Document:

Exhibit 10.1

 

EXCHANGE
AGREEMENT

 

THIS
EXCHANGE AGREEMENT (the “Agreement”) is dated as of November 16, 2020, by and between Health-Right Discoveries,
Inc., a Florida corporation (the “Company”), and GPB Debt Holdings II LLC (“Lender”).

 

 WHEREAS:

 

A.       The
Company is indebted to Lender, as evidenced by that certain Senior Secured Promissory Note, dated September 29, 2017, in the original
principal amount of $5,000,000 (the “ Original Note”).

 

B.       The
Original Note matured on September 29, 2020 and has a balance of $5,834,508 due thereunder;

 

C.       The
Company and the Lender have agreed to exchange the Original Note for a (i) a $1,000,000 cash payment upon the execution of this
Agreement; (ii) a new Senior Secured Promissory Note from the Company in the principal amount of $3,500,000, in the form attached
hereto as Exhibit C (the “New Note”); and (iii) such number of shares of the Company’s common
stock, $0.001 par value, which when added to the current number of shares of the Company’s common stock owned by Lender
shall represent twenty five percent (25%) of the fully diluted outstanding securities of the Company on a fully converted basis
(the “Shares”); the New Note and the Shares are collectively referred to herein as the “Securities”).

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree
as follows:

 

1.       Exchanges.

 

1.1       Exchange.
Lender and the Company hereby exchange the Original Note, including all remaining accrued interest thereon, which Original Note
together with all accrued interest thereon, will be immediately cancelled by the Company, for the Securities, without the payment
of any additional consideration. In connection with the issuance of the New Note, the Company shall enter into that certain Amended
and Restated Security Agreement, dated as of November 1, 2020, with Lender (the “Security Agreement”; this
Agreement, the New Note, the Security Agreement together with any documents securing the liens of the Lender thereunder, and any
related documents are hereinafter collectively referred to as the “Transaction Documents”).

 

1.2       Delivery.
In exchange for the Original Note, the Company hereby issues to Lender the Securities and upon execution of this Agreement shall
pay to Lender via wire transfer to the account set forth on Exhibit B hereto a $1,000,000 cash payment.

 

    
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2.         Company
Representations and Warranties.

 

2.1       Authorization
and Binding Obligation. The Company has the requisite power and authority to enter into and perform its obligations under
the Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery
of this Agreement and the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated
hereby and thereby, including, without limitation, the issuance of the Securities and the granting of a first lien, senior security
interest to secure the New Note, have been duly authorized by the Company. This Agreement and each of the Transaction Documents
have been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification
and to contribution may be limited by federal or state securities laws.

 

2.2       No
Conflict. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby and by the Transaction Documents (including, without limitation, the issuance of the Securities)
will not: (i) result in a violation of the organizational documents of the Company; (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party; or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree applicable to the Company or any of its subsidiaries or
by which any property or asset of the Company is bound or affected except, in the case of clause (ii) above, to the extent such
violations that could not reasonably be expected to have a material adverse effect on the Company.

 

2.3       Representations
and Warranties. Except as set forth on Schedule 2.3 hereto, the representations and warranties of the Company set forth
in Section 3.1 of that certain Securities Purchase Agreement, dated September 29, 2017 (the “Purchase Agreement”),
by and between the Company and Lender, are true and correct as of the date hereof.

 

2.4       Capitalization.
Set forth on Schedule 2.4 hereto, is the current capitalization of the Company, which sets forth the issued and outstanding
equity securities, debt securities and all securities convertible or exercisable into equity or debt of the Company. Except as
set forth on Schedule 2.4 hereto, none of the outstanding capital stock of the Company is entitled or subject to any purchase
option, call option, right of first refusal, preemptive right, right of participation, subscription right or any similar right.
The Company is not under any obligation or bound by any contract or agreement pursuant to which it may become obligated (i) to
issue, repurchase, redeem or otherwise acquire any outstanding capital stock of the Company; or (ii) make any investment (in the
form of a loan or capital contribution) in any other entity.

