Document:

Exhibit
4.3

 

[FORM OF CLASS B WARRANT]

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

XpresSpa
Group, Inc.

 

Class
B Warrant To Purchase Common Stock

 

Warrant No.: 2018-B________

Number of Shares of Common Stock:_________

Date of Issuance: May __, 2018 (“Issuance Date”)

 

XpresSpa Group, Inc.,
a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [    ], the registered holder
hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase
from the Company, at the Exercise Price (as defined below) then in effect, at any time or times on or after November __, 2018
(the “Initial Exercise Date”), but not after 11:59 p.m., New York time, on the Expiration Date, (as defined
below), ______________ (_____________)1
fully paid nonassessable shares of Common Stock, subject to adjustment as provided herein (the “Warrant
Shares”). Except as otherwise defined herein, capitalized terms in this Warrant to Purchase Common Stock (including
any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, this “Warrant”) shall
have the meanings set forth in Section 19 or as defined in the Securities Purchase Agreement (as defined below). This Warrant
is one of the Class B Warrants to purchase Common Stock (the “SPA B Warrants” and together with the Class A
Warrants the “SPA Warrants”) issued pursuant to Section 2 of that certain Securities Purchase Agreement, dated
as of May 15, 2018 (the “Subscription Date”), by and among the Company and the investors (the “Buyers”)
referred to therein (the “Securities Purchase Agreement”).

 

 

 

1
Insert 50% of the number of shares of Common Stock (on a fully diluted basis) purchased by the Holder pursuant to the Securities
Purchase Agreement.

 

    	

     

    

 

1.          EXERCISE
OF WARRANT.

 

(a) Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder at any time or times on or after the Initial Exercise Date and prior to the
Expiration Date, in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A
(the “Exercise Notice”), of the Holder’s election to exercise this Warrant and (ii) (A) payment to
the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant
is being exercised (the “Aggregate Exercise Price”) in cash by wire transfer of immediately available funds
or (B) if the provisions of Section 1(d) are applicable, by notifying the Company that this Warrant is being exercised pursuant
to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original Warrant in order
to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares
shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase
the remaining number of Warrant Shares. On or before the first (1st) Trading Day following the date on which the Company
has received the Exercise Notice, the Company shall transmit by electronic mail an acknowledgment of confirmation of receipt of
the Exercise Notice to the Holder. On or before the second (2nd) Trading Day following the date on which the Company
has received the Exercise Notice, so long as the Holder delivers the Aggregate Exercise Price (or notice of a Cashless Exercise)
on or prior to the second (2nd) Trading Day following the date on which the Company has received the Exercise Notice (the “Share
Delivery Date”) (provided that if the Aggregate Exercise Price (or notice of a Cashless Exercise) has not been delivered
by such date, the Share Delivery Date shall be extended one (1) Trading Day after the Aggregate Exercise Price (or notice of a
Cashless Exercise) is delivered), the Company shall (X) provided that the Company’s transfer agent (“Transfer Agent”)
is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program and the
Warrant Shares are eligible to be issued without a restrictive legend, credit such aggregate number of Warrant Shares to which
the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through
its Deposit/Withdrawal At Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program or the Warrant Shares are not eligible to be issued without a restrictive legend, issue and dispatch by overnight
courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in
the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise.
The Company shall be responsible for all fees and expenses of the Transfer Agent and all fees and expenses with respect to the
issuance of Warrant Shares via DTC, if any. Upon delivery of the Exercise Notice and the Aggregate Exercise Price (or notice of
a Cashless Exercise) (such date of delivery being the “Exercise Date”), the Holder shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective
of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing
such Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section
1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant
Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Trading
Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 8(d)) representing the right to
purchase the number of Warrant Shares issuable immediately prior to such exercise under this Warrant, less the number of Warrant
Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this
Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company shall
pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant;
provided, that the Company shall not be required to
pay any tax or governmental charge that may be imposed with respect to any applicable withholding or the issuance or delivery of
the Warrant Shares to any Person other than the Holder, and no such issuance or delivery shall be made unless and until such Person
other than the Holder requesting such issuance has paid to the Company the amount of any such tax, or has established to the satisfaction
of the Company that such tax has been paid. The Company’s obligations to issue and deliver Warrant Shares in accordance with
the terms and subject to the conditions 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. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may
be less than the amount stated on the face hereof.

 

    	 	2	 

     

    

 

(b) Exercise
Price. For purposes of this Warrant, “Exercise Price” means $0.62, subject to adjustment as provided herein.

 

(c) Company’s
Failure to Timely Deliver Securities. If (I) the Company shall fail for any reason or for no reason on or prior to the Share
Delivery Date either (a) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program and the
Warrant Shares are eligible to be issued without a restrictive legend, to issue to the Holder a certificate without any restrictive
legend for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the
Company’s share register or (b) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program
and the Warrant Shares are eligible to be issued without a restrictive legend, to credit the Holder’s balance account with
DTC, for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant
and the Warrant Shares are not eligible to be issued without a restrictive legend, to issue and dispatch by overnight courier to
the address as specified in the Exercise Notice for delivery on or before the Share Delivery Date a certificate, registered in
the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder
is entitled pursuant to such exercise, or (II) after the Initial Effective Date (as defined in the Registration Rights Agreement)
and during the Registration Period (as defined in the Registration Rights Agreement), (x) the Registration Statement (as defined
in the Registration Rights Agreement) covering the resale of all of the Warrant Shares that are the subject of the Exercise Notice
(the “Unavailable Warrant Shares”) is not available for the resale of such Unavailable Warrant Shares, (y) the
Company fails to promptly, but in no event later than as required pursuant to the Registration Rights Agreement so notify the Holder
and (z) the Company fails to, on or prior to the Share Delivery Date, deliver the Warrant Shares electronically without any restrictive
legend by crediting such aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian system (the event described in the
immediately foregoing clause (II) is hereinafter referred to as a “Notice Failure”) and either a Notice Failure
or an event described in clause (I) above (referred to herein as an “Exercise Failure”) occurs, then, in addition
to all other remedies available to the Holder, (X) the Company shall pay in cash to the Holder on each day after the Share Delivery
Date and during such Notice Failure or Exercise Failure an amount equal to 1.0% of the product of (A) the number of shares of Common
Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder is entitled, and (B) the higher of
(i) the then in effect Exercise Price of this Warrant or (ii) the closing price of the Common Stock on the date of the applicable
Exercise Notice, and (Y) the Holder, upon written notice to the Company, may void its Exercise Notice with respect to, and retain
or have returned, as the case may be, any portion of this Warrant that has not been exercised pursuant to such Exercise Notice;
provided that the voiding of an Exercise Notice shall not affect the Company’s obligations to make any payments which have
accrued prior to the date of such notice pursuant to this Section 1(c) or otherwise. If the Company is required to pay liquidated
damages hereunder solely as a result of a Notice Failure, the liquidated damages related thereto will cease to accrue upon delivery
of a written notice to the Holder specifying the correct status of the applicable Registration Statement. For the avoidance of
doubt, the Company acknowledges that the Company may be liable for Registration Delay Payments pursuant to the Registration Rights
Agreement in the event of an Exercise Failure or Notice Failure. In addition to the foregoing, if an Exercise Failure or Notice
Failure occurs, and if on or after the Share Delivery Date the Holder purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale through a broker by the Holder of shares of Common Stock issuable upon such
exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within
three (3) Trading Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder
in an amount equal to the Holder’s total purchase price (including brokerage commissions and other reasonable out of pocket
expenses related to the Buy-In, if any) for the shares of Common Stock so purchased (such number of shares not to exceed the number
of Warrant Shares failed to be delivered) (the “Buy-In Price”), at which point the Company’s obligation
to deliver such certificate (and to issue such shares of Common Stock) or credit such Holder’s balance account with DTC for
such shares of Common Stock shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates
representing such shares of Common Stock or credit such Holder’s balance account with DTC, as applicable, and pay cash to
the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common
Stock, times (B) the sale price of the Common Stock at which the sell order giving rise to such purchase obligation was executed.
Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver certificates representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise
of this Warrant as required pursuant to the terms hereof.

 

    	 	3	 

     

    

 

(d) Cashless
Exercise. Notwithstanding anything contained herein to the contrary, if 180 days after the issuance of this Warrant
a Registration Statement on Form S-1 (or other applicable registration statement under the 1933 Act) (the “Registration Statement”)
covering the resale of the Warrant Shares is not available for the issuance of such Warrant Shares, the Holder may, in its sole
discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise in payment of the Exercise Price, elect instead to exercise this Warrant by means of a cashless
exercise (a “Cashless Exercise”) in which the Holder shall be entitled to receive a number of Warrant Shares equal
to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise
is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined
in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of
the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z)
the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 1(a) hereof or (iii) the VWAP on the date of the applicable Notice
of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered
pursuant to Section 1(a) hereof after the close of “regular trading hours” on such Trading Day;

 

(B) = the Exercise
Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of
Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise
were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are
issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities
Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to
take any position contrary to this Section 1(d).

 

(e) Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 13.

 

    	 	4	 

     

    

 

(f) Limitations
on Exercises. Notwithstanding anything to the contrary contained herein, the Company shall not effect the exercise of any portion
of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to the terms and conditions
of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent that after giving effect
to such exercise, the Holder together with the other Attribution Parties collectively would beneficially own in excess of 9.99%
(the “Maximum Percentage”) of the number of shares of Common Stock outstanding immediately after giving effect
to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by
the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and all other
Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the
determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable upon
(A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any of the other Attribution
Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred stock or warrants, including the other SPA Warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation
contained in this Section 1(f). For purposes of this Section 1(f), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”). For purposes of this Warrant,
in determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without
exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public
filing with the Securities and Exchange Commission (the “SEC”), as the case may be, (y) a more recent public
announcement by the Company or (3) any other written notice by the Company or the Transfer Agent setting forth the number of shares
of Common Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives an Exercise Notice
from the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share
Number, the Company shall (i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the
extent that such Exercise Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this
Section 1(f), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be
purchased pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the “Reduction Shares”)
and (ii) as soon as reasonably practicable, the Company shall return to the Holder any exercise price paid by the Holder for the
Reduction Shares. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1)
Business Day confirm orally and in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including this Warrant, by the Holder and any other Attribution Party since the date as of which
the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Holder upon
exercise of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate,
more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the
1934 Act), the number of shares so issued by which the Holder’s and the other Attribution Parties’ aggregate beneficial
ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled
ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable
after the issuance of the Excess Shares has been deemed null and void, the Company shall return to the Holder the exercise price
paid by the Holder for the Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase
(with such increase not effective until the sixty-first (61st) day after delivery of such notice) or decrease the Maximum
Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the
Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company
and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder
of SPA Warrants that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant
to the terms of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for
any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant
pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent
determination of exercisability. The provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 1(f) to the extent necessary to correct this paragraph or any portion of this
paragraph which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f)
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in
this paragraph may not be waived and shall apply to a successor holder of this Warrant.

 

    	 	5	 

     

    

  

(g) Insufficient
Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant at least
a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect
the exercise of all of this Warrant then outstanding (the “Required Reserve Amount” and the failure to have
such sufficient number of authorized and unreserved shares of Common Stock, an “Authorized Share Failure”),
then the Company shall promptly take all action necessary to increase the Company’s authorized shares of Common Stock to
an amount sufficient to allow the Company to reserve the Required Reserve Amount for this Warrant then outstanding. Without limiting
the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting
of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such
meeting, the Company shall provide each stockholder with a proxy statement and shall use its commercially reasonable efforts to
solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the stockholders that they approve such proposal. Notwithstanding the foregoing, if any such time of an Authorized
Share Failure, the Company is able to obtain the written consent of a majority of the shares of its issued and outstanding Common
Stock to approve the increase in the number of authorized shares of Common Stock without soliciting its stockholders, the Company
may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information Statement on Schedule
14C. In the event that upon any exercise of this Warrant, the Company does not have sufficient authorized shares to deliver in
satisfaction of such exercise, then unless the Holder elects to void such attempted exercise, the Holder may require the Company
to pay to the Holder within three (3) Trading Days of the applicable exercise, cash in an amount equal to the product of (i) the
quotient determined by dividing (x) the number of Warrant Shares that the Company is unable to deliver pursuant to this Section
1(g), by (y) the total number of Warrant Shares issuable upon exercise of this Warrant (without regard to any limitations or restrictions
on exercise of this Warrant) and (ii) the Black Scholes Value; provided, that (x) references to “the day immediately following
the public announcement of the applicable Fundamental Transaction” in the definition of “Black Scholes Value”
shall instead refer to “the date the Holder exercises this Warrant and the Company cannot deliver the required number of
Warrant Shares because of an Authorized Share Failure” and (y) clause (iii) of the definition of “Black Scholes Value”
shall instead refer to “the underlying price per share used in such calculation shall be the highest Weighted Average Price
during the period beginning on the date of the applicable date of exercise and the date that the Company makes the applicable cash
payment.”

 

2.          ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

 

    	 	6	 

     

    

 

(a) Certain
Anti-Dilution Adjustments. In addition to the reductions of the Exercise Price described in Section 2(b), 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 Common Stock at an effective price per share that
is lower than the then Exercise Price (such lower price, the “Base Exercise 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
Common Stock at an effective price per share that is lower than the Exercise Price, such issuance shall be deemed to have occurred
for less than the Exercise Price on such date of the Dilutive Issuance), then the Exercise Price shall be reduced to equal the
Base Exercise Price, subject to adjustment for reverse and forward stock splits and the like. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued; provided, however, that notwithstanding the foregoing,
the Exercise Price shall not be adjusted to be less than the Reduced Exercise Price Floor; provided, further, however,
that the Exercise Price can be reduced below the Reduced Exercise Price Floor if the Company is not then subject to Nasdaq Listing
Rule 5635(d) or if approved by the Principal Market. Notwithstanding the foregoing, no adjustment will be made under this Section
2(a) in respect of an Exempt Issuance. 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 at which such securities may be converted or exercised. The Company shall notify the Holder in writing, no later
than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 2(a), 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 2(a), upon the occurrence of any Dilutive Issuance, the Holder is entitled
to receive a number of Warrant Shares based upon the Base Exercise Price on or after the date of such Dilutive Issuance, regardless
of whether the Holder accurately refers to the Base Exercise Price in the Notice of Exercise. In the event the Exercise Price is
reduced pursuant to this Section 2(a) the number of Warrant Shares issuable hereunder shall be increased such that the aggregate
Exercise Price payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate
Exercise Price prior to such adjustment (such additional Warrant Shares the “Additional Shares”). Notwithstanding the
foregoing, no reduction of the Exercise Price shall be less than twenty percent (20%) of the Exercise Price on the Issuance Date
(subject to appropriate adjustments for stock splits, stock dividends, recapitalizations, reorganizations, reclassifications, combinations,
reverse stock splits or other similar transactions after the Issuance Date) (the “Reduced Exercise Floor Price”);
provided, however, that the Exercise Price can be reduced below the Reduced Exercise Price Floor if approved by the Principal Market.
Company further agrees that the proxy statement with respect to the Shareholder Approval will be drafted such that such Shareholder
Approval will extend to such a reduction below the Reduced Exercise Price Floor and issuance of the Additional Shares. Notwithstanding
anything herein to the contrary, this Section 2(a) shall not apply until receipt of the Shareholder Approval pursuant to Nasdaq
Listing Rule 5635(d) and for as long as such rule is applicable to the Company.

