits, approvals, and registrations
necessary to effect this Agreement, the Transaction Documents and any of the transactions contemplated hereby or thereby, including pursuant
to Section 3.14 of this Agreement;

 

(c) Trading
Market Approval. The Company shall have either (i) obtained and delivered to the Investor copies of all necessary Trading Market
approvals for the issuance of the Note, the Warrant, and the Investor Shares, as applicable, or (ii) submitted a Listing of Additional
Shares Notification Form with the Trading Market relating to the issuance of the Note, the Warrant, and the Investor Shares, as applicable;

 

(d) No
Event(s) of Default. The Investor must be of the reasonable opinion that no Event of Default has occurred and no Event of Default
would result from the execution of this Agreement or any of the Transaction Documents or the transactions contemplated hereby or thereby;

 

(e) Representations
and Warranties. The representations and warranties of (a) the Company contained herein and (b) the Company and each Subsidiary contained
in any of the Security Documents shall, in each case, be true and correct in all material respects as of the date when made and as of
such Closing as though made on and as of such date;

 

(f) Performance.
The Company and each Subsidiary shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to such Closing;

 

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

 

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(h) No
Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock shall not have been suspended by the SEC or any Trading
Market (except for any suspensions of trading of not more than one day on which the Trading Market is open solely to permit dissemination
of material information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock shall
have been at all times since such date listed for trading on a Trading Market;

 

(i) Limitation
on Beneficial Ownership. The issuance of the Note and the Warrant shall not cause the Investor Group to become, directly or indirectly,
a “beneficial owner” (within the meaning of Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder)
of a number of Equity Interests of a class that is registered under the 1934 Act which exceeds the Maximum Percentage of the Equity Interests
of such class that are outstanding at such time;

 

(j) Perfection
of Security Interest. The Investor shall have, to its satisfaction, perfected the security interest granted in the assets and collateral
of the Company and, to the extent applicable, its Subsidiaries described in the applicable Security Agreements and, other than with respect
to the Lighthouse Facility, entered into all intercreditor agreements with all Line of Credit Lenders with respect to all Permitted Senior
Debt existing on the Closing Date as contemplated herein.

 

(k) Funds
Flow Request. The Company shall have delivered to the Investor a flow of funds request, substantially in the form set out in Exhibit
D.

 

6.2 Conditions
Precedent to the Obligations of the Company. The obligations of the Company to issue the Note and the Warrant are subject to the
satisfaction or waiver by the Company, at or before the Closing, of each of the following conditions:

 

(a) Representations
and Warranties. The representations and warranties of the Investor contained herein shall be true and correct in all material respects
as of the date when made and as of the Closing Date as though made on and as of such date;

 

(b) Performance.
The Investor shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Investor at or prior to the Closing; and

 

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

 

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7. EVENTS
OF DEFAULT

 

7.1 Events
of Default. The occurrence of any of the following events shall be an “Event of Default” under this Agreement:

 

(a) an
Event of Default (as defined in the Note);

 

(b) any
of the representations or warranties made by the Company, any Subsidiary or any of its agents, officers, directors, employees or representatives
in any Transaction Document or public filing being inaccurate, false or misleading in any material respect, as of the date as of which
it is made or deemed to be made, including as of any Closing Date, or any certificate or financial or other written statements furnished
by or on behalf of the Company or any Subsidiary to the Investor or any of its representatives, is inaccurate, false or misleading, in
any material respect, as of the date as of which it is made or deemed to be made, including as of any Closing Date; or

 

(c) a
failure by the Company to comply with any of its covenants or agreements set forth in this Agreement, including those set forth in Section
9.

 

7.2 Investor
Right to Investigate an Event of Default. If in the Investor’s reasonable opinion, an Event of Default has occurred, or is
or may be continuing:

 

(a) the
Investor may notify the Company that is wishes to investigate such purported Event of Default;

 

(b) the
Company shall cooperate with the Investor in such investigation;

 

(c) the
Company shall comply with all reasonable requests made by the Investor to the Company in connection with any investigation by the Investor
and shall (i) provide all information requested by the Investor in relation to the Event of Default to the Investor; provided that the
Investor agrees that any materially price sensitive information and/or non-public information will be subject to confidentiality, and
(ii) provide all such requested information within three (3) Business Days of such request; and

 

(d) the
Company shall pay all reasonable costs incurred by the Investor in connection with any such investigation.