  

3.       Lender
Representations and Warranties. As a material inducement to the Company to enter into this
Agreement and consummate the Exchange, Lender represents, warrants and covenants with and to the Company as follows:

  

3.1       Ownership
of the Original Note. Lender owns the Original Note free and clear of any liens and the Original Note has not been pledged
to any third party. Lender has not sold, assigned, conveyed, transferred, mortgaged, hypothecated, pledged or encumbered or otherwise
permitted any lien to be incurred with respect to the Original Note or any portion thereof. No person other than Lender has any
right or interest in the Original Note.

 

    
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3.2       Proceedings.
To the knowledge of Lender, no proceedings relating to the Original Note are pending or threatened before any court, arbitrator
or administrative or governmental body that would adversely affect Lender’s right and ability to surrender and exchange
the Original Note.

 

3.3       Reliance
on Exemptions. Lender understands that the Securities are being offered and exchanged in reliance on specific exemptions from
the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and Lender’s compliance with, the representations, warranties, agreements and acknowledgments
of Lender set forth herein in order to determine the availability of such exemptions and the eligibility of Lender to acquire
the Securities.

 

3.4       No
Governmental Review. Lender understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

3.5       Validity;
Enforcement. Lender has the requisite power and authority to enter into and perform its obligations under this Agreement and
to exchange the Original Note in accordance with the terms hereof. This Agreement has been duly and validly authorized, executed
and delivered on behalf of Lender and shall constitutes the legal, valid and binding obligations of Lender enforceable against
Lender in accordance with its respective terms, except as such enforceability may be limited by general principles of equity or
to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution
may be limited by federal or state securities laws.

 

3.6       No
Conflicts. The execution, delivery and performance by Lender of this Agreement and the consummation by Lender of the transactions
contemplated hereby will not (i) result in a violation of the organizational documents of Lender; (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Lender is a party;
or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities
laws) applicable to Lender, except in the case of clause (ii) above, for such conflicts, defaults, rights or violations which
would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Lender
to perform its obligations hereunder

 

3.7       Action.
The Lender has taken no action that would impair its ability to exchange the Original Note.

 

3.8       No
Public Sale or Distribution. The Lender is acquiring the Securities for its own account and not with a view towards, or for
resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant
to sales registered or exempted thereunder. The Lender does not presently have any agreement or understanding, directly or indirectly,
with any person to distribute any of the Securities issuable upon conversion thereof, for its own account and not with a view
towards, or for resale in connection with, the public securities in violation of applicable securities laws.

 

    
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3.9       Information.
The Lender and its advisors, if any, are knowledgeable, sophisticated and experienced in making, and Lender is qualified to make
decisions with respect to, investments in shares presenting an investment decision like that involved in the exchange of the Note
for the Securities and have been furnished with all materials relating to the business, finances and operations of the Company
and materials relating to the offer and sale of the Securities which have been requested by the Lender. The Lender and its advisors,
if any, have been afforded the opportunity to ask questions of the Company. The Lender understands that its investment in the
Securities involves a high degree of risk. The Lender has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision with respect to its acquisition of the Securities.

 

3.10       Accredited
Investor. The Lender is an accredited investor pursuant to Rule 501 of Regulation D under the Securities Act of 1933, as amended.

 

3.11       Legend.
Lender acknowledges that (i) the sale and resale of the Securities have not been registered under the Securities Act of 1933,
as amended or any applicable state securities laws, and the Securities may not be transferred unless (a) such securities are sold
pursuant to an effective registration statement under the Securities Act of 1933 Act, as amended or (b) Lender shall have delivered
to the Company an opinion of counsel in form, substance and scope customary for opinions of counsel in comparable transactions
to the effect that the securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration,
the substance of which opinion shall be reasonably acceptable to the Company. Until such time as the Securities have been registered
under the Securities Act of 1933 Act, as amended or may be sold pursuant to an exemption thereunder, the Securities shall bear
a restrictive legend in substantially the following form:

 

“THIS
SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THIS
SECURITY MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER
THE SECURITIES ACT OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS,
THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT, THE SUBSTANCE OF WHICH OPINION SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.”