 

(b) Adjustment
Upon Subdivision or Combination of Shares of Common Stock. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date
combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into
a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

    	 	7	 

     

    

 

(c) Exchange
Cap. The Company shall not issue any shares of Common Stock upon exercise of this Warrant or otherwise pursuant to the terms
of this Warrant if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which
the Company may issue upon conversion of the Notes or otherwise pursuant to the terms of this Warrant without breaching the Company’s
obligations, if any, under the rules or regulations of the Principal Market (the number of shares which may be issued without violating
such rules and regulations, including rules related to the aggregate of offerings under Nasdaq Listing Rule 5635(d), as applicable,
the “Exchange Cap”), except that such limitation shall not apply in the event that the Company obtains the approval
of its stockholders as required by the applicable rules of the Principal Market for issuances of shares of Common Stock upon exercise
of this Warrant or otherwise pursuant to the terms of this Warrant in excess of such amount. Until such approval is obtained, no
Holder shall be issued in the aggregate, upon conversion of any Notes or otherwise pursuant to the terms of this Warrant, shares
of Common Stock in an amount greater than the product of (i) the Exchange Cap multiplied by (ii) the quotient of (A) the Holder’s
Subscription Amount (as defined in the Securities Purchase Agreement) divided by (B) the aggregate principal amount of Notes issued
to all Holders (with respect to each Holder, the “Exchange Cap Allocation”). The Exchange Cap Allocation will be further
allocated as to each Holder among its Notes and Warrants. In the event that any Holder shall sell or otherwise transfer any of
such Holder’s Warrants, the transferee shall be allocated a pro rata portion of such Holder’s Exchange Cap Allocation
with respect to such portion of such Warrants so transferred, and the restrictions of the prior sentence shall apply to such transferee
with respect to the portion of the Exchange Cap Allocation so allocated to such transferee. Upon exercise in full of a Holder’s
Warrants, the difference (if any) between such Holder’s Exchange Cap Allocation and the number of shares of Common Stock
actually issued to such Holder upon such Holder’s exercise in full of such Holder’s Warrants shall be allocated to
the respective Exchange Cap Allocations of the remaining Holders of Warrants on a pro rata basis in proportion to the shares
of Common Stock underlying the Warrants then held by each such Holder. The Company acknowledges that
the issuance of Warrant Shares upon exercise of this Warrant in accordance with the terms of this Warrant as in effect upon the
Issuance Date are in compliance with Nasdaq Listing Rule 5635(d) and not subject to the Exchange Cap.

 

3.          RIGHTS
UPON DISTRIBUTION OF ASSETS. 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, options, evidence of indebtedness or any other assets 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 Warrant, then, in each such case, the Holder shall be entitled, and the Company shall reserve
the Holder’s pro rata share of the Distribution pending complete exercise of this Warrant, 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 Warrant (without regard to any limitations or restrictions on exercise of this Warrant,
including without limitation, the Maximum Percentage) 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, that to the extent that the Holder’s right to participate
in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the
Holder shall not be entitled to participate in such Distribution to such extent (and shall not be entitled to beneficial ownership
of such shares of Common Stock as a result of such Distribution (and beneficial ownership) to such extent).

 

    	 	8	 

     

    

 

4.          PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a) Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all of the record
holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled, and the Company
shall reserve the Holder’s pro rata share of the Purchase Rights pending complete exercise of this Warrant, 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 exercise of this Warrant (without regard to any limitations
or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) 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, that to the extent that the Holder’s right to participate in any such Purchase Right would
result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled
to participate in such Purchase Right to such extent (and shall not be entitled to beneficial ownership of such shares of Common
Stock as a result of such Purchase Right (and beneficial ownership) to such extent).

 

(b) Fundamental
Transactions. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization 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, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”); then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise 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 exercise of this Warrant following such Fundamental
Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor
Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after,
the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental
Transaction; provided, however, until the first anniversary of the Issuance Date, the Black Scholes Value of the
remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction shall be capped at
the initial Exercise Price of this Warrant; provided, further, if the Fundamental Transaction is not within the Company’s
control, including not approved by the Company’s Board of Directors or the consideration is not in all stock of the Successor
Entity, Holder shall have the option to require the Company or any Successor Entity to purchase its Warrant for the Black Scholes
Value of the unexercised portion of this Warrant as of the date of consummation of such Fundamental Transaction using the same
type or form of consideration (and in the same proportion) that is being offered and paid to the holders of Common Stock of the
Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination
thereof, or whether the holders of Common Stock are given the choice to receive from among alternative forms of consideration in
connection with the Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the
Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant
to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this
Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity)
equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations
on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price
hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to
such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise
price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been
named as the Company herein.

 

    	 	9	 

     

    

 

5.          Mandatory
Exercise. 

 

(a) If at
any time from and after the Issuance Date (i) the VWAP of the Common Stock listed on the Principal Market equals or exceeds $1.24
(subject to appropriate adjustments for stock splits, stock dividends, recapitalizations, reorganizations, reclassifications, combinations,
reverse stock splits or other similar transactions after the Issuance Date) for not less than ten (10) consecutive Trading Days
(the “Mandatory Exercise Measuring Period”); (ii) the daily average dollar value of Common Stock listed on the
Principal Market traded during the Mandatory Exercise Measuring Period equals or exceeds $100,000 (subject to appropriate adjustments
for stock splits, stock dividends, recapitalizations, reorganizations, reclassifications, combinations, reverse stock splits or
other similar transactions after the Issuance Date); and (iii) no Equity Conditions Failure (as defined below) has occurred (unless
the Holder has waived such Equity Conditions Failure) as of such date (clauses (i), (ii) and (iii), the “Mandatory Exercise
Conditions”), then the Company shall have the right to require the Holder to exercise all or any portion of this Warrant
still unexercised for a cash exercise, as designated in the Mandatory Exercise Notice on the Mandatory Exercise Date (each as defined
below) into fully paid, validly issued and nonassessable shares of Common Stock in accordance with Section 1 hereof at the Exercise
Price as of the Mandatory Exercise Date (as defined below) (a “Mandatory Exercise”). The Company may exercise
its right to require exercise under this Section 5 by delivering within not more than two (2) Trading Days following the end of
such Mandatory Exercise Measuring Period a written notice thereof by electronic mail to the Holder (the “Mandatory Exercise
Notice” and the date that the Holder received such notice is referred to as the “Mandatory Exercise Notice Date”).
The Mandatory Exercise Notice shall be irrevocable. The Mandatory Exercise Notice shall (x) state (I) the Trading Day on which
the Mandatory Exercise shall occur, which shall be the third (3rd) Trading Day following the Mandatory Exercise Notice
Date (the “Mandatory Exercise Date”) and (II) the aggregate number of Warrants which the Company has elected
to be subject to such Mandatory Exercise from the Holder (the “Mandatory Exercise Amount”) pursuant to this
Section 5 and (y) certify that the Mandatory Exercise Conditions have been satisfied. The Mandatory Exercise thereunder may only
occur on the Mandatory Exercise Date if there is no Equity Conditions Failure (unless the Holder has waived such Equity Conditions
Failure) during the ten (10) consecutive Trading Day period that occurs immediately prior to the Mandatory Exercise Date (the “Mandatory
Exercise Bring-Down Conditions”).

 

    	 	10	 

     

    

 

(b) The Company
shall deliver to the Holder a notice no later than 10:00 a.m., New York Time, on the Mandatory Exercise Date (the “Bring-Down
Notice”), which notice shall certify whether or not the Mandatory Exercise Bring-Down Conditions have been satisfied.
If the Mandatory Exercise Bring-Down Conditions have not been satisfied at such time (and are not waived by the Holder), the Mandatory
Exercise Notice will be null and void, ab initio. Notwithstanding anything to the contrary in this Section 5, until the
Mandatory Exercise has occurred, the Mandatory Exercise Amount may be exercised, in whole or in part, by the Holder into shares
of Common Stock pursuant to Section 1. The Company covenants and agrees that it will honor all Exercise Notices tendered from the
time of delivery of the Mandatory Exercise Notice until the Mandatory Exercise has occurred. Unless otherwise indicated by the
Holder, all Warrants exercised by the Holder after the Mandatory Exercise Notice Date shall reduce the Mandatory Exercise Amount
of this Warrant required to be exercised on the Mandatory Exercise Date. Upon an Equity Conditions Failure, the Holder may revoke
any Exercise Notice delivered after the Mandatory Exercise Notice is received by the Holder, and the Company, within one (1) Business
Day of such revocation, shall return the Aggregate Exercise Price applicable to any such Exercise Notice(s) to the Holder by wire
transfer of immediately available funds and any Warrants so exercised shall be deemed reinstated and returned to the Holders, if
applicable. Delivery of any shares of Common Stock issuable pursuant to a Mandatory Exercise shall be made electronically to the
Holder’s or its designee’s balance account with DTC through its Deposit / Withdrawal at Custodian system in accordance
with the provisions of Section 1 above.

 

6.          NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation or Bylaws,
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the proper exercise of this Warrant by the Holder, and (iii) shall, so long as any of
the SPA Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, the number of shares of Common Stock as
shall from time to time be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations
on exercise).

 

    	 	11	 

     

    

 

7.          WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote,
give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to
the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant.
In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities
(upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 7, the Company shall provide the Holder with copies of the same notices
and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

8.          REISSUANCE
OF WARRANTS.

 

(a) Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 8(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
8(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b) Lost, Stolen
or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 8(d)) representing the right to purchase the Warrant
Shares then underlying this Warrant.

 

(c) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 8(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no SPA
Warrants for fractional Warrant Shares shall be given.

 

(d) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 8(a)
or Section 8(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

    	 	12	 

     

    

 

9.          NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 5.4 of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment
of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
five (5) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or
rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights
to vote with respect to any Fundamental Transaction, dissolution or liquidation; provided in each case that such information
shall be made known to the public prior to or in conjunction with such notice being provided to the Holder. 

 

10.         AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended or waived and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Required Holders, and with respect to any amendment, the amendment is in writing and signed by the Company,
except that any Holder may waive the Company’s performance hereunder or provide consent as the only such Holder. 

 

11.         GOVERNING
LAW; JURISDICTION; JURY TRIAL. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City
of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The Company hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to the Company at the address set forth in Section 5.4 of the Securities Purchase Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

12.         CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

    	 	13	 

     

    

 

13.         DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via electronic mail within two (2) Business
Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two
(2) Business Days submit via electronic mail (a) the disputed determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares
to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant,
as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later
than ten (10) Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s
or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable
error.

 

14.         REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant and 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 right of the Holder to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant. 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 of this Warrant shall be entitled,
in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required.

 

15.         TRANSFER.
This Warrant and the Warrant Shares may be offered for sale, sold, transferred, pledged or assigned without the consent of
the Company.

 

16.         SEVERABILITY.
If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

17.         DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Warrant, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries (as defined in the Securities Purchase Agreement), the Company shall within four (4) Business Days after any
such receipt or delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In
the event that the Company believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries,
the Company so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication,
the Holder shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information
relating to the Company or its Subsidiaries.

 

    	 	14	 

     

    

 

18.         LIMITATIONS
OF RIGHTS. The rights granted to the Holder pursuant to Sections 2(a) and 4(b) of this Warrant are personal to the original
Holders of this Warrant and shall automatically be cancelled and of no further effect upon any transfer of this Warrant by sale
or otherwise.

 

19.         CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

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

 

(b) “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 under the Securities Act.

 

(c) “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds,
feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised
by the Holder’s investment manager or any of its Affiliates or principals, (ii) any Affiliates of the Holder or any of the
foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of the foregoing
and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated with the
Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the
foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(d) “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 in the “Pink Sheets” published by OTC Markets Group, 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 Holders 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.

 

(e) “Black Scholes Value” means the value of this Warrant
based on the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the
day immediately following the public announcement of the applicable Fundamental Transaction, or, if the Fundamental Transaction
is not publicly announced, the date the Fundamental Transaction is consummated, for pricing purposes and reflecting (i) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of such date
of request, (ii) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function
on Bloomberg as of the day immediately following the public announcement of the applicable Fundamental Transaction, or, if the
Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, (iii) the underlying price
per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any
non-cash consideration, if any, being offered in the Fundamental Transaction, (iv) a zero cost of borrow and (v) a 360 day annualization
factor.

 

(f) “Bloomberg”
means Bloomberg Financial Markets.

 

(g) “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.

 

    	 	15	 

     

    

 

(h) “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such
security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing
bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the OTC Link or “pink sheets” by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Bid Price
or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved pursuant to Section 13. All such determinations to be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

(i) “Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.01 per share, and (ii) any share
capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common
Stock.

 

(j) “Common
Stock Equivalents” means any securities of the Company or its Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant 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.

 

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

 

(l) “Eligible
Market” means the Principal Market, the NYSE American, The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ
Global Select Market, or The New York Stock Exchange, Inc.

 

(m) “Equity
Conditions” means, during the period in question, (a) Company shall have duly honored all exercises scheduled to occur
or occurring by virtue of one or more Exercise Notices of the applicable Holder on or prior to the dates so requested or required,
if any, (b) Company shall have paid all liquidated damages and other amounts owing to the applicable Holder in respect of this
Warrant and the other Transaction Documents, (c) (i) there is an effective registration statement pursuant to which the Holders
are permitted to utilize the prospectus thereunder to resell all of the Underlying Shares (and Company believes, in good faith,
that such effectiveness will continue uninterrupted for the foreseeable future), or (ii) all of the Underlying Shares (and shares
issuable in lieu of cash payments of interest) may be resold pursuant to Rule 144 without volume or manner-of-sale restrictions
or current public information requirements as confirmed by counsel to Company in a written opinion letter to such effect, addressed
and acceptable to the Company’s Transfer Agent and the affected Holders, (d) the Common Stock is trading on the Nasdaq Capital
Market and all of the shares issuable pursuant to the Transaction Documents are listed or quoted for trading on such Trading Market
(and 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 then issuable pursuant to the Transaction Documents, (f) an Event of Default has not occurred,
whether or not such Event of Default has been cured (other than an Event of Default set forth in clause (xv) of the definition
of Event of Default which has been cured), (g) there is no existing event which, with the passage of time or the giving of notice,
would constitute an Event of Default, (h) the issuance of the shares in question to the applicable Holder would not exceed the
Beneficial Ownership Limitation, (i) there has been no public announcement of a pending or proposed Fundamental Transaction or
Change of Control Transaction that has not been consummated, (j) the applicable Holder is not in possession of any information
provided by Company that constitutes, or may constitute, material non-public information, (k) Shareholder Approval has been obtained,
and (l) a Public Information Failure is not pending.