 

7.3 Remedies
Upon an Event of Default

 

(a) If
an Event of Default occurs pursuant to Section 7.1(a), the Investor shall have such remedies as are set forth in the Note.

 

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(b) If
an Event of Default occurs pursuant to Section 7.1(b) or Section 7.1(c) and is not remedied within (i) two (2) Business
Days for an Event of Default occurring by the Company’s or any Subsidiary’s failure to comply with Section 7.1(c),
or (ii) five (5) Business Days for an Event of Default occurring pursuant to Section 7.1(b), the Investor may declare, by notice
to the Company or the applicable Subsidiary, effective immediately, all outstanding obligations by the Company or the applicable Subsidiary
under the Transaction Documents to be immediately due and payable in immediately available funds and the Investor shall have no obligation
to consummate any Closing under this Agreement or to accept the conversion of any Note into Conversion Shares.

 

(c) If
any Event of Default occurs and is not remedied within (i) two (2) Business Days for an Event of Default occurring by the Company’s
failure to comply with Section 7.1(c), or (ii) five (5) Business Days for an Event of Default occurring pursuant to Section
7.1(b), the Investor may, by written notice to the Company, terminate this Agreement effective as of the date set forth in the Investor’s
notice.

 

8. TERMINATION

 

8.1 Events
of Termination. This Agreement:

 

(a) may
be terminated:

 

(i) by
the Investor on the occurrence or existence of a Securities Termination Event or a Change of Control;

 

(ii) by
the mutual written consent of the Company and the Investor, at any time;

 

(iii) by
either Party, by written notice to the other Party, effective immediately, if the Closing has not occurred within ten (10) Business Days
of the date specified by this Agreement or such later date as the Company and the Investor agree in writing, provided that the right
to terminate this Agreement under this Section 8.1(a)(iii) is not available to any party that is in material breach of or material
default under this Agreement or whose failure to fulfill any obligation under this Agreement has been the principal cause of, or has
resulted in the failure of the Closing to occur; or

 

(iv) by
the Investor, in accordance with Section 7.3(c).

 

8.2 Automatic
Termination. This Agreement will automatically terminate, without further action by the parties, at the time after the Closing Date
that the Principal Amount outstanding under the Note and any accrued but unpaid interest is reduced to zero (0), whether as a result
of Conversion or repayment by the Company in accordance with the terms of this Agreement and the Note.

 

8.3 Effect
of Termination.

 

(a) Subject
to Section 8.3(b), each party’s right of termination under Section 8.1 is in addition to any other rights it may
have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies.

 

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(b) If
the Investor terminates this Agreement under Section 8.1(a)(i):

 

(i) the
Investor may declare, by notice to the Company, all outstanding obligations by the Company under the Transaction Documents to be due
and payable (including, without limitation, the immediate repayment of any Principal Amounts outstanding under the Notes plus accrued
but unpaid interest) without presentment, demand, protest or any other notice of any kind all of which are expressly waived by the Company,
anything to the contrary contained in this Agreement or in any other Transaction Document notwithstanding; and

 

(ii) the
Company must within five (5) Business Days of such notice being received, pay to the Investor in immediately available funds the outstanding
Principal Amount for the Note plus all accrued interest thereon (if any), unless the Investor terminates this Agreement as a result of
an Event of Default and provided that (A) subsequent to the termination under Section 8.1(a)(i), the Investor is not prohibited
by Law or otherwise from exercising its conversion rights pursuant to this Agreement or the Note, (B) the Investor actually exercises
its conversion rights under this Agreement or the Note, and (C) the Company otherwise complies in all respects with its obligation to
issue Investor Shares in accordance with the Note and the Warrant (which obligation will survive termination).

 

(c) Upon
termination of this Agreement, the Investor will not be required to fund any further amount after the date of termination of the Agreement,
provided that termination will not affect any undischarged obligation under this Agreement, and any obligation of the Company to pay
or repay any amounts owing to the Investor hereunder and which have not been repaid at the time of termination.

 

(d) Nothing
in this Agreement will be deemed to release any party from any liability for any breach by such party of the terms and provisions of
this Agreement or to impair the right of any party to compel specific performance by any other Party of its obligations under this Agreement.