 

4.       Miscellaneous.

 

4.1       Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement 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 (other than Sections 5-1401 and 5-1402 of New York’s General Obligations Law). The Parties irrevocably
consent to the exclusive jurisdiction and venue of any state or federal court within New York County, New York, in connection
with any matter based upon or arising out of this Agreement or the matters contemplated herein and agrees that process may be
served upon them in any manner authorized by the laws of the State of New York for such persons.

 

4.2       Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of
more than one party, but all such counterparts taken together will constitute one and the same Agreement. Delivery of signatures
by pdf or other electronic transmission shall be legal, valid and binding execution and delivery.

 

    
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4.3       Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

4.4       Severability.
If any provision of this Agreement 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 Agreement so long as this Agreement 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).

 

4.5       Entire
Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between Lender and the Company
with respect to the matters discussed herein including without limitation, the Purchase Agreement, and this Agreement contains
the entire understanding of the parties with respect to the matters covered herein and, except as specifically set forth herein,
none of the Company or the Lender makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be amended other than by an instrument in writing signed by the Company and Lender. No provision
hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought.

 

IN
WITNESS WHEREOF, Lender and the Company have caused this Agreement to be duly executed as of the date first written above.

 

	 	HEALTH-RIGHT DISCOVERIES, INC.
	 	 	 
	 	By:	/s/ David Hopkins
	 	 	David Hopkins, Chief Executive Officer
	 	 	 
	 	GPB DEBT HOLDINGS II LLC 
	 	 	 
	 	By:	/s/ David Gentile
	 	 	Name: David Gentile
	 	 	Title: Manager

 

    
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10.2

 

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

 

	Original
    Issue Date: October 1, 2020	$3,500,000

 

SENIOR
SECURED CONVERTIBLE NOTE

 

THIS
SENIOR SECURED CONVERTIBLE NOTE (the “Note”) is a duly authorized and validly issued Senior Secured Convertible Note
issued by Health-Right Discoveries, Inc., a Florida corporation (the “Company”).

 

FOR
VALUE RECEIVED, the Company promises to pay to GPB Debt Holdings II LLC or its registered assigns (the “Holder”),
the principal sum of $3,500,000 (“Original Principal Amount”) on September 30, 2023 (the “Maturity Date”)
or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest (including
PIK Interest) to the Holder on the aggregate unconverted and then outstanding principal amount of this Note in accordance with
the provisions hereof. This Note is subject to the following additional provisions:

 

Section
1.     Definitions. For the purposes hereof, (a) capitalized terms not otherwise defined herein shall have the meanings
given in the Exchange Agreement, and (b) the following terms shall have the following meanings:

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(e).

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule
l-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company
or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such
case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof
is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d)
the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors, or (f) the Company or any Significant Subsidiary thereof,
by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes
any corporate or other action for the purpose of effecting any of the foregoing.

 

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

 

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

 

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

 

“Cash
Interest” has the meaning set forth in Section 2(a).

 

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

 

“Collateral
Agent” means the agent appointed on behalf of the Purchaser in the Security Agreement.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

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

 

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

 

“Conversion
Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the terms
hereof.

 

“Default
Interest Rate” shall have the meaning set forth in Section 2(b).

 

“Deferred
Cash Interest” has the meaning set forth in Section 2(a).

 

“DWAC”
means the Deposit or Withdrawal at Custodian system at The Depository Trust Company.

 

“Event
of Default” shall have the meaning set forth in Section 7(a).

 

“Exchange
Agreement” means the Exchange Agreement, dated as of November 1, 2020, by and between the Company and the original Holder,
as amended, modified or supplemented from time to time in accordance with its terms.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(e).

 

“Mandatory
Default Amount” means the sum of (a) 120% of the outstanding principal amount of this Note, plus 120% of accrued and unpaid
interest hereon, and (b) all other amounts, costs, expenses and liquidated damages due in respect of this Note.