 

    	 	16	 

     

    

 

(n) “Equity
Conditions Failure” means that on any day during the period commencing ten (10) Trading Days prior to the applicable
date of determination through the applicable date of determination, the Equity Conditions have not been satisfied (or waived in
writing by the Holder).

 

(o) “Expiration
Date” means six months after the later of: (i) Initial Effective Date, (ii) the Additional Effective Date if any, (as
defined in the Registration Rights Agreement) or (iii) the Initial Exercise Date or, if such date falls on a day other than a Business
Day or on which trading does not take place on the Principal Market (a “Holiday”), the next day that is not
a Holiday.

 

(p) “Group”
means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

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

 

(r) “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, including such entity
whose common shares or common stock or equivalent equity security is quoted or listed on an Eligible Market (or, if so elected
by the Required Holders, any other market, exchange or quotation system), or, if there is more than one such Person or such entity,
the Person or such entity designated by the Required Holders or in the absence of such designation, such Person or entity with
the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

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

 

(t) “Principal
Market” means the Nasdaq Capital Market.

 

(u) “Registration
Rights Agreement” means that certain Registration Rights Agreement dated as of the date of the Securities Purchase Agreement
by and among the Company and the Buyers.

 

(v) “Required
Holders” means the holders of the SPA B Warrants representing at least a majority of the shares of Common Stock underlying
the SPA B Warrants then outstanding.

 

(w) “Shareholder
Approval” shall have the meaning set forth in the Securities Purchase Agreement.

 

(x)  “Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(y) “Successor
Entity” means one or more Person or Persons (or, if so elected by the Holder, the Company or Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or one or more Person or Persons (or, if so elected by the Holder, the
Company or the Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

    	 	17	 

     

    

 

(z) “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during
the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(aa)  “Weighted
Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on
the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market
on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time
as such market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest Closing Bid Price and the
lowest closing ask price of any of the market makers for such security as reported in the OTC Link or “pink sheets”
by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the
fair market value of such security, then such dispute shall be resolved pursuant to Section 12 with the term “Weighted Average
Price” being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination, reclassification or other similar transaction during the applicable calculation
period.

 

[Signature Page Follows]

 

    	 	18	 

     

    

 

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

 

	 	XPRESSPA GROUP, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	Chief Executive Officer

 

[Signature
Page to Warrant]

 

    	 	 	 

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

XPRESSPA
GROUP, INC.

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
XpresSpa Group, Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant to Purchase
Common Stock No. ____ (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Warrant.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________ a
“Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

___________ a
“Cashless Exercise” with respect to _______________ Warrant Shares.

 

2. Payment of Exercise
Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

3. Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

 

	_______ Electronic Delivery	DTC Participant:	 
	 	DTC Number:	 
	 	Account Name:	 
	 	Account Number:	 
	 	 	 
	_______ Physical Delivery	Address:	 
	 	 	 
	 	 	 

 

Date: _______________ __, ______

 

	 	 
	 	Name of Registered Holder	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	 	 

     

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs American Stock Transfer & Trust Company, LLC to issue the above indicated
number of shares of Common Stock in accordance with the Exercise Notice.

 

	 	XPRESSPA GROUP, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:Exhibit
10.1

 

EXECUTION
COPY

 

CREDIT
AGREEMENT

 

by
and between

 

XPRESSPA
HOLDINGS, LLC

 

and

 

ROCKMORE
INVESTMENT MASTER FUND LTD.

 

$6,000,000

 

Dated
as of April 22, 2015

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 
	ARTICLE 1. DEFINITIONS AND PRINCIPLES OF CONSTRUCTION	1
	 	 	 
	Section 1.01	Definitions	 1
	 	 	 
	Section 1.02	Principles of Construction	9
	 	 	 
	Section 1.03	Accounting Terms; GAAP	9
	 	 	 
	ARTICLE 2. AMOUNT AND TERMS OF THE LOAN	9
	 	 	 
	Section 2.01	Loan	9
	 	 	 
	Section 2.02	Note	9
	 	 	 
	Section 2.03	Payments of the Loan	 10
	 	 	 
	Section 2.04	Treatment and Application of Payments	 10
	 	 	 
	Section 2.05	Use of Proceeds	 11
	 	 	 
	Section 2.06	Guarantee	 11
	 	 	 
	Section 2.07	Security Agreement	 11
	 	 	 
	Section 2.08	Warrants	 11
	 	 	 
	Section 2.09	Conversion	 11
	 	 	 
	ARTICLE 3. INTEREST, FEES, ETC	12
	 	 	 
	Section 3.01	Interest Rate and Payment Dates	 12
	 	 	 
	Section 3.02	Fees	 12
	 	 	 
	Section 3.03	Taxes; Net Payments	12
	 	 	 
	Section 3.04	Lender’s Records	 13
	 	 	 
	ARTICLE 4. REPRESENTATIONS AND WARRANTIES	13
	 	 	 
	Section 4.01	Subsidiaries; Capitalization	 13
	 	 	 
	Section 4.02	Existence and Power	13
	 	 	 
	Section 4.03	Authority and Execution	14
	 	 	 
	Section 4.04	Binding Agreement	14
	 	 	 
	Section 4.05	Absence of Defaults; No Conflicting Agreements	14
	 	 	 
	Section 4.06	Consents	14
	 	 	 
	Section 4.07	Litigation	 15
	 	 	 
	Section 4.08	Compliance with Applicable Laws	15
	 	 	 
	Section 4.09	Taxes	 15

 

    	 	-i-	 

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 4.10	Financial Statements	 15
	 	 	 
	Section 4.11	Investment Company Status	 15
	 	 	 
	Section 4.12	Federal Reserve Regulations; Use of Loan Proceeds	 15
	 	 	 
	Section 4.13	Property	 16
	 	 	 
	Section 4.14	Plans	 16
	 	 	 
	Section 4.15	Environmental Matters	 16
	 	 	 
	Section 4.16	Security Interests	 16
	 	 	 
	Section 4.17	Intellectual Property	16
	 	 	 
	Section 4.18	No Misrepresentation	 16
	 	 	 
	ARTICLE 5. CONDITIONS TO LOAN	17
	 	 	 
	Section 5.01	Conditions Precedent to Effectiveness	 17
	 	 	 
	ARTICLE 6. AFFIRMATIVE COVENANTS	19
	 	 	 
	Section 6.01 	Financial and Other Information	19
	 	 	 
	Section 6.02 	Existence, Maintenance of Properties, Insurance, Licenses	21
	 	 	 
	Section 6.03 	Payment of Taxes, Indebtedness, etc	21
	 	 	 
	Section 6.04 	Maintenance of Records; Inspection	21
	 	 	 
	Section 6.05 	Use of Proceeds	22
	 	 	 
	Section 6.06 	[Intentionally Left Blank]	22
	 	 	 
	Section 6.07 	Environmental Matters	22
	 	 	 
	Section 6.08 	Subsidiaries	22
	 	 	 
	Section 6.09 	Funding Call	22
	 	 	 
	Section 6.10 	Further Assurances	23
	 	 	 
	ARTICLE 7. NEGATIVE COVENANTS	23
	 	 	 
	Section 7.01 	Indebtedness 	23
	 	 	 
	Section 7.02 	Liens 	24
	 	 	 
	Section 7.03 	Sale of Assets, Nature of Business  	24
	 	 	 
	Section 7.04 	Investments 	25
	 	 	 
	Section 7.05 	Compliance with ERISA 	25
	 	 	 
	Section 7.06	Restricted Payments 	25

 

    	 	-ii-	 

     

    

 

TABLE
OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 7.07	Fundamental Changes	26
	 	 	 
	Section 7.08	Transactions with Affiliates	26
	 	 	 
	Section 7.09	Financial Covenants	26
	 	 	 
	Section 7.10	Amendment of Operating Agreement	27
	 	 	 
	ARTICLE 8. DEFAULT	27
	 	 	 
	Section 8.01	Events of Default	27
	 	 	 
	Section 8.02	Remedies	29
	 	 	 
	ARTICLE 9. OTHER PROVISIONS	29
	 	 	 
	Section 9.01	Modifications; Consents and Waivers; Entire Agreement	29
	 	 	 
	Section 9.02	Notices	29
	 	 	 
	Section 9.03	Successors and Assigns; Participation; Pledge	31
	 	 	 
	Section 9.04	No Waiver; Cumulative Remedies	32
	 	 	 
	Section 9.05	Survival of Representations and Warranties and Certain Obligations	32
	 	 	 
	Section 9.06	Costs; Expenses and Taxes; Indemnification	32
	 	 	 
	Section 9.07	Right of Set-Off	33
	 	 	 
	Section 9.08	Execution in Counterparts	33
	 	 	 
	Section 9.09	GOVERNING LAW	34
	 	 	 
	Section 9.10	JURISDICTION, ETC	34
	 	 	 
	Section 9.11	WAIVER OF TRIAL BY JURY	35
	 	 	 
	Section 9.12	Interest Rate Limitation	35
	 	 	 
	Section 9.13	Marshaling; Payments Set Aside	35
	 	 	 
	Section 9.14	No Third Parties Benefited	36
	 	 	 
	Section 9.15	USA Patriot Act	36

 

    	 	-iii-	 

     

    

 

CREDIT AGREEMENT

 

CREDIT AGREEMENT, dated
as of April 22, 2015, by and between XPRESSPA HOLDINGS, LLC, a Delaware limited liability company (the “Borrower’) and
ROCKMORE INVESTMENT MASTER FUND LTD. (the “Lender”).

 

The Borrower desires
to establish a $6,000,000 credit facility with the Lender on the terms and conditions set forth herein and the Lender is willing
to provide such credit facility. Accordingly, the Borrower and the Lender agree as follows:

 

ARTICLE 1. DEFINITIONS
AND PRINCIPLES OF CONSTRUCTION 

 

Section 1.01      Definitions

 

In addition to terms
defined elsewhere in the Loan Documents, the following terms shall have the following meanings:

 

“Accountants”:
BDO USA, LLP (or any successor thereto), or such other firm of certified public accountants of recognized national standing
selected by the Borrower and reasonably satisfactory to the Lender.

 

“Accrued
Monthly Interest”: as defined in Section 3.01(a)

 

“Active Domestic
Subsidiary”: any Domestic Subsidiary that (i) is or will be a tenant under an airport concession lease agreement, or is
operating or will operate a retail establishment, relating to the sale of health and wellness products or services or (ii) is or
will be engaged in activities relating to the sale of health and wellness products or services.

 

“Affiliate”:
as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control
with, such Person. For purposes of this definition, control of a Person shall mean the power, direct or indirect, (i) to vote 25%
or more of the securities or other interests having ordinary voting power for the election of directors or other Managing Persons
thereof or (ii) to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

“Agreement”:
this Credit Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Assignee”: as defined in Section
9.03(b).

 

“Authorized
Signatory”: as to (i) any Person which is a corporation, the chairman of the board, the president, any vice president,
the chief financial officer or any other officer (acceptable to the Lender) of such Person and (ii) any Person which is not a corporation,
the general partner or other Managing Person thereof or a duly authorized representative of such Managing Person (acceptable to
the Lender).

 

“Base
Monthly Interest”: as defined in Section 3.01(a).

 

     

     

    

 

“Business
Day”: a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are required or
permitted by law to close.

 

“Capital Stock”:
as to any Person, all shares, interest, partnership interests, limited liability company membership interests, participations,
rights in or other equivalents (however designated) of such Person’s equity (however designated) and any rights, warrants or options
exchangeable for or convertible into such shares, interests, participations, rights or other equity.

 

“Change in
Control”: as used herein, a “Change of Control” shall be deemed to have occurred if, without the prior written
consent of the Lender, (i) any Person, or any two or more Persons acting as a group, and all Affiliates of such Person or Persons
(a “Group”), who prior to such time beneficially owned less than 50% of the then issued and outstanding limited liability
company interests of Borrower shall acquire issued and outstanding limited liability company interests of Borrower in one or more
transactions or series of transactions, including by merger, and after such transaction or transactions such Person or Group beneficially
owns 50% or more of the then issued and outstanding limited liability company interests of Borrower or (ii) Borrower shall sell
all of its assets to any Person which, immediately prior to the time of such transaction, beneficially owned less than a majority
of the then outstanding limited liability company interests of Borrower.

 

“Change
in Management”: at any time on or after the Effective Date, without the prior written consent of the Lender, the then
current chief executive officer, chief operating officer or president of the Borrower shall cease for any reason whatsoever, including,
without limitation, death or disability (as such disability shall be determined in the sole and absolute judgment of the Lender)
to be and continuously perform the duties of chief executive officer, chief operating officer or president of the Borrower; provided,
however, if a successor satisfactory to the Lender in its sole discretion shall have become and shall have commenced to perform
the duties of chief executive officer, chief operating officer or president of the Borrower within ninety (90) days after such
cessation, such successor shall be deemed to be the “current chief executive officer”, “current chief operating
officer” or “current president”, as the case may be, for the purposes of this definition.

 

“Code”:
the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto, and the rules and regulations issued
thereunder, as from time to time in effect.

 

“Collateral”:
the Property in which a security interest has been granted to the Lender pursuant to the Security Agreement.

 

“Commitment”:
the Lender’s obligation to make the Loan hereunder on the Effective Date, in an aggregate amount equal to the Commitment Amount.

 

“Commitment
Amount”: $6,000,000.

 

“Compliance
Certificate”: as defined in clause (d) of Section 6.01.

 

“Consolidated”:
the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.

 

    	 	2	 

     

    

 

“Control”:
the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise. The terms “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Convertible
Notes”: one or more debt instruments issued by the Borrower that is convertible into common units of the Borrower, subject
to the terms and conditions of such instruments.

 

“Credit Party”: the Borrower and
the Guarantors.

 

“DBE Equity
Issuance”: the issuance of any Capital Stock by any Subsidiary to, or the receipt of any capital contribution by any Subsidiary
from, a disadvantaged business enterprise investor in such Subsidiary.

 

“Default”:
any event or condition which constitutes an Event of Default or that upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

 

“Dollars” or “$“: lawful
money of the United States of America.

