Document:

Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (the “Agreement”) is made as of December 10, 2020, by and among Can B Corp.,
a Florida corporation (and together with all of its current and future, direct and/or indirect, wholly owned and/or partially
owned Subsidiaries, collectively, the “Company”), and the Purchaser identified on the signature pages hereto
(each, including its successors and assigns, a “Purchaser” and, collectively, the “Purchasers”).

 

RECITALS

 

A.
The Company and the Purchasers are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act (as defined below), and/or Rule 506(b) of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission under the Securities Act.

 

B.
The Purchasers, wishes to purchase, and the Company wishes to sell at closing, upon the terms and conditions stated in this Agreement,
the Securities (as defined herein), all in the amounts and for the price set forth on Schedule 1 hereto.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser hereby agrees as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1
Defined Terms. In addition to terms defined elsewhere in this Agreement or in any supplement, amendment or exhibit hereto,
when used herein, the following terms shall have the following meanings:

 

(a)
“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 of the Securities
Act, including, among others, executive officers, directors, large stockholders, subsidiaries, parent entities and sister companies.

 

(b)
“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a)
if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or
the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is
not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB
or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the
Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest
of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the
Company.

 

    	-1-

     

    

 

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

 

(d)
“Closing” shall have the
meaning ascribed to such term in Section 2.1(a).

 

(e)
“Closing Date” means the
Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and
all conditions precedent to the parties’ obligations hereunder have been satisfied or waived, including (i) the Purchaser’s
obligations to pay the Purchase Price and (ii) the Company’s obligations to deliver the Securities.

 

(f)
“Common Stock” means (i) the Company’s common stock, no par value per share, and (ii) any capital stock
into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(g)
“Collateral” shall have
the meaning ascribed to such term as set forth in the Security Agreement.

 

(h)
“Commitment Shares” means 409,417 shares of the Company’s Common Stock to be issued to the Purchaser
at Closing.

 

(i)
“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the
holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock.

 

(j)
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose
or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such
liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that
the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(k)
“Conversion Date” has the meaning set forth in the Notes.

 

(l)
“Conversion Shares” means all shares of Common Stock issuable upon conversion of any portion of the Notes and/or
as any other payment due under the Notes including, but not limited to interest and/or otherwise, but solely to the extent and
subject to any conditions set forth in the Notes.

 

    	-2-

     

    

 

(m)
“Dollar(s)” and “$” means lawful money of the United States.

 

(n)
“Effective Date” means the date that the initial Registration Statement filed by the Company pursuant to the
Registration Rights Agreement is first declared effective by the Commission.

 

(o)
“EIDL Loan” means that certain promissory note, dated June 10, 2020,
in the principal amount of $150,000 issued to the U.S. Small Business Administration pursuant their economic injury disaster loan
program.

 

(p)
“Escrow Agent” means Hollywood Escrow, Inc. with offices at 411 Isis
Ave., 2nd Floor. Inglewood, CA 90301.

 

(q)
“Escrow Agreement” means the escrow agreement entered into prior to the date hereof, by and among the Company,
the Escrow Agent and the Purchasers pursuant to which the Purchasers shall deposit Subscription Amounts with the Escrow Agent
to be held pending acceptance by the Company’s application for forgiveness of the PPP Loan and repayment in full of the
PPP Loan to Investors Bank.

 

(r)
“Event of Default” shall have the meaning set forth in the Notes.

 

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

 

(t)
“Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, consultants,
advisors or directors of the Company in consideration for services to the Company pursuant to any stock or option plan duly adopted
for such purpose by a majority of the members of the Board of Directors or a majority of the members of a committee of directors
established for such purpose or (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder
and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the
date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the exercise, exchange or conversion price of such securities.

 

(u)
“GAAP” means generally accepted accounting principles in the United States of America as in effect from time
to time.

 

    	-3-

     

    

 

(v)
“Indebtedness” means, with respect to any Person at any date, without duplication, (a) all indebtedness of
such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (but
excluding trade payables incurred in the ordinary course of business), (c) all obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or the
Purchaser under such agreement in the event of default are limited to repossession or sale of such property), (e) all capital
lease obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant
under acceptance, letter of credit, surety bond or similar facilities, (g) all obligations of such Person, contingent or otherwise,
to purchase, redeem, retire or otherwise acquire for value any capital stock of such Person, (h) all obligations for any earn-out
consideration, (i) the liquidation value of preferred capital stock of such Person, (j) all guarantee obligations of such Person
in respect of obligations of the kind referred to in clauses (a) through (i) above, (k) all obligations of the kind referred to
in clauses (a) through (i) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise,
to be secured by) any lien on property (including, without limitation, accounts and contract rights) owned by such Person, whether
or not such Person has assumed or become liable for the payment of such obligation and all obligations of such Person in respect
of hedge agreements; and (l) all Contingent Obligations in respect to indebtedness or obligations of any Person of the kind referred
to in clauses (a)-(k) above. The Indebtedness of any Person shall include, without duplication, the Indebtedness of any other
entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of
such Indebtedness expressly provide that such Person is not liable therefor.

 

(w)
“Investment” means any investment (including, without limitation, any loan or advance) in or to any Person,
whether payment therefor is made in cash or capital stock or other equity interests or otherwise, and whether such Investment
is by acquisition of capital stock or other equity interests or Indebtedness, or by loan, advance, transfer of property out of
the ordinary course of business, capital contribution, equity or profit sharing interest, extension of credit on terms other than
those normal in the ordinary course of business or otherwise.

 

(x)
“Investors Bank” means Investors Bank, a commercial bank, as lender under loans guaranteed in part by the Small
Business Administration and issued by the Company under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

 

(y)
“Liens” or “liens” means a lien, mortgage, charge pledge, security interest, encumbrance,
right of first refusal, preemptive right or other restriction, or other clouds on title.

 

(z)
“Liabilities” means all direct or indirect liabilities, Indebtedness and obligations of any kind of Company
to the Purchaser, howsoever created, arising or evidenced, whether now existing or hereafter arising (including those acquired
by assignment), absolute or contingent, due or to become due, primary or secondary, joint or several, whether existing or arising
through discount, overdraft, purchase, direct loan, participation, operation of law, or otherwise, including, but not limited
to, pursuant to the Notes, this Agreement and/or any of the other Transaction Documents, all accrued but unpaid interest on the
Notes the principal, any letter of credit, any standby letter of credit, and/or outside attorneys’ and paralegals’
fees or charges relating to the preparation of the Transaction Documents and the enforcement of the Purchaser’s rights,
remedies and powers under this Agreement, the Notes and/or the other Transaction Documents.

 

    	-4-

     

    

 

(aa)
“Material Adverse Effect” means a material adverse effect on (a) the business, assets, property, operations,
or condition (financial or otherwise) of the Company, (b) the validity or enforceability of this Agreement or any of the other
Transaction Documents, (c) the rights or remedies of the Purchaser hereunder or thereunder or (d) the ability of the Company to
materially perform its obligations under any Transaction Document.

 

(bb)
“Notes” means all of the Original Issue Discount Senior Secured Convertible Promissory Notes due on the nine
(9) month anniversary of the Closing Date that are owned by the Purchasers, which, subject to the terms and conditions set forth
in this Agreement, shall be purchased from the Company pursuant to this Agreement and any and all Note(s) issued in exchange,
transfer or replacement of the Notes. the form of which is annexed hereto as Exhibit A.

 

(cc)
“Permitted Indebtedness” means (a) the indebtedness evidenced by the Notes, (b) indebtedness to be outstanding
as of the Closing Date as set forth on Schedule 3.1(n) of the Disclosure Schedules and (c) lease obligations and purchase
money indebtedness incurred in connection with the acquisition of capital assets and lease obligations with respect to newly acquired
or leased assets.

 

(dd)
“Permitted Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments
and other governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies
being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management
of the Company) have been established in accordance with GAAP; (b) Liens imposed by law which were incurred in the ordinary course
of the Company’s business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’
Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually
or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation
of the business of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings,
which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject
to such Lien; and (c) Liens incurred in connection with Permitted Indebtedness under clause (a) thereunder; (d) Pledges and deposits
made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations; (e) Deposits to secure the performance of bids, trade contracts, leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;
and (f) any Liens in favor of the Purchasers.

 

(ee)
“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization,
association, corporation, institution, entity, party or government (whether national, federal, state, county, city, municipal
or otherwise including, without limitation, any instrumentality, division, agency, body or department thereof).

 

    	-5-

     

    

 

(ff)
“PPP Loan” means, that certain
promissory note, dated May 1, 2020 in the principal amount of $194,940.00 issued to Investors Bank in accordance with a loan provided
under the paycheck protection program by established by the Coronavirus Aid, Relief, and Economic Security Act.

 

(gg)
“Principal Market” means the principal Trading Market on which the Common Stock is listed or quoted for trading
on the date in question.

 

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

 

(ii)
“Purchase Price” shall have
the meaning as set forth on Schedule 1 next to the heading “Purchase Price,” in United States Dollars.

 

(jj)
“Registration Rights Agreement” means the Registration Rights Agreement, dated as of the Closing Date, by and
between the Company and the Purchasers as hereinafter amended and/or supplemented altogether with all exhibits, schedules and
annexes to such Registration Rights Agreement, which Registration Rights Agreement is annexed hereto as Exhibit D.

 

(kk)
“Registration Statement”
means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale
of the Underlying Shares and the Commitment Shares as provided for in the Registration Rights Agreement

 

(ll)
“SBA” means the United States Small Business Administration.

 

(mm)
“SEC” or “Commission” means the United States Securities and Exchange Commission.

 

(nn)
“SEC Reports” has the meaning set forth in Section 3.1(y) hereof.

 

(oo)
“Securities” means the Notes, Warrants and Commitment Shares purchased pursuant to this Agreement, all Underlying
Shares and any securities of the Company issued in replacement, substitution and/or in connection with any exchange, conversion
and/or any other transaction involving all or any of such securities of the Company to the Purchasers.

 

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

 

(qq)
“Security Agreement” means the Security Agreement, dated on or about the date hereof, by and among the Company,
the Subsidiaries, and the Purchasers as hereinafter amended and/or supplemented altogether with all exhibits, schedules and annexes
to such Security Agreement, pursuant to which the Notes are secured by the Collateral, which security interest in the Collateral
shall be perfected by the Purchasers’ UCC-1, filed with the Secretary of State of the State of Florida, to the extent perfectable
by the filing of a UCC-1 Financing Statement and such other documents and instruments related thereto, which Security Agreement
is annexed hereto as Exhibit B.

 

    	-6-

     

    

 

(rr)
“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange
Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

(ss)
“SMRH” means Sheppard, Mullin,
Richter & Hampton LLP, with offices located at 30 Rockefeller Plaza, 39th Floor, New York, New York 10112.

 

(tt)
“Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company or other
entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or
other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both, by such Person. All of the Company’s Subsidiaries
are set forth on Schedule 3.1(a) hereto.

 

(uu)
“Subsidiary Guaranty Agreement” means each Guaranty Agreement, substantially in the form of annexed
hereto as Exhibit E, between a Subsidiary and the Purchaser, as amended, restated, supplemented or otherwise modified from
time to time.

 

(vv)
“Trading Day” means a day on which the principal Trading Market is open for trading.

 

(ww)
“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange, any market or quotation service of the OTC Markets Group (or any successors to any of the
foregoing).

 

(xx)
“Transaction Documents” means, collectively, this Agreement, the Notes, the Warrants, the Registration Rights
Agreement, the Security Agreement and all financing statements (or comparable documents now or hereafter filed in accordance with
the UCC or other comparable or similar laws, rules or regulations) in favor of the Purchaser as secured parties perfecting all
Liens the Purchaser have on the Collateral (which security interests and Liens of the Purchaser shall be senior to all Indebtedness
of the Company), the Subsidiary Guaranty Agreement, the Escrow Agreement and such other documents, instruments, certificates,
supplements, amendments, exhibits and schedules required and/or attached pursuant to this Agreement and/or any of the above documents,
and/or any other document and/or instrument related to the above agreements, documents and/or instruments, and the transactions
hereunder and/or thereunder and/or any other agreement, documents or instruments required or contemplated hereunder or thereunder,
whether now existing or at any time hereafter arising.

 

    	-7-

     

    

 

(yy)
“Transfer Agent” means Transhare Corporation the current transfer agent of the Company, with a mailing address
of 2849 Executive Dr, Suite 200, Clearwater, FL 33762 and a phone number of (303) 662-1112, and any successor transfer agent of
the Company.

 

(zz)
“UCC” means the Uniform Commercial Code of as in effect from time to time in the State of New York; provided,
however, that, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority,
or remedies with respect to the Purchaser’ Liens on any Collateral is governed by the Uniform Commercial Code as enacted
and in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial
code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment,
perfection, priority, or remedies.

 

(aaa)
“Underlying Shares” means all Conversion Shares and Warrant Shares.

 

(bbb)
“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if
the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for
such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported
by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB
or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and
if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser
selected in good faith by the Purchaser of a majority in interest of the Securities then outstanding and reasonably acceptable
to the Company, the fees and expenses of which shall be paid by the Company.

 

(ccc)
“Warrant(s)” means the three (3)-year Common Stock Purchase Warrants of the Company, to be issued at the Closing,
the form of which is annexed hereto as Exhibit C.