 

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

 

“Note
Register” shall mean the note register maintained by the Company.

 

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“Notice
of Conversion” shall have the meaning set forth in Section 4(a).”Original Issue Date” means the date of the
first issuance of the Note, regardless of any transfers of the Note and regardless of the number of instruments which may be issued
to evidence the Note.

 

“Permitted
Indebtedness” means (a) Indebtedness outstanding as of the Original Issue Date, including without limitation , the Burroughs
Note, (b) the indebtedness evidenced by the Note, (c) trade debt incurred in the normal course of business, (d) capital lease
obligations and purchase money indebtedness incurred in connection with the acquisition of machinery and equipment and in accordance
with the Security Agreement; and (e) Indebtedness of up to $25,000, including Indebtedness incurred in connection with subsequent
acquisitions, provided such Indebtedness shall not be senior to or pari passu with the Indebtedness evidenced by the Note.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by Law which were incurred in the ordinary course of the Company’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
(c) Liens incurred in connection with Permitted Indebtedness under clauses (a) and (b) of the definition of “Permitted Indebtedness,”
and (d) Liens incurred in connection with Permitted Indebtedness under clause (c) of the definition of “Permitted Indebtedness,”
provided that such Liens are not secured by assets of the Company or its Subsidiaries other than the assets so acquired or leased.

 

“PIK
Interest” has the meaning set forth in Section 2(a).

 

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

 

“Security
Agreement” means the Amended and Restated Security Agreement dated November 1, 2020, by and between the Company and the
Collateral Agent.

 

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

 

“Successor
Entity” shall have the meaning set forth in Section 5(e).

 

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

 

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

 

Section
2.     Interest.

 

(a)       Calculation
of Interest. Interest shall accrue to the Holder on the aggregate unconverted and then outstanding principal amount of
this Note at the rate of (i) 11.5% per annum payable in kind (the “Deferred Interest”), compounded annually by capitalizing
the PIK Interest annually calculated on the basis of a 360-day year, which shall accrue monthly commencing on the Original Issue
Date until April 1; 2021; (ii) 8% per annum (the “Cash Interest”), calculated on the basis of a 360-day year, which
shall accrue monthly commencing on April 1, 2021; and (iii) 3.5% per annum payable in kind (the “PIK Interest”), compounded
annually by capitalizing the PIK Interest annually, calculated on the basis of a 360-day year commencing on April 1, 2021. Unless
otherwise specifically set forth herein, references in this Note to “interest” refer to the Deferred Cash Interest,
Cash Interest and PIK Interest.

 

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(b)       Interest
Following an Event of Default. If an Event of Default has occurred and is continuing, all outstanding principal of and accrued
and unpaid interest on this Note (whether Deferred Cash Interest, Cash Interest or PIK Interest) and any other past due amounts
owing hereunder will bear interest at the amounts specified in Section 2(a) plus 5% percent per annum with respect to each of
clause (i) and (ii) in Section 2(a) (the “Default Interest Rate” ). In the event that such Event of Default is subsequently
cured, the adjustment referred to in the preceding sentence shall cease to be effective as of the calendar day immediately following
the date of such cure; provided that the interest as calculated and unpaid at the Default Interest Rate during the continuance
of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default
through and including the date of such cure of such Event of Default.

 

(c)       Payments.
The Cash Interest shall accrue as provided in Section 2(a) and be paid monthly on the last day of each calendar month until
payment in full of the outstanding principal (or conversion thereof to the extent applicable), together with all accrued and unpaid
interest, liquidated damages and other amounts which may become due hereunder, has been made. The Deferred Interest and the PIK
Interest shall accrue and be capitalized as provided in Section 2(a) and shall be paid, together with all accrued and unpaid Cash
Interest, liquidated damages and other amounts which may become due hereunder, at such time as the outstanding principal (or conversion
thereof to the extent applicable) shall become due and payable in full.