 

9. REGISTRATION
RIGHTS

 

9.1 Registration.

 

(a) Registration
Statement. Promptly, but in any event no later than ninety (90) days from the date of this Agreement, the Company shall prepare and
file with the SEC a Registration Statement covering the resale of all of the Investor Shares. The foregoing Registration Statement shall
be filed on Form S-1 or Form S-3 or any successor forms thereto. The Registration Statement (and each amendment or supplement thereto,
and each request for acceleration of effectiveness thereof) shall be provided to the Investor and its counsel at least five (5) Business
Days prior to its filing or other submission and the Company shall incorporate all reasonable comments provided by the Investor or its
counsel.

 

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(b) Expenses.
Except as otherwise expressly provided herein, the Company will pay all fees and expenses incident to the performance of or compliance
with this Section 9, including all fees and expenses associated with effecting the registration of the Investor Shares, including
all filing and printing fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Investor
Shares for sale under applicable state securities laws, listing fees, fees and expenses of one counsel to the Investor and the Investor’s
reasonable expenses in connection with the registration, but excluding discounts, commissions, fees of underwriters, selling brokers,
dealer managers or similar securities industry professionals with respect to the Investor Shares being sold.

 

(c) Effectiveness.
The Company shall use its best efforts to have the Registration Statement declared effective as soon as practicable after filing thereof
but in no event later than the date that is one hundred eighty (180) days following the Closing Date. To the extent the Registration
Statement is not declared effective within one hundred eighty (180) days following the Closing Date, it shall be an immediate Event of
Default under this Agreement. The Company shall notify the Investor by e-mail as promptly as practicable, and in any event, within twenty-four
(24) hours, after the Registration Statement is declared effective and shall simultaneously provide the Investor with copies of any related
Prospectus to be used in connection with the sale or other disposition of the securities covered thereby.

 

(d) Piggyback
Registration Rights. If the Company at any time determines to file a registration statement under the 1933 Act to register the offer
and sale, by the Company, of Common Stock (other than (x) on Form S-4 or Form S-8 under the 1933 Act or any successor forms thereto,
(y) an at-the-market offering, or (z) a registration of securities solely relating to an offering and sale to employees or directors
of the Company pursuant to any employee stock plan or other employee benefit plan arrangement), the Company shall, as soon as reasonably
practicable, give written notice to the Investor of its intention to so register the offer and sale of Common Stock and, upon the written
request, given within five (5) Business Days after delivery of any such notice by the Company, of the Investor to include in such registration
the Investor Shares (which request shall specify the number of Investor Shares proposed to be included in such registration), the Company
shall cause all such Investor Shares to be included in such registration statement on the same terms and conditions as the Common Stock
otherwise being sold pursuant to such registered offering.

 

9.2 Company
Obligations. The Company will use its efforts to effect the registration of the Investor Shares in accordance with the terms hereof,
and pursuant thereto the Company will, as expeditiously as possible:

 

(a) use
its commercially reasonable efforts to cause the Registration Statement to become effective and to remain continuously effective for
a period that will terminate upon the first date on which all Investor Shares are either covered by the Registration Statement or may
be sold without restriction, including volume or manner-of-sale restrictions, pursuant to Rule 144 or have been sold by the Investor
(the “Effectiveness Period”) and advise the Investor in writing when the Effectiveness Period has expired;

 

    	31

    	 

    

 

(b) prepare
and file with the SEC such amendments and post-effective amendments and supplements to the Registration Statement and the Prospectus
as may be necessary to keep the Registration Statement effective for the Effectiveness Period and to comply with the provisions of the
1933 Act and the 1934 Act with respect to the distribution of all of the Investor Shares covered thereby;

 

(c) provide
copies to and permit counsel designated by the Investor to review all amendments and supplements to the Registration Statement no fewer
than three (3) Business Days prior to its filing with the SEC and not file any document to which such counsel reasonably objects;

 

(d) furnish
to the Investor and its legal counsel, without charge, (i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company (but not later than two (2) Business Days after the filing date, receipt date or sending date, as the
case may be) one copy of the Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment
or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence
from the SEC or the staff of the SEC, in each case relating to the Registration Statement (other than any portion of any thereof which
contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a Prospectus, including
a preliminary prospectus, and all amendments and supplements thereto and such other documents as the Investor may reasonably request
in order to facilitate the disposition of the Investor Shares that are covered by the related Registration Statement;

 

(e) immediately
notify the Investor of any request by the SEC for the amending or supplementing of the Registration Statement or Prospectus or for additional
information;

 