 

“Domestic
Subsidiary”: any direct or indirect Subsidiary of the Borrower organized under the laws of the United States of America
or any State thereof.

 

“Effective
Date”: April 22, 2015.

 

“Employee
Benefit Plan”: an employee benefit plan within the meaning of Section 3(3) of ERISA maintained, sponsored or contributed
to by the Borrower.

 

“Environmental
Laws”: all applicable laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or
binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation
or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety
matters.

 

“ERISA”:
the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate”:
any trade or business (whether or not incorporated) that, together with the Borrower or any Subsidiary, is treated as a single
employer under Section 414(b) or 414(c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code,
is treated as a single employer under Section 414 of the Code.

 

“ERISA Event”
means (i) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder
with respect to a Plan (other than an event for which the 30-day notice period is waived); (ii) the existence with respect to
any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (iii) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for
a waiver of the minimum funding standard with respect to any Plan; (iv) the 

 

    	 	3	 

     

    

 

incurrence by the Borrower
or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan; (v) the receipt by
the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate
any Plan or Plans or to appoint a trustee to administer any Plan; (vi) the incurrence by the Borrower or any ERISA Affiliate of
any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (vii) the receipt by
the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate
of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

 

“Event
of Default”: any of the events specified in Section 8.01.

 

“FATCA”:
Sections 1471 through 1474 of the Code and any current or future United States Treasury Regulations or official interpretations
thereof, any agreement entered into thereunder and any law implementing any applicable intergovernmental agreement entered into
in respect thereof, and any related provisions of law, court decisions or administrative guidance.

 

“Fees”:
as defined in Section 2.06(a).

 

“Federal Funds
Effective Rate”: for any day, a rate per annum (expressed as a decimal, rounded upwards, if necessary, to the next higher
1/100 of 1%) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve
System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day, provided that if the day for which such rate is to be determined is not a Business Day, the Federal Funds
Effective Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next
succeeding Business Day.

 

“Financial
Statements”: as defined in Section 4.10.

 

“First Year Anniversary Date”: as
defined in Section 2.03(a).

 

“Funding
Call”: as defined in Section 6.09.

 

“GAAP”:
generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and in the statements and pronouncements of the Financial Accounting Standards
Board or in such other statement by such other entity as may be approved by a significant segment of the accounting profession,
which are applicable to the circumstances as of the date of determination, consistently applied.

 

“Governmental
Authority”: the government of the United States of America, any other nation or any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

    	 	4	 

     

    

 

“Guarantee”: the
Subsidiary Guarantee.

 

“Guarantors”: collectively, the
Subsidiary Guarantors.

 

“Hazardous
Materials”: all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature (or any extract, component or derivative thereof)
regulated pursuant to any Environmental Law, including, but not limited to, (i) those substances, materials, and wastes listed
in the United States Department of Transportation Hazardous Materials Table (49 CFR 172.101) or by the Environmental Protection
Agency as hazardous substances (40 CFR Part 302) and amendments thereto and replacements thereof and (ii) any substance, pollutant
or material defined as, or designated in, any Environmental Law as a “hazardous substance,” “toxic substance,”
“hazardous material,” “hazardous waste,” “restricted hazardous waste,” “pollutant,” “toxic
pollutant” or words of similar import.

 

“Indebtedness”:
as to any Person, at a particular time, all items which constitute, without duplication, (i) indebtedness for borrowed money
or the deferred purchase price of Property (other than payables incurred in the ordinary course of business), (ii) indebtedness
evidenced by notes, bonds, debentures or similar instruments, (iii) obligations with respect to any conditional sale or title retention
agreement, (iv) indebtedness arising under acceptance and letter of credit facilities and the amount available to be drawn under
all letters of credit issued for the account of such Person, (v) all liabilities secured by any Lien on any Property owned by such
Person (other than landlords’, carriers’, warehousemen’s, mechanics’, repairmen’s or other like non-consensual statutory Liens
arising in the ordinary course of business with respect to obligations which are not past due), (vi) all guarantees or other liabilities
with respect to any Indebtedness of any other Person and (vii) all lease obligations which are required to be capitalized under
GAAP.

 

“Indemnified
Taxes”: as to any Person, any Tax, except (i) a Tax imposed on or measured by the income or profits of such Person; (ii)
any interest, fees or penalties for late payment thereof imposed on such Person; (iii) any U.S. federal withholding tax resulting
from a failure by any Person to provide to the Borrower, (A) on or before the date on which such Person becomes a party to the
Agreement, a properly completed applicable IRS Form W-9 or W-8 (together with appropriate attachments and, if applicable, a certificate(s)
establishing that such Person is entitled to an exemption for portfolio interest under Section 881(c) and/or Section 871(h) or
(B) any other documentation prescribed by law or reasonably requested by Borrower, properly completed and executed, as will permit
payments made to such Person to be made without or at a reduced rate of withholding; (iv) if such Person is a Lender, U.S. federal
withholding Taxes imposed on amounts payable to or for the account of such Lender pursuant to a law in effect on the date on which
such Lender becomes a party to this Agreement; and (v) any U.S. federal withholding Taxes imposed under FATCA.

 

“Intellectual Property”: as defined
in the Security Agreement.

“Letter of Intent” as defined in
Section 3.02.

 

    	 	5	 

     

    

 

“Lien”:
with respect to any asset, (i) any mortgage, deed of trust, lien (statutory or other), pledge, hypothecation, encumbrance,
deposit or other preferential arrangement, charge or security interest in, on or of such asset, (ii) the interest of a vendor or
a lessor under any conditional sale agreement, capital lease or title retention agreement relating to such asset and (iii) in the
case of securities, any purchase option, call or similar right of a third party with respect to such securities.

 

“Loan Documents”:
collectively, this Agreement, the Note, the Guarantee, the Security Agreement, the Warrant and any other document delivered
pursuant to this Agreement.

 

“Loan”:
as defined in Section 2.01.

 

“Make Whole Fee”: as defined in
Section 2.03(a).

 

“Management
Agreement”: the Management Agreement dated as of February 15, 2012, as amended, restated or otherwise modified from time
to time, among the Borrower, Mistral Holdings and Mistral Capital Management, LLC.

 

“Management
Fees”: means all fees, charges and other amounts (including salaries and any other compensation such as bonuses, pensions
and profit sharing payments) payable to Mistral Capital Management, LLC pursuant to the Management Agreement, provided, that the
foregoing shall not include any expenses that are reimbursable to Mistral Capital Management, LLC in accordance with the Management
Agreement.

 

“Managing
Person”: with respect to any Person that is (i) a corporation, its board of directors, (ii) a limited liability company,
its board of control, managing member or members, (iii) a limited partnership, its general partner, (iv) a general partnership
or a limited liability partnership, its managing partner or executive committee or (v) any other Person, the managing body thereof
or other Person analogous to the foregoing.

 

“Margin Stock”:
any “margin stock”, as defined in Regulation U of the Board of Governors of the Federal Reserve System, as the same
may be amended or supplemented from time to time.

 

“Massage Envy
Transaction”: (i) the acquisition of certain assets of the Borrower and/or its Subsidiaries by Massage Envy Spa, (ii)
an investment in the Capital Stock of the Borrower by Massage Envy Spa or (iii) a substantially similar transaction to either of
the foregoing.

 

“Material
Adverse Change”: any event, development or circumstance that has had or reasonably could be expected to have a Material
Adverse Effect.

 

“Material
Adverse Effect”: a material adverse effect on (i) the business, assets, operations or condition, financial or otherwise,
of the Borrower and its Subsidiaries, taken as a whole, (ii) the ability of the Borrower to perform any of its obligations under
any Loan Document or (iii) the rights of or benefits available to the Lender under any Loan Document.

 

    	 	6	 

     

    

 

“Maturity
Date”: the date occurring on the second anniversary of the Effective Date, or such earlier date on which the outstanding
Loan shall become due and payable, whether by acceleration or otherwise.

 

“Mistral Holdings”:
Mistral Spa Holdings, LLC, a Delaware limited liability company.

 

“Moody’s”: Moody’s
Investors Service, Inc.

 

“Multiemployer Plan”:
a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Note”: as
defined in Section 2.02.

 

“Obligations”:
(i) the due and punctual payment of (A) principal of and premium, if any, and interest (including interest accruing during
the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable
in such proceeding) on the Loan, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise, and (B) all other monetary obligations, including fees, commissions, costs, expenses and indemnities, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Borrower
or any other Credit Party to the Lender, or that are otherwise payable to the Lender, under this Agreement and the other Loan Documents,
and (ii) the due and punctual performance of all covenants, agreements, obligations and liabilities of the Borrower or any other
Credit Party under or pursuant to this Agreement and the other Loan Documents.

 

“Operating
Agreement”: the Fourth Amended and Restated Limited Liability Company Operating Agreement of the Borrower dated as of
the Effective Date, as amended, restated or otherwise modified from time to time.

 

“Organizational
Documents”: as to any Person which is (i) a corporation, the certificate or articles of incorporation and by-laws of such
Person, (ii) a limited liability company, the certificate of formation or articles of organization and the limited liability company
agreement or similar agreement of such Person, (iii) a partnership, the partnership agreement or similar agreement of such Person,
or (iv) any other form of entity or organization, the organizational documents analogous to the foregoing.

 

“Other Taxes”:
any and all current or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that
arise from any payment made hereunder or from the execution, delivery, registration or enforcement of, or any amendment, supplement
or modification of, or any waiver or consent under or in respect of, the Loan Documents or otherwise with respect to, the Loan
Documents.

 

“PBGC’: the
Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

 

“Permitted
Liens”: as defined in Section 7.02.

 

    	 	7	 

     

    

 

“Person”:
any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

 

“Plan”:
any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower, any Subsidiary or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA.

 

“Property”:
all types of real, personal, tangible, intangible or mixed property.

 

“Regulation
T”: Regulation T of the Board of Governors of the Federal Reserve System of the United States of America as from time
to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation
U”: Regulation U of the Board of Governors of the Federal Reserve System of the United States of America as from time
to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Regulation
X’: Regulation X of the Board of Governors of the Federal Reserve System of the United States of America as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

 

“Revenues”:
the revenues, of Borrower and its Subsidiaries on a Consolidated basis, in accordance with GAAP.

 

“S&P”: Standard & Poor’s
Ratings Group, Inc.

“Security Agreement”: as defined in Section 2.07.

 

“Subsidiary”:
any corporation or other Person, at least a majority of the outstanding Capital Stock of which is owned (either directly or
indirectly) by the Borrower.

 

“Subsidiary
Guarantee”: as defined in Section 2.08. “Subsidiary Guarantors”: as defined in Section 2.08.

 

“Taxes”:
any and all current or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

 

“USA Patriot
Act”: the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, as amended.

 

“Warrant”: as defined in Section
2.08.

 

“Withdrawal
Liability”: liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

    	 	8	 

     

    

 

Section 1.02   
 Principles of Construction

 

The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will
” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise,
(a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented or otherwise modified, (b) any reference herein
to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof
and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed
to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights and (f) whenever any “consent” or “written
consent” is required under this Agreement, such consent may be provided by electronic correspondence or any method of notice
permitted by Section 9.02.

 

Section 1.03
    Accounting Terms; GAAP

 

Except
as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time, provided that, if the Borrower notifies the Lender that the Borrower requests an amendment
to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof
on the operation of such provision (or if the Lender notifies the Borrower that the Lender requires an amendment to any provision
hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change
shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. Unless
the context otherwise requires, any reference to a fiscal period shall refer to the relevant fiscal period of the Borrower.

 

ARTICLE 2. AMOUNT AND
TERMS OF THE LOAN

 

Section 2.01    
Loan

 

Subject to the terms
and conditions of this Agreement, the Lender agrees to make a loan (the “Loan’) to the Borrower through a single advance
on the Effective Date in an amount equal to the Commitment Amount.

 

Section 2.02    
Note

 

The Loan shall be evidenced
by a promissory note of the Borrower, substantially in the form of Exhibit A, (as indorsed or modified from time to time, including
all replacements thereof and substitutions therefor, the “Note”), payable to the order of the Lender and representing
the 

 

    	 	9	 

     

    

 

obligation of the Borrower to pay the aggregate outstanding principal balance of the Loan, with interest thereon as prescribed
in Section 3.01.

 

Section 2.03  
   Payments of the Loan

 

(a)       Voluntary
Prepayments. The Borrower may, at its option, prepay the Loan in full or in part at any time and from time to time by notifying
the Lender in writing not later than the date of such prepayment specifying the principal amount of the Loan to be prepaid and
the date of prepayment. Each such notice shall be irrevocable and the amount specified in each such notice shall be due and payable
on the date specified. Each partial prepayment of the Loan pursuant to this Subsection shall be in an aggregate principal amount
of $100,000 or an integral multiple of $50,000 in excess thereof, or, if less, the outstanding principal balance of the Loan.
In the event any such prepayment that is not in connection with the Massage Envy Transaction occurs before the date that is one
year following the Effective Date (the “First Year Anniversary Date”), Borrower shall pay (i) a premium of four
percent (4%) of the outstanding principal amount of the Loan subject to such prepayment plus (ii) the remaining Base Monthly Interest
and the Accrued Monthly Interest that would have been due and payable with respect to such prepaid principal amount of the Loan
for the period between the date following such prepayment and the First Year Anniversary Date (the payment described in this clause
(ii), the “Make Whole Fee”). In the event that Borrower prepays the Loan in connection with the Massage Envy
Transaction within ninety (90) days following the Effective Date, the Borrower shall pay the outstanding principal balance of
the Note (without any premium) plus the Make Whole Fee. In the event Borrower prepays the Loan in full on or after the First Year
Anniversary Date and before the date that is fifteen (15) Business Days prior to the Maturity Date, Borrower shall pay a premium
of four percent (4%) of the outstanding principal amount of the Note that is so prepaid. Notwithstanding anything to the contrary
in the foregoing or in any other Loan Document, there shall be no premium or penalty payable by Borrower in the event that Borrower
either (y) prepays the Loan in full on or after the date that is fifteen (15) Business Days prior to the Maturity Date and before
the Maturity Date or (z) repays the Loan in full on the Maturity Date.

 

(b)       In
General. Simultaneously with each prepayment of the Loan, the Borrower shall prepay all accrued and unpaid interest on the
amount prepaid through the date of prepayment.