 

(d)       Optional
Prepayment. The Note (including accrued and unpaid interest) may, at the option of the Holder, be prepaid, in whole or in
part, at any time and from time to time prior to the Maturity Date, so long as a minimum of $200,000 is prepaid each time a prepayment
is made. In order to prepay the Note (or any portion thereof), the Company shall provide 30 days prior written notice to the Holder,
during which time the Holder may convert the Note in whole or in part at the Conversion Price. Any prepayments made pursuant to
this Section 2(d) shall be applied first, to accrued and unpaid Cash Interest, second to accrued and unpaid PIK Interest (whether
such PIK Interest has been capitalized or not) and third, to the then aggregate unconverted and outstanding principal amount of
this Note.

 

(e)       Mandatory
Repayment. At any time that available cash held by the Company in its and its subsidiaries’ bank accounts on the last
day of each calendar quarter exceeds $1,000,000, after giving effect to all accruals and expenses accounted for in that calendar
quarter, the Company shall make a payment to Lender of $200,000 until such time as all amounts owed under the Note has been irrevocably
paid to Lender in full. Any payments made pursuant to this Section 2(e) shall be applied to reduction of the then aggregate unconverted
and outstanding principal amount of this Note.

 

Section
3.     Registration of Transfers and Exchanges.

 

(a)       Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations
(of no less than $1,000 in principal amount), as requested by the Holder surrendering the same. No service charge will be payable
for such registration of transfer or exchange.

 

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

 

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

 

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Section
4.     Conversion.

 

(a)       Voluntary
Conversion. After the Original Issue Date until this Note is no longer outstanding, and provided that that the provisions
of Rule 144 under the Securities Act so permit (if applicable), this Note shall be convertible, in whole or in part, at any time,
and from time to time, into shares of Common Stock at the option of the Holder. The Holder shall effect conversions by delivering
to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”),
specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such
date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall
be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire
principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall
have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The
Holder and the Company shall maintain records showing the principal amount(s) converted in each conversion, the date of each conversion,
and the Conversion Price in effect at the time of each conversion. The Company may deliver an objection to any Notice of Conversion
within one Business Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the
Holder shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of
this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.

 

(b)       Conversion
Price. The “Conversion Price” in effect on any Conversion Date means, as of any Conversion Date or other date
of determination , $0.44.

 

(c)       Mechanics
of Conversion or Prepayment.

 

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

 

(ii)         Delivery
of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery
Date”), the Company shall deliver , or cause to be delivered, to the Holder any certificate or certificates required to
be delivered by the Company under this Section 4(c).

 

(iii)        Failure
to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or ce11ificates are not delivered to
or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to
the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event
the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return
to the Company the Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice.

 

(iv)       Partial
Liquidated Damages. ff the Company fails for any reason to deliver to the Holder such certificate or certificates pursuant
to Section 4(c)(ii) by the Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as
a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per Trading Day on the
tenth Trading Day after such Conversion Date) for each Trading Day after such Share Delivery Date until such certificates are
delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or declare
an Event of Default pursuant to Section 7 hereof for the Company’s failure to deliver Conversion Shares or, if applicable,
cash, within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder,
at Law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of
any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable
Law.

 

    5

     

    

 

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

 

(vi)      Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will reserve and keep available out of its authorized
and unissued shares of Common Stock for the purpose of issuances upon conversion of this Note and the issued with this Note, free
from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders
of the Note), not less than the amount of shares of Common Stock as shall from time to time be sufficient to effect the conversion
of the outstanding principal amount of this Note; and if at any time the number of authorized but unissued shares of Common Stock
shall be insufficient to effect such conversion, the Company shall take such corporate action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purpose. The Company covenants that all shares of Common Stock that shall be issuable upon conversion of this Note shall,
upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

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

 

(viii)     Transfer
Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without
charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery
of such ce1tificates, provided that, the Company shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this
Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the Person or Persons
requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same- day processing of
any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing
similar functions) required for same-day electronic delivery of the Conversion Shares.