 

(ddd)
“Warrant Shares” means all shares of Common Stock issuable upon exercise of the Warrants and/or any other securities
issuable upon exercise of the Warrants.

 

1.2
Other Definitional Provisions.

 

(a)
Use of Defined Terms. Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings
when used in the other Transaction Documents or any certificate or other document made or delivered pursuant hereto or thereto.

 

    	-8-

     

    

 

(b)
Accounting Terms. As used herein and in the other Transaction Documents, and any certificate or other document made or
delivered pursuant hereto or thereto, accounting terms relating to the Company not defined in Section 1.1 and accounting
terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under
GAAP (provided that all terms of an accounting or financial nature used herein shall be construed, and all computations
of amounts referred to herein shall be made without giving effect to (i) any election under Accounting Standards Codification
825-10-25 (previously referred to as Statement of Financial Accounting Standards 159) (or any other Accounting Standards Codification
or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Company
at “fair value”, as defined therein, and (ii) any treatment of Indebtedness in respect of convertible debt instruments
under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard
having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and
such Indebtedness shall at all times be valued at the full stated principal amount thereof).

 

(c)
Construction. The words “hereof”, “herein” and “hereunder” and
words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and section, schedule and exhibit references are to this Agreement unless otherwise specified. The meanings
given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(d)
UCC Terms. Terms used in this Agreement that are defined in the UCC shall, unless the context indicates otherwise or are
otherwise defined in this Agreement, have the meanings provided for by the UCC.

 

ARTICLE
2

PURCHASE
AND SALE

 

2.1
Closing. On the Closing Date, time being of the essence, subject to the conditions set forth in Section 2.3, upon the terms
and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to purchase, the Securities
in such amounts as indicated on Schedule 1 hereto. Purchaser shall deliver
to the Company, via wire transfer immediately available funds equal to the Purchase Price, and the Company shall deliver to the
Purchaser the Note on the Closing Date, and the Company and the Purchaser shall deliver the other items set forth in Section 2.2
deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall
occur at the offices of SMRH or such other location as the parties shall mutually agree.

 

2.2
Deliveries.

 

(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchasers the following:

 

(i)
this Agreement duly executed by the Company;

 

    	-9-

     

    

 

(ii)
a Security Agreement providing the Purchasers with a lien on all of the assets of the Company, duly executed by the Company;

 

(iii)
a Note registered in the name of the Purchaser with such principal amount as set forth on Schedule 1;

 

(iv)
a Warrant registered in the name of the Purchaser for such number of Warrant Shares as set forth on Schedule 1;

 

(v)
the Commitment Shares, registered in the name of the Purchaser as set forth on Schedule 1;

 

(vi)
the Registration Rights Agreement duly executed by the Company;

 

(vii)
the Company shall have delivered to the Purchasers a certificate, in the form acceptable to the Purchasers and its counsel, executed
by the secretary of the Company dated as of the Closing Date, as to (i) the resolutions as adopted by the Company’s board
of directors in a form acceptable to the Purchaser, (ii) Articles of Incorporation or other organizational document of each of
the Company, and (iii) the Bylaws or other organizational document of the Company, each as in effect at the Closing;

 

(viii)
a certificate for each Subsidiary of the Company, in the form acceptable to the Purchasers and its counsel, executed by the secretary
of such Subsidiary dated as of the Closing Date, as to (i) the resolutions as adopted by the Subsidiary’s board of directors
or other governing body relating to the transactions contemplated by this Agreement in a form acceptable to the Purchasers, (ii)
Certificate of Incorporation or other similar organizational document of such Subsidiary, and (iii) the Bylaws or other similar
organizational document of such Subsidiary, each as in effect at the Closing;

 

(ix)
a certificate, duly executed by the Chief Executive Officer of the Company, dated as of the Closing Date, confirming compliance
with Section 2.3(a)(i) and (ii) below and as to such other matters as may be reasonably requested by the Purchaser and its counsel
in the form acceptable to the Purchasers;

 

(x)
certificates evidencing the good standing of the Company and each Subsidiary in such entity’s jurisdiction of incorporation
issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date within five (5) days of
the Closing Date;

 

(xi)
an opinion of counsel to the Company, in such form as reasonably acceptable to the Purchaser;

 

(xii)
a Subsidiary Guaranty Agreement for each Subsidiary of the Company;

 

    	-10-

     

    

 

(xiii)
a fully executed “pay-off” letter
and/or waiver, if required, from each of FirstFire Global Opportunities Fund LLC, EMA Financial LLC, Labrys Fund LP, and Eagle
Equities LLC, demonstrating that all principal amount of and all accrued but unpaid interest thereon has been paid in full and
such other executed documents reasonably requested by the Purchasers demonstrating that all Liens and security interests in any
assets of the Company and/or any Subsidiary securing such indebtedness have been terminated including, but not limited to, the
filing of any Lien termination and/or release documents with any applicable secretary of state including a UCC-3 termination statement
(whether such is required to be signed or not);

 

(xiv)
an executed waiver from Investors Bank pursuant to the PPP Loan, in such form as reasonably acceptable to the Purchaser;

 

(xv)
an executed Escrow Agreement from the Company and the Escrow Agent;

 

(xvi)
an executed resignation letter of Marco Alfonsi, in such form as reasonably acceptable to the Purchaser; and

 

(xvii)
such other documents, instruments, opinions or certificates relating to the transactions contemplated by this Agreement as the
Purchasers or its counsel may reasonably request.

 

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

(i)
this Agreement duly executed by the Purchaser;

 

(ii)
the Purchase Price subject to the closing by wire transfer; and

 

(iii)
the Security Agreement and Intellectual Property Security Agreement duly executed by the Purchaser;

 

(iv)
the Subsidiary Guaranty Agreement duly executed by the Purchaser; and

 

(v)
the Registration Rights Agreement duly executed by the Purchaser.

 

2.3
Conditions to Purchase the Securities. Subject to the terms and conditions of this Agreement, the Purchaser will at a Closing
purchase from the Company the Securities in the amounts and for the Purchase Price as set forth on Schedule 1, provided
the following:

 

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

 

(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the date of the Closing of the representations and warranties of the Purchaser
contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

    	-11-

     

    

 

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

 

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

 

(iv)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

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

 

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

 

(i)
the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material
Adverse Effect, in all respects) when made and on the date of the Closing of the representations and warranties of the Company
contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

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

 

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

 

(iv)
there shall have been no Material Adverse Effect with respect to the Company since the date hereof;

 

(v)
the Company shall have obtained all governmental, regulatory and third party consents and approvals, if any, necessary for the
entry into the Transaction Documents and the sale of the Securities; and

 

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

 

    	-12-

     

    

 

2.4
Purchase Price and Payment of the Purchase Price for the Securities. The Purchase Price for the Securities to be purchased
by the Purchaser at the Closing shall be as set forth on Schedule 1 and shall be paid at the Closing (less all of the Purchaser’s
Expenses (as defined below)) by the Purchaser by wire transfer of immediately available funds to the Company in accordance with
the Company’s written wiring instructions, against delivery of the Securities.

 

ARTICLE
3

REPRESENTATIONS
AND WARRANTIES; OTHER ITEMS

 

3.1
Representation and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the corresponding section of the Disclosure Schedules (but in no event shall qualify any indemnity obligation of the Company
hereunder), the Company (which for purposes of this Section 3.1 means the Company and all of its Subsidiaries) represents
and warrants to the Purchaser that on the Closing Date (unless as of a specific date set forth below):

 

(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company and the locations thereof are set forth on Schedule
3.1(a). Except as set forth on Schedule 3.1(a), the Company owns, directly or indirectly, all of the capital stock
or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital
stock or other interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities. Schedule 3.1(a) sets forth, as of the Closing Date, the jurisdiction of
organization and the location of the Company’s and its subsidiaries’ executive offices and other places of business.

 

(b)
Organization, Etc. The Company and each of the Subsidiaries is duly organized, validly existing and in good standing under
the laws of the state of their respective organization and are duly qualified and in good standing or has applied for qualification
as a foreign corporation authorized to do business in each jurisdiction where, because of the nature of its activities or properties,
such qualification is required except where the failure to be so qualified would not reasonably be expected to have a Material
Adverse Effect.

 

(c)
Authorization: No Conflict. The execution, delivery and performance of the Transaction Documents and the transactions contemplated
thereby by the Company, including, but not limited to, the sale and issuance of the Securities for the Purchase Price, the reservation
for issuance of the Underlying Shares required to be reserved pursuant to the terms of the Note and the Warrant, of the issuance
the Underlying Shares into which the Note is convertible and/or the Warrant is exercisable (i) are within the Company’s
corporate powers, (ii) have been duly authorized by all necessary action by or on behalf of the Company (and/or its stockholders
to the extent required by law), (iii) have received all necessary and/or required governmental, regulatory and other approvals
and consents (if any shall be required), (iv) do not and shall not contravene or conflict with any provision of, or require any
consents under (1) any law, rule, regulation or ordinance, (2) the Company’s organizational documents; and/or (3) any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected,
and (v) other than the Liens granted to the Purchaser pursuant to the Transaction Documents, do not result in, or require, the
creation or imposition of any Lien and/or encumbrance on any of the Company’s properties or revenues pursuant to any law,
rule, regulation or ordinance or otherwise.

 

    	-13-

     

    

 

(d)
Validity and Binding Nature. The Transaction Documents to which the Company is a party are the legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with their respective terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization and other similar laws of general application affecting the rights and
remedies of creditors and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

(e)
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, all as described in the SEC Reports, in each case free and clear of all Liens, except for (i) Liens as do not
materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and the Subsidiaries, (ii) Liens for the payment of federal, state or other taxes, for which appropriate
reserves have been made therefor in accordance with GAAP and the payment of which is not delinquent, and (iii) Permitted Liens.
Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting
and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(f)
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in
violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which
it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii)
is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been
in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign,
federal, state and local laws relating to securities, corporate law, taxes, environmental protection, occupational health and
safety, product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected
to result in a Material Adverse Effect.

 

    	-14-

     

    

 

(g)
Taxes. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in
a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material 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, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

 

(h)
Licenses and Permits. Except as set forth in the SEC Reports, the Company possesses
all certificates, authorizations, consents, approvals, orders, licenses and permits issued by the appropriate federal, state or
foreign regulatory authorities (collectively, the “Permits”),
including the FDA and any other state, federal or foreign agencies or bodies engaged in the regulation of pharmaceuticals or biohazardous
materials, amongst other, necessary to conduct its business as now conducted and described in the SEC Reports. All of such Permits
are valid and in full force and effect. There is no pending or, to the Company’s knowledge, threatened action, suit, proceeding
or investigation that individually or in the aggregate would reasonably be expected to lead to the revocation, modification, termination,
suspension or any other impairment of the rights of the holder of any such Permit.. The Company confirms that the sales
of its hemp-derived products are in compliance with all applicable regulations since all of its products that contain hemp, contain
less than 0.3% THC content and are sold only in states in the United States that have not prohibited the sale of hemp products.
The Company confirms, to the best of its knowledge, it is in compliance with all applicable laws, including U.S. federal and state
laws as well as any applicable foreign laws.

 

(i)
Investment Company. The Company is not (i) an “investment company” or a company “controlled”, whether
directly or indirectly, by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended;
or (ii) engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing
or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System).

 

(j)
Absence of Defaults and Conflicts. Except as otherwise disclosed in the SEC Reports,
the Company is not (i) in violation of its charter, by-laws or similar incorporation
or organizational documents or (ii) in violation or default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or
other agreement or instrument to which the Company is a party or by which it may be bound, or to which any of the property or
assets of the Company is subject (collectively, “Agreements and Instruments”)
and the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated in this Agreement
and the other Transaction Documents, and compliance by the Company with its obligations under this Agreement and the other Transaction
Documents, do not and will not, whether with or without the giving of notice or passage of time or both, (w) conflict with or
result in a breach of any of the terms and provisions of, or constitute a default or Repayment Event (as defined below) under,
(x) result in the creation or imposition of any lien, charge or encumbrance (other than Permitted Liens) upon any property or
assets of the Company pursuant to, the Agreements and Instruments, (y) result in any violation of the provisions of the charter,
by-laws or similar organizational documents of the Company or (z) any applicable
law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic
or foreign, having jurisdiction over the Company or any of its assets, properties or operations, except in the case of this clause
(z) for such conflicts, violations, breaches or defaults which would not reasonably be expected to result in a Material Adverse
Effect on the Company. As used herein, a “Repayment Event” means
any event or condition which gives the holder of any note, debenture or other evidence of indebtedness that is material to the
operations or financial results of the Company (or any person acting on such holder’s behalf) the right to require the repurchase,
redemption or repayment of all or a portion of such indebtedness by the Company.

 

    	-15-

     

    

 

(k)
Foreign Corrupt Practices Act. Except as otherwise disclosed in the SEC Reports,
neither the Company nor, to the Company’s knowledge, any of its affiliates, directors, officers, employees, agents or other
person acting on behalf of the Company is aware of or has taken any action, directly or indirectly, that would result in a material
violation by such person of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the
“FCPA”), including, without limitation,
making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of money, or other property, gift, promise to give, or authorization of the giving
of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party
or official thereof or any candidate for foreign political office, in contravention of the FCPA and the Company and, to the Company’s
knowledge, its affiliates have conducted their businesses in material compliance with the FCPA and have instituted and maintain
policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

 

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

 

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

 

    	-16-

     

    

 

(ii)
Other Covered Persons. The Company is not aware of any person (other than any Company Covered Person) who has been or will
be paid (directly or indirectly) remuneration in connection with the purchase and sale of the Securities who is subject to a Disqualification
Event (each, an “Other Covered Person”).