(f) use
its commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such
order is issued, obtain the withdrawal of any such order at the earliest possible moment and notify the Company of the issuance of any
such order and the resolution thereof, or its receipt of notice of the initiation or threat of any proceeding for such purpose;

 

(g) prior
to any public offering of Investor Shares, use its commercially reasonable efforts to register or qualify or cooperate with the Investor
and its counsel in connection with the registration or qualification of such Investor Shares for offer and sale under the securities
or blue sky laws of such jurisdictions requested by the Investor and do any and all other commercially reasonable acts or things necessary
or advisable to enable the distribution in such jurisdictions of the Investor covered by the Registration Statement and the Company shall
promptly notify the Investor of any notification with respect to the suspension of the registration or qualification of any of such Investor
Shares for sale under the securities or blue sky laws of such jurisdictions or its receipt of notice of the initiation or threat of any
proceeding for such purpose;

 

    	32

    	 

    

 

(h) immediately
notify the Investor, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any event
as a result of which, the Registration Statement or Prospectus includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of the Prospectus,
in light of the circumstances in which they were made), and promptly prepare, file with the SEC and furnish to such holder a supplement
to or an amendment of such Registration Statement or Prospectus as may be necessary so that such Registration Statement or Prospectus
shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading (in the case of such Prospectus, in light of the circumstances in which they were made);

 

(i) otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act;

 

(j) hold
in confidence and not make any disclosure of information concerning the Investor provided to the Company unless (i) disclosure of such
information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to complete
the Registration Statement or to avoid or correct a misstatement or omission in the Registration Statement, (iii) the release of such
information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any
other agreement, and upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information; and

 

(k) take
all other reasonable actions necessary to expedite and facilitate disposition by the Investor of all Investor Shares pursuant to the
Registration Statement.

 

    	33

    	 

    

 

9.3 Indemnification.

 

(a) Indemnification
by the Company. The Company will indemnify and hold harmless the Investor Parties, from and against any Losses to which they may
become subject under the 1933 Act or otherwise, arising out of, relating to or based upon: (i) any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement, any preliminary Prospectus, final Prospectus or other document,
including any Blue Sky Application (as defined below), or any amendment or supplement thereof or any omission or alleged omission of
a material fact required to be stated therein or, in the case of the Registration Statement, necessary to make the statements therein
not misleading or, in the case of any preliminary Prospectus, final Prospectus or other document, necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading; (ii) any Blue Sky Application or other document executed by the
Company specifically for that purpose or based upon written information furnished by the Company filed in any state or other jurisdiction
in order to qualify any or all of the Investor Shares under the securities laws thereof (any such application, document or information
herein called a “Blue Sky Application”); (iii) any violation or alleged violation by the Company or its agents of
the 1933 Act, the 1934 Act or any similar federal or state law or any rule or regulation promulgated thereunder applicable to the Company
or its agents and relating to any action or inaction required of the Company in connection with the registration or the offer or sale
of the Investor Shares pursuant to any Registration Statement; or (iv) any failure to register or qualify the Investor Shares included
in any such Registration Statement in any state where the Company or its agents has affirmatively undertaken or agreed in writing that
the Company will undertake such registration or qualification on the Investor’s behalf and will reimburse the Investor Indemnified
Parties for any legal or other expenses reasonably incurred by them in connection with investigating, preparing or defending any such
Losses; provided, however, that the Company will not be liable in any such case if and to the extent, but only to the extent,
that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by the Investor or any such controlling Person in writing specifically for use in such
Registration Statement or Prospectus.

 

(b) Conduct
of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim, action, suit or proceeding with respect to which it seeks indemnification following such Person’s receipt of,
or such Person otherwise becoming aware of, the commencement of such claim, action, suit or proceeding and (ii) permit such indemnifying
party to assume the defense of such claim, action, suit or proceeding with counsel reasonably satisfactory to the indemnified party;
provided, however, that any Person entitled to indemnification hereunder shall have the right to employ separate counsel
and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless
(A) the indemnifying party has agreed to pay such fees or expenses, (B) the indemnifying party shall have failed to assume the defense
of such claim and employ counsel reasonably satisfactory to such Person or (C) in the reasonable judgment of any such Person, based upon
written advice of its counsel, a conflict of interest exists between such Person and the indemnifying party with respect to such claims
(in which case, if the Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense
of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person);
and provided, further, that the failure or delay of any indemnified party to give notice as provided herein shall not relieve
the indemnifying party of its obligations hereunder, except to the extent that such failure or delay to give notice shall materially
adversely affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party
shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm
of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party,
consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation.