 

    6

     

    

 

(d)       Holder’s
Conversion Limitations. The Company shall not effect any conversion of this Note, and a Holder shall not have the right to
convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice
of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder
or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).
For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining,
unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise
analogous to the limitation contained herein (including, without limitation, any other Note or the Warrants) beneficially owned
by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 4(d) applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note
is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to
be the Holder’ s determination of whether this Note may be converted (in relation to other securities owned by the Holder
together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership
Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers
a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the
Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following : (i) the Company’s
most recent periodic or annual report filed with the SEC, as the case may be, (ii) a more recent public announcement by the Company,
or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares
of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally
and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares
of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Note, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder,
upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of
this Section 4(d) solely with respect to the Holder’s Note, provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of
Common Stock upon conversion of this Note held by the Holder and the provisions of this Section 4(d) shall continue to apply.
Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The Holder
may also decrease the Beneficial Ownership Limitation provisions of this Section 4(d) solely with respect to the Holder’s
Note at any time, which decrease shall be effectively immediately upon delivery of notice to the Company. The Beneficial Ownership
Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with
the terms of this Section 4(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

 

    7

     

    

 

Section
5.     Certain Adjustments.

 

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

 

(b)       Intentionally
Omitted.

 

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

 

(d)       Pro
Rata Distributions. During such time as this Note is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets or rights or warrants to acquire its assets, or subscribe for or purchase any security other than Common
Stock, to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution
of cash, stock or other securities, property or options by way of a dividend spin-off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Note,
then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would
have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this
Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided,
however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder
exceeding the Beneficial Ownership Limitation with respect to the Company or any other publicly-traded corporation subject to
Section 13(d) of the Exchange Act, then the Holder shall not be entitled to participate in such Distribution to such extent (or
in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of
such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would
not result in the Holder exceeding the Beneficial Ownership Limitation with respect to the Company or any other publicly-traded
corporation subject to Section 13(d) of the Exchange Act).

 

    8

     

    

 

(e)       Fundamental
Transaction. If, at any time while this Note 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, (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 whereby such other Person 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 conversion of this Note,
the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately
prior to the occurrence of such Fundamental Transaction (without regard to any limitation on the conversion of this Note), 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 Note is convertible immediately prior to such Fundamental Transaction
(without regard to any limitation on the conversion of this Note). For purposes of any such conversion, the determination of the
Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Note following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule l3e-3
under the Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a Trading Market, the Company
or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable concurrently with the consummation
of the Fundamental Transaction, purchase this Note from the Holder by paying to the Holder the product of (a) the number of Conversion
Shares issuable upon full conversion of this Note (without regard to any limitation on conversion of this Note) and (b) the positive
difference between the cash per share paid in such Fundamental Transaction minus the then in effect Conversion Price. 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 Note and the other Transaction Documents in accordance with
the provisions of this Section 5(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 of this Note, deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Note which is convertible 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 conversion of this Note (without regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction,
and with a conversion price which applies the Conversion 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 conversion price being for the purpose of protecting the economic value
of this Note 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 Note 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 Note and the other Transaction
Documents with the same effect as if such Successor Entity had been named as the Company herein. Notwithstanding anything in this
Section 5(e), an Exempt Issuance shall not be deemed a Fundamental Transaction.

 

    9

     

    

 

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

 

(g)       Notice
to the Holder.

 

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

 

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

 

Section
6.     Negative Covenants. As long as any portion of this Note remains outstanding, unless the holders of a majority
in principal amount of the then outstanding Note shall have otherwise given prior written consent, the Company shall not, and
shall not permit any of the Subsidiaries to, directly or indirectly other than Permitted Indebtedness, enter into, create, incur,
assume, guarantee or suffer to exist any Indebtedness for borrowed money of any kind, including, but not limited to, a guarantee,
on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits
therefrom;

 

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

 

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

 

    10

     

    

 

amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

(c)       other
than pursuant to an Exempt Issuance, repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis
number of shares of its Common Stock or Common Stock Equivalents other than as to the Conversion Shares or Warrant Shares
as permitted or required under the Transaction Documents;

 