 

Section 2.04     Treatment
and Application of Payments

 

(a)       Each
payment, including each prepayment, of principal and interest on the Loan, and of all fees to be paid to the Lender in connection
with this Agreement (the “Fees”) shall be made by the Borrower prior to 1:00 p.m. on the date such payment is
due, in lawful money of the United States, in funds immediately available to the Lender and without set-off or counterclaim, at
the Lender’s office set forth in Section 9.02 or such other location as the Lender shall instruct the Borrower in writing. The
failure of the Borrower to make any such payment by such time shall not constitute a Default, provided that such payment
is made on such due date, but any such payment made after 1:00 p.m. on such due date shall be deemed to have been made prior to
1:00 p.m. on the next Business Day for the purpose of calculating interest.

 

    	 	10	 

     

    

 

(b)       If
any payment shall be due and payable on a day which is not a Business Day, the due date thereof shall be extended to the next Business
Day and interest shall be payable at the applicable rate specified herein during such extension, provided that if such next
Business Day is after the Maturity Date, any such payment shall be due on the immediately preceding Business Day.

 

Section 2.05    
Use of Proceeds

 

The
Borrower agrees that the proceeds of the Loan shall be used solely, directly or indirectly, (i) to refinance existing indebtedness
of the Borrower, (ii) for the payment of certain fees and expenses in connection with the transactions contemplated by this Agreement
relating to the Loan, (iii) for working capital and (iv) for general corporate purposes. Notwithstanding anything to the contrary
contained in any Loan Document, the Borrower agrees that no part of the proceeds of the Loan will be used, directly or indirectly,
for a purpose which violates any law, rule or regulation of any Governmental Authority, including, without limitation, the provisions
of Regulations T, U or X of the Board of Governors of the Federal Reserve System, as amended.

 

Section 2.06    
Guarantee

 

All obligations of
the Borrower hereunder shall be unconditionally, jointly and severally guaranteed by each wholly-owned Active Domestic Subsidiary
of the Borrower (each a “Subsidiary Guarantor” and collectively, the “Subsidiary Guarantors’) pursuant
to the terms of a Guarantee Agreement in the form of Exhibit B (as the same may be amended, supplemented or otherwise modified
from time to time, the “Subsidiary Guarantee”).

 

Section 2.07    
Security Agreement

 

All obligations of
the Borrower hereunder and of the Subsidiary Guarantors under the Subsidiary Guarantee shall be secured pursuant to the terms of
a Security Agreement in the form of Exhibit C (as the same may be amended, supplemented or otherwise modified from time to time,
the “Security Agreement”).

 

Section 2.08    
Warrants

 

In connection with
the funding of the Loan on the Effective Date, and for no additional consideration, the Borrower shall issue a Warrant to the Lender
in the form of Exhibit D (as the same may be amended, supplemented or otherwise modified from time to time, the “Warrant”).

 

Section 2.09    
Conversion

 

At any time after the
date that is ninety (90) days following the Effective Date, the Lender shall have the right, but not the obligation, to convert
all or a portion of the outstanding principal amount of the Loan, up to an amount equal to Three Million Dollars ($3,000,000),
into common units of the Borrower on the terms and conditions set forth in the Note. Following any such conversion and notwithstanding
anything to the contrary in any Loan Document, the outstanding principal amount of the Loan shall automatically be reduced by an
amount equal to the portion of the principal amount of the Loan subject to such conversion.

 

    	 	11	 

     

    

 

ARTICLE 3. INTEREST,
FEES, ETC.

 

Section 3.01     
Interest Rate and Payment Dates

 

(a)       Prior
to Maturity. Except as otherwise provided in Section 3.01(b), prior to maturity, the outstanding principal balance of the
Loan shall bear interest at the rate of twelve percent (12%) per annum. Interest only on the Loan shall be payable monthly as
follows: (i) ten percent (10%) annual interest, calculated on a monthly basis, which shall be payable in arrears on the last Business
Day of each month (the “Base Monthly Interest”) plus (ii) two percent (2%) annual interest, calculated on a monthly
basis, which shall accrue monthly and become due and payable on the first and second anniversaries of the Effective Date (the
“Accrued Monthly Interest”).

 

(b)       Default
Rate. Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of Default, then, so long
as such Event of Default is continuing, all principal of the Loan and each fee and other amount then due and payable by the Borrower
hereunder (whether at the stated maturity thereof, by acceleration or otherwise) shall bear interest at a rate per annum equal
to six percent (6.00%) plus the rate otherwise applicable to the Loan.

 

(c)       In
General. All interest hereunder shall be computed on the basis of a year of 360 days, and in each case shall be payable for
the actual number of days elapsed (including the first day but excluding the last day).

 

Section 3.02
    Fees

 

The Borrower agrees
to pay to the Lender a fee of $120,000, half of which was paid in connection with the signing of that certain letter of intent
between the Borrower and the Lender, dated as of March 17, 2015 (the “Letter of Intent”) and the balance of which
shall be due and payable on the Effective Date.

 

Section 3.03     Taxes;
Net Payments

 

(a)       All
payments by or on account of the Borrower under any Loan Document to the Lender shall be made free and clear of, and without any
deduction or withholding for or on account of, any and all present or future Taxes, except if required by applicable law, rule,
regulation, order, directive, treaty or guideline. If the Borrower or any other Person is required by any law, rule, regulation,
order, directive, treaty or guideline to make any deduction or withholding in respect of any Tax from any amount required to be
paid by the Borrower to the Lender under any Loan Document (each, a “Required Payment”), then (i) the Borrower shall
notify the Lender of any such requirement or any change in any such requirement as soon as the Borrower becomes aware thereof,
(ii) the Borrower shall be entitled to make such deduction or withholding and shall pay such Tax to the relevant Governmental Authority
prior to the date on which penalties attach thereto, such payment to be made (to the extent that the liability to pay is imposed
on the Borrower) for its own account or (to the extent that the liability to pay is imposed on the Lender) on behalf and in the
name of the Lender, (iii) if such Tax is an Indemnified Tax or Other Tax, the Borrower shall pay to the Lender an additional amount
such that the Lender shall receive on the due date therefor an amount equal to the Required Payment had no such 

 

    	 	12	 

     

    

 

deduction or withholding
been made or required, and (iv) the Borrower shall, within 30 days after paying such Indemnified Tax or Other Tax, deliver to the
Lender satisfactory evidence of such payment to the relevant Governmental Authority.

 

(b)       The
Borrower shall reimburse the Lender, within 15 days after written demand therefor, for the full amount of all Indemnified Taxes
or Other Taxes paid by the Lender on or with respect to any payment by or on account of any obligation of the Borrower under the
Loan Documents (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this
section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto (other than any such penalties,
interest or expenses that are incurred by the Lender’s unreasonably taking or omitting to take action with respect to such Indemnified
Taxes or Other Taxes), whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender
shall be conclusive absent manifest error. In the event that the Lender determines that it received a refund or credit for Indemnified
Taxes or Other Taxes paid by the Borrower under this section, the Lender shall promptly notify the Borrower of such fact and shall
remit to the Borrower the amount of such refund or credit.

 

Section 3.04    
Lender’s Records

 

The Lender’s records
with respect to the Loan, the interest rates applicable thereto, each payment and prepayment by the Borrower of principal and interest
on the Loan and fees, expenses and any other amounts due and payable in connection with this Agreement shall be presumed correct
absent manifest error.

 

ARTICLE 4. REPRESENTATIONS
AND WARRANTIES

 

In order to induce
the Lender to enter into this Agreement and to make the Loan, the Borrower makes the following representations and warranties to
the Lender:

 

Section 4.01     Subsidiaries;
Capitalization

 

As of the Effective
Date, Schedule 4.01 sets forth the name, jurisdiction of organization or formation and type of organization of each Subsidiary
and the authorized, issued and outstanding Capital Stock of the Borrower and each Subsidiary. Except as set forth on Schedule 4.01,
the Borrower does not have any Subsidiaries. As of the Effective Date, except as set forth on Schedule 4.01, (i) the Borrower has
not issued any securities convertible into, or options or warrants for, any common or preferred equity securities thereof, and
(ii) there are no agreements, voting trusts or understandings binding upon the Borrower with respect to the voting securities of
the Borrower or affecting in any manner the sale, pledge, assignment or other disposition thereof, including any right of first
refusal, option, redemption, call or other right with respect thereto, whether similar or dissimilar to any of the foregoing.

 

Section 4.02     
Existence and Power

 

The Borrower is a duly
formed and validly existing limited liability company, in good standing under the laws of the State of Delaware. Each Domestic
Subsidiary is a duly formed 

 

    	 	13	 

     

    

 

and validly existing limited liability company, in good standing
under the laws of the State of New York. Each of the Borrower and each Domestic Subsidiary has all requisite power and authority
to own its Property and to carry on its business as now conducted, and is in good standing and authorized to do business in each
jurisdiction in which the nature of the business conducted therein or the Property owned by it therein makes such qualification
necessary, except where such failure to qualify could not reasonably be expected to have a Material Adverse Effect.

 

Section 4.03     
Authority and Execution

 

Each of the Borrower
and each Domestic Subsidiary has full legal power and authority to enter into, execute, deliver and perform the terms of the Loan
Documents to which it is a party, all of which have been duly authorized by all proper and necessary corporate, partnership or
other applicable action and are in full compliance with its Organizational Documents. Each of the Borrower and each Domestic Subsidiary
has duly executed and delivered the Loan Documents to which it is a party.

 

Section 4.04     
Binding Agreement

 

The Loan Documents
(other than the Note and the Warrant) constitute, and the Note and the Warrant, when issued and delivered pursuant hereto for value
received, will constitute, the valid and legally binding obligations of each Credit Party, in each case, to the extent it is a
party thereto, enforceable in accordance with their respective terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally.

 

Section 4.05     

Absence of Defaults; No Conflicting Agreements

 

Neither the Borrower,
nor any other Credit Party, is in default under any mortgage, indenture, contract or agreement to which it is a party or by which
it or any of its Property is bound, the effect of which default could reasonably be expected to have a Material Adverse Effect.
The execution, delivery or carrying out of the terms of the Loan Documents will not constitute a default under any such mortgage,
indenture, contract or agreement, or result in the creation or imposition of, or obligation to create, any Lien upon any Property
of the Borrower or any other Credit Party, except for Liens created pursuant to the Loan Documents, or result in a breach of or
require the mandatory repayment of or other acceleration of payment under or pursuant to the terms of any such mortgage, indenture,
contract or agreement.

 

Section 4.06     

Consents

 

No consent, authorization
or approval of, filing with, notice to, or exemption by, any Governmental Authority or any other Person is required to authorize,
or is required in connection with the execution, delivery and performance by any Credit Party of the Loan Documents and the transactions
contemplated thereby, or is required as a condition to the validity or enforceability of the Loan Documents, other than the filing
or amendment of financing statements to perfect the Liens granted to the Lender pursuant to the Security Agreement.

 

    	 	14	 

     

    

 

Section 4.07     

Litigation

 

Except as set forth
on Schedule 4.07, there are no actions, suits or proceedings at law or in equity or by or before any Governmental Authority pending
or, to the knowledge of the Borrower, threatened against any Credit Party, maintained by any Credit Party or which may affect the
Property of any Credit Party, which could reasonably be expected to have a Material Adverse Effect.

 

Section 4.08     
 Compliance
with Applicable Laws

 

Neither the Borrower,
nor any other Credit Party, is in default with respect to any judgment, order, writ, injunction, decree or decision of any Governmental
Authority, which default could reasonably be expected to have a Material Adverse Effect. The Borrower, and each other Credit Party,
is in compliance in all material respects with all statutes, regulations, rules and orders applicable to it, including, without
limitation, Environmental Laws, a violation of which could reasonably be expected to have a Material Adverse Effect.

 

Section 4.09     

Taxes

 

The Borrower has filed
or caused to be filed all tax returns required to be filed and has paid, or has made adequate provision for the payment of, all
taxes shown to be due and payable on said returns or in any assessments made against it, and no tax Liens have been filed and no
claims are being asserted with respect to such taxes.

 

Section 4.10     
 Financial
Statements

 

The Borrower has heretofore
delivered to the Lender its audited Consolidated balance sheet as of December 31, 2014 and the related Consolidated statements
of operations, members’ equity and cash flows for the fiscal year then ended (the “Financial Statements”), which
(a) fairly present the Borrower’s financial condition on such date and results of operations for the year ended on such date, and
(b) have been prepared in conformity with GAAP. Except as reflected in the Financial Statements or in the notes thereto, the Borrower
has no obligation or liability of any kind (whether fixed, accrued, contingent, unmatured or otherwise) which, in accordance with
GAAP, should have been shown on the Financial Statements and was not. Since the date of the Financial Statements, the Borrower
has conducted its business only in the ordinary course and there has been no Material Adverse Change.

 

Section 4.11     Investment
Company Status

 

Neither the Borrower
nor any of the Domestic Subsidiaries are an “investment company” as defined in, or subject to regulation under,
the Investment Company Act of 1940, or is subject to any statute or regulation which prohibits or restricts the incurrence of Indebtedness.

 

Section 4.12     
Federal Reserve Regulations; Use of Loan Proceeds

 

The
Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose
of purchasing or carrying any Margin Stock. No part of the proceeds of the Loan will be used, directly or indirectly, for a purpose
that violates any law, 

 

    	 	15	 

     

    

 

rule or regulation of any Governmental Authority, including, without limitation, the provisions of
Regulations T, U or X of the Board of Governors of the Federal Reserve System, as amended. After giving effect to the making of
the Loan, Margin Stock will constitute less than 25% of the aggregate assets (as determined by any reasonable method) of the Borrower. 

 

Section 4.13     
Property

 

The
Borrower and each Domestic Subsidiary has (i) good and marketable title to all of its Property, title to which is material to it,
and (ii) a valid leasehold interest in all Property, a leasehold interest in which is material to it, in each case subject to no
Liens, except Permitted Liens.

 

Section 4.14     
Plans

 

Neither
the Borrower nor any of its ERISA Affiliates is a party to a Multiemployer Plan. The Borrower and its ERISA Affiliates have fulfilled
all obligations under the minimum funding standards of ERISA and the Code with respect to each Plan established or maintained by
the Borrower or its ERISA Affiliates and with respect to each such Plan are not subject to any material liability to the PBGC under
Title IV of ERISA. With respect to each Employee Benefit Plan, the Borrower is in compliance in all material respects with the
currently applicable provisions of ERISA and the Code.

 

Section 4.15     
Environmental Matters

 

Each
of the Borrower and each Domestic Subsidiary is in compliance with all Environmental Laws and regulations applicable to it or its
business, assets or properties which, if violated, could reasonably be expected to have a Material Adverse Effect.

 

Section 4.16     
Security Interests

 

Subject
to the filing of Uniform Commercial Code financing statements in the applicable filing offices, the payment of the fees in respect
thereof and the filing of continuation statements when required by applicable law, the security interests granted under the Security
Agreement will constitute valid, binding and continuing duly perfected and, other than Permitted Liens, first priority Liens in
and to the Collateral, which shall be subject to no other Liens other than Permitted Liens.