 

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

 

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

 

(m)
Accuracy of Information, etc. No statement or information contained in this Agreement, the SEC Reports, any other Transaction
Document or any other document, certificate or statement furnished to the Purchasers by or on behalf of the Company in writing
for use in connection with the transactions contemplated by this Agreement and/or the other Transaction Documents contained, as
of the date such statement, information, document or certificate was made or furnished, as the case may be, any untrue statement
of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein, taken as
a whole, not materially misleading. There is no fact known to the Company that would reasonably be expected to materially affect
the Company that has not been expressly disclosed herein, in the other Transaction Documents, in the SEC Reports or in any other
documents, certificates and statements furnished to the Purchasers for use in connection with the transactions contemplated hereby
and by the other Transaction Documents.

 

    	-17-

     

    

 

(n)
Solvency. Based on the consolidated financial condition of the Company as of the
Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder: (i)
the fair saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of
the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s
assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted
including its capital needs taking into account the particular capital requirements of the business conducted by the Company,
consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to
be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any
jurisdiction within one year from the Closing Date. Schedule 3.1(n) sets forth
as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(o)
Transactions With Affiliates and Employees. Except as set forth Schedule 3.1(o),
none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees
of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services
as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from providing for the borrowing of money from or lending
of money to, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company,
any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee,
stockholder, member or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for
services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including
stock option agreements under any stock option plan of the Company.

 

(p)
Intellectual Property. The Company has, or has rights to use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar
rights as described in the SEC Reports and on Schedule 3.1(p) as necessary or required for use in connection with its business
(collectively, the “Intellectual Property Rights”). The Company has not received a notice (written or otherwise)
that any material Intellectual Property Right has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned. The Company has not received, since the date of the latest audited financial statements included within the SEC
Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe
upon the rights of any Person, except as would not have or reasonably be expected to have a Material Adverse Effect. To the knowledge
of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person
of any of the Intellectual Property Rights. The Company has taken reasonable security measures to protect the secrecy, confidentiality
and value of all of its intellectual property.

 

    	-18-

     

    

 

(q)
USA Patriot Act. The Company is in compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended,
and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V,
as amended) and any other enabling legislation or executive order relating thereto, and (ii) the USA Patriot Act (Title III of
Pub. L. 107-56, signed into law on October 26, 2001) (the “Act”). No part of the proceeds of the Securities
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

 

(r)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, joint venture employee or affiliate of the Company or any Subsidiary is currently, or in the past 5 years, has
been subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(s)
Filings, Consents and Approvals. The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state,
local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company
of the Transaction Documents, other than: (i) the filings required pursuant to the Registration Rights Agreement and the declaration
of effectiveness by the Commission of the Registration Statement, (ii) the notice and/or application(s) to each applicable Trading
Market for the issuance and sale of the Securities and the listing of the Underlying Shares and Commitment Shares for trading
thereon in the time and manner required thereby, and (iii) the filing of Form D with the Commission and such filings as are required
to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(t)
Authorization; Enforcement. All corporate action on the part of the Company, its officers, directors and stockholders necessary
for the authorization, execution and delivery of the Transaction Documents and the performance of all obligations of the Company
under the Transaction Documents and have been taken on or prior to the date hereof. Each of the Transaction Documents has been
duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and
binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by general equitable principles regardless of whether such enforcement is considered in a proceeding
in equity or at law, (iii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iv) insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	-19-

     

    

 

(u)
Valid Issuance of Securities. Each of the Notes, Commitment Shares and the Warrants has been duly authorized and, when
issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and
clear of all Liens and all restrictions on transfer other than those expressly imposed by the federal securities laws and vest
in the Purchaser full and sole title and power to the Notes, Commitment Shares and Warrants purchased hereby by the Purchaser,
free and clear of all Liens, and restrictions on transfer other than those imposed by the federal securities laws. All Conversion
Shares, when issued pursuant to the conversion of the Notes, all Warrant Shares, when issued pursuant to the exercise of the Warrants,
will be free and clear of all Liens and vest in the holder full and sole title and power to such securities. The Company has reserved
from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this the Notes and the
Warrants.

 

(v)
Offering. The offer and sale of the Securities and the issuance of the Underlying Shares, when issued pursuant to this
Agreement or the other Transaction Documents, are exempt from the registration requirements of the Securities Act, and the qualification
or registration requirements of state securities laws or other applicable blue sky laws. Neither the Company nor any authorized
agent acting on its behalf will take any action hereafter that would cause the loss of such exemptions.

 

(w)
Capitalization and Voting Rights. The capitalization of the Company is as set forth
on Schedule 3.1(w), which Schedule 3.1(w) shall
also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date
hereof. The authorized capital stock of the Company and all securities of the Company issued and outstanding are set forth
in the SEC Reports as of the dates reflected therein. All of the outstanding shares of Common Stock and other securities of the
Company have been duly authorized and validly issued, and are fully paid and nonassessable. Except
as set forth on Schedule 3.1(w), the Company has not issued any capital stock since its most recently filed periodic report
under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans,
the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant
to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report
under the Exchange Act. Except as set forth on Schedule 3.1(w), no Person
has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(w), there are no agreements or arrangements
under which the Company is obligated to register the sale of any of the Company’s securities under the Securities Act. Except
as set forth on Schedule 3.1(w), no shares of Common Stock and/or other securities of the Company are entitled to preemptive
rights and there are no outstanding debt securities and no contracts, commitments, understandings, or arrangements by which the
Company is or may become bound to issue additional shares of the capital stock and/or other securities of the Company or options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for, any shares of capital stock of the Company other than those issued or granted in the ordinary
course of business pursuant to the Company’s equity incentive and/or compensatory plans or arrangements. Except for customary
transfer restrictions contained in agreements entered into by the Company to sell restricted securities and/or as set forth on
Schedule 3.1(w), the Company is not a party to, and it has no knowledge of, any agreement restricting the voting or transfer
of any shares of the capital stock and/or other securities of the Company. Except as set forth on Schedule 3.1(w), the
offer and sale of all capital stock, convertible or exchangeable securities, rights, warrants, options and/or any other securities
of the Company when any such securities of the Company were issued complied in all material respects with all applicable federal
and state securities laws, and no current and/or prior holder of any securities of the Company has any right of rescission or
damages or any “put” or similar right with respect thereto. Except as set forth on Schedule 3.1(w), there are
no securities or instruments of the Company containing anti-dilution or similar provisions that will be triggered by the issuance
and/or sale of the Securities and/or the consummation of the transactions described herein or in any of the other Transaction
Documents.

 

    	 	-20-	 

    	 

    

 

(x)
SEC Reports. The Company has filed all reports, schedules, forms, statements and
other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section
13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law
or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(y)
Sarbanes-Oxley; Internal Accounting Controls. Except as set forth in the SEC Reports,
the Company and the Subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002
that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder
that are effective as of the date hereof and as of the Closing Date. The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed
such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures
of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented
in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness
of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there
have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company
and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control over financial
reporting of the Company and its Subsidiaries.

 

    	 	-21-	 

    	 

    

 

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

 

(aa)
Material Changes; Undisclosed Events, Liabilities or Developments. Except as provided in Schedule 3.1(aa), since
the date of the latest audited financial statements included in the SEC Reports, except as specifically disclosed in a subsequent
SEC Report filed with the SEC prior to the date hereof: (i) there has been no event, occurrence or development that has had or
that could be reasonably expected to have a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past
practice and (B) liabilities not required to be reflected in the Company’s Financial Statements pursuant to GAAP or disclosed
in SEC Reports pursuant to SEC rules and/or regulations, (iii) the Company has not altered its method of accounting, (iv) the
Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities
to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending
before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated
by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably
expected to occur or exist with respect to the Company or its Subsidiaries or its respective businesses, properties, operations,
assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time
this representation is made or deemed made that has not been publicly disclosed at least one Trading Day prior to the date that
this representation is made.

 

(bb)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any Purchaser or its respective
agents or counsel with any information that constitutes material, non-public information. The Company understands that the Purchasers
may rely on the Transaction Documents, the information included therein, including, but not limited to, the foregoing representation
and the SEC Reports in purchasing the Securities. All of the disclosure furnished by or on behalf of the Company to the Purchasers
in the Transaction Documents and/or in the SEC Reports, regarding, among other matters relating to the Company, its business and
the transactions contemplated in the Transaction Documents, is true and correct in all material respects as of the date made and
does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that
none of the Purchasers makes nor has it made any representations or warranties with respect to the transactions contemplated in
the Transaction Documents other than those specifically set forth in Section 3.2 hereof.

 

(cc)
No Integrated Offering. Assuming the accuracy of the representations and warranties set forth in Section 3.2, neither
the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause the issuance and/or
sale of the Securities to be integrated with prior offerings of securities by the Company for purposes of (i) the Securities Act
that would require the registration of any such Securities and/or any other securities of the Company under the Securities Act,
or that would invalidate the exemptions from registration relied upon by the Company, or (ii) any stockholder-approval provisions
of any Trading Market on which any of the securities of the Company are listed, eligible for quotation and/or designated.

 

    	 	-22-	 

    	 

    

 

(dd)
Insurance. The Company is insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the business in which it is engaged; the Company
has not been refused any coverage sought or applied for; and the Company does not have any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect on the Company.

 

(ee)
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company.

 

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

 

(gg)
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is
imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse
Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective
bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To
the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation
of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition
agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment
of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of
the foregoing matters. Since April 1, 2020, the Company and its Subsidiaries have reduced all compensation payable to all officers
of the Company (whether in cash, in-kind or any combination of the foregoing) by fifty percent (50%). Except as set forth on Section
3.1(gg), neither the Company nor any Subsidiary has taken any actions in respect of the COVID-19 virus to furlough or otherwise
temporary lay-off employees or individual independent contractors, terminate the employment or engagement of any employee or independent
contractor, reduce hours, wages or fees or benefits of employees or individual independent contractors or provided notice of any
intent to do the foregoing. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign
laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours,
except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

    	-23-

     

    

 

(hh)
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares issuable upon conversion
of the Notes and/or the number of Warrant Shares issuable upon exercise of the Warrants, pursuant to the terms thereof, will increase
in certain circumstances. The Company further acknowledges that its obligations to issue the Underlying Shares pursuant to the
terms of the Notes and Warrants in accordance with this Agreement and the Notes and Warrants is absolute and unconditional regardless
of the dilutive effect that any such issuances may have on the percentage ownership interests of other stockholders of the Company.

 

(ii)
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary
action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provisions under the Company’s articles of incorporation,
as amended, or the laws of the jurisdiction of its formation that are or could become applicable to the Purchaser as a result
of the transactions contemplated by this Agreement and/or the other Transaction Documents, including, without limitation, the
Company’s issuance of the Securities and the Purchaser’s ownership of the Securities. The Company has not adopted
a stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change
in control of the Company.

 

(jj)
Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold,
bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any person any compensation for soliciting another to purchase any other securities of the Company.

 

(kk)
DTC Eligible. The Common Stock is DTC eligible and DTC has not placed a “freeze” or a “chill” on
the Common Stock and the Company has no reason to believe that DTC has any intention to make the Common Stock not DTC eligible,
or place a “freeze” or “chill” on the Common Stock. No federal or state regulatory authority has indicated
that it will prohibit the listing of the Company’s securities based upon its sale of CBD products nor will the Purchaser
be prohibited from depositing, clearing or settling the Securities, including through the DTC or otherwise, on account of the
Company’s sale of CBD products.

 

(ll)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as set forth in the SEC Reports, the Company has not, in the 12 months preceding the date
hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Common Stock is eligible
for quotation on the Principal Market and the Company has no reason to believe that the Principal Market has any intention of
delisting or no longer quoting the Common Stock from the Principal Market. The issuance and sale of the Securities hereunder does
not contravene the rules and regulations of the Trading Market. All Underlying Shares and Commitment Shares have been approved,
if so required, for listing or quotation on the Trading Market, subject only to notice of issuance.

 

    	-24-

     

    

 

(mm)
No General Solicitation. Neither the Company, nor any of its affiliates, nor, to the knowledge of the Company, 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 Securities.

 

(nn)
Acknowledgment Regarding the Purchaser’s Purchase of Securities. The Company acknowledges and agrees that each Purchaser
is acting solely in the capacity of an arm’s length purchaser with respect to the other Transaction Documents and the transactions
contemplated hereby and thereby and that such Purchaser is not (i) an officer or director of the Company, (ii) an Affiliate of
the Company or (iii) to the knowledge of the Company, a “beneficial owner” of more than 10% of the shares of Common
Stock (as defined for purposes of Rule 13d-3 of the Exchange Act. The Company further acknowledges that each Purchaser is not
acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby, and any advice given by such Purchaser or any of its representatives or
agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental
to such Purchaser’s purchase of the Securities. The Company further represents to the Purchasers that the Company’s
decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.

 

(oo)
Off-Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an
unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and
is not so disclosed.

 

(pp)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect
to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be
due in connection with the transactions contemplated by the Transaction Documents.