(d)       repay,
repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Note if on a pro-rata basis, other
than regularly scheduled principal and interest payments as such terms are in effect as of the Original Issue Date including,
without limitation, the indebtedness of the Company to Hunter Burroughs included in Permitted Indebtedness, provided that such
payments shall not be permitted if, at such time, or after giving effect to such payment, any Event of Default exist or occur
provided, however, this covenant shall not apply with respect to the exercise of any Holder’s conversion under Section
4;

 

(e)       other
than pursuant to an Exempt Issuance, pay cash dividends or distributions on any equity securities of the Company;

 

(f)        enter
into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with the SEC
assuming that the Company is subject to the Securities Act or the Exchange Act, unless such transaction is made on an arm’s-length
basis and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise
required for board approval) or except for repayment of the indebtedness of the Company to Hunter Burroughs included in Permitted
Indebtedness; or

 

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

 

Section
7.     Events of Default.

 

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

 

(i)          any
default in the payment of (A) the principal amount of any Note or (B) interest, late fees, liquidated damages and other amounts
owing to a Holder on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity
Date or by acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B)
above, is not cured within the greater of three Trading Days or five calendar days;

 

(ii)         the
Company shall fail to observe or perform any other covenant or agreement contained in the Note (other than a breach by the Company
of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (xi) below)
or any Transaction Document which failure is not cured, if possible to cure, within the earlier to occur of (A) 10 Trading Days
after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 20 Trading Days after the Company
has become aware of such failure;

 

(iii)       [RESERVED];

 

(iv)       any
representation or warranty made in this Note, any other Transaction Document, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any other Holder pursuant hereto or
thereto shall be untrue or incorrect in any material respect as of the date when made or deemed made;

 

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

 

    11

     

    

 

(vi)       the
Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced,
any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation
greater than $25,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable and such default
is not cured within 10 Trading Days;

 

(vii)      once
listed or quoted, the Common Stock shall not be eligible for listing or quotation for trading on its Trading Market for a period
longer than 10 Trading Days;

 

(viii)     the
Company shall have consummated a Change of Control Transaction or/Fundamental Transaction without the Lead Investors consent without
paying in full all amounts owed under the Note at or prior to such consummation;

 

(ix)        a
final judgment for the payment of money aggregating in excess of $25,000 is rendered against the Company and/or any of its Subsidiaries
and which judgment is not, within 45 days after the entry thereof, bonded, discharged or stayed pending appeal, or is not discharged
within 60 days after the expiration of such stay; provided, however, any judgment that is covered by insurance or an indemnity
from a credit-worthy party will not be included in calculating the amount of the judgment so long as the Company provides the
Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to
the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company or such Subsidiary (as the
case may be) will receive the proceeds of such insurance or indemnity within 30 days of the issuance of such judgment; or

 

(x)         the
Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company’s intention
to not honor requests for conversions of any Note in accordance with the terms hereof.

 

(b)       Remedies
Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Note, plus accrued but unpaid
interest (including Cash Interest and PIK Interest), liquidated damages and other amounts owing in respect thereof through the
date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the Mandatory Default
Amount. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed
by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives,
any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace
period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable Law. Such
acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights
as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 7(b). No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

(c)       Interest
Rate Upon Event of Default. Commencing on the occurrence of any Event of Default and until such Event of Default is cured,
this Note shall accrue interest at an interest rate equal to the Default Interest Rate.

 

(d)       Conversion
Price Upon Event of Default. Commencing on the occurrence of any Event of Default, all amounts due under the Note shall be
increased by 20%.

 

Section
8.     Miscellaneous.

 

(a)       No
Rights as Stockholder Until Conversion. This Note does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the conversion hereof other than as explicitly set forth in Section 4.

 

    12

     

    

 

(b)       Notices.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by Federal Express or similar receipted next business day delivery, as follows:

 

	If
                                         to the Company:

         

         

         
	Health-Right
Discoveries, Inc.