 

Section 4.17     
Intellectual Property

 

To
the best knowledge of the Borrower, the Borrower is the owner of or possesses the right to use all necessary patents, trademarks,
service marks, copyrights and other intellectual property necessary or useful in the operation of its business, in each case free
of any claims or infringements.

 

Section 4.18     
No Misrepresentation

 

No
representation or warranty contained in any Loan Document and no certificate or report from time to time furnished by the Borrower
in connection with the transactions 

 

    	 	16	 

     

    

 

contemplated thereby, contains or will contain a
misstatement of material fact, or, to the best knowledge of the Borrower, omits or will omit to state a material fact required
to be stated in order to make the statements therein contained not misleading in the light of the circumstances under which made,
provided that any projections or pro-forma financial information contained therein are good faith estimates based upon assumptions
believed by the Borrower to be reasonable at the time such estimates are made. 

 

ARTICLE 5. CONDITIONS
TO LOAN

 

Section 5.01      Conditions
Precedent to Effectiveness

 

The effectiveness of
this Agreement, and the obligation of the Lender to make the Loan on the Effective Date, is subject to the fulfillment of the following
conditions prior to or simultaneously therewith:

 

(a)       Evidence
of Action

 

The Lender shall have
received a certificate, dated the Effective Date, of the Secretary or Assistant Secretary or other analogous counterpart of the
Borrower and each of the Subsidiary Guarantors:

 

(i)       attaching
a true and complete copy of the resolutions of its Managing Person and of all documents evidencing all necessary company action
(in form and substance satisfactory to the Lender) taken by it to authorize the Loan Documents to which it is a party and the transactions
contemplated thereby,

 

(ii)       attaching
a true and complete copy of its Organizational Documents,

 

(iii)       attaching
a certificate of good standing of the secretary of state of the state of its formation or incorporation, issued not more than 30
days prior to the Effective Date, and

 

(iv)       setting
forth the incumbency of its officer or officers who may sign the Loan Documents to which it is a party, including therein a signature
specimen of such officer or officers.

 

(b)       This
Agreement

 

The Lender shall have
received counterparts of this Agreement duly executed by an Authorized Signatory of the Borrower.

 

(c)       Note

 

The Lender shall have
received the Note, duly executed by an Authorized Signatory of the Borrower.

 

    	 	17	 

     

    

 

(d)       Security
Agreement

 

The
Lender shall have received the Security Agreement, duly executed by an Authorized Signatory of the Borrower and each Subsidiary
Guarantor, together with such other documents as the Lender may require in connection with the perfection of its security interests
therein.

 

(e)       Subsidiary
Guarantee

 

The Lender shall have
received the Subsidiary Guarantee, duly executed by an Authorized Signatory of the Subsidiary Guarantors.

 

(f)       Officer’s
Certificate

 

The Lender shall have
received a certificate, in all respects satisfactory to the Lender, of an officer of the Borrower, dated the Effective Date, certifying
that:

 

(i)       Absence
of Litigation. There is no injunction, writ, preliminary restraining order or other order of any nature by which the Borrower
is bound or to which any of its Property is subject issued by any Governmental Authority in any respect affecting the transactions
provided for in the Loan Documents and no action or proceeding by or before any Governmental Authority has been commenced against
the Borrower or is pending or, to the knowledge of the Borrower, threatened against the Borrower, seeking to prevent or delay
the transactions contemplated by the Loan Documents or challenging any other terms and provisions hereof or thereof or seeking
any damages in connection therewith.

 

(ii)       Approvals
and Consents. All approvals and consents of all Persons required to be obtained in connection with the consummation by the
Borrower of the transactions contemplated by the Loan Documents have been obtained and are in full force and effect, and all notices
required to be given by the Borrower have been given and all required waiting periods applicable to the Borrower have expired.

 

(iii)       Absence
of Material Adverse Change. No Material Adverse Change in the business, assets, liabilities, financial condition or results
of operations of the Borrower has occurred since the date of the Financial Statements.

 

(iv)       No
Liens other than Permitted Liens. Upon the making of the Loan on the Effective Date, there exist no Liens on any Property
of the Borrower other than Permitted Liens.

 

(g)       Evidence
of Appointment of Bruce Bernstein as Director. 

 

The Lender shall have
received evidence of the appointment of Bruce Bernstein as a member of the Borrower’s Board of Directors.

 

(h)       Amendment
to Operating Agreement.

 

The
Lender shall have received the Fourth Amended and Restated Limited Liability .

 

    	 	18	 

     

    

 

Company
Operating Agreement dated the Effective Date duly executed by an Authorized Signatory of the
Borrower and members of the Borrower representing at least 60% in Interest (as defined in the Operating Agreement), in form and
substance acceptable to the Lender

 

(i)       Fees

 

All Fees owed by the Borrower to the Lender shall
have been paid.

 

(j)       Fees
and Expenses of Lender’s Counsel 

 

The fees and expenses
of the Lender’s counsel in connection with the preparation, negotiation and closing of the Loan Documents shall have been paid.
An invoice for such fees and expenses shall be presented to the Borrower on or before the Effective Date

 

(k)       Other
Documents

 

The Lender shall have
received such other documents, each in form and substance reasonably satisfactory to the Lender, as the Lender shall reasonably
require in connection with the making of the Loan.

 

ARTICLE 6. AFFIRMATIVE
COVENANTS

 

The Borrower agrees
that, so long as this Agreement is in effect, the Loan remains outstanding and unpaid, or any other amount is owing under any Loan
Document to the Lender, the Borrower shall:

 

Section 6.01      Financial
and Other Information

 

Maintain a standard
system of accounting in accordance with GAAP, and furnish to the Lender:

 

(a)       As
soon as available, but in any event within 120 days after the end of each fiscal year, the audited Consolidated and consolidating
balance sheet and related statements of income, shareholders’ equity and cash flows of the Borrower and its Subsidiaries as of
the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported
on by the Accountants (without a “going concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such Consolidated and consolidating financial statements present fairly
in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a Consolidated
and consolidating basis in accordance with GAAP consistently applied;

 

(b)       As
soon as available, but in any event within 45 days after the end of the first three fiscal quarters of each fiscal year, the Consolidated
and consolidating balance sheets and related statements of income and cash flows of the Borrower and its Subsidiaries as of the
end of such fiscal quarter and for then elapsed portion of the fiscal year, setting forth in each case in comparative form the
figures for the corresponding fiscal period of the previous fiscal year, all in reasonable detail and certified by its chief financial
officer as presenting fairly in all material respects the financial condition and results of operations of

 

    	 	19	 

     

    

 

the Borrower
and its Subsidiaries on a Consolidated basis in accordance with GAAP consistently applied, subject to normal year-end adjustments;

 

(c)       As
soon as available, but in any event within 30 days after the end of each month of each fiscal year, the Consolidated and consolidating
balance sheets and related statements of income and cash flows of the Borrower and its Subsidiaries as of the end of such month
and for then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding
fiscal period of the previous fiscal year, all in reasonable detail and certified by its chief financial officer as presenting
fairly in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a Consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end adjustments;

 

(d)       Concurrently
with any delivery of financial statements under Section 6.01(a), 6.01(b) or 6.01(c), a certificate of the President or other Authorized
Signatory of the Borrower in a form that is reasonably acceptable to the Lender (the “Compliance Certificate”) (i)
certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (ii) setting forth (A) in the certificate delivered concurrently with the
financial statements under Sections 6.01(a) or 6.01(b), reasonably detailed calculations demonstrating compliance with Section
7.09 and (B) any change in the Subsidiary Guarantors as of the date of such certificate, and (iii) stating whether any change
in GAAP or in the application thereof has occurred since December 31, 2014 and, if any such change has occurred, specifying the
effect of such change on the financial statements accompanying such certificate;

 

(e)       Prompt
written notice (upon becoming aware thereof) if: (i) any Indebtedness of the Borrower or any Guarantor in excess of $100,000 is
declared or shall become due and payable prior to its stated maturity, or is called and not paid when due, (ii) a default shall
have occurred under any note in excess of $100,000 (other than the Note) or (iii) the holder of, or any obligee with respect to,
any Indebtedness of the Borrower or any Guarantor in excess of $100,000 has the right to declare any such Indebtedness due and
payable prior to its stated maturity;

 

(f)       Prompt
written notice of: (i) any citation, summons, subpoena, order to show cause or other document naming the Borrower a party to any
proceeding before any Governmental Authority that could reasonably be expected to have a Material Adverse Effect or that expressly
calls into question the validity or enforceability of any of the Loan Documents,

(ii)
any lapse or other termination of any material license, permit, franchise or other authorization, or (iii) any refusal by any Person
or Governmental Authority to renew or extend any such material license, permit, franchise or other authorization, which lapse,
termination, refusal or dispute could reasonably be expected to have a Material Adverse Effect;

 

(g)       Prompt
written notice of: (i) any development in its business affairs which could reasonably be expected to have a Material Adverse Effect
on the Borrower, disclosing the nature thereof, and (ii) any information (coming to its attention) which indicates that any financial
statements which are the subject of any representations contained in this Agreement, or which are furnished to the Lender pursuant
to this Agreement, fail, to a material

 

    	 	20	 

     

    

 

extent, to present fairly the financial condition and results of operations purported
to be presented therein, disclosing the nature thereof;

 

(h)       Promptly
following a request therefor, all documentation and other information that the Lender reasonably requests as necessary in order
for it to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and
regulations, including the USA Patriot Act.

 

(i)       Prompt
written notice of the occurrence of an Event of Default or Default hereunder, setting forth details of such Event of Default or
Default and the action which is proposed to be taken with respect thereto; and

 

(j)       Promptly following
any request therefor, such other information regarding the operations, business affairs and financial condition of the Borrower
or any Guarantor, or compliance with the terms of the Loan Documents, as the Lender may reasonably request.

 

Section 6.02
     Existence, Maintenance of Properties, Insurance, Licenses

 

At all times (a) preserve
and keep in full force its limited liability company existence and rights; (b) observe and comply in all respects with all laws,
rules and regulations applicable to it, including, without limitation, ERISA and all Environmental Laws, a violation of which could
have a Material Adverse Effect; (c) maintain and preserve all Property necessary in the conduct of its affairs and keep the same
in good repair, working order and condition; (d) keep its insurable Properties adequately insured at all times, by financially
sound and reputable insurers, and maintain such insurance, to such extent and against such risks, as the Lender may from time to
time require or as may be required by law; (e) conduct and operate its affairs in substantially the manner in which they are presently
conducted and operated; and (f) maintain, in full force and effect, all material licenses, franchises, permits, authorizations
and other rights as are necessary for the conduct of its business.

 

Section 6.03     Payment
of Taxes, Indebtedness, etc. 

 

Pay and discharge when
due (i) all taxes, assessments and governmental charges and levies upon, or with respect to the Borrower and upon its Property
prior to the date penalties attach thereto, and (ii) all Indebtedness, obligations and claims for labor, materials and supplies
or otherwise which, if unpaid, might (x) have a Material Adverse Effect, or (y) result in the imposition of a Lien upon any Property,
in each case, unless being contested by the Borrower in good faith by appropriate proceedings, and the Borrower shall have set
aside adequate reserves therefor.

 

Section 6.04     
Maintenance of Records; Inspection

 

At
all times maintain proper books of record and account in which full, true and correct entries are made of all dealings and transactions
in relation to its business and activities and, at all reasonable times during normal business hours and as often as the Lender
may reasonably request upon reasonable notice, permit any Lender representative to visit and inspect any of the properties of the
Borrower, and to make extracts from its books and to discuss its affairs, 

 

    	 	21	 

     

    

 

finances and accounts with its officers and its
independent certified public accountants or other parties preparing statements for or on behalf of the Borrower.

 

Section 6.05     
Use of Proceeds

 

Use
the proceeds of the Loan solely (i) to refinance existing indebtedness of the Borrower, (ii) for the payment of certain fees and
expenses in connection with the transactions contemplated by this Agreement relating to the Loan, (iii) for working capital and
(iv) for general corporate purposes. No part of the proceeds of any Loan shall be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase, acquire or carry any Margin Stock or for any purpose that entails a violation
of any of the regulations of the Board of Governors of the Federal Reserve System of the United States of America, including Regulations
T, U and X.

 

Section 6.06      [Intentionally
Left Blank]

 

Section 6.07      Environmental Matters

 

Take all actions reasonably
necessary to comply in all material respects with all Environmental Laws and regulations applicable to it or its business, assets
or properties, and shall not knowingly permit or suffer any violation of Environmental Laws and regulations by any third party
lessee in connection with the lease of its assets or properties, which Environmental Laws and regulations, if violated, or which
violation, as the case may be, could reasonably be expected to have a Material Adverse Effect.

 

Section 6.08     
Subsidiaries

 

If any wholly-owned
Domestic Subsidiary is formed or acquired after the Effective Date, notify the Lender in writing thereof within ten (10) Business
Days after the date on which such wholly-owned Domestic Subsidiary is formed or acquired and becomes an Active Domestic Subsidiary
and (i) cause such wholly-owned Active Domestic Subsidiary (within ten (10) Business Days of becoming such) to (A) execute and
deliver the Subsidiary Guarantee (or otherwise become a party thereto in the manner provided therein) and (B) become a party to
the Security Agreement and each other applicable security document in the manner provided therein, and (ii) promptly take such
actions to create and perfect Liens on such wholly-owned Active Domestic Subsidiary’s assets to secure the Obligations as the Lender
shall reasonably request.

 

Section 6.09     
Funding Call

 

At any time before
the First Year Anniversary Date, Lender shall have the right but not the obligation, to deliver a written notice to the Borrower
which shall require the Borrower to obtain from its members capital contributions in an aggregate amount not less than (i) $5,000,000
minus (ii) any amounts invested by Our Crowd (or any investment vehicle advised by Our Crowd or its Affiliates) (the “Funding
Call”).

 

    	 	22	 

     

    

 

Section 6.10      Further
Assurances

 

Execute, and shall
cause each Guarantor to, execute any and all further documents, agreements and instruments, and take all such further actions (including
the filing and recording of financing statements, fixture filings, and other documents), that may be required under any applicable
law, or which the Lender may reasonably request, to effectuate the transactions contemplated by the Loan Documents or to grant,
preserve, protect or perfect the Liens created or intended to be created by the Loan Documents or the validity or priority of any
such Lien, all at the expense of the Borrower. The Borrower shall provide to the Lender, from time to time upon request, evidence
reasonably satisfactory to the Lender as to the perfection and priority of the Liens created or intended to be created by the Loan
Documents.