 

    	-25-

     

    

 

(qq)
FDA. To the Company’s knowledge, as to each product subject to the jurisdiction of the U.S. Food and Drug Administration
(“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”)
that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries
(each such product, a “Pharmaceutical Product”),such Pharmaceutical Product is being manufactured, packaged,
labeled, tested, distributed, sold and/or marketed by the Company in compliance with all applicable requirements under FDCA and
similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or application
approval, good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas, labeling,
advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material Adverse
Effect. There is no pending, completed or, to the Company’s knowledge, threatened, action (including any lawsuit, arbitration,
or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries,
and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA
or any other federal, state, local or other governmental authority, which (i) contests the premarket clearance, licensure, registration,
or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling
and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or
withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii)
imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any
facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction
with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the
Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect.
To the Company’s knowledge, the properties, business and operations of the Company have been and are being conducted in
all material respects in accordance with all applicable laws, rules and regulations of the FDA. The Company has not been informed
by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed,
produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product
being developed or proposed to be developed by the Company.

 

(rr)
Health Care Laws. The Company has operated and currently is in compliance in all
material respects with all applicable Health Care Laws (defined herein), including, without limitation, the rules and regulations
of the FDA, the U.S. Department of Health and Human Services Office of Inspector General, the Centers for Medicare & Medicaid
Services, the Office for Civil Rights, the Department of Justice or any other governmental agency or body having jurisdiction
over the Company or any of its properties, and has not engaged in activities which are, as applicable, cause for false claims
liability, civil penalties, or mandatory or permissive exclusion from Medicare, Medicaid, or any other state or federal health
care program. For purposes of this Agreement, “Health Care Laws” shall mean the federal Anti-kickback Statute (42
U.S.C. § 1320a-7b(b)), the Physician Payment Sunshine Act (42 U.S.C.
§ 1320a-7h), the civil False Claims Act (31 U.S.C. §§ 3729 et seq.), the
criminal False Claims Act (42 U.S.C. § 1320a-7b(a)), all criminal laws relating
to health care fraud and abuse, including but not limited to 18 U.S.C. Sections 286 and 287, and the health care fraud criminal
provisions under the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.) (“HIPAA”),
the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalties law (42
U.S.C. § 1320a-7a), HIPAA, as amended by the Health Information Technology for
Economic and Clinical Health Act (42 U.S.C. §§ 17921 et seq.), the patient privacy, data security and breach notification
provisions under HIPAA, the Federal Food, Drug, and Cosmetic Act (21 U.S.C. §§ 301 et seq.), Medicare (Title XVIII of
the Social Security Act), Medicaid (Title XIX of the Social Security Act), the regulations promulgated pursuant to such laws,
and any other similar local, state or federal law and regulations. The Company has not received any FDA Form 483, notice of adverse
finding, warning letter, untitled letter or other correspondence, communication or notice from the FDA or any other governmental
or regulatory authority alleging or asserting noncompliance with any Health Care Laws applicable to the Company. The Company is
not a party to nor has any ongoing reporting obligations pursuant to any corporate integrity agreements, deferred prosecution
agreements, monitoring agreements, consent decrees, settlement orders, plans of correction or similar agreements with or imposed
by any governmental or regulatory authority. Neither the Company nor any of its employees, officers, directors or, to the Company’s
knowledge, consultants has been excluded, suspended or debarred from participation in any U.S. state or federal health care program
or human clinical research or, to the Company’s knowledge, is subject to a governmental inquiry, investigation, proceeding,
or other similar action that could reasonably be expected to result in debarment, suspension, or exclusion.

 

    	-26-

     

    

 

(ss)
Money Laundering. The operations of the Company and its Subsidiaries are and have
been conducted at all times in compliance with applicable financial record-keeping and reporting requirements, including but not
limited to, Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable
rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary,
threatened.

 

(tt)
Environmental Laws. The Company and its Subsidiaries, to the best of the Company’s
knowledge, (i) are in compliance with all federal, state, local and foreign laws relating to pollution or protection of human
health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws
relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous
substances or wastes (collectively, “Hazardous Materials”) into
the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder
(“Environmental Laws”); (ii) have received all permits licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are
in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii),
the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(uu)
Seniority. As of the Closing Date, no Indebtedness or other claim against the Company is senior to the Debentures in right
of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured
by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations
(which is senior only as to the property covered thereby).

 

    	-27-

     

    

 

(vv)
Anti-Money Laundering, Anti-Bribery and Anti-Corruption; Sanctions.

 

(i)
Neither the Company nor, any of its Subsidiaries or Affiliates or any director or officer of any of them is an individual or entity
currently, or has not in the past 5 years been, subject to any Sanctions or is on any Sanctions List.

 

(ii)
Each of the Company, any of its Subsidiaries and Affiliates and their respective directors, officers, employees and, to the knowledge
of the Company, agents and any other person or entity acting on behalf of the Company, has complied with the Money Laundering,
Anti-Corruption and Anti-Bribery Laws, in each case as applicable to them, and no action, suit or proceeding by or before any
court or any arbitrator or any governmental agency, authority or body involving the Company and any of its Subsidiaries or their
respective directors or officers and, to the knowledge of the Company, the employees, agents, or representatives of each of them,
is pending or threatened with respect to Money Laundering, Anti-Corruption and Anti-Bribery Laws.

 

(iii)
Neither the Company nor any of its Subsidiaries nor their respective directors or officers, nor, to the knowledge of the Company,
the employees or agents of any of them has:

 

(a)
used any corporate funds (nor will it use any proceeds from the Notes) for any unlawful contribution, gift, entertainment or unlawful
expense relating to political activity;

 

(b)
taken any action in furtherance of an unlawful offer, payment, promise to pay, or authorization or approval of the payment or
giving of money, property, gifts or (anything else of value, directly or indirectly, to any “government official”
(including any officer or employee of a government or government owned or controlled entity or of a public international organization,
or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official
or candidate for public office) or made any other bribe, rebate, payoff, influence payment or kickback intended to improperly
influence official action or secure an improper advantage;

 

(c)
nor will it use any proceeds from the Notes in furtherance of any such unlawful payment or violation of Sanctions or Money Laundering,
Anti-Corruption and Anti-Bribery Laws.

 

(iv)
The Company and each Subsidiary will promote and ensure compliance with Money Laundering, Anti-Corruption and Anti-Bribery Laws
in all jurisdictions where they operate and with the representations and warranties contained herein.

 

    	-29-

    	 

    

 

(v)
As used in this Section:

 

(a)
“Money Laundering, Anti-Corruption and Anti-Bribery Laws” means money laundering and anti- corruption statutes
of all jurisdictions (including, the Foreign Corrupt Practices Act of 1977, the OECD Convention on Bribery of Foreign Public Officials
in International Business Transactions, and any similar national or local law or regulation in the United Kingdom or elsewhere
where the Company and each other Subsidiary conducts business), the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency or any such jurisdiction.

 

(b)
“Sanctions” means any laws or regulations or restrictive measures relating to economic or financial sanctions
or trade embargoes imposed, administered or enforced from time to time by a Sanctions Authority.

 

(c)
“Sanctions Authority” means (i) the United Nations Security Council; (ii) the United States government; (iii)
the European Union; (iv) the United Kingdom government; (v) the respective governmental institutions and agencies of any of the
foregoing, including without limitation, OFAC, the United States Department of State and Department of Commerce, and Her Majesty’s
Treasury; and (vi) any other governmental institution or agency with responsibility for imposing, administering or enforcing Sanctions
with jurisdiction over the Company or any of its subsidiaries (together, “Sanctions Authorities”).

 

(d)
“Sanctions List” means the Specially Designated Nationals and Blocked Persons List maintained by OFAC, the
Denied Persons List maintained by the U.S. Department of Commerce, the Consolidated List of Financial Sanctions Targets maintained
by Her Majesty’s Treasury, or any other list issued or maintained by any Sanctions Authority of persons subject to Sanctions
(including investment or related restrictions), each as amended, supplemented or substituted from time to time.

 

3.2
Representation and Warranties of The Purchaser. The Purchaser, severally and not jointly, hereby represents and warrants
as of the date hereof and as of the Closing Date to the Company as follows:

 

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

 

    	-30-

    	 

    

 

(b)
Own Account. Such Purchaser understands that the Securities are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring
the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any
part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation
of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Purchaser’s
right to sell the Securities pursuant to an effective registration statement or otherwise in compliance with applicable federal
and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)
Purchaser Status. At the time such Purchaser was offered the Securities, it was,
and as of the date hereof it is an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

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

 

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

 

(f)
Access to Information. Such Purchaser acknowledges that it has had the opportunity
to review the Transaction Documents (including all exhibits and schedules thereto) and the SEC Reports and has been afforded (i)
the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company
concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities;
(ii) access to information about the Company and its financial condition, results of operations, business, properties, management
and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment.

 

    	-31-

    	 

    

 

(g)
Certain Transactions and Confidentiality. The Purchaser has not directly or indirectly, nor has any Person acting on behalf
of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of the securities
of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from
the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder
and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed
investment vehicle, whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager
that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this
Agreement or to such Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal
and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made
to it in connection with this transaction (including the existence and terms of this transaction).

 

The
Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
4

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions.

 

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

 

    	-32-

    	 

    

 

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

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [CONVERTIBLE] 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. THIS
SECURITY [AND THE SECURITIES ISSUABLE UPON [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees
or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel
of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such
pledge. At the appropriate Purchaser’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,
if the Securities are then registered for resale on a registration statement, the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to appropriately
amend the list of selling stockholders thereunder.

 

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(c)
Certificates evidencing the Underlying Shares and Commitment Shares shall not contain any
legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement (including the Registration
Statement) covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Underlying
Shares and/or Commitment Shares pursuant to Rule 144, (iii) if such Underlying Shares and/or Commitment Shares are eligible for
sale under Rule 144 or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal
opinion to the Transfer Agent promptly after the Effective Date or at such time as such legend is no longer required under this
Section 4.1(c) if required by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a Purchaser.
If any portion of the Commitment Shares or the Note or Warrant is converted and/or exercised at a time when there is an effective
registration statement to cover the resale of the Underlying Shares, or if such Commitment Shares and/or Underlying Shares may
be sold under Rule 144 and the Company is then in compliance with the current public information required under Rule 144, or if
the Commitment Shares and/or Underlying Shares may be sold under Rule 144 without the requirement for the Company to be in compliance
with the current public information required under Rule 144 as to such Underlying Shares and without volume or manner-of-sale
restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the Commission) then such Commitment Shares and/or Underlying Shares
shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no
longer required under this Section 4.1(c), it will, no later than the earlier of (i) three (3) Trading Days and (ii) the number
of Trading Days comprising the Standard Settlement Period (as defined below) following the delivery by a Purchaser to the Company
or the Transfer Agent of a certificate representing the Commitment Shares and/or Underlying Shares, as applicable, issued with
a restrictive legend (such date, the “Legend Removal Date”), deliver
or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other
legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions
on transfer set forth in this Section 4. Certificates for Commitment Shares and/or Underlying Shares subject to legend removal
hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime
broker with the Depository Trust Company System as directed by such Purchaser. As used herein, “Standard Settlement
Period” means the standard settlement period, expressed in a number of Trading
Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of a
certificate representing Underlying Shares, as applicable, issued with a restrictive legend.

 

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(d)
In addition to such Purchaser’s other available remedies, the Company shall pay to
a Purchaser, in cash, the greater of (i) as partial liquidated damages and not as a penalty, for each $1,000 of Commitment Shares
and/or Underlying Shares (based on the VWAP of the Common Stock on the date such Securities are submitted to the Transfer Agent)
delivered for removal of the restrictive legend and subject to Section 4.1(c), $5 per Trading Day (increasing to $10 per Trading
Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such
certificate is delivered without a legend and (ii) if the Company fails to (i) issue and deliver (or cause to be delivered) to
a Purchaser by the Legend Removal Date a certificate representing the Securities so delivered to the Company by such Purchaser
that is free from all restrictive and other legends or (ii) if after the Legend Removal Date such Purchaser purchases (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Purchaser of all or any portion
of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number
of shares of Common Stock that such Purchaser anticipated receiving from the Company without any restrictive legend, then, an
amount equal to the excess of such Purchaser’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses,
if any) (the “Buy-In Price”) over the product of (A) such number
of Shares or Commitment Shares and/or Underlying Shares, as applicable, that the Company was required to deliver to such Purchaser
by the Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any Trading Day during the period
commencing on the date of the delivery by such Purchaser to the Company of the applicable Commitment Shares and/or Underlying
Shares (as the case may be) and ending on the date of such delivery and payment under this clause (ii).

 

4.2
Furnishing of Information. Until the earliest of the time that the Purchaser does
not own 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 Exchange Act even if the Company
is not then subject to the reporting requirements of the Exchange Act.

 

4.3
Integration. The Company shall not sell, offer for sale or solicit offers to buy
or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with
the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the
Securities or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any
Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder
approval is obtained before the closing of such subsequent transaction.