18851 NE 29th Avenue, Suite 700

        Aventura,
Florida 33180

        Telephone
No.: (305) 705-3247

        Facsimile
No.:

        Attention:
David Hopkins, President

        E-mail:
        dhopkins@health-right.com 

	 	 
	with
    a copy to:	

        

        Gutierrez
Bergman Boulris, PLLC

        901
Ponce De Leon Blvd., Suite 303

        Coral
Gables, FL 33140

        Telephone
No.: (305) 358-5100

        Facsimile
No.: (888) 281-1829

        Attention:
Dale S. Bergman, Esq.

        E-mail:
        dale.bergman@gbbpl.com

	 	 
	If
    to Holder:	GPB
Debt Holdings II LLC

        535
West 24th Street, 4th Floor

        New
York, NY 10011

        Telephone
No.:

        Facsimile
No.:

        Attention:
Evan Myrianthopoulos

        E-mail:
        emyrian@gpb-cap.com

	 	 
	With
    a copy to: 	Gracin
& Marlow, LLP

        The
Chrysler Building

        405
Lexington Avenue, 26th Floor

        New
York, New York 10174

        Telephone
No.: (212) 907-6457

        Facsimile
No.: (212) 208-4657

        Attention:
Leslie Marlow, Esq.

        E-mail:
        lmarlow@gracinmarlow.com

 

or
to such other address as any of them, by notice to the other may designate from time to time. Time shall be counted to, or from,
as the case may be, the date of delivery.

 

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

 

(d)       Lost
or Mutilated Note. If this Note shall be mutilate d, lost, stolen or destroyed, the Company shall execute and deliver, in
exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or
destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt
of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.
The applicant for a new Note under such circumstances shall also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of the new Note.

 

    13

     

    

 

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

 

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

 

(g)       Severability.
If any provision of this Note is invalid , illegal or unenforceable, the balance of this Note shall remain in effect, as long
as the essential terms and conditions of this Note for each party remain valid, binding, and enforceable. If it shall be found
that any interest or other amount deemed interest due hereunder violates the applicable Law governing usury, the applicable rate
of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable Law.

 

(h)       Remedies,
Characterizations, Other Obligations. Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Transaction Documents at Law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts
set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the
amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of
the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at Law for any such breach would be inadequate. The Company therefore agrees
that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is reasonably requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions
of this Note.

 

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

 

    14

     

    

 

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

 

	 	HEALTH-RIGHT DISCOVERIES INC.
	 	 	 
	 	By: 	/s/ David
    Hopkins
	 	 	David Hopkins, President

 

    15

     

    

 

ANNEX
A

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Senior Convertible Note due October 31, 2023 issued by Health-Right Discoveries,
Inc., a Florida corporation (the “Company”), into shares of common stock (the “Common Stock”), of the
Company according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name
of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged
to the bolder for any conversion, except for such transfer taxes, if any.

 

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

 

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

 

Conversion
calculations:

 

	 	Date to Effect Conversion:
	 	 
	 	If yes, $_____ of Interest Accrued on Account
    of Conversion at Issue.
	 	 
	 	Number of shares of Common Stock to be issued:
	 	 
	 	Signature:
	 	 
	 	Name:
	 	 
	 	DWAC Instructions:
	 	 
	 	Broker No:
	 	Account No:

 

    16

     

    

 

Schedule
1

 

CONVERSION
SCHEDULE

 

The
Senior Convertible Note due on November 1, 2023 in the original principal amount of $3,500,000 is issued by Health-Right Discoveries,
Inc., a Florida corporation. This Conversion Schedule reflects conversions made under Section 4 of the above referenced Note.

 

Dated:

 

	Date
                                         of 

                                         Conversion (or

                                         for first entry, 

                                         Original Issue 

                                         Date)
	 Amount
                                         of 

                                         Converted 

                                         Principal
	 Aggregate
                                         Principal 

                                         Amount Remaining 

                                         Subsequent to 

                                         Conversion

        (or
        original Principal 

        Amount)
	 Applicable
                                         

                                         Conversion Price
	 Company
                                         Attest

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    17

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