 

    	34

    	 

    

 

(c) Contribution.
If for any reason the indemnification provided for in the preceding paragraph (a) is unavailable to an indemnified party or insufficient
to hold it harmless, other than as expressly specified therein, the indemnifying party shall contribute to the amount paid or payable
by the indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No Person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation.
The indemnity and contribution agreements contained in this Section are in addition to any other rights or remedies that any indemnified
party may have under applicable law, by separate agreement or otherwise.

 

10. RIGHTS
TO FUTURE STOCK ISSUANCES. Subject to the terms
and conditions of this Section 10 and applicable securities laws, if at any time prior to the first anniversary of the Closing,
the Company or any of its Subsidiaries proposes to offer or sell any New Securities (a “Subsequent Financing”), the
Company shall first offer the Investor the opportunity to purchase up to ten percent (10%) of such New Securities. The Investor shall
be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate among itself and its
Affiliates.

 

10.1 The
Company shall give notice (the “Offer Notice”) to the Investor, stating (a) its (or a Subsidiary’s, as applicable)
bona fide intention to offer such New Securities, (b) the number of such New Securities to be offered, and (c) the price and terms, if
any, upon which it proposes to offer such New Securities.

 

10.2 By
notification to the Company within one (1) day after the date the Offer Notice is given (the “Notice Termination Time”),
the Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to ten percent
(10%) of such New Securities. If the Company receives no such notice from the Investor as of such Notice Termination Time, the Investor
shall be deemed to have notified the Company that it does not elect to participate in such Subsequent Financing. The closing of any sale
pursuant to this Section 10 shall occur within three (3) days of the date that the Offer Notice is given and the date of initial
sale of New Securities pursuant to Section 10.3.

 

10.3 The
Company or a Subsidiary, as applicable, may, during the three (3) day period following the expiration of the period provided in Section
10.2, offer and sell the remaining portion of such New Securities to any Person or Persons at a price not less than, and upon terms
no more favorable to the offeree than, those specified in the Offer Notice. If the Company or a Subsidiary, as applicable, does not enter
into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days
of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless
first reoffered to the Investors in accordance with this Section 10.

 

    	35

    	 

    

 

10.4 The
right of first offer in this Section 10 shall not be applicable to Exempted Securities and shall be in accordance with all applicable
federal and state securities Laws.

 

11. GENERAL
PROVISIONS

 

11.1
Fees and Expenses. Prior to the date of this Agreement, the Company has paid Morgan, Lewis & Bockius LLP $20,000. At the
Closing, the Company shall reimburse the Investor up to an additional $50,000 in the aggregate of due diligence costs and reasonable
fees and disbursements of Morgan, Lewis & Bockius LLP, in connection with the preparation of the Transaction Documents, it being
understood that Morgan, Lewis & Bockius LLP has not rendered any legal advice to the Company in connection with the transactions
contemplated hereby and that the Company has relied for such matters on the advice of its own counsel. Except as specified above, each
party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred
by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents. The Company
shall pay all stamp and other taxes and duties levied in connection with the sale of the Note and the Warrant.

 

11.2 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email
at the email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business Day after
the date of transmission, if such notice or communication is delivered via email at the email address specified in this Section on a
day that is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such
date, (c) the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon
actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as
follows:

 

If
to the Company:

 

Blue
Star Foods Corp.

3000
NW 109th Avenue

Miami,
Florida 33172

Telephone:
(305) 836-6858

Email:
jkeeler@bluestarfoods.com

Attention:
John Keeler

 

    	36

    	 

    

 

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

 

The
Crone Law Group P.C.

500
Fifth Avenue, Suite 938

New
York, New York 10110

Telephone:
646-861-7891

Email:
mcrone@cronelawgroup.com;

lshih@cronelawgroup.com

Attention:
Mark E. Crone, Esq.; Liang Shih, Esq.