 

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4.4
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:00am on the 2nd Trading Day after the date
of this Agreement, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a
Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required
by the Exchange Act. The press release to be issued in accordance with the preceding sentence shall have been approved by the
Purchasers prior to its release (which approval shall not unreasonably be withheld or delayed). From and after the issuance of
such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information
delivered to the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees
or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance
of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents,
employees or Affiliates on the one hand, and the Purchasers or any of its Affiliates on the other hand, shall terminate. The Company
and the Purchasers shall consult with each other in issuing any other press releases with respect to the transactions contemplated
hereby, and neither the Company nor the Purchasers shall issue any such press release nor otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of the Purchasers, or without the prior consent of
the Purchasers, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed,
except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior
notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not, without the prior written
consent of the Purchasers, (a) use the name of such Purchaser, “_______________,” “_______________” or
any other derivative thereof (each, a “Trade Name”) in any press releases or other public disclosures (including
in any filing with the Commission or any regulatory agency or Trading Market), offering documents, sales materials, brochures
or similar publicity or promotional materials, or for promotional purposes, whether orally or in writing, except (x) as required
by federal securities law and the rules and regulations promulgated thereunder in connection with the filing of final Transaction
Documents, any disclosure required pursuant to any reports required to be filed by the Company pursuant to the Exchange Act, (y)
to the extent such disclosure is required by law or Trading Market regulations, including the
“Alternative Reporting Standard” required by OTC Markets, in which case the Company shall provide the Purchasers
with prior notice of such disclosure permitted under this clause (y), or (z) as required under Florida Business Corporation Act
or (b) represent that an investment in the Company or any product or any service provided by the Company has been approved or
endorsed by the Purchasers. Following any such written consent, which shall not be unreasonably
withheld or delayed, the Company shall provide the Purchasers with a copy of such written or other materials using the
Trade Name if requested by the Purchasers. The Purchasers shall be deemed to have provided prior written consent of the disclosure
of the Purchaser’s name to other stockholders and investors in the Company, and to potential investors in the Company (that
to the extent such information has not already been publicly disclosed, have been informed of the confidential nature thereof)
that in the course of their due diligence require disclosure of the identity of the existing investors in the Company.

 

4.5
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with
the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person”
under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or
similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed
to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents.

 

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4.6
Non-Public Information. Except with respect to the material terms and conditions
of the transactions contemplated by the Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants
and agrees that neither it, nor any other Person acting on its behalf will provide the Purchaser or its agents or counsel with
any information that constitutes, or the Company reasonably believes constitutes, material non-public information,
unless prior thereto the Purchaser shall have consented to the receipt of such information and agreed with the Company to keep
such information confidential. The Company understands and confirms that the Purchaser shall be relying on the foregoing covenant
in effecting transactions in securities of the Company. To the extent that the Company delivers any material, non-public
information to a Purchaser without such Purchaser’s consent, the Company hereby covenants
and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any of their
respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries or any of their
respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public
information, provided that the Purchaser shall remain subject to applicable law. To the
extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information
regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K or if not subject to the reporting requirements under the Exchange Act, a press release. The
Company understands and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities
of the Company.

 

4.7
Use of Proceeds. Except as set forth on Schedule 4.7 attached
hereto, the Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes and shall
not use such proceeds: (a) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables
in the ordinary course of the Company’s business and prior practices), (b) for the redemption of any Common Stock or Common
Stock Equivalents, (c) for the settlement of any outstanding litigation or (d) in violation of FCPA, OFAC regulations or Money
Laundering, Anti-Corruption and Anti-Bribery Laws.

 

4.8
Indemnification of Purchaser. Subject to the provisions of this Section 4.8, the
Company will indemnify and hold each Purchaser and its respective directors, officers, shareholders, members, partners, employees
and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of
such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any
other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any
other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, as incurred, arising
out of or relating to (i) any untrue or alleged untrue statement of a material fact contained in any registration statement filed
by the Company, any prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any prospectus or supplement thereto, in the light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based
solely upon information regarding such Purchaser Party furnished in writing to the Company by such Purchaser Party expressly for
use therein, or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities
law, or any rule or regulation thereunder in connection therewith. If any action shall be brought against any Purchaser Party
in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the
extent that (x) the employment thereof has been specifically authorized by the Company in writing, (y) the Company has failed
after a reasonable period of time to assume such defense and to employ counsel or (z) in such action there is, in the reasonable
opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser
Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Purchaser Party under this Agreement (1) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (2) to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of
the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein
shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities
the Company may be subject to pursuant to law.

 

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4.9
Reservation of Common Stock. As of the date hereof, the Company has reserved and
the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares
of Common Stock equal to the minimum amount set forth in the Notes and the Warrants for the purpose of enabling the Company to
issue the Conversion Shares and any other shares that may be issuable pursuant to the Notes. If, on any date, the number
of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the amount required by the Notes and
Warrants on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate
or articles of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required
Minimum at such time, as soon as possible and in any event not later than the 75th day after such date.

 

4.10
Listing of Common Stock. he Company hereby agrees to use reasonable best efforts
to maintain the listing or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently
with the Closing, the Company shall apply to list or quote all of the Underlying Shares on such Trading Market and promptly secure
the listing of all of the Commitment Shares and the Underlying Shares on such Trading Market. The Company further agrees, if the
Company applies to have the Common Stock traded on any other Trading Market (including in accordance with Section 4.23), it will
then include in such application all of the Underlying Shares, and will take such other action as is necessary to cause all of
the Underlying Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company will then take
all action reasonably necessary to continue the listing and trading of its Common Stock on such Trading Market and will comply
in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.
The Company agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company
or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust
Company or such other established clearing corporation in connection with such electronic transfer.

 

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4.11
Certain Transactions and Confidentiality. The Purchaser covenants that neither it
nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.4. In addition, the Purchaser covenants that neither it nor any Affiliate acting on its behalf or pursuant
to any understanding with it will execute any Short Sales on any of the Securities until all such Securities to be issued under
the Transaction Documents have been sold. Notwithstanding the foregoing, the Purchaser shall be permitted to effectuate
sales on Securities that are eligible to be sold by Purchaser under Rule 144 or an effective registration statement; provided
that, if such Securities are issuable upon conversion of the Note or a portion thereof, the Company has received a conversion
notice from Purchaser for such Securities. The Purchaser, severally and not jointly with
the other Purchaser, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed
by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Disclosure Schedules. Notwithstanding the foregoing
and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i)
no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by this Agreement are first publicly announced, (ii) no Purchaser
shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable
securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant
to the initial press release as described in Section 4.4, (iii) the Purchaser has not been asked by the Company to agree,
nor has any Purchaser agreed, to desist from purchasing or selling Securities which have been issued under the terms of this Agreement
or any other Transaction Document, or “derivative” securities based on securities issued by the Company or to hold
the Securities for any specified term, (iv) Purchaser shall not be deemed to have any affiliation with or control over any arm’s
length counter-party in any “derivative” transaction, (y) the Purchaser may engage in hedging activities, other than
Short Sales at various times during the period that the Securities are outstanding, and
(vi) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company
or its Subsidiaries after the issuance of the initial press release. Except as contemplated above, Company acknowledges
that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

4.12
Conversion and Exercise Procedures. The form of Notice of Conversion in the Notes
and the Notice of Exercise included in the Warrants set forth the totality of the procedures required of a Purchaser in order
to convert the Notes and/or exercise the Warrants. No additional legal opinion, other information or instructions shall be required
of the Purchaser to exercise their respective Note and/or Warrants. Without limiting the preceding sentences, no ink-original
Notice of Conversion or Exercise shall be required, nor shall any medallion guarantee (or
other type of guarantee or notarization) of any Notice of Conversion or Exercise form be required in order to covert and/or exercise
the Securities. The Company shall honor conversions and/or exercises of the Securities and shall deliver applicable Underlying
Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

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

 

4.14
Maintenance of Property. So long as any Notes remain outstanding, the Company shall use its commercially reasonable efforts
to keep all of its property, which is necessary or useful to the conduct of its business, in good working order and condition,
ordinary wear and tear excepted.

 

4.15
Preservation of Corporate Existence. So long as any Notes remain outstanding, the Company shall preserve and maintain its
corporate existence, rights, privileges and franchises in the jurisdiction of its incorporation, and qualify and remain qualified,
as a foreign corporation in each jurisdiction in which such qualification is necessary in view of its business or operations and
where the failure to qualify or remain qualified would reasonably be expected to have a Material Adverse Effect.

 

4.16
Furnishing of Information. Until the time that no Purchaser owns Securities, the Company covenants to maintain the registration
of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and 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 Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange
Act, it will prepare and furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such information
as is required for the Purchaser to sell the Securities under Rule 144. The Company further covenants that it will take such further
action as any holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell
such Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

 

4.17
DTC Program. At all times that the Securities are outstanding, the Company will employ as the transfer agent for the Common
Stock and Conversion Shares a participant in the Depository Trust Company Automated Securities Transfer Program and cause the
Common Stock to be transferable pursuant to such program.

 

    	-40-

    	 

    

 

4.18
Public Information. At any time during the period commencing from the six (6) month anniversary of the Closing Date and
ending at such time that all of the Securities, may be sold without the requirement for the Company to be in compliance with Rule
144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy
the current public information requirement under Rule 144(c) (a “Public Information Failure”) then, in addition
to the Purchaser’s other available remedies, the Company shall pay to the Purchaser,
in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell
the Securities, an amount in cash equal to two percent (2.0%) of the aggregate Purchase Price of the
Purchaser’s Securities on the day of a Public Information Failure and on every thirtieth (30th) day (pro
rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure
is cured and (b) such time that such public information is no longer required for the Purchaser to transfer the Underlying Shares
pursuant to Rule 144. The payments to which the Purchaser shall be entitled pursuant
to this Section 4.19 are referred to herein as “Public Information Failure Payments.” Public Information Failure
Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments
are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information
Failure Payments is cured. If an Event (as defined in the Registration Rights Agreement) is occurring at the time of a Public
Information Failure, and the Company is (x) then obligated to pay, and (y) timely pays the Purchaser partial liquidated damages
under Section 2(d) of the Registration Rights Agreement for the period occurring simultaneous with the applicable Public Information
Failure (such payments, the “Simultaneous Registration Rights Partial Liquidated Damages”) and (z) has timely
paid the Purchaser all previously accrued partial liquidated damages under Section 2(d) of the Registration Rights Agreement,
the Company may deduct the amounts paid in connection with such Simultaneous Registration Rights Partial Liquidated Damages from
such Public Information Failure Payments due for such simultaneous Public Information Failure. In the event the Company fails
to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at
the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s
right to pursue actual damages for the Public Information Failure, and the Purchaser
shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief.

 

4.19
Subsequent Equity Sales. From the date hereof until such time as no Purchaser holds any of the Notes, the Company shall
be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of
Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable
Rate Transaction” means a transaction which is not Permitted Indebtedness and in which the Company (i) issues or sells
any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional
shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such
debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future
date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly
or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into, or effects a transaction
under, any agreement, including, but not limited to, an equity line of credit, whereby the Company may issue securities at a future
determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance,
which remedy shall be in addition to any right to collect damages. This paragraph shall not apply to offerings and sales of securities
pursuant to form 1-A, as amended from time to time.

 

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4.20
Transfer Agent Instructions. The Company shall issue irrevocable instructions to the Transfer Agent in a form acceptable
to the Purchaser (the “Irrevocable Transfer Agent Instructions”) to issue certificates or credit shares via
DWAC or otherwise to the applicable balance accounts at The Depository Trust Company (“DTC”), registered in
the name of the Purchaser or its respective nominee(s), for the Underlying Shares in such amounts as specified from time to time
by each Purchaser to the Company upon conversion of the Notes and/or exercise of the Warrants. The Company represents and warrants
that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section will be given by the Company
to its Transfer Agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books
and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction Documents. In the
event that such sale, assignment or transfer involves Underlying Shares sold, assigned or transferred pursuant to an effective
registration statement or in compliance with Rule 144, the transfer agent shall issue such shares to such Buyer, assignee or transferee
(as the case may be) without any restrictive legend in accordance with Section 4.1 The Company acknowledges that a breach by it
of its obligations hereunder will cause irreparable harm to Purchaser. Accordingly, the Company acknowledges that the remedy at
law for a breach of its obligations under this Section will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Section, that Purchaser shall be entitled, in addition to all other available remedies,
to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing
economic loss and without any bond or other security being required. The Company shall cause its counsel to issue the legal opinion
referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent from and after the Applicable
Date. Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of such
opinion or the removal of any legends on any of the Securities shall be borne by the Company. “Applicable Date” means
the first date on which all of the Underlying Shares are eligible to be resold by the Purchaser pursuant to Rule 144 or an effective
registration statement is in effect.

 

4.21
Capital Changes. Until the earlier of (i) the date the Note is no longer outstanding or (ii) the one year anniversary of
the Closing Date, the Company shall not undertake a reverse or forward stock split or reclassification of the Common Stock without
the prior written consent of the Purchaser.

 

4.22
Management Changes. If after the date hereof, the Company shall breach, default (subject to any cure period), or fail to
observe or perform any covenant or agreement contained in this Agreement or any Transaction Document or if any representation
or warranty of the Company made in the Purchase Agreement, this Note, any other Transaction Document or in any agreement, statement
or certificate given in writing pursuant hereto or in connection herewith or therewith shall be false or misleading in any material
respect when made and the breach of which has (or with the passage of time will have) an adverse effect on the rights of the Holder
with respect to this Note or the other Transaction Documents, Marco Alfonsi, the Company’s chief executive officer, shall
resign as chief executive officer upon one (1) day written notice from the Purchasers. A resignation letter which shall be effective
upon the conditions set forth in this Section, in such form as acceptable to the Purchasers, shall be delivered to the Purchasers
on or prior to the Closing Date.