 

Section 6.11     
Director Appointment

 

Maintain Bruce Bernstein’s
appointment as a member of the Borrower’s Board of Directors unless such person dies, is incapacitated, or is otherwise unable
to continue to serve as a member of the Borrower’s Board of Directors.

 

ARTICLE 7. NEGATIVE
COVENANTS

 

The Borrower agrees
that, so long as this Agreement is in effect, the Loan remains outstanding and unpaid, or any other amount is owing under any Loan
Document to the Lender, the Borrower shall not, directly or indirectly, and shall not permit any Subsidiary Guarantor to, directly
or indirectly:

 

Section 7.01      Indebtedness

 

Create,
incur, assume or permit to exist any Indebtedness, except: (i) Indebtedness due under the Loan Documents, (ii) other Indebtedness
to the Lender, Indebtedness of the Borrower incurred to finance the acquisition, construction or improvement of any fixed or capital
assets, including obligations in respect of capital leases, and any Indebtedness assumed in connection with the acquisition of
any such assets or secured by a Lien on any such assets prior to the acquisition thereof (and not created in contemplation of such
acquisition), and Indebtedness secured by a Lien incurred in connection with any conditional sale or other title retention agreement
or a capital lease; provided that (A) such Indebtedness is incurred prior to or within 90 days after such acquisition or
completion of such construction or improvement, (B) such Indebtedness does not exceed the cost of acquiring, constructing or improving
such assets, and (C) both before and after giving effect to the incurrence of such Indebtedness, no Default shall have occurred
and be continuing, (iii) Indebtedness of the Borrower or any of its Subsidiaries in respect of performance bonds, bid bonds, appeal
bonds, surety bonds and similar obligations, in each case provided in the ordinary course of business, (iv) unfunded pension fund
and other employee benefit plan obligations and liabilities to the extent such obligations and liabilities are permitted to remain
unfunded under applicable law, (v) any unsecured Indebtedness not to exceed $1,000,000 at any time outstanding, (vi) Convertible
Notes in an aggregate original principal amount not to exceed $5,000,000 at any time outstanding, (vii) Indebtedness of the Borrower
and/or its Subsidiaries in respect of letters of credit, bank guarantees or similar instruments in the ordinary course of business
relating to leases  

 

    	 	23	 

     

    

 

and any cash collateral provided by the Borrower and/or its Subsidiaries with respect to the foregoing
and (viii) other Indebtedness set forth on Schedule 7.01.

 

Section 7.02
    Liens

 

Create, incur, assume
or suffer to exist any Lien upon any of its Property, whether now owned or hereafter acquired, except: (i) Liens in favor of the
Lender, (ii) Liens for taxes, assessments or similar charges incurred in the ordinary course of business which are not delinquent
or are being contested in good faith by appropriate proceedings, (iii) Liens in connection with workers’ compensation, unemployment
insurance or other social security obligations (but not ERISA), (iv) Liens arising by operation of law such as landlords’, mechanics’,
materialmen’s, carriers’, and warehousemen’s liens incurred in the ordinary course of business which are not overdue by more than
forty-five (45) days or are being contested in good faith by appropriate proceedings, (v) judgment liens in existence less than
45 days after the entry thereof or with respect to which execution has been stayed, (vi) unexercised banker’s Liens, (vii) Liens
on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary (provided that, solely with
respect to this clause (vii), (A) such security interests secure Indebtedness permitted by clause (iii) of Section 7.01, (B) such
security interests and the Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the completion
of such construction or improvement, (C) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or
improving such fixed or capital assets and (D) such security interests shall not apply to any other property or assets of the Borrower
or any Subsidiary), (viii) Liens to the extent arising solely from the filing of protective Uniform Commercial Code financing statements
in respect of equipment leased to the Borrower or any Subsidiary in the ordinary course of its business under true, as opposed
to finance, leases, (ix) Liens securing the performance of bids, trade contracts, leases, statutory obligations, surety and appeal
bonds, performance bonds, and other obligations of like nature, in each case in the ordinary course of business, (x) any interest
or title of a lessor secured by a lessor’s interest under any lease permitted by this Agreement, (xi) easements, zoning restrictions,
rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not
secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary
conduct of the business and (xii) Liens in connection with Indebtedness permitted by Section 7.01(vii) (the Liens described in
the foregoing clauses (i) through (xii), collectively, “Permitted Liens”).

 

Section 7.03     
Sale of Assets, Nature of Business

 

Liquidate, wind up
or dissolve or sell, lease or otherwise dispose of any of its Property, except in the ordinary course of business, or materially
change the nature of its business from that of operating retail establishments (whether as a tenant under an airport concession
lease agreement or otherwise) relating to, or otherwise being engaged in activities relating to, the sale of health and wellness
products or services, except (i) that the Borrower may liquidate, wind up, dissolve or sell all or substantially all of
the Property or Capital Stock of one or more Subsidiary Guarantors; provided that, at the time thereof and immediately after
giving effect thereto, no Default shall have occurred and be continuing, (ii) that any of the Subsidiaries may consummate a DBE
Equity Issuance if in the reasonable business judgment of the Borrower such DBE 

 

    	 	24	 

     

    

 

Equity Issuance is necessary or desirable to further
develop its business operations or to comply with applicable requirements of law and (iii) in connection with the Massage Envy
Transaction.

 

Section 7.04     
Investments

 

(a)       Make
any loan or advance to, or enter into any arrangement for the purpose of providing funds or credit to, or make any other investment,
by capital contribution or otherwise, in or with any Person (each of the foregoing, an “Investment”), except:

 

(i)       Investments
in direct obligations of the United States of America, or in debt Investments which are guaranteed as to both principal and interest
by the full faith and credit of the United States of America, in either case, maturing in twelve months or less from the date of
acquisition thereof;

 

(ii)       Investments
in commercial paper carrying one of the two highest ratings of S & P or Moody’s;

 

(iii)       any
money market account or money market mutual funds;

 

(iv)       normal
business banking accounts and short-term certificates of deposit and time deposits in, or issued by, federally insured institutions;

 

(v)       Investments
made by the Borrower in the Capital Stock of its Domestic Subsidiaries or another Person that becomes a Domestic Subsidiary as
a result of such Investment;

 

(vi)       Investments
existing on the Effective Date as set forth on Schedule 7.04; and

 

(vii)       Investments
in Subsidiaries of the Borrower that are not Domestic Subsidiaries in an aggregate amount not to exceed $2,500,000.

 

Section 7.05     
Compliance with ERISA

 

(i) Terminate, or
permit any ERISA Affiliate to teiminate, any Plan so as to result in any material liability to the Borrower, or (ii) permit, with
respect to any Employee Benefit Plan any prohibited transaction or prohibited transactions under ERISA or the Code, resulting in
any material liability to the Borrower, or (iii) permit to exist any occurrence of any reportable event as defined in Section 4043(c)
of ERISA with respect to a Plan if with respect to such reportable event there is or would be any material liability of the Borrower.

 

Section 7.06
     Restricted Payments

 

Declare
or pay any dividends in cash or otherwise, or set apart any sum for the payment of dividends on, or make any other distribution
by reduction of capital or otherwise in respect of any shares of its stock of any class or any other equity interest or warrant
or right, except that (i) the Borrower may declare and pay dividends with respect to its equity securities payable in additional
shares of its equity securities, (ii) any Subsidiary may declare and pay dividends to
the Borrower or any other Subsidiary and (iii) the Borrower may declare 

 

    	 	25	 

     

    

 

and pay dividends or distributions at such times and in
such amounts as are necessary to permit distributions (which may only be paid so long as no Event of Default under Section 8.01(a)
or 8.01(b) is then outstanding) to allow Borrower’s members to meet their tax obligations on such income in a timely manner.

 

Section 7.07
     Fundamental Changes

 

Merge
into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer,
lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets, except
that, if at the time thereof and immediately after giving effect thereto, no Default shall have occurred and be continuing,
(i) any direct or indirect wholly-owned Subsidiary of the Borrower may merge or consolidate with the Borrower or any other direct
or indirect wholly-owned Subsidiary of the Borrower, provided that (x) the Lender shall have received ten (10) days prior
written notice and (y) in the event of a merger of the Borrower and a wholly-owned Subsidiary, the Borrower shall be the survivor;
(ii) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower or to any other Subsidiary; and
(iii) the Borrower and any Subsidiary Guarantor may liquidate, wind up or dissolve or sell, lease or otherwise dispose of any of
its Property to the extent permitted by Section 7.03.

 

Section 7.08     
Transactions with Affiliates

 

Enter into any transactions,
including without limitation, the purchase, sale or exchange of property or the rendering of any service, with any Affiliate except:
(a) in the ordinary course of and pursuant to the reasonable requirements of its business and upon fair and reasonable terms no
less favorable to the Borrower as would obtain in any arm’s-length transaction with a Person not an Affiliate, (b) the payment
of Management Fees; provided, that, with respect to this clause (b), (i) no Event of Default shall exist at the time of, or would
result from, any such payment that is made in cash (it being understood that if a payment cannot be made in cash as a result of
this proviso, the applicable fee may continue to accrue (without interest) and may be paid at a future time after such applicable
Event of Default has been cured or waived, subject to this proviso), and (ii) the Management Agreement shall not be amended, supplemented,
restated or otherwise modified to increase the amount of Management Fees without the prior written consent of the Lender; (c) the
reimbursement of expenses to Mistral Capital Management, LLC in accordance with the Management Agreement; (d) any equity issuance
of the Borrower to any of its Affiliates, and (e) any transactions in connection with the Convertible Notes.

 

Section 7.09     
Financial Covenants

 

(a)       Permit
unrestricted cash of the Borrower and its Subsidiaries on a Consolidated basis to be an amount less than ten percent (10%) of the
outstanding principal amount of the Loan as of the last day of each fiscal quarter of the Borrower.

 

(b)       Permit
Revenues as of the last day of each fiscal month of the Borrower for twelve consecutive month fiscal period of the Borrower ending
on such last day to be less than $30,000,000.

 

    	 	26	 

     

    

 

Section 7.10      Amendment
of Operating Agreement.

 

Not
amend its Organizational Documents in any manner adverse, or that could reasonably be expected to be adverse, to the Lender, in
its capacity as a holder of common units of the Borrower, except (a) to the extent such modification or amendment is similarly
adverse to all other holders of common units of the Borrower or (b) in its capacity as a lender of the Borrower, without, in each
case of the foregoing clauses (a) and (b), the prior written consent of the Lender.

 

ARTICLE
8. DEFAULT 

 

Section 8.01      Events
of Default

 

Each of the
following shall constitute an “Event of Default” hereunder:

 

(a)       The
failure of the Borrower to make any payment of principal on the Loan on the date when due and payable; or

 

(b)       The
failure of the Borrower to make any payment of interest, Fees, expenses or other amounts payable under any Loan Document which
failure shall have continued unremedied for a period of three Business Days after the date when due and payable; or

 

(c)       The
failure of the Borrower to observe or perform any covenant or agreement contained in Article 7; or

 

(d)       The
failure of any Credit Party to observe or perform any other term, covenant, or agreement contained in any Loan Document to which
it is a party, which failure shall have continued unremedied for a period of 30 days after the occurrence thereof; or

 

(e)       Any
representation, warranty, certification or statement made by any Credit Party (or any of its officers) in any Loan Document to
which it is a party, or in any certificate, financial statement or other document delivered or to be delivered by it pursuant thereto,
shall prove to have been incorrect or misleading in any material respect when made or deemed made; or

 

(f)       (i)
Any Indebtedness of the Borrower or any Subsidiary Guarantor (other than its obligations hereunder) in an amount in excess of $100,000,
whether as principal, guarantor, surety or other obligor (x) shall become or shall be declared to be due and payable prior to the
expressed maturity thereof, or (y) shall not be paid when due or within any grace period for the payment thereof, or (ii) any holder
of any obligation referred to in clause (i) of this Subsection (f) shall have the right to declare such obligation due and payable
prior to the expressed maturity thereof; or

 

(g)       The
Borrower or any Subsidiary Guarantor shall (i) except as permitted by Section 7.03 or 7.07, suspend or discontinue its business,
(ii) make an assignment for the benefit of creditors, (iii) generally not be paying its debts as such debts become due, (iv) admit
in writing its inability to pay its debts as they become due, (v) file a voluntary petition in bankruptcy, (vi) become insolvent
(however such insolvency shall be evidenced), (vii) file 

    	 	27	 

     

    

 

any petition or answer
seeking for itself any reorganization, arrangement, composition, readjustment of debt, liquidation or dissolution or similar relief
under any present or future statute, law or regulation of any jurisdiction, (viii) petition or apply to any tribunal for any receiver,
custodian or any trustee for any substantial part of its Property, (ix) be the subject of any such proceeding filed against it
which remains undismissed for a period of 60 days, (x) file any answer admitting or not contesting the material allegations of
any such petition filed against it or any order, judgment or decree approving such petition in any such proceeding, (xi) seek,
approve, consent to, or acquiesce in, any such proceeding, or in the appointment of any trustee, receiver, sequestrator, custodian,
liquidator, or fiscal agent for it, or any substantial part of its Property, or an order is entered appointing any such trustee,
receiver, custodian, liquidator or fiscal agent and such order remains in effect for 60 days, or (xii) take any formal action
for the purpose of effecting any of the foregoing or looking to the liquidation or dissolution of the Borrower or any Subsidiary
Guarantor; or

 

(h)       (i)
An order for relief is entered under the United States bankruptcy laws, or (ii) any other decree or order is entered by a court
having jurisdiction (A) adjudging the Borrower or any Subsidiary Guarantor bankrupt or insolvent, (B) approving as properly filed
a petition seeking reorganization, liquidation, arrangement, adjustment or composition of or in respect of the Borrower or any
Subsidiary Guarantor under the United States bankruptcy laws or any other applicable Federal or state law, (C) appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Borrower or any Subsidiary Guarantor
or of any substantial part of the Property thereof, or (D) ordering the winding up or liquidation of the affairs of the Borrower
or any Subsidiary Guarantor, and any such decree or order under this clause (ii) continues unstayed and in effect for a period
of 60 days; or

 

(i)       Judgments
or other orders for the payment of money aggregating in excess of $150,000 shall be rendered against the Borrower or any Subsidiary
Guarantor and shall remain unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of 30 days; or

 

(j)       Any
Loan Document shall cease, for any reason, to be in full force and effect, or the Borrower or any obligor thereunder shall so assert
in writing or shall disavow any of its obligations thereunder or hereunder; or

 

(k)       An
ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected
to result in a Material Adverse Effect; or

 

(1)       A
Material Adverse Change shall have occurred; or

 

(m)      A
Change in Control shall have occurred; or

 

(n)      A
Change in Management shall have occurred; or

 

(o)      A
failure by the members of the Borrower to fund any Funding Call on or before the date that is twenty (20) Business Days’ following
the date of delivery of written notice from the Borrower to such members of such Funding Call.