 

If
to the Investor:

 

Lind
Global Fund II LP

c/o
The Lind Partners LLC

444
Madison Avenue, Floor 41

New
York, NY 10022

Telephone:
(646) 395-3931

Email:
jeaston@thelindpartners.com and

           notice@thelindpartners.com

Attention:
Jeff Easton

 

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

 

Morgan,
Lewis & Bockius LLP

One
Federal Street

Boston,
MA 02110

Telephone:
(617) 341-7269

Email:
bryan.keighery@morganlewis.com

Attention:
Bryan S. Keighery

 

or
such other address as may be designated in writing hereafter, in the same manner, by such Person.

 

11.3
Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope or
otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the
maximum extent possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way be affected
or impaired thereby.

 

11.4
Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without
reference to principles of conflict of laws or choice of laws.

 

11.5
Jurisdiction and Venue. Any action, proceeding or claim arising out of, or relating in any way to this Agreement shall be
brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York. The Company and the Investor irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive,
and hereby waive any objection to such exclusive jurisdiction or that such courts represent an inconvenient forum. The prevailing party
in any such action shall be entitled to recover its reasonable and documented attorneys’ fees and out-of-pocket expenses relating
to such action or proceeding.

 

    	37

    	 

    

 

11.6
WAIVER OF RIGHT TO JURY TRIAL. THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION
DOCUMENTS.

 

11.7 Survival.
The representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery of the Securities.

 

11.8
Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

11.9
Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the
Company and the Investor. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

11.10 Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement or any of the Transaction Documents.

 

11.11
Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the Company
and the Investor and their respective successors and assigns. The Company may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Investor. The Investor may assign any or all of its rights under this Agreement to
any Person to whom the Investor assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions hereof that apply to the “Investor” and such transferee is an accredited
investor.

 

11.12 No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

11.13
Further Assurances. Each party hereto shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

11.14
Counterparts. This Agreement may be executed in two identical counterparts, both of which shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. Signature
pages delivered by facsimile or e-mail shall have the same force and effect as an original signature.

 

11.15 Specific
Performance. The Company acknowledges that monetary damages alone would not be adequate compensation to the Investor for a
breach by the Company of this Agreement and the Investor may seek an injunction or an order for specific performance from a court of
competent jurisdiction if (a) the Company fails to comply or threatens not to comply with this Agreement or (b) the Investor has
reason to believe that the Company will not comply with this Agreement.

 

[Signature
Page Follows]

 

    	38

    	 

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Securities Purchase Agreement as of the date first set forth above.

 

	COMPANY:	 	INVESTOR:
	 	 	 	 	 
	BLUE
    STAR FOODS CORP.	 	Lind
    GLOBAL FUND II LP
	 	 	 	 	 
	By:	/s/
    John Keeler	 	By:	/s/
    Jeff Easton
	Name:
    	John
    Keeler	 	Name:	Jeff
    Easton
	Title:	Chief
    Executive Officer	 	Title:	Managing
    Member of Lind Global Partners II LLC, General Partner

 

[Signature
Page of Securities Purchase Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

SECURITY
DOCUMENTS

 

    	 

    	 

    

 

EXHIBIT
B

 

FORM
OF NOTE

 

[See
attached]

 

    	 

    	 

    

 

EXHIBIT
C

 

FORM
OF WARRANT

 

[See
attached]

 

    	 

    	 

    

 

EXHIBIT
D

 

FLOW
OF FUNDS REQUEST

 

Blue
Star Foods Corp. – Securities Purchase Agreement – Flow of Funds Request

 

In
connection with the Securities Purchase Agreement, dated January 24, 2022 (the “Agreement”) between Blue Star Foods Corp.
(the “Company”) and Lind Global Fund II LP (the “Investor”), the Company irrevocably authorizes the Investor
to distribute such funds as set out below, in the manner set out below, at the Closing.

 

Capitalized
terms used but not otherwise defined in this letter will have the meaning given to such terms in the Agreement.

 

	Item	 	Amount	 
	Closing	 	$	5,000,000	 
	Commitment Fee	 	$	150,000	 
	Total	 	$	4,850,000	 

 

Please
transfer the net amount of US $4,850,000 due at the Closing, to the following bank account:

 

	Routing
    #:	067015397
	Account
    #	1902003874
	FBO:
    	BLUE
    STAR FOODS CORP
	 	3000
    NW 109 AVE
	 	MIAMI
    FL 33172
	Bank:	US
    CENTURY BANK
	 	2301
    NW 87 AVE
	 	MIAMI
    FL 33172

 

Yours
sincerely,

 

BLUE
STAR FOODS CORP.

 

	By:
    	 
	Name	 
	Title

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