 

    	-42-

    	 

    

 

4.23
Post-Closing Actions. The Company shall and shall cause each of its relevant
Subsidiaries to execute and deliver the documents and complete the tasks set forth in this Section as soon as reasonably practicable
and in each case no later than the time limit specified in this Section or such longer time as the Purchaser may agree in its
sole discretion:

 

(a)
The Company shall provide evidence of the payoff of the EIDL Loan to the SBA not later than
ten (10) calendar days after the Closing, in form and substance satisfactory to the Purchasers.

 

(b)
The Company shall provide evidence of the payoff of the notes issued to each of FirstFire
Global Opportunities Fund LLC, EMA Financial LLC, Labrys Fund LP, and Eagle Equities LLC, not
later than ten (10) calendar days after the Closing, in form and substance satisfactory to the Purchasers.

 

ARTICLE
5

MISCELLANEOUS

 

5.1
Fees and Expenses. Except as expressly set forth below and in the Transaction Documents to the contrary, each party shall
pay the reasonable, documented 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 this Agreement.
The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any
instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and
duties levied in connection with the delivery of any Securities to a Purchaser. Notwithstanding the foregoing, the Company agrees
to pay all direct and indirect costs and expenses of the Purchasers related to the negotiation, due diligence, preparation, closing,
and all other items regarding or related to this Agreement and the other Transaction Documents and all of the transactions contemplated
herein and/or therein, including, but not limited to, the legal fees and expenses of the Purchasers’ legal counsel, not
to exceed $25,000 as well as a closing fee equal to $138,889 payable in cash (collectively, the “Purchaser Expenses”).
All Purchaser Expenses will be deducted and paid on the Closing Date.

 

5.2
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 thereof 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.

 

    	-43-

    	 

    

 

5.3
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 facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached
hereto at or prior to 5:30 p.m. (New York City time) on a Business Day, (b) the next Business Day after the date of transmission,
if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set
forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time)
on any Business Day, (c) the second (2nd) Business Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for
such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.4
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written
instrument signed, in the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or
a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right. Any amendment effected in accordance with accordance with
this Section 5.4 shall be binding upon the Purchaser and holder of Securities and the Company.

 

5.5
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Purchaser then holding outstanding Notes (other than by merger). Purchaser may assign any or all of its rights
under this Agreement to any Person to whom Purchaser assigns or transfers any Securities in compliance with the Transaction Documents,
provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of
the Transaction Documents that apply to the “Purchaser,” and provided further that (i) such transferee is an “accredited
investor” within the meaning of Rule 501 under the Securities Act and (ii) such transferee is not a direct competitor of
the Company or any Subsidiary.

 

5.6
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.

 

5.7
Governing Law; Exclusive Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation
of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State
of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party
shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations
of the Company elsewhere in this Agreement, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing
party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such Action or Proceeding.

 

    	-44-

    	 

    

 

5.8
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities
at Closing.

 

5.9
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.10
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired, or invalidated, as long as the essential terms
and conditions of this Note for each party remain valid, binding, and enforceable. The parties shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction.

 

5.11
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained
in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a
right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations
within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions
and rights; provided, however,
that, in the case of a rescission of a conversion of the Notes and/or an exercise of the Warrants, the Purchaser shall be required
to return any shares of Common Stock subject to any such rescinded conversion or exercise notice concurrently with the return
to such Purchaser of the aggregate exercise price paid to the Company for such shares and the restoration of such Purchaser’s
right to acquire such shares pursuant to such Purchaser’s Note and/or Warrant (including, issuance of a replacement warrant
certificate evidencing such restored right).

 

    	-45-

    	 

    

 

5.12
Replacement of Securities. If any certificate or instrument evidencing any Securities
is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but
only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new
certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Securities.

 

5.13
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained
in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.14
Payment Set Aside. To the extent that the Company makes a payment or payments to
any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

 

5.15
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist
upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage
of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any Action or Proceeding that may be
brought by any Purchaser in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision
to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company
under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under
applicable law (the “Maximum Rate”), and, without limiting the
foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in
the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is
agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or
decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest
allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless
such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate
is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall
be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner
of handling such excess to be at such Purchaser’s election.

 

    	-46-

    	 

    

 

5.16
Liquidated Damages. The Company’s obligations to pay any partial liquidated
damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate
until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security
pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

 

5.17
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.18
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto.

 

5.19
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY,
THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

(Signature
Pages Follow)

 

    	-47-

    	 

    

 

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

 

	CAN
    B CORP.	 	Address
    for Notice:
	 	 	 	 
	By		 	Email:
	Name:	 	 	 
	Title:	 	 	 

 

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

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	-48-

    	 

    

 

PURCHASER
SIGNATURE PAGES TO CANB SECURITIES PURCHASE AGREEMENT

 

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

 

Name
of Purchaser: _______________

 

Signature
of Authorized Signatory of Purchaser: __________________________________

 

Name
of Authorized Signatory:

 

Title
of Authorized Signatory:

 

Email
Address of Authorized Signatory:

 

Facsimile
Number of Authorized Signatory

 

Address
for Notice to Purchaser:

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

EIN
Number: _______________

 

    	-49-

    	 

    

 

EXHIBIT
A

 

Form
of Note

 

    	-50-

    	 

    

 

EXHIBIT
B

 

Form
of Security Agreement

 

    	-51-

    	 

    

 

EXHIBIT
C

 

Form
of Warrant

 

    	-52-

    	 

    

 

EXHIBIT
D

 

Form
of Registration Rights Agreement

 

    	-53-

    	 

    

 

EXHIBIT
E

 

Form
of Subsidiary Guaranty Agreement

 

    	-54-

    	 

    

 

Schedule
1

 

Purchase
Price; Securities Purchased

 

	Name
    of Purchaser	 	Purchase
    Price	 	Aggregate

                                                                                                                 Principal

                                                                                                                 Amount of Notes being

        Purchased

        
	 	Number
        of

        Warrant
        Shares
	 	Commitment

        Shares

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	-55-Exhibit
10.2

 

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

 

Original
Issue Date: December 10, 2020

 

Original
Principal Amount: $________________

 

Purchase
Price: $________________

 

ORIGINAL
ISSUE DISCOUNT SENIOR SECURED

 

CONVERTIBLE
PROMISSORY NOTE

 

DUE
September 10, 2021

 

THIS
ORIGINAL ISSUE DISCOUNT SENIOR SECURED CONVERTIBLE PROMISSORY NOTE is a duly authorized and validly issued debt obligation of
Can B Corp., a Florida corporation (the “Company” or the “Borrower”), having its principal
place of business at 960 South Broadway, Suite 120, Hicksville, NY 11801, designated as its Original Issue Discount Senior Secured
Convertible Promissory Note due September 10, 2021 (the “Note”).

 

FOR
VALUE RECEIVED, the Company promises to pay to ________________ or its registered assigns (the “Holder”), or
shall have paid pursuant to the terms hereunder, the principal sum of $________________ and any other sums due hereunder on September
10, 2021 (the “Maturity Date”), or such earlier date as this Note is required or permitted to be repaid as
provided hereunder, and to pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this
Note in accordance with the provisions hereof. This Note is subject to the following additional provisions:

 

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

 

“Alternate
Conversion Price” means the lower of (i) $0.25 or (ii) 75% of the closing bid price of the Company’s Common Stock
on the Trading Market on the date of conversion.

 

    	-1-

     

    

 

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

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which the New York Federal Reserve Bank is closed.

 

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

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of the following: (a) an acquisition after
the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract
or otherwise) of in excess of fifty percent (50%) of the voting securities of the Company (other than by means of conversion or
exercise of the Note and the Securities issued together with the Note), (b) the Company merges into or consolidates with any other
Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders
of the Company immediately prior to such transaction own less than fifty-one percent (51%) of the aggregate voting power of the
Company or the successor entity of such transaction, (c) the Company sells or transfers all or substantially all of its assets
to another Person and the stockholders of the Company immediately prior to such transaction own less than fifty-one percent (51%)
of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within
a three year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those
individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members
of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of
the Board of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement to which the Company
is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

    	-2-

     

    

 

“Closing
Price” means the closing price of the Company’s Common Stock on the Trading Market.

 

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

 

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

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the
terms hereof. References to “Conversion Price” herein may refer to the Alternate Conversion Price and/or the Base
Conversion Price, where appropriate, based on the terms set forth herein.

 

“Distribution”
shall have the meaning set forth in Section 5(c).

 

“Event
of Default” shall have the meaning set forth in Section 6(a).

 

“Equity
Conditions” means, during the period in question, (a) the Company shall have duly honored all conversions and redemptions
scheduled to occur or occurring by virtue of one or more Notices of Conversion of the Holder, if any, (b) the Company shall have
paid all liquidated damages and other amounts owing to the Holder in respect of this Note, (c) there is an effective Registration
Statement pursuant to which the Holder is permitted to utilize the prospectus thereunder to resell the Interest Conversion Shares,
(d) the Common Stock is trading on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed
or quoted for trading on such Trading Market (and the Company believes, in good faith, that trading of the Common Stock on a Trading
Market will continue uninterrupted for the foreseeable future), (e) there is a sufficient number of authorized but unissued and
otherwise unreserved shares of Common Stock for the issuance of all of the shares issuable pursuant to the Transaction Documents,
(f) there is no existing Event of Default or no existing event which, with the passage of time or the giving of notice, would
constitute an Event of Default, (f) the issuance of the shares in question to the Holder would not violate the limitations set
forth in Section 4(d) herein, (g) there has been no public announcement of a pending or proposed Fundamental Transaction or Change
of Control Transaction that has not been consummated, and (h) the Holder is not in possession of any information provided by the
Company that constitutes, or may constitute, material non-public information.

 

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

 

“Mandatory
Default Amount” means either, at the Holder’s discretion (i) the conversion of the outstanding principal amount
of this Note, and, at the Holder’s election, all accrued and unpaid interest hereon, converted at the Alternate Conversion
Price, or (ii) the payment of 110% of the outstanding principal amount of this Note and accrued and unpaid interest hereon, in
addition to, for both (i) and (ii) above, the payment in cash of all other amounts, costs, expenses and liquidated damages due
in respect of this Note. In the event the Holder makes the election described in (i) above but does not elect to receive Conversion
Shares in respect of all accrued and unpaid interest on the Note, all accrued and unpaid interest shall be paid to the Holder
in cash no later than the date the Conversion Shares are required to be delivered to the Holder.

 

    	-3-

     

    

 

“New
York Courts” shall have the meaning set forth in Section 8(d).

 

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

 

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

 

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

 

“Optional
Redemption Amount” means the sum of (a) 110% of the then outstanding principal amount of the Note, (b) accrued but unpaid
interest and (c) all liquidated damages and other amounts due in respect of the Note.

 

“Optional
Redemption Date” shall have the meaning set forth in Section 2(e).

 

“Optional
Redemption Notice” shall have the meaning set forth in Section 2(e).

 

“Optional
Redemption Notice Date” shall have the meaning set forth in Section 2(e).

 

“Optional
Redemption Period” shall have the meaning set forth in Section 2(e).

 

“Original
Issue Date” means the date of the first issuance of the Note, as set forth on the first page hereof, regardless of any
transfers of any Note and regardless of the number of instruments which may be issued to evidence such Note.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of December 10, 2020, among the Company and the original
Holder, as amended, modified or supplemented from time to time in accordance with its terms.

 

“Purchase
Rights” shall have the meaning set forth in Section 5(c).

 

“Required
Minimum” means, as of any date, the number of shares of Common Stock that is two times the aggregate number of shares
of Common Stock as shall be issuable (taking into account the adjustments of Section 5) upon the conversion of the then
outstanding principal amount of this Note and payment of interest hereunder. The initial reserve shall be _______________ shares
of Common Stock1.

 

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

 

 

1
Equal to 2x the number of shares convertible into on the closing date.

 

    	-4-

     

    

 

Section
2. Interest, Prepayment and Conversion.

 

a)
Payment of Interest in Cash or Shares. The Company shall pay interest to the Holder on the aggregate unconverted and then
outstanding principal amount of this Note at the rate of 12% per annum, payable quarterly on January 1, April 1, July 1 and October
1, beginning on the first such date after the Original Issue Date, on each Conversion Date (as to that principal amount then being
converted), on each Optional Redemption Date (as to that principal amount then being redeemed) and on the Maturity Date (each
such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable
payment shall be due on the next succeeding Business Day), in cash or, at the Company’s option, in duly authorized, validly
issued, fully paid and non-assessable shares of Common Stock at the Conversion Price (the dollar amount to be paid in shares,
the “Interest Share Amount”) or a combination thereof; provided, however, that payment in shares
of Common Stock may only occur if (i) all of the Equity Conditions have been met (unless waived by the Holder in writing) during
the 7 Trading Days immediately prior to the applicable Interest Payment Date (the “Interest Notice Period”)
and through and including the date such shares of Common Stock are actually issued to the Holder and (ii) the Company shall have
given the Holder notice in accordance with the notice requirements set forth below (the “Interest Conversion Shares”).
The Company further agrees to advance the first interest payment that would be due and payable to the Holder after the Original
Issue Date (the “Interest Payment Advance”). The Interest Payment Advance will be deducted and paid to the
Holder on the Closing Date. Upon the occurrence of an Event of Default and continuing until such Event of Default is cured or
remedied, the Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this
Note at the rate of twenty percent (20%) per annum and any payment of interest that is due and payable in accordance with this
Note shall only be payable by the Company in cash.