 

    	 	28	 

     

    

 

Section 8.02     
Remedies

 

Upon
the occurrence of an Event of Default or at any time thereafter during the continuance thereof, (a) if such event is an Event of
Default specified in Section 8.01(g) or Section 8.01(h), (i) the Loan, all accrued and unpaid interest thereon and all other amounts
owing under the Loan Documents shall immediately become due and payable, (ii) the Commitment shall immediately terminate and (iii)
the Lender may exercise any and all remedies and other rights provided in the Loan Documents, and (b) if such event is any other
Event of Default, any or all of the following actions may be taken: (i) the Lender may by notice to the Borrower, (x) declare the
Loan, all accrued and unpaid interest thereon and all other amounts owing under any Loan Documents to be due and payable, whereupon
the same shall immediately become due and payable, and (y) declare the Commitment to be immediately terminated, and (ii) the Lender
may exercise any and all remedies and other rights provided in the Loan Documents, presentment, demand, protest and all other notices
of any kind being in each case hereby expressly waived by the Borrower.

 

ARTICLE 9. OTHER PROVISIONS

 

Section 9.01      Modifications; Consents and Waivers; Entire Agreement

 

No
modification or waiver of or with respect to any provision of this Agreement, the Note, or any other agreement, instrument or document
delivered pursuant hereto or thereto, nor consent to any departure by the Borrower from any of the terms or conditions thereof,
shall in any event be effective unless it shall be in writing and signed by the Borrower and the Lender, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on the Borrower
(not otherwise required by the terms hereof) shall, of itself, entitle the Borrower to any other or further notice or demand in
similar or other circumstances. This Agreement embodies the entire agreement and understanding between the Lender and the Borrower
and supersedes all prior agreements and understandings relating to the subject matter hereof, including without limitation, the
Letter of Intent.

 

Section 9.02      Notices

 

All notices, requests,
reports and other communications pursuant to this Loan Agreement shall be in writing, either by letter (delivered by nationally
recognized overnight courier service or sent by registered or certified mail, return receipt requested), facsimile transmission
or other electronic means, addressed as follows:

 

The Borrower:

 

XpresSpa Holdings, LLC

3 East 54th
Street

New York, New York 10022

Attention: Moreton
Binn

Chairman and Chief Executive Officer

Telephone: 212-750-9595

Facsimile: 212-750-8607

E-mail: binn@xpresspa.com

 

    	 	29	 

     

    

 

with a copy to:

 

Mistral Equity Partners, LP

650 Fifth Avenue,
31St Floor

New York, New York 10019

Attention: William Phoenix

Telephone: 212-616-9600

Facsimile: 212-616-9601

E-mail: WPhoenix@mistralequity.com

 

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

 

DLA Piper LLP (US)

1251 Avenue of the Americas, 27th Floor

New York, NY 10020

Attn: Sidney Burke,
Esq.

Telephone: 212.335.4509

Facsimile: 212.884.8729

Email: sidney.burke@dlapiper.com

 

The Lender:

 

Rockmore Investment Master Fund Ltd.

150 East 58th
Street, 281” Floor

New York, New
York 10155

Attention: Bruce Bernstein, Managing Partner

Telephone: 212-258-2301

E-mail: BB@Rockmorecapital.com

 

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

 

Sills Cummis &
Gross P.C.

101 Park Avenue,
28th Floor

New York, New
York 10178

Attention: Brian A. Haskel, Esq.

Telephone: 212-500-1541

Facsimile: 212-643-6500

E-mail: Bhaskel@sillscummis.com

 

Any
notice, request, demand or other communication hereunder shall be deemed to have been given on: (x) the day on which it is sent
by facsimile transmission or other electronic means to such party at its facsimile number or email address specified above (provided
such notice shall be effective only if followed by one of the other methods of delivery set forth herein) or delivered by a nationally
recognized overnight courier service to such party at its address specified above, or (y) on the third Business Day after the
day deposited in the mail, postage prepaid, if sent by mail. Any

 

    	 	30	 

     

    

 

party hereto may change the Person, address
or facsimile number to whom or which notices are to be given hereunder, by notice duly given hereunder; provided that any
such notice shall be deemed to have been given hereunder only when actually received by the party to which it is addressed.

 

Section 9.03 Successors
and Assigns; Participation; Pledge

 

(a)       This
Agreement shall be binding upon and inure to the benefit of the Borrower, the Lender, all future holders of the Note and their
respective successors and permitted assigns, except that the Borrower may not assign or transfer any of its rights under this
Agreement without prior written consent of the Lender.

 

(b)       The
Lender shall have the right at any time or from time to time, with the prior written consent of the Borrower (such consent not
to be unreasonably withheld or delayed), to assign all or any portion of its rights and obligations hereunder to one or more Lenders
or other financial institutions (each, an “Assignee”); provided that no consent of the Borrower shall be required
if an Event of Default has occurred and is continuing, and the Borrower agrees that it shall execute or cause to be executed,
such documents, including, without limitation, amendments to this Agreement and to any other documents, instruments and agreements
executed in connection herewith as the Lender shall deem necessary to effect the foregoing. In addition, at the request of the
Lender and any such Assignee, the Borrower shall issue one or more new promissory notes, as applicable, to any such Assignee and,
if the Lender has retained any of its rights and obligations hereunder following such assignment, to the Lender, which new promissory
notes shall be issued in replacement of, but not in discharge of, the liability evidenced by the promissory note held by the Lender
prior to such assignment and shall reflect the amount of the respective commitments and loans held by such Assignee and the Lender
after giving effect to such assignment. Upon the execution and delivery of appropriate assignment documentation, amendments and
any other documentation required by the Lender and which is reasonable acceptable to the Borrower in connection with such assignment,
the payment by the Assignee of the purchase price agreed to by the Lender, and such Assignee, and the recordation of the assignment
in the Register pursuant to Section 9.03(e), such Assignee shall be a party to this Agreement and shall have all of the rights
and obligations of the Lender hereunder (and under any and all other guaranties, documents, instruments and agreements executed
in connection therewith) to the extent that such rights and obligations have been assigned by the Lender pursuant to the assignment
documentation between the Lender and such Assignee, and the Lender shall be released from its obligations hereunder and thereunder
to a corresponding extent. The Borrower may furnish any information concerning the Borrower in its possession from time to time
to prospective Assignees, provided that the Lender shall require any such prospective Assignees to agree in writing to maintain
the confidentiality of such information pursuant to a confidentiality agreement reasonably acceptable to the Borrower.

 

(c)       The
Lender shall have the unrestricted right at any time and from time to time, and without the consent of, or notice to, the Borrower,
to grant to one or more Lenders or other financial institutions (each, a “ParticiPant’) participating interests in
the Lender’s obligation to lend hereunder and/or any or all of the Loan held by the Lender hereunder. In the event of any such
grant by the Lender of a participating interest to a Participant, whether or not upon notice to the Borrower, the Lender shall
remain responsible for the performance of its obligations hereunder and the Borrower shall continue to deal solely and directly
with the Lender

 

    	 	31	 

     

    

 

in connection with the Lender’s rights
and obligations hereunder, the Lender may furnish any information concerning the Borrower in its possession from time to time
to prospective Participants, provided that the Lender shall require any such prospective Participant to agree in writing
to maintain the confidentiality of such information pursuant to a confidentiality agreement reasonably acceptable to the Borrower.

 

(d)       The
Lender may at any time pledge all or any portion of its rights under the Loan Documents including any portion of any Note to any
of the twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341. No such
pledge or enforcement thereof shall release the Lender from its obligations under any of the Loan Documents.

 

(e)       The
Lender, as agent for the Borrower, shall maintain at its address referred to in Section 9.02 a copy of the documents evidencing
each assignment and a register for the recordation of the names and addresses of the Lenders and principal amount of the Loan
owing to, each Lender from time to time (the “Register”). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Borrower and the Lenders may treat each Person whose name is recorded
in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the
Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.

 

Section 9.04      No
Waiver; Cumulative Remedies

 

No failure to exercise
and no delay in exercising, on the part of the Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right.

 

Section
9.05       Survival of Representations and Warranties and Certain Obligations

 

(a)       All
representations and warranties made hereunder and in any document, certificate or statement delivered pursuant hereto or in connection
herewith shall survive the execution and delivery of this Agreement, the Note and the other Loan Documents.

 

(b)       The
obligations of the Borrower under Sections 3.03 and 9.06 shall survive the payment of the Loan and all other amounts payable under
the Loan Documents. The Lender’s determination of any amount or amounts owed by the Borrower to it under any such Section shall
be presumed correct absent manifest error.

 

Section 9.06      Costs;
Expenses and Taxes; Indemnification

 

(a)       The
Borrower agrees to pay or reimburse all reasonable out-of-pocket costs and expenses of the Lender in connection with the preparation,
negotiation, administration and enforcement of this Agreement, the Note, and the other instruments and documents to be delivered
hereunder including, without limitation, the reasonable fees and out-of-pocket expenses of legal counsel, independent public accountants
and other outside experts retained by the Lender in connection with the enforcement of the Agreement, the Note and the other instruments
and documents to be delivered thereunder. In addition, the Borrower shall pay any

 

    	 	32	 

     

    

and all stamp and other excise taxes,
if any, payable or determined to be payable in connection with the execution and delivery of this Agreement, the Note and the
other instruments and documents to be delivered hereunder or the consummation of the transactions contemplated hereby.

 

(b)       The
Borrower agrees to indemnify the Lender and its directors, officers, employees and agents against, and on demand for, any and
all liabilities, obligations, losses, damages, penalties, actions, judgments, costs, expenses or disbursements of an kind or nature
whatsoever which may at any time be imposed on, incurred by or asserted against the Lender by any third party relating to or arising
out of this Agreement and any of the documents executed in connection herewith or any actual or proposed use of any proceeds of
the Loan hereunder, provided that the Borrower shall not be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of the Lender. Notwithstanding anything in this Agreement to the contrary, the provisions
of this Section 9.06 shall survive the termination of this Agreement.

 

(c)       To
the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against the Lender and its
directors, officers, employees and agents for any special, indirect, consequential or punitive damages (whether accrued and whether
known or suspected to exist in its favor) arising out of, in connection with, or as a result of, the Loan Documents, the transactions
contemplated thereby, or the Loan or the use of the proceeds thereof

 

(d)       All
amounts due under this Section 9.06 shall be payable promptly but in no event later than thirty days after written demand therefor.

 

Section 9.07      Right
of Set-Off

 

The
Borrower hereby grants to the Lender a Lien, security interest and a right of setoff as security for all liabilities and obligations
to the Lender, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now
or hereafter in the possession, custody, safekeeping or control of the Lender or any entity under the control of Lender or in
transit to any of them. At any time, without demand or notice, the Lender may set off the same or any part thereof and apply the
same to any liability or obligation of the Borrower even though unmatured and regardless of the adequacy of any other collateral
security for the Loans. Any and all rights to require the Lender to exercise its rights or remedies with respect to any other
collateral which secures the Loans prior to exercising its right of setoff with respect to such deposits, credits or other property
of the Borrower, are hereby knowingly, voluntarily and irrevocably waived. The rights of the Lender under this Section 9.07 are
in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Lender may have.

 

Section 9.08      Execution
in Counterparts

 

This Agreement may
be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

    	 	33	 

     

    

 

Section 9.09      GOVERNING
LAW

 

THIS AGREEMENT AND
THE NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES UNDER THIS AGREEMENT AND THE NOTE AND WITH RESPECT TO INTEREST, SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

Section 9.10     JURISDICTION,
ETC. 

 

(a)       EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION
OF ANY NEW YORK STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK COUNTY, NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
TO WHICH IT IS A PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH NEW
YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT
IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN
ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE LENDER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS IN THE COURTS OF ANY JURISDICTION. EACH
PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF ANY COMPLAINT, SUMMONS, NOTICE OR OTHER PROCESS RELATING TO ANY SUCH ACTION
OR PROCEEDING BY DELIVERY THEREOF TO IT BY HAND OR BY MAIL IN THE MANNER PROVIDED FOR IN SECTION 9.02 HEREOF.

 

(b)       EACH
OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY IN ANY NEW YORK STATE OR FEDERAL COURT SITTING IN
NEW YORK CITY. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

    	 	34	 

     

    

 

Section 9.11     WAIVER
OF TRIAL BY JURY.

 

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

 

Section 9.12      Interest
Rate Limitation

 

Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and
other amounts that are treated as interest on such Loan under applicable law (collectively the “charges “), shall
exceed the maximum lawful rate (the “maximum rate”) that may be contracted for, charged, taken, received or reserved
by the Lender in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all of the charges payable in respect thereof, shall be limited to the maximum rate and, to the extent lawful, the interest and
the charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section
9.12 shall be cumulated, and the interest and the charges payable to the Lender in respect of other Loans or periods shall be
increased (but not above the maximum rate therefor) until such cumulated amount, together with interest thereon at the Federal
Funds Effective Rate to the date of repayment, shall have been received by Lender.

 

Section 9.13      Marshaling;
Payments Set Aside

 

The
Lender shall not be under any obligation to marshal any assets in favor of the Borrower or any other Person or against or in payment
of any or all of the Obligations. To the extent that the Borrower makes a payment or payments to the Lender, or the Lender enforces
its Liens or exercises its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant
to any settlement entered into by the Lender in its discretion) to be repaid to a trustee, receiver or any other party in connection
with any proceeding under any federal, state or foreign bankruptcy, insolvency, reorganization, receivership or similar law now
or hereafter in effect, or otherwise, then, to the extent of such recovery, 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.

 

    	 	35	 

     

    

 

Section 9.14      No
Third Parties Benefited

 

This Agreement is
made and entered into for the sole protection and legal benefit of the Borrower and the Lender, and their permitted successors
and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action
or claim in connection with, this Agreement or any of the other Loan Documents. The Lender shall not have any obligation to any
Person not a party to this Agreement or other Loan Documents.

 

Section 9.15      USA
Patriot Act

 

The
Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify
and record information that identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow the Lender to identify the Borrower in accordance with the USA Patriot Act.

 

[Signature
page follows]

 

    	 	36	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed and delivered this Credit Agreement as of the day and year first written above.

 

	 	XPRESSPA HOLDINGS, LLC
	 	 	 
	 	By: 	/s/ Marisol Binn
	 	Name: 	Marisol Binn 
	 	Title: 	President
	 	 	 
	 	ROCKMORE INVESTMENT MASTER FUND LTD.
	 	 	 
	 	By:	/s/ Bruce Bernstein 
	 	Name: 	Bruce Bernstein
	 	Title: 	Managing Partner

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}]]