 

b)
Company’s Election to Pay Interest in Cash or Shares of Common Stock. Subject to the terms and conditions herein,
the decision whether to pay interest hereunder in cash, shares of Common Stock or a combination thereof shall be at the sole discretion
of the Company. Prior to the commencement of any Interest Notice Period, the Company shall deliver to the Holder a written notice
of its election to pay interest hereunder on the applicable Interest Payment Date either in cash, shares of Common Stock or a
combination thereof and the Interest Share Amount as to the applicable Interest Payment Date, provided that the Company may indicate
in such notice that the election contained in such notice shall apply to future Interest Payment Dates until revised by a subsequent
notice. During any Interest Notice Period, the Company’s election (whether specific to an Interest Payment Date or continuous)
shall be irrevocable as to such Interest Payment Date. Subject to the aforementioned conditions, failure to timely deliver such
written notice to the Holder shall be deemed an election by the Company to pay the interest on such Interest Payment Date in cash.

 

c)
Interest Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day
periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together
with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Payment
of interest in shares of Common Stock shall otherwise occur pursuant to Section 4(c)(ii) herein and, solely for purposes of the
payment of interest in shares, the Interest Payment Date shall be deemed the Conversion Date. Interest shall cease to accrue with
respect to any principal amount converted, provided that, the Company actually delivers the Conversion Shares within the time
period required by Section 4(c)(ii) herein.

 

    	-5-

     

    

 

d)
All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal to 20% per annum
(the “Late Fees”) which shall accrue daily from the date such interest is due hereunder through and including
the date of actual payment in full. Interest hereunder will be paid to the Person in whose name this Note is registered on the
records of the Company regarding registration and transfers of this Note (the “Note Register”).

 

e)
Optional Redemption. At any time after the Original Issue Date and before the Maturity Date, the Holder may, deliver a
written notice to the Company (an “Optional Redemption Notice” and the date such notice is deemed delivered
hereunder, the “Optional Redemption Notice Date”) of its irrevocable election to cause the Company to redeem
all of the then outstanding principal amount of this Note for cash in an amount equal to the Optional Redemption Amount on the
7th calendar day following the Optional Redemption Notice Date (such date, the “Optional Redemption Date”,
such 7 day period, the “Optional Redemption Period” and such redemption, the “Optional Redemption”).
The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company covenants and agrees that it will
honor all Notices of Conversion tendered from the time of delivery of the Optional Redemption Notice through the date all amounts
owing thereon are due and paid in full. If any portion of the payment pursuant to an Optional Redemption shall not be paid by
the Company by the applicable due date, Late Fees shall accrue until such amount is paid in full. Notwithstanding anything herein
contained to the contrary, if any portion of the Optional Redemption Amount remains unpaid after such date, the Holder may elect,
by written notice to the Company given at any time thereafter, to invalidate such Optional Redemption, ab initio.

 

Section
3. Registration of Transfers and Exchanges.

 

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

 

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

 

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

 

    	-6-

     

    

 

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

 

a)
Conversion Price. The conversion price in effect on any Conversion Date shall be equal to the lesser of (i) $0.55 or (ii)
90% of the 7-day average VWAP ending on the day prior to the Closing Date, subject to adjustment herein (the “Conversion
Price”). Notwithstanding the foregoing, at any time during the continuance of any Event of Default, the Conversion Price
in effect shall be equal to the Alternate Conversion Price. If at any time the Conversion Price as determined hereunder for any
conversion would be less than the par value of the Common Stock, then at the sole discretion of the Holder, the Conversion Price
hereunder may equal such par value for such conversion and the Conversion Amount for such conversion may be increased to include
Additional Principal, where “Additional Principal” means such additional amount to be added to the Principal Amount
to the extent necessary to cause the number of conversion shares issuable upon such conversion to equal the same number of conversion
shares as would have been issued had the Conversion Price not been adjusted by the Holder to the par value price. In the event
the Borrower has a DTC “Chill” on its shares, the Holder may convert the Note at the Alternate Conversion Price while
that “Chill” is in effect. All such determinations to be appropriately adjusted for any stock dividend, stock split,
stock combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock during
such measuring period.

 

b)
Mechanics of Conversion.

 

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

 

    	-7-

     

    

 

ii.
Delivery of Certificate Upon Conversion. Not later than three Trading Days after each Conversion Date (the “Share
Delivery Date”), the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates
representing the Conversion Shares representing the number of Conversion Shares being acquired upon the conversion of this Note
and (B) a bank check in the amount of accrued and unpaid interest (unless the Holder has elected or is required to receive Conversion
Shares for the accrued but unpaid interest).

 

iii.
Failure to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not
delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written
notice to the Company at any time on or before its receipt of such certificate or certificates, to rescind such Notice of Conversion,
ab initio, in which event the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder
shall promptly return to the Company the Common Stock certificates issued to such Holder pursuant to the rescinded Notice of Conversion.

 

iv.
Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares
upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment
against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any
breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation
of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation
of the Company to the Holder in connection with the issuance of such Conversion Shares; provided, however, that
such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder. If the
Company fails for any reason to deliver to the Holder such certificate or certificates pursuant to Section 4(c)(ii) by the Share
Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of principal
amount being converted $5 per Trading Day (increasing to $10 per Trading Day on the fifth (5th) Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Share Delivery Date until such certificates are delivered
or Holder rescinds such conversion. Nothing herein shall limit the Holder’s right to pursue actual damages or declare an
Event of Default pursuant to Section 6 hereof for the Company’s failure to deliver Conversion Shares within the period specified
herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the
Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

    	-8-

     

    

 

v.
Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available
to the Holder, if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery
Date pursuant to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase
(in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock
to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the
conversion relating to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the
Holder (in addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the
aggregate number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by
(2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage
commissions) and (B) at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the
principal amount of the attempted conversion (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 if the Company had timely complied with its delivery requirements
under Section 4(c)(ii). For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares
(including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately
preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon conversion of this Note as required pursuant to
the terms hereof.

 

vi.
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available
out of its authorized and unissued shares of Common Stock a number of shares of Common Stock at least equal to 100% of the Required
Minimum (to be adjusted monthly) for the sole purpose of issuance upon conversion of this Note and payment of interest on this
Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than
the Holder (and the other holders of the Note). The Company covenants that all shares of Common Stock that shall be so issuable
shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

    	-9-

     

    

 

vii.
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of
this Note. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company
shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

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

 

c)
Holder’s Conversion Limitations. The Company shall not effect any conversion of this Note, and a Holder shall not
have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the
applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together
with the Holder or any of the Holder’s Affiliates) (such Persons, “Attribution Parties”)) would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of
shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount
of this Note beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.
Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership shall be calculated
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that
the limitation contained in this Section 4(d) applies, the determination of whether this Note is convertible (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which principal amount (and
accrued but unpaid interest) of this Note that is convertible shall be in the sole discretion of the Holder, and the submission
of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation
to other securities owned by the Holder together with any Affiliates) and which principal amount (and any accrued but unpaid interest,
if applicable) of this Note that is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance
with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that
such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 4(c), in determining the number of outstanding shares of Common Stock, the Holder may rely
on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most
recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the
Company, or (iii) a more recent written notice delivered by the Company or the Company’s transfer agent to the Holder setting
forth the number of shares of Common Stock outstanding. Upon the written or oral request of the Holder, the Company shall within
one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case,
the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities
of the Company, including this Note, by the Holder or its Affiliates or Attribution Parties since the date as of which such number
of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 9.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon conversion of this Note held by the Holder. The Holder may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 4(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion
of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(c) shall continue to apply.
Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered
to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 4(c) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Note.

 

    	-10-

     

    

 

d)
True-Up. On the date that is seven (7) Trading Days (a “True-Up Date”) from each Conversion Date there
shall be a true-up where the Company shall deliver to Holder an amount in cash or additional Conversion Shares (“True-Up
Amount”) if the Closing Price as of the True-Up Date is less than the Conversion Price used in the applicable Notice
of Conversion provided, however, that payment in shares of Common Stock may only occur if all of the Equity Conditions
(except (c) thereunder) have been met (unless waived by the Holder in writing) during the 7 Trading Days immediately prior to
the applicable True Up Date and through and including the date such shares of Common Stock representing the True-Up Amount are
actually issued to the Holder. In such event, the Company shall deliver to the Holder within one (1) Trading Day of the True-Up
Date (the “True-Up Delivery Date”) either an amount in cash or such number of Conversion Shares having a value
equal to [(Conversion Price – (80% of the Closing Price)] * the aggregate value of the amount converted as set forth in
the Notice of Conversion. Notwithstanding the foregoing, the Conversion Price to be used in accordance with the formula in the
preceding sentence shall not be less than the lower of (a) $0.25 or (b) 50% of the average VWAP of the Common Stock for the five
(5) Trading Days on the Trading Market prior to the applicable Conversion Date (the “Floor Price”) provided
that if the Closing Price on the Maturity Date (or the next Trading Day if such date is a Saturday, Sunday or a holiday) is not
equal or exceeding the Floor Price as of such date, the conversion price to be used in accordance with this formula shall be equal
to 80% of the average VWAP of the Common Stock for the two (2) Trading Days on the Trading Market immediately preceding the date
of conversion to which a True-Up would be payable. The number of shares of Common Stock to be delivered to the Holder in satisfaction
of the True-Up Amount to be delivered in accordance with this Section shall be equal to True-Up Amount divided by the Conversion
Price in effect on the Conversion Date. No fractional shares shall be issued and any fractional shares that are required to be
delivered in accordance with this Section shall be rounded up to the nearest whole share. For the avoidance of doubt, if the Closing
Price as of the True-Up Date is higher than the Conversion Price set forth in the applicable Notice of Conversion, then Company
shall have no obligation to deliver a True-Up Amount to the Holder. For the convenience of the Company only, the Holder may, in
its sole discretion, deliver to Company a written notice to the Company informing the Company of the True-Up Amount it is obligated
to deliver to Holder as of any given True-Up Date, provided that if Holder does not deliver any such notice, the Company shall
not be relieved of its obligation to deliver True-Up Amount pursuant to this Section. Notwithstanding the foregoing, if the Company
fails to deliver any required True-Up Amount on or before any applicable True-Up Delivery Date, then in such event the principal
amount of this Note will automatically increase by a sum equal to the True-Up Amount deliverable as of the applicable True-Up
Date (under the Holder’s and Company’s expectations that any such increase will tack back to the Original Issue Date
for purposes of determining the holding period under Rule 144). For the avoidance of doubt, the True-Up Amount payable in accordance
with this Section shall be calculated and payable upon every conversion of this Note.

 

Section
5. Certain Adjustments.

 

a)
Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion
of, or payment of interest on, the Note), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii)
combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv)
issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the
Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding
any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

    	-11-

     

    

 

b)
Subsequent Equity Sales. If, at any time while this Note is outstanding, the Company or any Subsidiary, as applicable,
sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces
any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price,
the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if
the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion
Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such
adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no
adjustment will be made under this Section 5(b) in respect of an Exempt Issuance. For the avoidance of doubt, if the Company engages
in an at-the-market offering, the Company shall be deemed to have issued Common Stock at the lowest sale price at which the Common
Stock was sold in such offering. If the Company enters into a Variable Rate Transaction, despite the prohibition set forth in
the Purchase Agreement, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible
conversion price, exercise price or exchange rate (or other price) at which such securities may be converted into or exchangeable
or exercised for. The Company shall notify the Holder in writing, no later than 1 Business Day following the issuance of any Common
Stock or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance price, or applicable
reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”).
For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon
the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion
Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion
Price in the Notice of Conversion.

 

c)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 5(a) and Section 5(b) above,
if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities
or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion
of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or
sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

    	-12-

     

    

 

d)
Pro Rata Distributions. During such time as this Note is outstanding, if the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Note, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Note (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the
Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

e)
Fundamental Transaction. If, at any time while this Note is outstanding, (i) the Company effects any merger or consolidation
of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one
transaction or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person)
is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities,
cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case,
a “Fundamental Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have the
right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence
of such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive
upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder
of 1 share of Common Stock (the “Alternate Consideration”). For purposes of any such conversion, the determination
of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of 1 share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions,
any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new Note consistent
with the foregoing provisions and evidencing the Holder’s right to convert such Note into Alternate Consideration. The terms
of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving
entity to comply with the provisions of this Section 5(e) and insuring that this Note (or any such replacement security) will
be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction

 

    	-13-

     

    

 

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

 

g)
Notice to the Holder.

 

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

 

ii.
Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for
or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed
at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder
at its last address as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record
or effective date hereinafter specified (or such shorter period as is reasonably possible, but not less than ten (10) calendar
days, if twenty (20) calendar days is not reasonably possible), a notice stating (x) the date on which a record is to be taken
for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, or the date on which the voluntary or involuntary dissolution, liquidation or winding up
of the affairs of the Company was authorized and the date as of which it is expected that holders of the Common Stock of record
shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon any such
reclassification, consolidation, merger, sale, transfer or share exchange or voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, provided that the failure to deliver such notice or any defect therein or in the
delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent
that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of
the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
The Holder shall remain entitled to convert this Note during the 20-day period commencing on the date of such notice through the
effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    	-14-

     

    

 

Section
6. Events of Default.

 

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

 

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

 

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

 

    	-15-

     

    

 

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

 

iv.
the Company experiences a Material Adverse Effect;

 

v.
any Person shall breach any agreement delivered to the initial Holders pursuant to Section 2.2 of the Purchase Agreement;

 

vi.
any representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any other Holder shall be untrue or
incorrect in any material respect (or, to the extent such representation or warranty is qualified by materiality or Material Adverse
Effect, in any respect) as of the date when made or deemed made;

 

vii.
the Company or any Subsidiary shall default (after any applicable cure period) on any of its obligations under any mortgage, credit
agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or
by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring
arrangement that (a) involves an obligation greater than $100,000, whether such indebtedness now exists or shall hereafter be
created, and (b) results in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise
become due and payable;

 

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

 

ix.
(A) the Common Stock shall not be eligible for listing or quotation for trading, or has been suspended from listing or quotation,
on its Principal Market and shall not resume listing or quotation for trading thereon or on any other Trading Market (other than
OTC Pink) within five (5) Trading Days, or (B) the transfer of shares of Common Stock through the Depository Trust Company System
is no longer available or “chilled”;

 

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

 

    	-16-

     

    

 

xi.
the Company shall fail for any reason to deliver certificates to the Holder prior to the fifth Trading Day after a Conversion
Date or the Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company’s
intention to not honor requests for conversions of the Note in accordance with the terms hereof;

 

xii.
the Company fails to file with the Commission (following any extensions permitted by the Commission) any required reports under
Section 13 or 15(d) of the Exchange Act such that it is not in compliance with Rule 144(c)(1) (or Rule 144(i)(2), if applicable);

 

xiii.
the occurrence of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any property of the Borrower
or any Subsidiary having an aggregate fair value or repair cost (as the case may be) in excess of $100,000 individually or in
the aggregate, and any such levy, seizure or attachment shall not be set aside, bonded or discharged within forty-five (45) days
after the date thereof;

 

xiv.
the Company shall fail to maintain the Required Minimum pursuant to the terms hereof and of the Purchase Agreement;

 

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

 

xvi.
executives of the Company receive compensation that is equal to or greater than the 50% reduction that was instituted by the Company
beginning in April 2020;

 

xvii.
prior to the payment in full and satisfaction of the owed under this Note, any security interest and Lien purported to be created
by any Transaction Document shall cease to be in full force and effect, or shall cease to give the Holders, the Liens, rights,
powers and privileges purported to be created and granted under such Transaction Documents (including a perfected first priority
security interest in and Lien on all of the Collateral thereunder (except as otherwise expressly provided in such Transaction
Document)) in favor of the Holders, or shall be asserted by the Company or any Affiliate(s) not to be a valid, perfected, first
priority (except as otherwise expressly provided in this Agreement or any such Transaction Document) security interest in or Lien
on the Collateral covered thereby;

 

xviii.
the Company shall enter into any transaction or arrangement structured in accordance with,
based upon, or related or pursuant to, in whole or in part, Section 3(a)(l0) of the Securities Act;

 

xix.
the Company enters into a Variable Rate Transaction;

 

    	-17-

     

    

 

xx.
any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey,
disclose, or any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of,
material non-public information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately
cured by Borrower’s filing of a Form 8-K pursuant to Regulation FD on that same date;

 

xxi.
If, at any time on or after the date which is six (6) months after the Original Issue Date,
the Holder is unable to (i) obtain a standard “144 legal opinion letter” from an attorney reasonably acceptable to
the Holder, the Holder’s brokerage firm (and respective clearing firm), and the Borrower’s transfer agent in order
to facilitate the Holder’s conversion of any portion of the Note into free trading shares of the Borrower’s Common
Stock pursuant to Rule 144, and/or (ii) thereupon deposit such shares into the Holder’s brokerage account;

 

xxii.
the Initial Registration Statement (as defined in the Registration Rights Agreement) shall not have been filed with the Commission
on or prior to the 60th calendar day after the Filing Date (as defined in the Registration Rights Agreement) or declared
effective by the Commission on or prior to the 60th calendar day after the Effectiveness Date (as defined in the Registration
Rights Agreement) or the Company does not meet the current public information requirements under Rule 144 in respect of the Registrable
Securities (as defined under the Registration Rights Agreement), provided that with respect to compliance with Rule 144, the Company
shall be provided a cure period equal to the pendency of any 5 or 15 day extension available pursuant to Rule 12b-25 of the Exchange
Act;

 

xxiii.
if, during the Effectiveness Period (as defined in the Registration Rights Agreement), either (a) the effectiveness of the Registration
Statement lapses for any reason or (b) the Holder shall not be permitted to resell Registrable Securities (as defined in the Registration
Rights Agreement) under the Registration Statement for a period of more than 20 consecutive Trading Days or 30 non-consecutive
Trading Days during any 12 month period; provided, however, that if the Company is negotiating a merger, consolidation,
acquisition or sale of all or substantially all of its assets or a similar transaction and, in the written opinion of counsel
to the Company, the Registration Statement would be required to be amended to include information concerning such pending transaction(s)
or the parties thereto which information is not available or may not be publicly disclosed at the time, the Company shall be permitted
an additional 10 consecutive Trading Days during any 12 month period pursuant to this Section;

 

xxiv.
the Company shall not have received an unqualified audit opinion for its audited financial statements for the fiscal year ended
December 31, 2020 on or prior to March 31, 2021;

 

xxv.
the Company shall disclose in any SEC Report that the Company has a cash balance of less than $250,000 (the “Cash Balance
Date”); and

 

    	-18-

     

    

 

xxvi.
the Company shall fail to have a sufficient number of authorized shares of Common Stock available to be issued for any conversion
to be made under this Note.

 

b)
Remedies Upon Event of Default. If any Event of Default occurs, at the Holder’s election (i) the outstanding principal
amount of this Note, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the
date of acceleration, shall become immediately due and payable in cash pursuant to clause (ii) of the definition of Mandatory
Default Amount, or (ii) the outstanding principal amount of this Note, and, if elected by the Holder, all accrued and unpaid interest
hereon, shall be converted into share of Common Stock at the Alternate Conversion Price pursuant to clause (i) of the definition
of Mandatory Default Amount. In the event the Holder makes the election described in clause (ii) of this Section above, but does
not elect to receive Conversion Shares in respect of all accrued and unpaid interest on the Note, all accrued and unpaid interest
shall be paid to the Holder in cash no later than the date the Conversion Shares are required to be delivered to the Holder. Commencing
on the occurrence of any Event of Default and for as long an Event of Default is not cured, the interest rate on this Note as
set forth in Section 2 above shall accrue at a rate equal to 20% per annum . Upon the payment in full of the Mandatory
Default Amount, the Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration
described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice
of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies
hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder
at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as
the Holder receives full payment pursuant to this Section 6(b). No such rescission or annulment shall affect any subsequent
Event of Default or impair any right consequent thereon. No such rescission or annulment shall affect any subsequent Event of
Default or impair any right consequent thereon; and in addition to any other rights and remedies available to the Holder in an
Event of Default, the Conversion Price in effect on any Conversion Date shall be equal to the Alternate Conversion Price, subject
to adjustment herein, without any notice or any action taken by the Holder. The Borrower shall pay the Holder hereof costs of
collection, including reasonable attorneys’ fees. If an Event of Default is occurring at the time another Event(s) of Default
occurs the Company shall not be obligated to pay any additional amounts due under this Section for such simultaneous Event of
Default.

 

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

 

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

 

    	-19-

     

    

 

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

 

c)
except as otherwise set forth in any Transaction Document, amend its charter documents, including, without limitation, its certificate
of incorporation and bylaws, in any manner that materially and adversely affects any rights of the Holder provided the Company
may file an amendment to its Series A Preferred Stock certificate of designation as previously approved by the Company and disclosed
in the definitive information statement on Schedule 14C filed with the Commission on September 16, 2020;

 

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

 

e)
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Liabilities, and other than
regularly scheduled principal and interest payments of Permitted Indebtedness as such terms are in effect as of the Original Issue
Date, provided that such payments shall not be permitted if, at such time, or after giving effect to such payment, any Event of
Default exist or occur;

 

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

 

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

 

h)
sell, lease or otherwise dispose of any significant portion of its assets or acquire any assets or business on or after the Original
Issue Date;

 

i)
make or suffer to exist any Investments using any proceeds from the Holder or any of its Affiliates (including without limitation,
loans and advances to, and other Investments in, Subsidiaries), or commitments therefor, or to become or remain a partner in any
partnership or joint venture, except for: (i) Investments in cash and cash equivalents; and (ii) Investments in Subsidiaries that
have guaranteed the Liabilities and joined the Security Agreement as a debtor pursuant to Section 4.24(b) of the Purchase Agreement;

 

j)
pay more than 50% of the compensation that may be due and payable and/or accured, whether in cash, in kind or any combination
thereof, to its executive officers and key employees;

 

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

 

    	-20-

     

    

 

Section
8. Miscellaneous.

 

a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without
limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, electronic mail or sent by a
nationally recognized overnight courier service, addressed to the Company, at the facsimile number, email address or mailing address
set forth on its signature page hereto, or such other facsimile number, electronic mail or address as the Company may specify
for such purposes by notice to the Holder delivered in accordance with this Section 8(a). Any and all notices or other
communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by electronic
mail, by facsimile, or sent by a nationally recognized overnight courier service addressed to the Holder at the email address,
facsimile number or address of the Holder appearing on the books of the Company, or if no such email address or facsimile number
or address appears on the books of the Company, at the principal place of business of such Holder, as set forth in the Purchase
Agreement, or such other facsimile number, electronic mail or address as the Holder may specify for such purposes by notice to
the Company delivered in accordance with this Section 8(a). Any notice or other communication or deliveries hereunder shall
be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
electronic mail or facsimile prior to 5:30 p.m. (New York City time) on any Trading Day, (ii) the next Trading Day after the date
of transmission, if such notice or communication is delivered via electronic mail or facsimile on a day that is not a Trading
Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is
required to be given.

 

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

 

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

 

    	-21-

     

    

 

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

 

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

 

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

 

    	-22-

     

    

 

g)
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall
be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law
or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees
that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this
Note.

 

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

 

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

 

j)
Secured Obligation. The obligations of the Company under this Note are secured by all assets of the Company and each Subsidiary
pursuant to the Security Agreement, dated as of December 10, 2020 between the Company, the Subsidiaries of the Company and the
Secured Parties (as defined therein).

 

k)
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries
of any security, or amendment to a security that was originally issued before the Original Issue Date, with any term that the
Holder reasonably believes is more favorable to the holder of such security or with a term in favor of the holder of such security
that the Holder reasonably believes was not similarly provided to the Holder in this Note, then (i) the Borrower shall notify
the Holder of such additional or more favorable term within one (1) Business Day of the issuance and/or amendment (as applicable)
of the respective security, and (ii) such term, at Holder’s option, shall become a part of the transaction documents with
the Holder (regardless of whether the Borrower complied with the notification provision of this Section). The types of terms contained
in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing
conversion discounts, prepayment rate, conversion lookback periods, interest rates, and original issue discounts. Notwithstanding
the foregoing, the Company shall not be obligated to notify the Holder of any issuances of securities to be made pursuant to the
Company’s Reg A offering which was qualified prior to the Original Issue Date.

 

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

 

    	-23-

     

    

 

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

 

	 	CAN
    B CORP.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Facsimile No. for delivery of Notices: _

 

    	-24-

     

    

 

ANNEX
A - NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Original Issue Discount Senior Secured Convertible Promissory Note due
September 10, 2021 of Can B Corp., a Florida corporation (the “Company”), into shares of common stock (the
“Common Stock”), of the Company according to the conditions hereof, as of the date written below. If shares
of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company
in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

 

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

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid shares of Common Stock.

 

Conversion
Information

 

	Date
    to Effect Conversion: 	 	 
	 	 	 
	Outstanding
    Principal:	 	 
	 	 	 
	Outstanding
    Interest:	 	 
	 	 	 
	Principal
    Amount of Note to be Converted:	 	 
	 	 	 
	Interest
    Amount of Note to be Converted:	 	 
	Conversion
    Price Calculations:	 	 
	 	 	 
	Total
    Shares of Common Stock to be Issued:	 	 
	 	 	 
	Outstanding
    Principal After Conversion: 	 	 
	 	 	 
	Outstanding
    Interest After Conversion:	 	 

 

	DWAC
                                         Instructions

         

        Broker:

         

        DTC#:

         

        Account:

         

        Account
        Name:

         
	Physical
                                         Delivery

         

         

        Issue
        to:

         

        Address:

         

         

 

	Entity
    Name: 	 	 
	 	 	 
	Signatory
    Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Signature:
    	 	 

 

    	-25-

     

    

 

Schedule
1

 

CONVERSION
SCHEDULE

 

This
Original Issue Discount Senior Secured Convertible Promissory Note due on September 10, 2021 in the original principal amount
of $2,675,239.10 is issued by Can B Corp., a Florida corporation. This Conversion Schedule reflects conversions made under Section
4 of the above referenced Note.

 

Dated:

 

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

 

    	-26-

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